the rise. Machina Research estimates that M2M connections will grow to 18 billion by 2022, up from two billion in 2011.
- Confluence of Low-cost Technologies, Connectivity, Data and Sensors : Declining sensor costs, a dramatic increase in computing and processing power, low-cost data storage and widespread low-cost, high-bandwidth connectivity has brought IoT to a tipping point. For instance, services that require connectivity are becoming affordable as cellular M2M module costs have declined at a rate of 15% per year, and the cost of connectivity has plummeted, with 1GB now costing $ 1.50-1 Aiding the connectivity needs of the exploding universe of smart objects is the new standard Internet Protocol (IPv6), which uses a 128-bit address to offer 340 undecillion (or 3.4 x 1038) unique IP addresses, enough to connect the billions of smart objects that humankind will be using in the years to come.
Issues and Challenges
Notwithstanding IoT’s tremendous potential, organizations must overcome numerous issues and challenges that are inhibiting IoT’s growth. To get grounded in and eventually master IoT, organizations will need to work closely with mature vendors to overcome key hurdles, such as :
- A Lack of Standards and Interoperable Technologies : The
sheer number of vendors, technologies and protocols used by
each class of smart devices inhibits inter-operability. The lack of consensus on how to apply emerging standards and protocols to allow smart objects to connect and collaborate makes it difficult for organizations to integrate applications and devices that use different network technologies and operate on different networks. Further, organizations need to ensure that smart devices can interact and work with multiple services.
- Data and Information Management Issues: Routing, capturing, analyzing and using the insights generated by huge volumes of IoT data in timely and relevant ways is a huge challenge with traditional infrastructures. The sheer magnitude of the data collected will require sophisticated algorithms that can sift, analyze and deliver value from data. As more devices enter the market, more data silos are formed, creating a complex network of connections between isolated data sources. The lack of universal standards and protocols will make it even tougher for organizations to eliminate data silos.
- Privacy and Security Concerns:
Deriving value from IoT depends on the ability of organizations to collect, manage and mine data. Securing such data from unauthorized use and attacks will be a key concern. Similarly, with many devices used for personal activities, many users might not be aware of the types of personally identifiable data being collected, raising serious privacy concerns. And because most devices involve minimal human interference, organizations need
to be concerned about hacking and other criminal abuse. A far bigger potential for risk in the future is a security breach or a malfunctioning device that induces catastrophic failures in the IoT ecosystem.
- Organizational Inability to Manage IoT Complexities :
While IoT offers tremendous value, tapping into it will demand a whole new level of systems and capabilities that can harness the ecosystem and unlock value for organizations. For instance, making sense of the flood of data generated by sensors every millisecond will require strong data management, storage and analytics capabilities. Similarly, policy-makers will need to address data, security and privacy concerns. Organizations will also need to develop skills to preempt potential component failures and replacements, using preventive servicing and maintenance practices to ensure business operations run effectively and efficiently.
The Internet of Things promises to deliver a step change in individuals’ quality of life and enterprises’ productivity. Through a widely distributed, locally intelligent network of smart devices, the IoT has the potential to enable extensions and enhancements to fundamental services in transportation, logistics, security, utilities, education, healthcare and other are%s, while providing a new ecosystem for application development. A concerted effort is required to move the industry beyond the early stages of market development towards maturity, driven by common understanding of the distinct nature of the opportunity. This market has distinct characteristics in the areas of service distribution, business and charging models, capabilities required to deliver IoT services, and the differing demands these services will place on mobile networks. It is hoped that a common understanding of the characteristics of IoT will enable industry stakeholders to collaborate more effectively in order to propel the market forward for the benefit of consumers and society.
PD/April/2016/99 “Easy and difficult things are juat small parts of life, the rest are what have to be done.”