According to the industry analyst IDC, by 2020 the expected amount of connected devices will reach 50B – driving the market value to $8.9 trillion approx. It’s no wonder that a range of industries are adjusting to the new requirements derived from the rapid innovation. IoT’s strong potential to influence the quality of life is making it impossible to ignore (for companies who wish to reap the benefits).
The semiconductor industry is already driving growth. IoT is increasing the demand for semiconductor products, sensors in particular. But in order to truly leverage the success, certain changes will have to occur.
As of today, semiconductor companies are classified as the enablers in the IoT value chain. They provide the hardware, the heart of the THING, enabling the process to begin. Very important indeed, and translated to great economic value in traditional industries. But IoT requires a larger platform, and costumers expect to receive a comprehensive solution. A strong software strategy is the new MUST.
All is well and good, but software resources in hardware companies are usually limited and engineering talent is hard to find and retain. Smart strategies leading to smart partnerships are needed in order to maximize the benefit from the Internet of Things.