At Advieta IT Solution Pvt. Ltd, our motto is 'Connecting Today, Innovating Tomorrow.' Our inspirational journey is a testament to our unwavering commitment to transforming possibilities into realities. Fueled by a passion for innovation, our team navigates the ever-evolving landscape of IoT with resilience, creativity, and a relentless pursuit of excellence. Together, we forge pathways that connect the world and inspire a future where technological advancements empower positive change. Our journey is a testament to the belief that, through connectivity and innovation, we can shape a better tomorrow for all.
 
The global Internet of Things (IoT) market is projected to grow from $662.21 billion in 2023 to $3,352.97 billion by 2030, at a CAGR of 26.1% during the forecast period.IoT solutions & platforms & services offering solutions such as deployment services, smart cities, integrated solutions, fleet monitoring & analyzing, Agriculture automation & integration, digital twin, edge analytics, HVAC Management, Building management,  etc. Internet of Things Technology functions as a global infrastructure for the information society, enabling advanced services to interconnect things based on existing & evolving communication technologies.It also offers interoperable information & the ability to communicate independently without human intervention.

As a result technology is expected to open up new revenue streams, drive business efficiencies, facilitate new business model, which leads to de carbonisation environment, automate things to reduce unplanned downtimes,improve efficiency & productivity in available resources,  employing digital technology to address various societal challenges like COVID-19 Pandemis, Australia & Amazon wildfire, land slidings, floods, etc.

How has the spending for IT, OT, and IoT software changed in 2023, and how is it expected to evolve in 2024?

General Trends in 2023:

Increased Adoption: The adoption of IoT technologies has been steadily increasing across various industries, driven by the need for improved overall efficiency, productivity, safety, security, automation, and data-driven decision-making.

Convergence of IT and OT: There has been a growing trend of convergence between IT and OT, where traditional operational technologies are integrated with information technologies to create more connected and intelligent systems.

Spending on IT, OT, and IoT Software:

IT Spending: Generally, spending on IT infrastructure and software is influenced by factors such as digital transformation initiatives, cloud adoption, and cybersecurity concerns. The demand for advanced analytics, artificial intelligence (AI), and cybersecurity solutions has likely contributed to increased IT spending.

OT Spending: In operational technology, investments are often directed towards upgrading legacy systems, implementing industrial IoT solutions, and enhancing overall automation. Industry 4.0 initiatives may lead to increased spending on smart manufacturing technologies.

IoT Spending: The IoT market has been expanding with a focus on solutions that enable connectivity, data collection, and analysis. Industries such as healthcare, Manufacturing, logistics, retail, Agriculture and smart cities are likely to invest in IoT to improve processes and services.

Expected Evolution in 2024:

Continued Growth: The overall spending on IT, OT, and IoT software is expected to continue growing in 2024 as businesses increasingly recognize the value of technology in enhancing operational efficiency and competitiveness.

Focus on Security: With the growing number of connected devices, there is an increasing emphasis on cybersecurity. Therefore, a portion of spending is likely to be allocated to securing IoT ecosystems and mitigating cyber threats.

Industry-Specific Investments: Different industries will have varying priorities based on their specific needs. For example, manufacturing may continue to invest in smart factory technologies, while healthcare may focus on IoT for patient monitoring and data analytics.

The Healthcare Industry may see unprecedented growth in the coming year as the last pandemic creates fear & aftermath effects on humans permanently. Major growth in heart attack deaths after pandemic.

  • Heart attack deaths increased by 12% in 2022: Government data (ToI, Published By:Daphne Clarence, Published On: Dec 4, 2023)
  • Cheng’s research documented a nearly 30% increase in heart attack deaths among 25- to 44-year-olds in the pandemic’s first two years. ( STAT, By Associated  Press Aug. 10, 2023)

Innovation in Edge Computing: Edge computing is gaining prominence in IoT architectures, allowing for real-time processing and reduced latency. Investments in edge computing infrastructure and solutions may increase in 2024.

Regulatory Compliance: As IoT adoption increases, there might be an increased focus on complying with data protection and privacy regulations. Investments in solutions that ensure compliance with regulations may be necessary.

What software technology topics have the highest priority for organizations?

Connectivity and Protocols:Prioritizing interoperability and standardization of communication protocols.Investing in technologies that facilitate seamless device connectivity and communication in diverse IoT ecosystems.

Edge Computing and Analytics: Placing emphasis on edge computing to enable real-time data processing and analysis at the source.Implementing advanced analytics to derive meaningful insights from the vast amount of data generated by IoT devices.

Security and Privacy:Addressing cybersecurity concerns by investing in robust security solutions for IoT networks and devices.Ensuring compliance with data protection and privacy regulations to safeguard sensitive information.

IoT Device Management:Streamlining device onboarding, monitoring, and maintenance for efficient lifecycle management.Implementing solutions that enable remote configuration and updates for a large number of connected devices.

Artificial Intelligence and Machine Learning:Integrating AI and ML algorithms for predictive analytics and intelligent decision-making.Leveraging machine learning for anomaly detection, pattern recognition, and optimization of IoT processes.

Blockchain for IoT:Exploring blockchain technology to enhance the security, transparency, and integrity of IoT data transactions.Implementing decentralized ledgers for improved trust and traceability in supply chain and other IoT applications.

5G Integration:Prioritizing the integration of 5G networks to enable high-speed, low-latency communication for IoT devices.Expanding the capabilities of IoT applications through the increased bandwidth and connectivity offered by 5G technology.Big data applications can have edge due to the availability of 5G Networks.

Digital Twins:Implementing digital twins for virtual representation and monitoring of physical assets or processes.Utilizing digital twins to optimize performance, troubleshoot issues, and simulate scenarios for better decision-making.

Sustainability and Energy Efficiency:Incorporating IoT solutions to monitor and optimize energy consumption in various processes.Integrating sustainable practices into IoT deployments to reduce environmental impact.

Human-Machine Interaction:Prioritizing user-friendly interfaces and intuitive interactions between humans and IoT systems.Exploring natural language processing and voice recognition technologies for seamless human-machine communication.

Organizations strategically focus on these IoT software technology topics to harness the full potential of IoT, drive innovation, and stay competitive in their respective industries. The prioritization may vary based on specific business goals, industry regulations, and technological advancements.

Which IoT software and applications trends are on companies’ radars?

  1. IoT in Agriculture:Agriculture was witnessing increased adoption of IoT applications for precision farming, crop monitoring, and livestock management to optimize resource usage and improve yields.
  2. Human-Centric IoT:Human-centric IoT applications, such as wearable devices, smart homes, smart schools, smart retails, smart old homages and healthcare solutions, were gaining attention as companies explored ways to enhance the quality of life and well-being of individuals.
  3. Smart Cities Initiatives:Smart city projects were on the rise, involving IoT applications for urban planning, traffic management, waste management,water management, rain water management  and public services to enhance overall city efficiency and livability.
  4. Supply Chain Optimization:IoT applications for supply chain management were a focus, including real-time tracking, monitoring, and optimization of logistics processes to improve efficiency and reduce costs.
  5. EMS:Energy monitoring applications to monitor, analyze , secure & enhance the overall efficiency of a system by optimizing requirements.
  6. Industry IoT 4.0: Monitoring, analyzing, automizing , edge analysis, business analysis, etc using Industry IoT 4.0 to improve the overall equipment efficiency, Productivity,  improve the performance of humans & machines by optimizing processes. 
  7. IoT in Agriculture Industries: Agriculture  industry management application monitors all parameters of industries like Raw material sourcing fleet, Agri products supply chain fleet, Agri  machines, workcenters, users, workers, Energy, planned & unplanned downtime,etc. to provide real time monitoring with alerts & notification to keep on track production. Application also provides preventive & prescriptive maintenance to all available machines, energy system & fleet.
  8. Oil &  gas Industry: Monitoring fleet, machines, wells, assets at remote places to provide safety & security to all assets, increase efficiency & productivity, reduce downtime by processes automation & adherences. 
  9. Mountains, Mines & Tunnels (Landslides in Mountains, Coal mines, Gold mines, Tunnels, rare mineral mines, etc.): Living & non living being assets tracking at remote hostile places where life is at stake . These applications can monitor all assets, environment, provide preventive & prescriptive insights about environment, weather, Mountains, tunnels & mines physical situation,   create live alerts at local & share detailed insight regularly to the controllers.
  10. Building & HVAC Automation: In building and HVAC automation, IoT applications enhance efficiency by interconnecting sensors and controllers. This enables real-time monitoring of temperature, occupancy, and environmental conditions, optimizing HVAC systems for comfort and energy savings. The centralized IoT platform extends automation to lighting, security, and facility management, ensuring a smarter, sustainable, and energy-efficient built environment.

Who is the primary decision maker when it comes to IoT software?

  •  Primary decision makers may vary organization to organization. But ,C-Level Executives play a vital role in IoT related projects decision making.
  •  Chief Information Officer (CIO): The CIO is often involved in decisions related to IT infrastructure, including IoT software. They focus on aligning technology strategies with overall business goals.
  • Chief Technology Officer (CTO): The CTO may be responsible for evaluating and selecting technology solutions, including IoT software, that align with the company's technological vision and innovation strategy.
  • Chief Operations Officer (COO): In industries with a strong focus on operational efficiency, the COO may be a key decision-maker, especially if IoT applications are intended to optimize business processes.
  • Business Unit Managers:Managers of specific business units may drive IoT software decisions if the applications are tailored to meet the unique needs of a particular department or line of business.


How are IoT software characteristics influencing the decision-making process?

The characteristics of IoT software play a pivotal role in influencing the decision-making process for organizations. The decision-makers evaluate these characteristics based on their specific needs, industry requirements, and the intended use cases for IoT applications. Here are key IoT software characteristics that significantly impact the decision-making process:

Interoperability:Influence on Decision-Making: The ability of IoT software to seamlessly integrate with diverse devices, protocols, and systems is critical. Decision-makers prioritize interoperability to ensure compatibility and ease of implementation within existing infrastructures.

Scalability:Influence on Decision-Making: The scalability of IoT software is crucial for accommodating the growing number of connected devices and expanding use cases. Decision-makers seek solutions that can scale efficiently to support current and future requirements without major disruptions.

Security and Privacy:Influence on Decision-Making: Security is a top priority. Decision-makers assess the robustness of IoT software in terms of data encryption, authentication mechanisms, secure device onboarding, and adherence to privacy regulations. Solutions with comprehensive security features are preferred.

Reliability and Availability:Influence on Decision-Making: Organizations prioritize IoT software that ensures high reliability and availability. Decision-makers look for solutions with minimal downtime, robust failover mechanisms, and the ability to handle data consistently in various conditions.

Data Management and Analytics:Influence on Decision-Making: The capability to efficiently manage, process, and derive actionable insights from vast amounts of data is crucial. Decision makers seek IoT software with advanced analytics, machine learning, and data visualization capabilities to unlock the value of collected information.

Edge Computing Capabilities:Influence on Decision-Making: Edge computing enables real-time processing at the source, reducing latency. Decision-makers favor IoT software with edge computing capabilities for applications where immediate data analysis is essential.

User-Friendly Interfaces:Influence on Decision-Making: Intuitive and user-friendly interfaces are essential for effective user adoption. Decision-makers prioritize IoT software that offers easy configuration, monitoring, and management through accessible interfaces.

Flexibility and Customization:Influence on Decision-Making: Organizations often have unique requirements. Decision-makers value IoT software that allows for customization and flexibility to adapt to specific use cases, industry standards, and evolving business needs.

Cost-Effectiveness:

Influence on Decision-Making: Decision-makers evaluate the total cost of ownership, including initial investment, maintenance, and scalability costs. Cost-effective IoT software that provides a good return on investment is favored.

Compatibility with Legacy Systems:

Influence on Decision-Making: Many organizations have existing legacy systems. Decision-makers look for IoT software that can seamlessly integrate with legacy infrastructure, minimizing the need for extensive modifications.

Regulatory Compliance:Influence on Decision-Making: Compliance with industry regulations and data protection laws is a critical consideration. Decision-makers prioritize IoT software that facilitates adherence to relevant regulatory requirements.

Support and Maintenance:

Influence on Decision-Making: Availability of robust support, regular updates, and maintenance services are crucial. Decision-makers assess the level of support provided by vendors to ensure smooth operations and timely issue resolution.

Understanding and aligning these characteristics with the organization's specific goals and requirements guide decision-makers in selecting the most suitable IoT software for their needs. The optimal choice often involves a balance between these characteristics, considering the unique context of each organization.

What are potential issues when adopting a subscription model?

  • Cost Overruns:Potential for cumulative costs exceeding the budget, especially if usage grows unexpectedly.
  •  Dependency on Vendor:Risks associated with reliance on a single vendor for critical services and potential disruptions if the vendor faces issues.
  • Data Security Concerns:Challenges in ensuring the security and privacy of sensitive data stored or processed by subscription services.
  • Customization Limitations:Restrictions on customization and flexibility compared to self-hosted or owned solutions.
  • Contractual Lock-In:Difficulties in changing vendors or migrating away from a subscription model due to contractual obligations.
  • Service Downtime:Potential disruptions in service availability, affecting business operations during outages or maintenance periods.
  • Limited Control:Reduced control over the underlying infrastructure, software updates, and service configurations.
  • Subscription Fatigue:Potential dissatisfaction among users with ongoing subscription fees, leading to "subscription fatigue."
  • Data Ownership Ambiguity:Issues related to data ownership and retrieval if the subscription is terminated or not renewed.
  • Fluctuating Subscription Costs:Challenges in predicting and managing variable subscription costs, especially with fluctuating usage patterns.
  • Lack of Offline Access:Constraints in accessing services offline, impacting users in environments with limited connectivity.
  • Integration Challenges:Difficulties in integrating subscription services with existing IT infrastructure and other applications.

What issues can break a user–vendor partnership?

A user-vendor partnership can face challenges leading to its breakdown, such as poor communication, improper functional requirements, unmet expectations, quality issues, contractual disputes, and security concerns. Issues like inflexibility, financial instability, and cultural misalignment can strain the relationship. Additionally, ethical concerns, inadequate innovation, and changes in vendor structure can contribute to dissatisfaction. Timely communication, proactive problem-solving, and a commitment to addressing concerns are crucial for maintaining a healthy user-vendor partnership. Persistent challenges may necessitate a reassessment of the partnership or exploration of alternative solutions.

What are typical budget limits for purchasing different types of software licenses?
Budget limits for IoT application software vary depending on factors such as the specific application, vendor, and scale of deployment. Generally, IoT software costs can range from a few thousand to several hundred thousand dollars, considering factors like the complexity of the application, the number of connected devices, and required features. For instance, simple tracking and monitoring applications may have lower costs, while comprehensive industrial IoT solutions with advanced analytics and security features tend to be on the higher end. Additionally, subscription-based models may have monthly fees ranging from a few hundred to several thousand dollars based on the level of service and support. It's essential for organizations to carefully evaluate their IoT needs, consider scalability, and engage in negotiations with vendors to align software costs with their budget constraints.

What are the main procurement channels that companies leverage for different IoT software?
Companies leverage various procurement channels for acquiring IoT software, including direct purchases from vendors, cloud service providers offering IoT solutions, and partnerships with system integrators. Direct purchases involve buying software licenses from IoT vendors, while cloud providers offer scalable IoT platforms as a service. System integrators provide end-to-end solutions, integrating IoT software into existing systems. Additionally, companies may use online marketplaces, engage in consortiums, or collaborate with industry-specific solution providers to procure specialized IoT applications. The choice of procurement channel depends on factors such as the company's expertise, scale, and specific IoT requirements.

How is the spending for the most used IoT software expected to change?

general considerations regarding how spending in this area might evolve based on broader industry trends.

Increased Investment:The demand for IoT software is likely to continue growing as businesses across various sectors recognize the value of IoT in optimizing processes, enhancing efficiency, and enabling data-driven decision-making.

Industry-Specific Applications:Spending on industry-specific IoT software is expected to increase as companies seek tailored solutions for verticals such as manufacturing, healthcare, logistics, and smart cities.

Security Solutions:Given the rising concerns around cybersecurity in IoT ecosystems, there may be an increased focus on investing in security solutions and platforms to protect against potential threats.

Edge Computing Integration:As edge computing gains prominence in IoT architectures, spending on software that facilitates real-time processing and analytics at the edge is likely to see growth.
AI and Analytics Enhancement:Integration of artificial intelligence (AI) and advanced analytics within IoT software is expected to attract investment, enabling organizations to derive meaningful insights and predictions from IoT-generated data.

Cloud-Based IoT Platforms:Spending on cloud-based IoT platforms may continue to rise, as organizations seek scalable and flexible solutions that can handle the increasing volume of data generated by IoT devices.

Focus on Sustainability:With a growing emphasis on sustainability, spending on IoT software that enables energy efficiency, resource optimization, and environmentally conscious practices may see an increase.

Collaboration and Integration Solutions:Companies might invest in IoT software that facilitates seamless collaboration and integration with existing systems, ensuring a cohesive and interconnected IoT ecosystem.

Compliance and Regulation Solutions:Given the evolving landscape of data protection and privacy regulations, there may be increased spending on IoT software that helps organizations ensure compliance with these standards.

User-Friendly Interfaces:Solutions that prioritize intuitive and user-friendly interfaces for managing and monitoring IoT devices and data may attract investment as organizations focus on ease of use.

What are the main payment components for each software and vendor?

The payment components for software and vendors can vary based on the type of software, vendor pricing models, and the specific terms negotiated. Here are the main payment components commonly associated with different software and vendors:

Upfront License Costs:Many software solutions, especially those with perpetual licensing models, require an upfront payment for the purchase of software licenses.

Subscription Fees:Subscription-based software models involve regular recurring payments, typically on a monthly or annual basis, for ongoing access to the software and support.

Cloud-Based Usage Costs:For cloud-based software and services, organizations may incur costs based on actual usage, such as the number of users, data storage, or computational resources consumed.
Maintenance and Support Fees:Software vendors often charge maintenance and support fees, covering updates, patches, and access to customer support services. These fees are commonly expressed as a percentage of the software's license cost.

Implementation and Consulting Costs:Some vendors charge additional fees for the implementation of the software, including customization, integration, and consulting services provided during the deployment phase.

Training Costs:Training services, such as user training or administrator training, may incur additional costs, either bundled with the software purchase or charged separately.

Transaction or Usage Fees:In certain software applications, especially in platforms that facilitate transactions or data processing, vendors may charge fees based on the number of transactions or usage volume.

Customization Charges:Costs associated with customizing the software to meet specific organizational requirements, including tailored features, workflows, or integrations.

Renewal Fees:Subscription-based models often include renewal fees payable at the end of the subscription period to continue using the software and receive ongoing support and updates.

Per-User Licensing Costs:Some software vendors charge on a per-user basis, where the total cost is influenced by the number of individuals accessing or using the software.

Overage Charges:For cloud-based solutions or services with usage limits, additional charges may apply if the usage exceeds the agreed-upon limits.

Hardware Costs (for On-Premises Solutions): If the software requires on-premises hardware, vendors may include hardware costs as part of the overall solution, covering server infrastructure or specialized equipment.

Data Storage Costs:In cloud-based solutions, vendors may charge for additional data storage beyond a certain threshold, influencing costs based on the volume of data stored.

Consultancy and Advisory Services: Vendors may offer additional consultancy or advisory services beyond standard support, and organizations may incur fees for access to expert guidance.

What are the key benefits of IoT implementation in existing systems?

Data Insights: IoT generates vast amounts of data, providing valuable insights into operations, user behavior, and environmental conditions.

Operational Efficiency:Automation and real-time monitoring streamline processes, reducing costs and enhancing overall operational efficiency.
Improved Decision-Making:Data analytics and predictive modeling empower informed decision-making, enabling businesses to respond proactively to changing conditions.

Cost Savings:IoT optimization leads to resource efficiency, cost reductions, and minimized waste, contributing to significant savings.

Enhanced Customer Experience:IoT applications improve customer satisfaction through personalized services, faster response times, and innovative user experiences.

Increased Productivity:Automation and connectivity boost productivity by streamlining workflows and reducing manual intervention in various industries.

Remote Monitoring and Control:IoT enables remote monitoring and control of devices and systems, offering flexibility and convenience in managing operations.

Predictive Maintenance:Sensors and analytics predict equipment failures, allowing proactive maintenance and minimizing downtime.

Energy Efficiency:Smart energy management and monitoring contribute to reduced energy consumption and a more sustainable approach to resource usage.

Safety and Security:IoT enhances safety through real-time monitoring of environments, equipment, and assets, while also providing robust security measures.

Supply Chain Optimization:IoT applications optimize supply chain processes, offering real-time visibility, inventory management, and logistics efficiency.

Healthcare Advancements:In healthcare, IoT facilitates remote patient monitoring, medication adherence, and efficient healthcare delivery.

Environmental Impact:IoT contributes to sustainability efforts by enabling smarter resource usage, waste reduction, and eco-friendly practices.

Smart Cities and Infrastructure:IoT supports the development of smart cities, enhancing urban living through intelligent infrastructure, transportation, and public services.

Innovation and New Business Models: IoT fosters innovation, creating opportunities for new business models, products, and services across various industries.

Conclusion:

In conclusion, the pervasive adoption of IoT is significantly shaping the landscape of both new and existing applications across industries. In new applications, IoT is fueling innovation and creating unprecedented opportunities. From smart cities and healthcare advancements to sustainable energy solutions, the integration of IoT is unlocking new realms of possibility. Its role in building automation, precision agriculture, and edge computing exemplifies how IoT is revolutionizing traditional processes and enhancing operational efficiency.

Simultaneously, in existing applications, IoT is driving a transformative wave. Through retrofitting and integration, IoT breathes new life into legacy systems, enabling businesses to leverage data-driven insights, optimize workflows, and implement predictive maintenance strategies. The retrofitting of manufacturing plants with IoT sensors or the infusion of smart technologies into traditional supply chain models showcases how IoT is rejuvenating established practices.

The overarching trend in IoT usage is one of continuous expansion and integration. As technological advancements in sensors, connectivity, and analytics persist, the versatility and applicability of IoT are bound to grow. The future promises even more interconnected ecosystems, where data-driven decision-making, automation, and enhanced user experiences become ubiquitous. Ultimately, the IoT trend underscores the transformative power of connectivity, offering a dynamic landscape for innovation, efficiency, and improved quality of life. Organizations embracing this trend are poised not only to adapt to the digital age but also to lead in creating a connected and intelligent future.