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13 Key Facts the Channel Should Know About IoT

 
 
By Gina Roos  |  Posted 2016-08-09
 
 
 
 
 
 
 
 
 
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    1 - 13 Key Facts the Channel Should Know About IoT
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    13 Key Facts the Channel Should Know About IoT

    Forget the hype. The internet of things offers significant money-making opportunities for the channel.
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    2 - Big Opportunities in IoT
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    Big Opportunities in IoT

    The number of things connected to the Internet will reach 34.8 billion in 2016 and 50.1 billion by 2020, according to CompTIA. Total services spending for the IoT sector is expected to reach $235 billion by 2016, up 22 percent from 2015, according to Gartner.
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    3 - IoT Initiatives Under Way
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    IoT Initiatives Under Way

    60% of end-user organizations have some type of IoT initiative under way. Funding will come from new budget allocation (45%), existing IT budget (36%), budget repurposed from cost savings (10%) and a combination of sources (7%).
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    4 - Signs of Interest in IoT
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    Signs of Interest in IoT

    Channel firms believe that 10% of their clients are heavily integrating IoT components, 23% are pursuing initial implementation of IoT components, 44% are in the early exploration and education stage, and 22% show no interest.
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    5 - Where the IoT Profits Will Be
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    Where the IoT Profits Will Be

    Channel firms believe IT solution providers/MSPs will profit the most from IoT initiatives (36%), followed by data analytics/big data companies (35%), networking equipment/software firms (34%), device companies (33%) and app developers (30%).
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    6 - Gaining Traction in IoT
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    Gaining Traction in IoT

    39% of channel firms report a significantly more positive view of IoT, 36% have a slightly more positive view and 21% have not changed their views, compared to one year ago.
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    7 - IoT Money Makers in the Channel
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    IoT Money Makers in the Channel

    A little more than a third (36%) of large channel firms are already making money from the IoT, compared with 15% of midsize channel companies and 15% of small channel companies. Looking ahead, 39%, 40% and 25%, respectively, expect to make money in the next 12 months.
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    8 - Popular IoT Channel Offerings
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    Popular IoT Channel Offerings

    The two most popular IoT channel offerings are consulting (40%) and security (36%) services. Others include analytics, managed services, custom apps, reselling and infrastructure services.
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    9 - IoT Benefits for the Enterprise
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    IoT Benefits for the Enterprise

    49% of channel companies said the biggest use potential for IoT is creating new opportunities from connected systems, followed by controlling/monitoring equipment (48%), collecting new data (46%) and gathering contextual information about customers (43%).
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    10 - Channel Benefits
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    Channel Benefits

    Channel firms report the top perceived benefits of IoT include new and better customer experiences (41%), better asset visibility/monitoring (40%), cost savings/higher efficiency (39%), new product/service revenue (37%) and new/better data for decisions (37%).
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    11 - Channel Roadblocks
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    Channel Roadblocks

    55% of channel firms said developing expertise is their top challenge, followed by initial costs (50%), educating customers (51%), choosing a business model (49%), choosing vendors (49%), cash flow considerations (47%) and optimizing sales/marketing.
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    12 - End-User Challenges
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    End-User Challenges

    49% of channel firms perceive cyber-security risks as the top challenge for end users, followed by legacy interoperability (37%), ongoing costs (36%), steep learning curve (36%), quantifying ROI (34%), up-front investment (32%) and the inability to absorb data (21%).
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    13 - Need for IoT Skills
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    Need for IoT Skills

    Less than one-third of channel companies viewed themselves as experts in several areas used for building IoT solutions, including cloud computing, data analysis, storage, networking and security.
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    14 - Split Views on IoT Security
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    Split Views on IoT Security

    49% of channel firms believe security/privacy are primary factors to consider during adoption while 37% said the benefits of connected devices outweigh concerns.
 

The internet of things is more than just hype, and channel companies are already making money from the IoT. In a new survey, CompTIA finds that 23 percent of the U.S. channel companies polled have made money from IoT offerings, up sharply from 8 percent in 2015. Despite challenges, the channel is making progress monetizing the IoT, and they can do it by focusing on the benefits they expect, such as improved customer experience, better asset visibility/monitoring, cost savings/higher efficiency and new product/services revenue, according to the report. The market looks particularly promising in the small- and midsize-business (SMB) space where IoT projects can be too complex to handle internally, said CompTIA. In addition, the IoT leverages skills that solution providers already have. Currently, the two biggest IoT channel offerings are consulting and security. Here are key  takeaways from the survey of 350 channel firms and 512 business and IT executives that show why finding ways to leverage the IoT is apt to prove profitable.