New IoT Ecosystem Takes Shape and Moves the Technology Closer to an Inflection Point

We are getting closer to an inflection point for the Internet of Things (IoT), and that will have important implications for energy markets. One sign comes from a recent announcement by wireless carrier Sprint and networking gear provider Ericsson. The two firms revealed plans to build a distributed and virtualized core IoT network, and what they call a world class IoT operating system. These are ambitious plans.

What Does a New IoT Network Mean?

The companies describe this as a new environment for the future of IoT, which is designed to enhance the flow of device data that leads to actionable insights for the benefit of individuals and enterprises, such as utilities, commercial businesses, and cities. Key features of the core network and the operating system include:

Core Network:

• Providing low latency and highest availability
  

• Distributed and virtualized for reducing the distance between the device generating the data and the IoT application processing it; nodes distributed right to the enterprise premise, if necessary, to support specific security, privacy, and latency requirements

IoT OS:

• Connectivity and device management
• Data management
• Managed services

As Ivo Rook, senior vice president of IoT for Sprint, said in a release: “This is a network built for software and it’s ready for 5G. Our IoT platform is for those companies, large and small, that are creating the immediate economy.” The core network is expected to launch in the first half of 2019 along with initial rollouts of 5G networks in about nine cities.

Context Matters

The backdrop is important. Sprint is the target of a $26.5 billion all-stock acquisition by T-Mobile US that is under review by the Federal Communications Commission and the Department of Justice. Assuming the deal goes through, the IoT effort by Sprint could be altered, but this is not likely. T-Mobile US has plans to build 5G networks in 30 cities this year and then launch those commercially in 2019. So, the IoT network and OS are more than likely to stay on course, no matter how regulators rule on the deal.

Beyond Sprint and Ericsson’s efforts to drive IoT, there are other signals of IoT growth that support the notion of a nearer-term inflection point. These are not merely focused on the US market. For example, Australian communications equipment company NetComm Wireless is launching a new industrial IoT device for connecting low power and low bandwidth devices over LTE. The company’s NTC-100 can connect to both Cat M1 and narrowband IoT networks, helping to lower costs and enabling businesses to use LTE networks rather than relying on proprietary, unlicensed networks.

Also, three tech firms have developed a modular IoT architecture in a bid to accelerate deployments. California-based Cloudera, North Carolina-based Red Hat, and Italian firm Eurotech have developed this framework to enable analytics and machine learning capabilities at the edge of IoT networks. Also, scientists at the University of California San Diego have developed a Wi-Fi-based LiveTag system that can add touch controls to ordinary objects, which could transform IoT dramatically, though the technology is at an early stage.

IoT Adoption Is Increasing

These are just some of the latest examples of IoT gaining a foothold or moving in new directions. And, yes, some of these efforts have a bit of marketing hype. But beyond the hype, there are numerous examples of enterprises and utilities adopting IoT to solve business problems and streamline operations. My latest research points to this as well (see Guidehouse Insights' reports IoT and Analytics for Utilities and Industrial Internet of Things for more details). I can’t be certain an inflection point is just around the bend, but my instincts tell me it is.