We live in an ever more connected world. The concept known as the Internet of Things (IoT) will soon link all manner of devices, from toothbrushes to cars to entire cities, into larger and larger networks. The price of connectivity itself is declining, and the enabling devices, such as smartphones and tablets, are themselves becoming less expensive, more powerful, and ubiquitous.
Consumer hunger for new technologies has been driving tech sector growth for years. Going forward, enterprises will take the lead as they harness new technologies to improve efficiency and strengthen competitive advantage. IoT is moving out of the hype phase and landing at the center of enterprise applications in everything from industrial equipment and supply chain management to retail shopping experiences. The rise of enterprise IoT use will drive increased demand for network infrastructure, sensors, software applications, and all technologies needed to operate IoT applications including data analytics.
The growth of IoT will also create significant demand for cyber security services. As the proliferation of sensors and smart devices mounts, companies will need to protect data and secure access points between product technology stacks and other company systems.
We believe these advances will be a boon for the telecom industry, offering the possibility of further monetizing the additional network traffic. Already, telecom firms are taking advantage of this new user base of people and things by developing a variety of new services, sometimes in partnership with other companies. Because many of these new services are managed in cloud-based systems, the digital environment will require a higher level of security and privacy protection than currently exists.
By 2017, the enterprise cloud market is expected to grow from $70 billion to more than $250 billion. The growth will be driven to a great extent by enterprises becoming more adept at integrating, aggregating and orchestrating cloud and on premise assets.