I have written previously about the five
core requirements that must be addressed for any IoT application to work in
reality.
By the way, most people call IoT the
Internet of Things, but I call it the Internet of Thinking, because it opens up
tremendous new possibilities for human thought.
As I talk to people around the industry
about how companies are seeking to IoT-enable their businesses, these five
topics stand firm as the recipe for enabling remote collection and activation
of otherwise “dumb” devices.
When you closely examine the
interdependencies of these elements, you realize that they often invert conventional
thinking and logic around managing complex systems.
Most organizations have evolved over time
with the fundamental understanding that centralization drives higher levels of
control and predictability. The notion of fewer variables led to the conclusion
that risks could be managed more effectively, and efficiently.
In the world of technology-enabled business
processes, that’s what drove the creation of centralized “data centers” to
house the computers and the storage arrays that processed data and produced
essential information and services. It’s also what drove organizational design
that placed accountability for performance of processes into the hands of
designated experts.
Simplistically, the model was to leverage
the precious computing power, and talent, that was organized and managed
centrally.
In an IoT world we can anticipate a massive
explosion in the volume of information collected and/or generated by myriad
devices. The act of transporting that information to a point of central
processing will be arduous and cost-prohibitive. In fact, it’s likely that not
all the information being generated needs to be processed; some of it will be
noted and discarded.
This will give rise to some exciting new
information models and services that enable the IoT model of operation.
Imagine that a device (i.e. a refrigerator,
dog house, or fence camera) not only has the smarts to detect, recognize, and
collect information, but also has the computing capacity to process that information.
And, make decisions or take actions as a result. This is known as edge
computing, where the first-line processing of the information occurs in a
distributed manner. No longer will the information be transported to some
central computational utility; it will be analyzed and evaluated by the edge
devices themselves. With resulting
actions potentially initiated autonomously.
This capability will rely on a material
reduction in the costs, power requirements, and physical profile of the edge
devices. If Rover is wearing an IoT collar, it will need to be small,
lightweight, and not reliant on power cords.
Venture funding is already supporting such
innovations. According to a recent report from research firm International Data
Corp., the market for IoT devices and services will nearly triple to $1.7
trillion by 2020. Plus, a few weeks ago
Freescale Semiconductor announced the world’s smallest single chip module for IoT applications. Follow
the money.
Taken together with the shift that many
companies are making towards off-premise cloud-based computing and storage
services, the IoT rush to the edge has the potential to turn traditional data
center and IT service management models upside–down.
Peter
Allen has many years of operating experience as a top executive
and strategic advisor for companies of all shapes and sizes, with focus on
technology-enabled business services. He is now a Boston-based Managing
Director at Alvarez & Marsal.
Image:
Andreas-photography/Flickr
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