Reposted from IoT Analytics
Disclaimer: This article does not provide guidance or intend to compare technical features of different IoT platforms. It looks at the market and compares platforms purely on a market meta level.
Key findings of the IoT Platform Comparison:
In the recent update to our IoT Platform Company List for 2017, we compared more than 450 companies that have an IoT Platform in their offering. After including 260 IoT Platforms in our 2015 analysis and 360 in 2016 analysis, the 450 companies assessed in our latest research set a new record. This IoT Platform comparison looked at 5 types of different IoT platforms:
IoT Platform Comparison Insight 1: Market remains fragmented
Although some firms claim billion-dollar revenue streams through IoT, our IoT Platform Comparison continues to show that these claims are mostly pure marketing. In the last year, we followed-up at least two such claims with larger vendors and found that they claimed new “IoT” revenue that had actually been relabelled from previously existing revenue. Furthermore, the sales figures included expensive hardware equipment and only very little software revenue.
“Half of all IoT Platform companies made less than $1M in 2016”
We believe, only 7% of the 450 IoT Platform companies generated revenues in excess of $10M with their IoT Platforms in 2016. Furthermore, more than half of all companies made less than $1M, most of them smaller startups. The firms leading the pack are mainly made up of large cloud players, legacy device management and connectivity backend platforms as well as a handful of heavily backed Silicon Valley startups that are scaling faster than most of their counterparts around the world. Successful startup examples include predictive analytics firm Uptake and the open Smart Home Platform SmartThings, acquired by Samsung in 2014 and now acting as their subsidiary.
Note: The IoT Platform Revenue was estimated based on various indicators and public announcements. It only includes software generated sales for real IoT deployments, including merely external solutions and not internal deployments e.g., on a company’s own equipment.
IoT Platform Comparison Insight 2: Leading providers are growing at 50%+
The consensus growth estimate for IoT markets, as provided by various analyst firms, lies between 25% and 40% annual growth for the next 5 years. Many of the IoT Platform Companies, however currently report numbers well above the forecast. A few smaller startups have stated that they are currently doubling revenue each year – but even leading providers recently reported growth rates above 50%. Three examples:
IoT Platform Comparison Insight 3: One third of platforms cater to the Industrial / manufacturing segment
There are generally more IoT Platform Companies focusing on Business/Enterprise IoT than Consumer IoT. The most popular segment for IoT Platforms lies in manufacturing and industrial solutions. 32% of the IoT Platform Companies offer solutions for this market including industrial automation firms like Siemens, ABB, Schneider or Bosch but also software vendors like IBM, PTC or Microsoft. Typical supported use cases include production performance management, manufacturing analytics, predictive maintenance and remote service.
The IoT Platform Comparison reveals that the other large segments are Smart Cities (22%), Smart Home (21%) and Energy (21%). Customer Health is the least popular segment for IoT Platforms, with only 5% of all IoT Platforms offering solutions. These results concur with our analysis of the top IoT application areas, in which the 4 leading segments were Connected Industry, Smart City, Smart Energy and Connected Car.
IoT Platform Comparison Insight 4: Increasing M&A activity – 17 deals last year
According to our analysis, the number of new IoT Platform startups reached its peak in 2013, with numbers going down ever since. Startups coming to market in 2016 have a different focus than those that started in 2013 or earlier: Back then many of the startups had a horizontal, cross-industry approach to IoT while nowadays there seems to be a higher numbers of niche IoT Platforms that are specialized by vertical, technology or use case. Examples are: Axonize, an IoT platform for System Integrators or Tachyus, an IoT Platform for the Oil & Gas Industry.
Meanwhile the number of acquisitions in the IoT Platform market is on the rise. 2016 was the first year in which the number of newly acquired companies (17) rose higher than the number of startups we identified (13)*. The deal value of the 6 acquisitions that disclosed the purchasing price lies around $11B.
Most of the acquisitions are performed by tech firms that play in the vicinity of IoT but lack IoT platform capabilities. The acquisition of Cumulocity by Software AG earlier in 2017 is a good example for an analytics and enterprise software focused company completing their offering by acquiring a pure-play IoT Platform vendor.
Our IoT Platform Comparison shows that there are a total of 31 IoT Platform companies, which have been acquired and whose platform is still available today, operating under the original name. Furthermore, there are 21 companies whose platform is no longer available after having been acquired. All acquisitions can be found in a separate tab in our 2017 IoT Platforms Database.
*Note: Many startups only become visible after a few years
IoT Platform Comparison Insight 5: Startup investment remains comparably insignificant
Funding for IoT Platform startups has risen sharply between 2011 and 2016.
“IoT Platform funding is insignificant. Ride sharing platform Uber received 14x more funding in 2016 than all IoT Platforms combined”
However, IoT Platform funding is insignificant compared to mature tech topics. Just consider that in 2016, ride sharing platform Uber received 14x more funding than all IoT platforms combined in the same year ($4.9B vs. $338M). Half of the IoT Platform funding issued in 2017 so far went to two companies (Actility and Uptake). Neither of them are pure-play IoT Platform firms. Actility, a LPWA solution provider that runs the Thingpark platform which caters mostly to Lora deployments, received funding of $50M in April 2017. Cisco investments is one of the named investors.
Uptake, an analytics platform which was founded in 2014, achieved the impressive funding round of $90M in Series B.
Notable investors in the IoT Platform space besides Cisco Investments (e.g., invested in Actility, Ayla Networks, EVRYTHNG, Relayr, Sensity Systems) include Intel Capital, GE Ventures, New Enterprise Associates (NEA) and Kleiner Perkins Caufield & Byers (KPCB).
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This morning, a final ruling took place on the Reyes v. Lincoln Automotive Financial Services case from the Second Circuit. Essentially consumers who have previously opted in to receiving calls from retailers, financial institutions, banks, hospitals and others do not have the right to revoke that opt-in, ouch!
Eric Troutman is a partner at the international law firm Dorsey & Whitney had a few comments regarding this late-breaking decision. "The Second Circuit Court of Appeal held today that contractual consent provisions found in consumer contracts cannot be revoked. This means that once consumers agree to receive phone calls from retailers, banks and finance companies via their acceptance of a consumer contract they cannot stop automated calls," Troutman says. "Most consumer contracts already include those provisions because the TCPA (Telephone Consumer Protection Act) requires express consent before a cell phone can be called with automated technology," Troutman says.
"So called “revocation” TCPA lawsuits have been very popular with the Plaintiff’s bar. In those suits a consumer sues a caller claiming that he or she had asked the calls to stop but they continued. Now that the Second Circuit Court of Appeal has found that contractual consent provisions cannot be revoked, more banks, retailers, hospitals, and even social media companies will use these provisions to assure that they can timely contact their customers on their cell phone using automated technologies. The consumer will not be able to avoid those calls by simply asking for the calls to stop, as had previously been the case.," Troutman says.
Q1 2017 and End of Year Assessment of the “Top 4 Mobile Carriers”
Who is winning and starting the year off right?
It is a busy time of year and we are still playing catch up, so we apologize for the delay in getting this update out. Compass Intelligence just completed the final assessment of Q1 2017 and the evaluation and comparisons to previous quarters in 2016 in terms of improvements and declines. We do this each quarter to understand the subscriber and share changes, as well as evaluate the key trends taking place in the wireless industry for both consumer and B2B. We have been tracking the quarterly metrics since 2007. Some metrics are our own internal modeling and estimates, as the market does not report in all categories. A few highlights from Q1 include:
Below are additional thoughts and insights based on the quarter and annual performance:
Here are recommendations for kick-starting your technology planning and automating your operations and workforce.
The first quarter has ended, but your company has yet to get its arms around how to leverage technology to compete, remain in business and improve the customer experience. Let's explore some key recommendations that all businesses should be considering as they embark on the ever-changing business technology landscape.
Here are five ways to kick-start your thinking, along with recommendations to help you automate your company operations and workforce.
1. Technology planningTechnology plans should focus on at least these three core areas: customers, workforce and operations.
Customers always come first and, of course, some technology areas will definitely overlap (i.e. operations and customers). While you are preparing or evaluating your core technology or IT budget, you must lead with the "why" and the "who" first, making sure you are covering all of your technology bases.
Customer technology may include online and in-store systems, through partners and third parties, and through distributors or wholesale. Each technology path through these channels must be explored in depth: What is working? What isn't? What can be automated? What can be improved? And how does this impact the customer experience (CX)?
To read the rest of this article on CIO.com, please CLICK HERE
Source: AP and Samsung
Below is a quick summary of deals available for customers by the carriers. Highlights of the new S8 include the new Infinity screen, the DeX dock that mirrors your smartphone onto a desktop (think desktop replacement with smartphone, connects to keyboard, display and mouse), Siri like application called Bixby, 5.8 and 6.2 inch models available, 12 megapixel back camera, back fingerprint reader, removal of home button, iris recognition, face recognition (face reader to open device by looking at it), Harman Kardon speakers, dual bluetooth audio, and much more.
A few weeks back, we discussed where we are today with the two waves of "The Connected Vehicle." 1st we focused on bringing WiFi and 4G/LTE to the vehicle. Now let's jump into the power of the Autonomous Vehicle, the 2nd wave.
According to Techopedia, the definition of Autonomous Vehicles is, "An autonomous car is a vehicle that can guide itself without human conduction. This kind of vehicle has become a concrete reality and may pave the way for future systems where computers take over the art of driving. An autonomous car is also known as a driverless car, robot car, self-driving car or autonomous vehicle."
For many out there, these concepts are so far out there that is is challenging to understand what this means to both us as consumers, as well as industry and businesses. Let's call the market AV for short, since we will be discussing scenarios throughout this blog. The AV market has the chance to disrupt industries in the transportation marketplace, as well as disrupt the way goods and services get transported and delivered throughout the world. Before we get too technical, lets focus on what this really means to us as consumers, consumers who drive our vehicles every day to work, school, leisure places, and events.
Below are some real-world scenarios on how AV will impact the consumer, imagine this...
Recent Related News on AV:
For further reading, please check out the related blog regarding the 1st wave of The Connected Vehicle.
For more information, please visit our RESEARCH page to explore other technologies and market indicators.
Written by Stephanie Atkinson, CEO of Compass Intelligence, LLC
Q4 2016 and End of Year Assessment of the “Top 4 Mobile Carriers”
T-Mobile attracts the most customers in 2016 while Verizon excelled in retail churn
All four carriers have finished up their earnings calls, and Compass Intelligence just completed the final assessment of Q4 2016 and the entire 2016 year, and also evaluated the comparisons to previous quarters and 2015/2016 in terms of improvements and declines. We do this each quarter to understand the subscriber and share changes, as well as evaluate the key trends taking place in the wireless industry for both consumer and B2B. We have been tracking the quarterly metrics since 2007. Some metrics are our own internal modeling and estimates, as the market does not report in all categories. A snapshot of Q4 2016 is below.
Compass Intelligence compared last quarter’s results to this quarter to show which metrics showed improvement over others (denoted by + or -).
Below are additional thoughts and insights based on the quarter and annual performance:
As shown above, overall the industry added an estimated 21.5M connections in 2016 compared to 24M connections in 2015, which represents a 5.3% change from 2015. While Verizon ended the year with the most connections at 140.6M connections, T-Mobile lead overall connection adds for the year, adding over 10.2M connections in 2016 where in 2015 AT&T was the leader in overall connection additions. AT&T’s growth was primarily driven by IoT connections, adding an estimated 5.4M connected device connections in 2016. In terms of retail subscribers, the industry growth for the year reached 2.5% adding 7.7M subscribers. For retail subscribers, T-Mobile was the strongest performer adding 4.9M retail subscribers in 2016, followed by AT&T with 2.7M retail subscriber additions in 2016.
To get access to this data in-depth and quarterly, please visit our Quarterly Tracker page for more information.
There will be two huge waves of innovation in the automotive market driven by innovation, connectivity advancements, machine learning, applications (infotainment, diagnostics, and personal experiences), and machine intelligence. The first wave, which is what we are experiencing now but are just breaking the ice is "The Connected Vehicle" wave. Imagine a vehicle that ...
Some of the biggest names are playing in this market...connected vehicle, connected cars, smart cars, automated vehicles, etc. Amazon, AT&T, Blackberry, Ericsson, IBM, Intel, Microsoft, and Sierra Wireless just to name a few are major players in this industry, along with every major automotive manufacturer.
Recent and related news for further reading:
Next week we will talk about the second wave, autonomous vehicles. Stay tuned...
Make sure to check out my earlier post, “Preparing Your Enterprise for IoT and Automation in the Workplace: Part 1,” before reading this column.
In Part 1, we discussed top key happenings, findings and wisdom that might help your business engage in better discussions as you plan for 2017. This is specific to automation of operations and the workforce, connecting your workplace, and implementing internet of things (IoT) applications. We have already explored the first three bullets below, so now let’s explore the last four. read more by going to CIO.com
Last month I attended IoT6 Exchange Summit, a conference put on by nGage Events and held in San Antonio Texas at the La Cantera Resort and Hotel. One of the panels I sat in on focused on the emerging trends and happenings in IoT and connected enterprises. While there was a consensus that IoT needs to focus on collecting and using only actionable data, intelligence, and information for businesses, there was also continued discussion around security, core applications, justification through KPIs and ROI, and managing the solution.
Below is a summary of some key trends I highlighted and discussed on what to expect in 2017. I would love to explore these topics with your company or organization in more detail. Please contact Compass Intelligence to begin your connected enterprise journey.
Written By: Stephanie Atkinson @stephatkins
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