The Internet has had a profound impact on the Global Networked Economy during the last year, with more changes still to come -- as applications expand and evolve. International Data Corporation (IDC) has shared its worldwide Internet of Things (IoT) predictions for 2015.
Their latest forward-looking view provides C-level leaders with insight and perspective on the long-term trends. The IDC research report is designed to help leaders capitalize on emerging market opportunities and plan for future growth.
"The Internet of Things will give IT managers a lot to think about," said Vernon Turner, senior vice president at IDC.
According to the latest IDC assessment, enterprises will have to address every IT discipline to effectively balance the deluge of data from devices that are connected to the corporate network.
In addition, IoT will drive tough organizational structure changes in companies -- allowing innovation to be transparent to everyone, while creating new competitive business models and associated products or services.
Therefore, savvy CIOs and IT managers have already started to plan for the inevitable changes that will occur. Others will follow, eventually, as the impact from IoT gains momentum during the next 12 to 24 months.
IDC Predictions for the Internet of Things
Within the next five years, more than 90 percent of all IoT data will be hosted on telecom and internet service provider platforms, as hybrid cloud computing reduces the complexity of supporting IoT data blending.
Within two years, 90 percent of all IT networks will have an IoT-based security breach, although many will be considered inconveniences. Chief Information Security Officers (CISOs) will be forced to adopt new IoT security policies.
By 2018, 40 percent of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge, of the enterprise network.
Within three years, 50 percent of IT networks will transition from having excess capacity to handle the additional IoT devices to being network constrained with nearly 10 percent of sites being overwhelmed.
By 2017, 90 percent of data center and enterprise systems management will rapidly adopt new business models to manage non-traditional infrastructure and bring-your-own-device (BYOD) categories.
Today, over 50 percent of IoT activity is centered in manufacturing, transportation, smart city, and consumer applications, but within five years all industries will have deployed IoT initiatives.
Competing to build innovative and sustainable smart cities, local government will represent more than 25 percent of all government external spending to deploy, manage, and realize the business value of the IoT by 2018.
By 2018, 60 percent of IT solutions originally developed as proprietary, closed-industry solutions will become open-sourced allowing a rush of vertical-driven IoT markets to form.
Within five years, 40 percent of wearable devices will have evolved into a viable consumer mass market alternative to smartphones, with the potential for enterprise applications.
By 2018, based upon the apparent demographic shifts, 16 percent of the population will be Millennials and will be accelerating IoT adoption due to their reality of living in a connected world.