Many older tech companies that helped create the PC industry in the 1980s and 1990s have fared poorly more recently as smartphones and tablets redefined computing.
Now, they may have what amounts to a second chance with the internet's next evolutionary phase, the Internet of Things or IoT. The IoT will bring the web to many formerly unconnected home appliances, business devices, and even cities (e.g., smart parking meters).
We project that by 2019, there will be more than twice as many installed IoT devices as smartphones, tablets, and PCs combined. Furthermore, we estimate that the IoT market will generate roughly $600 billion in 2019 for companies that provide IoT products and services.
In new research from BI Intelligence, we discuss why legacy tech companies — established chip makers, IT-consulting firms, and networking equipment manufacturers — are actually well positioned to take a major share of the Internet of Things market, and fend off startups.
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Here are some of the key findings from the BI Intelligence report:
- Legacy tech companies have longstanding sales relationships with businesses and governments, which will be the biggest adopters of IoT software, services, and devices.
- These companies' product portfolios align with what business clients need to create the backbone of IoT systems. The building blocks of the IoT will be networking equipment, routers, specialized chipsets and sensors, machine-to-machine communications, cloud-computing platforms, and database and data-analytics packages.
- Legacy tech players have the resources needed to provide hands-on installation services and ongoing customer support to large businesses. The IoT will primarily be a software and services market.
- Security is a central concern, and large businesses and governments are more likely to trust their data with large vendors they've worked with before over untested startups.
The full research note:
- Examines different products that are being offered by legacy tech companies
- Analyzes why legacy tech companies are particularly well positioned to take on the enterprise segment of the IoT market
- Discusses different IoT product strategies of emerging legacy-tech companies
- Provides specific examples of how different legacy tech companies are already implementing IoT products and services
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