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5 Things To Know About The IoT Platform Ecosystem

January 26, 2016

Padraig Scully

Insights from ongoing research on IoT Platforms.

We are currently witnessing an explosion in IoT deployments and solutions around the world. IoT

platforms are emerging as the central backbone of these IoT deployments By 2019, the IoT Platform
marketwill reach $1 billion.

These IoT Platforms are the key for the development of scalable IoT applications and services that connect
the real and virtual worlds between objects, systems and people. However, as the IoT

Platformmarketrepresents a truly new segment that was almost non-existent a few years ago, the
landscape is complex and changing very quickly.

In this article we highlight 5 IoT Platform insights:

1. Not every IoT Platform is an IoT Platform

Figure 1: Apples vs Oranges Not all IoT Platforms are the same

These days many companies offer an IoT Platform but a closer comparison reveals vast differences. For a
newcomer it can be difficult to understand whether this term refers to a complete and mature IoT cloud
platform or whether the term has been stretched to describe just an element of a platform or even
something completely different.

When we talk about an IoT Platform we generally refer to an IoT Application Enablement Platform (see
#2 below for the eight technological elements of these platforms).

There are 4 other types of platforms that are often referred to as IoT Platform:
Connectivity / M2M platforms. These platforms focus mainly on the connectivity of connected IoT
devices via telecommunication networks (e.g., SIM-cards) but rarely on the processing and

enrichment of different sets of sensor data. (An example of a connectivity platform is Sierra Wireless
AirVantage)

IaaS backends. Infrastructure-as-a-service backends provide hosting space and processing power for
applications and services. These backends used to be optimized for desktop and mobile applications

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but IoT is now also in focus. (An example is IBM Bluemix not to be confused with IBM IoT
Foundation)

Hardware-specific software platforms. Some companies that sell connected devices have built

their own proprietary software backend. They like to refer to the backend as an IoT Platform. Since
the platform is not open to anyone else on the market it is debatable whether one shouldcall it an
IoT Platform. (An example is Google Nest)

Consumer/Enterprise software extensions. Existing enterprise software packages and operating

systems such as Microsoft Windows 10 are increasingly allowing the integration of IoT devices.

Currently these extensions are often notadvanced enough to classify as a full IoT Platform but they
may get there soon.

The differenttypesof IoT Platforms and

the complex IoT Platformofferings create

confusion

A confusing aspect of IoT Platforms is that companies

are starting to combine different services. IBM for

example is combining its IoT Foundation application

enablement platform with its Bluemix IaaS backend.

Jasper and Telit, two companies that have traditionally

focused in the Connectivity / M2M space have now added IoT application enablement capabilities to their
offering.

2. A modern IoT Platform architecture comprises of 8

components

In its simplest form, an IoT platform is just about enabling connectivity between things or devices. The

architecture may also consist of a software platform, an application development platform or an analytics
platform. In a more sophisticated form, a true end-to-end IoT platform consists of eight important
architectural building blocks:

Figure 2: The 8 components of an IoT Application Enablement Platform (Source: IoT Analytics)

1. Connectivity & normalization: brings different protocols and different data formats into one
software interface ensuring accurate data streaming and interaction with all devices.

2. Device management: ensures the connected things are working properly, seamlessly running
patches and updates for software and applications running on the device or edge gateways.

3. Database: scalable storage of device data brings the requirements for hybrid cloud-based databases
to a new level in terms of data volume, variety, velocity and veracity.

4. Processing & action management: brings data to life with rule-based event-action-triggers enabling
execution of smart actions based on specific sensor data.

5. Analytics: performs a range of complex analysis from basic data clustering and deep machine
learning to predictive analytics extracting the most value out of the IoT data-stream.

6. Visualization: enables humans to see patterns and observe trends from visualization dashboards
where data is vividly portrayed through line-, stacked-, or pie charts, 2D- or even 3D-models.

7. Additional tools: allow IoT developers prototype, test and market the IoT use case creating platform
ecosystem apps for visualizing, managing and controlling connected devices.

8. External interfaces: integrate with 3rd-party systems and the rest of the wider IT-ecosystem via

built-in application programming interfaces (API), software development kits (SDK), and gateways.

Note: Built-in security by design is a must-have element for all of these building blocks; the platform
architecture has to be holistically designed so the threat of cyber attacks is minimised at every level.

3. Different entry strategies into the IoT Platform

market

Figure 3: 12 of the 300 IoT platforms (Source: IoT Analytics)

There are more than 300 IoT platforms in the market today and the number is continuing to grow.

However, as discussed not every platform is the same IoT platforms are being shaped by varying entry
strategies of different companies trying to capitalise on the IoT potential. Innovative Startups, hardware

and networking equipment manufacturers, enterprise software and mobility management companies are
all competing to become the best IoT platform on the market. Various strategies are visible with
companies:

Organic bottom-up approach: Starting with the connectivity part and building out platform features
from the bottom-up (e.g., Ayla Networks)

Organic top-down approach: Starting with the analytics part and building out platform features
from the top-down (e.g., IBM IoT Foundation)

Partnership approach: Striking alliances to offer the full package (e.g., GE Predix & PTC Thingworx)

M&A approach: Targeted acquisitions (e.g., Amazon 2lemetry) or contenders performing strategic
mergers (e.g., Nokia & Alcatel-Lucent)

Investment approach: Tactical investments throughout the IoT ecosystem (e.g., Cisco).

4. Open source is driving IoT Platform interoperability

Figure 4: Open-source Vorto links the IoT Platform ecosystem (Source: www.eclipse.org/vorto/)

To create a true IoT ecosystem, where systems of systems interact and generate value from diverse

streams of data, interoperability is essential. No one IoT platform will be able to cover the wide spectrum
of existing and potential use cases yet to be envisaged.

New open source approaches where IoT platforms work together for the greater good are enjoying

increasing success. Open source tools such as Vorto backed by the open Eclipse community are
providing the missing link, implementing a common framework for information modelling that eases
integration and promotes interoperability between platforms and the entire IoT ecosystem.

For example, PTC and Bosch Software Innovations collaboration is a prime example of a major technology
alliance using Vorto to facilitate the integration and technical interplay between their two platforms.

5. Data and connected services are the real value of IoT

Platforms

Figure 5: Data drives the value of IoT Platforms

Gathering and connecting data points from billions of physical objects is fundamental to letting new IoT
business cases come to life. As Robert Metcalfe postulated in the 1980s: The value of a

telecommunications network is proportional to the square of the number of connected users of the
system. Generating insightful data is the key to unlocking this value.

This trend will be seen in many industries: selling the main product becomes a by-product, while the
business model around the data becomes the main product.

On top of that, we will see the creation of entirely new

industries that build business models solely on IoT data

Companies are shifting their business

and use hardware partners to get access to the

data

the future). The IoT Platform itself becomes an essential

models from selling products to handling

necessary data sources (e.g., the insurance industry of

enabler, a means of gathering and making sense of the

data, while the real value will come applying the resulting insights to create great IoT services (e.g.,
predictive maintenance) for connected businesses.

Further Information

For more in-depth information on IoT Platforms, check out:

IoT Platform White Paper: Central backbone for all IoT solutions (FREE)

IoT Platform Market Report 2015-2021: The $1.6Bn market opportunity including detailed

forecasts per segment and region focusing on sizing the opportunity of the IoT Platform market for
the period 2015 to 2021

IoT World Event, May 10-12 in Santa Clara, CA: IoT Analytics will be present and participate in a
discussion panel on IoT Platforms. (Get in touch with us for a 15% participation discount)

internet of things
iot platform data

IoT

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iot platform differences

iot platform companies

iot platform components

iot platform interoperability

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About the Author

Padraig Scully leads the market research team at IoT Analytics. He has extensive
experience in Telco and technology research. Current focus areas include IoT
platforms, LPWAN, and M2M.

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Responses (4)
Sachin Shah

January 29, 2016 at 7:59 am Reply

Wonderful information. Can I get some insights on consumer products connectivity with IoT?

Andrea

January 29, 2016 at 5:01 pm Reply

Great summary about different IoT platforms. Would like to point out that we from Zenodys, the visual
IoT platform covers all 8 blocks.

mreza

February 9, 2016 at 6:47 pm Reply

i want to conect some company in iran at this field but i dont know those company?

Ivan Chang

February 13, 2016 at 12:56 pm Reply

Dear author,

I am a co-founder of an IoT startup in Taiwan. I found this topic very interesting.

Can I translate your article into Chinese and publish on Medium.com under my account name?
Thanks.

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