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Digital Transformation Strategies Move to the Forefront

At leading multinational corporations, this year will be remembered as a time when board meeting agenda topics were dominated by discussions about the strategic use of business technologies. Meanwhile, savvy IT vendors have developed the offerings required to meet the demands of their most progressive clients.

Executive leaders across the global markets are moving beyond initial proof of concept projects to more scalable Internet of Things (IoT) deployments that incorporate hybrid cloud, big data analytics and associated security capabilities, according to the latest study by International Data Corporation (IDC).

Their worldwide survey -- now in its third year -- explores data and insights from enterprise IT and business decision makers about their perception of IoT -- as well as their early deployments or plans for IoT solutions.

Topics covered in the survey included: levels of enterprise awareness of IoT; current deployment plans; IoT adoption drivers and inhibitors; perceptions of IoT vendors and key selection criteria; organizational factors; and emerging security, cloud, and analytics requirements.

Key findings from the IDC study include:

  • 31.4 percent of organizations surveyed have launched IoT solutions, with an additional 43 percent looking to deploy in the next 12 months.
  • 55 percent of survey respondents see IoT as strategic to their business as a means to compete more effectively.
  • While security and costs are top concerns, the lack of internal skills is now a high-priority for organizations preparing to deploy an IoT solution.
  • Improving productivity, reducing costs, and automating internal processes are seen as key top benefits of an IoT solution.
  • This highlights an internal and operational focus by organizations over the short term as opposed to external, customer-facing benefits.

"Setting strategies, finding budgets, and supporting IoT solutions have contributed to an ongoing tussle between line of business (LOBs) executives and CIOs. However, that race may be over, because in many cases LOBs are now both leading the discussions and either paying in full or sharing the costs of IoT initiatives with the CIOs," said Vernon Turner, senior vice president at IDC.

Market Outlook for Strategic IoT Solutions

According to the IDC assessment, vendors who lead with an integrated 'full-service' cloud and analytics solution are the ones who will be considered as critical strategic partners by clients -- specifically, in their quest to apply an IoT investment with the intent to gain a decisive competitive advantage.

IDC analysts also note that network and traditional IT component hardware vendors are slipping down the charts, as software and systems integrators makes strides in the minds of the primary IoT solution decision makers.

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