U.S. Interest in IoT Remains High Amid Questions About 5G

Rhea-AI Summary

ISG Provider Lens™ report reveals that demand for 5G networks in enterprise IoT applications is rising in the U.S., despite concerns over deployment, tower locations, and misinformation. The report emphasizes the need for businesses to ensure strong wireless network quality as older networks are shut down to make way for 5G. While overall IoT deployment slowed in 2020, the manufacturing sector increased spending on IoT outsourcing, and organizations seek help to scale their IoT initiatives. Cybersecurity remains a significant concern, driving enterprises to partner with service providers for better protection.

Positive

• Increased interest in IoT among U.S. enterprises, indicating potential growth.
• Manufacturers are investing more in IoT outsourcing contracts, suggesting a rebound in spending.
• Service providers are enhancing security services within IoT ecosystems, addressing cybersecurity concerns.

Negative

• Concerns about 5G deployment and operational challenges with older network shutdowns.
• Slowed overall IoT deployment in 2020 due to COVID-19 impacts.
• Integration difficulties due to reliance on legacy IT and operational technology systems.

ISG Provider Lens™ report finds demand spurred by smart manufacturing, connected vehicles

STAMFORD, Conn.--(BUSINESS WIRE)-- Interest in using 5G networks for enterprise Internet of Things (IoT) applications is high in the U.S., even though questions remain about the deployment of the latest mobile technology, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2021 ISG Provider Lens™ Internet of Things – Services and Solutions Report for the U.S. sees growing interest in using the IoT in a number of industries, despite continuing concerns about the location of 5G towers, misinformation about health effects, and spotty deployment.

Enterprises, the report says, need to focus on the quality of their wireless networks supporting IoT, as mobile network operators, in a bid to manage costs, often choose to shut down older networks to reallocate available spectrum to 5G. Shuttering events happen on a per-country, per-operator basis, which makes them difficult to manage.

“5G hype is rampant, and not all spectrum types are available in a particular country or on a particular mobile network,” said Ron Exler, principal analyst with ISG Research and author of the report. “Enterprises need to work with their network and IoT providers to manage the selection of replacement technologies in advance of shuttering events, preferably in conjunction with 5G deployment.”

Despite the uncertainty over 5G, U.S. enterprises are showing renewed interest in the IoT and the industrial IoT. “Manufacturers need smart factories and supply chains to keep up with the competition, and consumers are demanding smart, connected vehicles with a focus on user experience,” said Dave Lewis, partner, ISG Manufacturing. “Many organizations already have chosen their IoT platforms and use cases, and are looking to their service providers to help them scale deployments.”

Even though overall deployment of the IoT slowed in 2020, due in part to the impact of COVID-19, smart manufacturing initiatives in the U.S. had been moving forward quickly before the pandemic, and the manufacturing sector increased its spending on IoT outsourcing contracts in the last year, the report says. Outside of manufacturing, spending on IoT outsourcing contracts across industries began to rebound in the fourth quarter of 2020.

Many companies rolling out IoT remain concerned about cybersecurity, and they’re turning to service providers to help them protect the data flowing over IoT systems, the report says.

IoT service providers are building security services into their consulting and managed services engagements, especially those focused on IT and operational technology (OT) convergence, the report adds. Many security services cover the entire IoT ecosystem, from the edge to the cloud to on-premises systems.

Beyond security, convergence of IT and OT systems is a major challenge for enterprises deploying IoT systems, the report says. The use of legacy systems in both worlds can slow down integration and mobility. Service providers are combining their industry expertise and IT proficiencies to develop converged systems.

Service providers are also helping enterprises deploy artificial intelligence in IoT systems, including on the edge, the report adds. AI can help IoT systems better process large volumes of data, and service providers often offer customized AIOps systems for specialized customer needs.

The 2021 ISG Provider Lens™ Internet of Things – Services and Solutions Report for the U.S. evaluates the capabilities of 29 providers across three quadrants: IoT Consulting and Services, Managed IoT Services and Connected Mobility Consulting and Services.

The report names Capgemini, Cognizant, HCL and IBM as Leaders in all three quadrants and Atos, HARMAN, Verizon and Wipro as Leaders in two. Accenture, Bosch, DXC Technology, L&T Technology Services, PwC and Siemens are named Leaders in one quadrant.

In addition, Atos, Cyient, HARMAN, HPE, LTI and L&T Technology Services were named Rising Stars—companies with “promising portfolios” and “high future potential” by ISG’s definition—in one quadrant each.

Customized versions of the report are available from Cyient, HARMAN and L&T Technology Services.

The 2021 ISG Provider Lens™ Internet of Things – Services and Solutions Report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Germany, Switzerland, the U.K., France, the Nordics, Brazil and Australia/New Zealand, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210909005672/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Erik Arvidson, Matter Communications for ISG

+1 617 755 2985

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What is the demand for IoT in the U.S. as per the ISG Provider Lens report?

The report shows rising demand for IoT among U.S. enterprises, particularly in smart manufacturing and connected vehicles.

How has COVID-19 impacted IoT deployment according to Information Services Group?

The overall deployment of IoT slowed in 2020 due to the impacts of COVID-19, although manufacturing initiatives continued.

What cybersecurity concerns are associated with IoT implementation?

Many companies are concerned about cybersecurity and seek service providers to help protect data in IoT systems.

Which companies are identified as leaders in the ISG Provider Lens IoT report?

Capgemini, Cognizant, HCL, and IBM are named as leaders in all three quadrants of the report.

What challenges do enterprises face with 5G deployment for IoT?

Challenges include the quality of wireless networks and the management of older network shutdowns.