INTERNET of THINGS (Iot) VENDOR & SERVICE PROVIDER
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© Crisp Research AG 2018, Licensed for Amazon Web Services 1 CRISP VENDOR UNIVERSE / 2018 INTERNET OF THINGS (IoT) VENDOR & SERVICE PROVIDER COMPARISON Licensed for Research Report Dr.Stefan Ried, Luisa Lemmermann © Crisp Research AG 2018, Licensed for Amazon Web Services 2 CRISP VENDOR UNIVERSE |INTERNET OF THINGS (IoT) VENDOR & SERVICE PROVIDER FOREWORD Dear Reader, These requirements often present CIOs, CTOs and CDOs Crisp Research has completed this research project in order with a real challenge, because the market for IoT technologies to assist corporate and digitization decision makers with their the Internet of Things (IoT) is no longer just a hot topic for and services is characterized by extremely rapid innovation. evaluation and selection of relevant IoT providers and service European companies. In fact, the development of networked And it’s not only the global Cloud providers such as Google, partners. The "Crisp Vendor Universe" profiles the relevant digital products and the optimization of manufacturing, logis Amazon, Microsoft and IBM that are expanding their portfo IoT vendors and service providers in the German market and tics and value chains through the use of sensors and intelligent lios with specific IoT services. Even the established Telcos are evaluates their strengths and weaknesses. analysis mechanisms has long since achieved strategic signifi increasingly becoming IoT providers, because they own the cance. networks. Added to this is the shift of event processing and After all, the development and marketing of companywide Enjoy the report! machine learning towards the "Edge", resulting in much more IoT solutions or proprietary IoT platforms and business models complex IoT architectures and new security challenges. As a are usually associated with enormous investments. At the same result, it is becoming clear that the demands on integration Dr. Carlo Velten time, competition is intense because only a few IoT platforms and development service providers, which support companies CEO, Crisp Research can be successfully established within each industry. That’s why, in the implementation of their IoT projects, are also increasing. when implementing their own IoT platforms and solutions, it’s vital to achieve fast “time to market”, and to select the right technology and Cloud providers. © Crisp Research AG 2018, Licensed for Amazon Web Services 3 CRISP VENDOR UNIVERSE | INTERNET OF THINGS (IoT) VENDOR & SERVICE PROVIDER AGENDA Introduction Analysis Appendices Market Overview 05 Process & Methodology 52 Positioning of IoT Vendors and Service Providers 22 Market Definitions & Vendor Selection 09 Related Research 55 IoT Vendor & Service Provider 48 Evaluation Criteria 18 About Crisp Research 57 IoT - Research Team 58 Contact & Copyright 59 CRISP VENDOR UNIVERSE | INTERNET OF THINGS (IoT) VENDOR & SERVICE PROVIDER 1 INTRODUCTION © Crisp Research AG 2018, Licensed for Amazon Web Services 5 CRISP VENDOR UNIVERSE | INTERNET OF THINGS (IoT) VENDOR & SERVICE PROVIDER MARKET OVERVIEW The IoT market has developed rapidly in recent quarters and // The number of connected devices is growing much more rapidly than the global population many companies have already launched prototypes and “test Human Experienc e balloons”. But before multiple IoT applications can go into Humanoid P le e p Adult Roborts r o so production, a platform discussion has to take place. Software e Home n P Smart a d Implantables l Homes I architects and digital strategists know that many prototypes do e m p Exoskeleton p Augmented Smart p a r not necessarily withstand the massive increase in connected c Reality Phones o i Retail v d e n Stores m Waerables devices and associated data traffic. Just how massive the Inter a Hospitals e H n Connected Consumer t net of Things is becoming is illustrated in Figure 1. Humans Smart r Gadgets Devices e Factory C u m Autonomous G, 2018 s Of course, the prediction of IoT revenues is a crucial u Industrial t s Cars o n Manufacturing m o Smart parameter, in addition to the number of devices. Crisp 2017: 7,48 e 2017: 20 C Buildings r Industrial 2020: 7,72 2020: 30 Autonomous s Research expects that as early as 2020, around 23% of B s Smart Robotic e Manufacturing 2025: 8,08 2 2025: 75 n B i s City / u I world’s Public Cloud infrastructure and platform services ca n B d u c s i l t r b y u 4 P . 0 pacity will be consumed by IoT solutions. This would equate // Quelle: © crisp research A to total InfrastructureasaService (IaaS) and Platformasa learn. build. grow. Humans and connected devices at same scale (Mrd.) Service (PaaS) revenues of $19 billion worldwide in 2020. The Services" category, which we will examine later. This enormous comparable and cheaper, it is far more difficult to predict how IaaS services in the Cloud used by IoT solutions are the same as sum is being invested by providers of IoT solutions to bring much digital IoT revenue will actually be generated by end those being used by all other applications. While PaaS services their IoT products to the market. However, the $19 billion customers. Reaching 30 billion IoT devices in 2020 and even 75 are mostly based on the IaaS services of the provider or a Hy gives little indication of how much revenue IoT business models billion in 2025 provides much more perspective on the size of perscaler, they are mostly tailored to IoT scenarios. These IoT ultimately generate. As IaaS and eventually PaaS services the global IoT market. PaaS services correspond precisely to the "IoT Cloud Backend become more and more commoditized, and therefore more © Crisp Research AG 2018, Licensed for Amazon Web Services 6 The spectrum of IoT solutions is huge. Figure 1 illustrates how ❚ Example: A fire extinguisher with a wireless pressure sen the consumer or business end user. IoT innovations really do far we believe the scope will expand. Although many readers sor. This can ensure that the fire extinguishers within a large cover a broad spectrum. in Germany initially think of Industry 4.0 and the optimiza tion building really are ready for use. For example, the sustainability topic also plays a role in driving of manufacturing processes in particular, IoT has become a III. Digital Product: The digital value added is already so great the IoT boom. In agriculture, crop yields can be increased by generic term for all the business models made possible by that a monthly price (OPEX) can be charged for the IoT prod- sensor data that enables optimal irrigation, or by measuring Connected Devices, which is a much broader definition. In ad uct. groundwater levels and flow rates to prevent certain wells from dition to the process and manufacturing industry and not least drying out. Smart city and smart building projects also promise ❚ An IoT fire extinguisher with a smoke detec the strong automotive sector in Germany, IoT has significant Example: significant energy savings, even after switching to LED lighting. tor, CO sensor, pressure sensor and full integration into a potential within the digital strategies of almost every compa build ing’s network. In case of fire, comprehensive software Examples of successful IoT implementations can also change ny in Europe. Moreover, the business models associated with shows people where to locate intact fire extinguishers and companies’ core business models. A classic IoT world example a digital (IoT) products can be quite different. Crisp Research warns them about CO or smoke concentrations if neces is provided by predictive maintenance scenarios, i.e. the avoid has defined the following four levels within IoT Business Model sary. Customers may pay more for this service over time ance of system failures through prior analysis of data measure Evolution: than the fire extinguisher has cost. ments and the application of appropriate maintenance. While A traditional product is not changed but is I. Digital appeal: customers were simply looking forward to longer maintenance The digital product or digital platform made more attractive by small digital / IoT services. IV. Digital Ecosystem: cycles and fewer outages, manufacturers of industrial machin is completely independent of the related physical products. ❚ A simple fire extinguisher can appear in the asset ery are increasingly on the offensive. For example, if you know Example: With in the ecosystem, devices from partners or competitors management system of a smart building via its digital twin. the precise operational status of a machine, you could rent out can be connected in the same way as their own. Although it may differ only from a "non-digital" fire extin production machines or aircraft turbines rather than sell them. ❚ : Smart Building Cloud with a monthly subscrip- guisher thanks to a QR code, the scanner and software in Example In the long term, this approach might even be more profitable tion. Devices from any manufacturer can be connected. the background make it more attractive. for the manufacturer. These disruptive business ideas are gen Depending on the industry and the state of digital strategy erating tremendous creativity among manufacturers and high II. Digital Enhancement: A traditional product is enhanced progress, companies can act at any of these different evolution expectations among users. by IoT addons. Most of the time this is not a digital business ary levels. However, there are also some Industry 4.0 scenarios mod el (OPEX), but merely an addition of value (CAPEX) to the that are not about pursuing digital business models, but seek physical product. only to increase internal efficiency or improve collaboration with suppliers. The product remains completely unchanged for © Crisp Research AG 2018, Licensed for Amazon Web Services 7 To meet these expectations, Crisp Research would like to use a sensor contained within a housing. There is neither a Linux Controllers. Conversely, in smart home topologies for exam this vendor Universe to recommend the right technologies.