Managed internet-of-things (IoT) connections are expected to grow to more than 70% of installations by 2032, from just over 30% today.

There is a growing need to bundle hardware modules or gateways with connectivity to better coordinate different parts of an application.

Greater demand for ‘managed’ services

Most enterprises need – or would appreciate – a managed solution. Enterprises don’t have sufficient expertise in managing such networks. The same is true of almost all aspects of IoT.

The future of IoT vendors is delivering expert, personalised support to enterprises based on the particulars of their deployment.

It is estimated that a little under a third of all cellular IoT connections are truly managed today. This will increase significantly over the coming decade to around 73% in 2032.

“Managed” means a connection that is actively managed by a service provider. This involves hosting on a connectivity management platform and offering a sophisticated set of active management features, including local breakout, data flows and more.

Multi-country and complex deals are more likely to be managed, as are deployments in constrained environments – those requiring NB-IoT and LTE-M.

New demand for cross-optimisation

As the IoT market moves towards customised services, those services must span a wider range of disciplines. Gone are the days when IoT adopters simply picked devices, networks, protocols, architectures and platforms independently with little consideration for other elements.

All the constituent elements of an application must be optimised, including hardware, connectivity, protocols, device management, data processing, networking and the application itself. Choices about one aspect of a deployment are likely to have implications for others.

An optimised solution and, ideally, one point of contact (the vendor that acts as the “optimizer”) should reduce issues and result in swifter resolutions.

Hardware and connectivity bundling on the rise

One way the requirement for cross-optimisation is being seen is in the increased bundling of cellular connectivity subscriptions with hardware in the form of modules and gateways.

Six ways connectivity and hardware make natural bedfellows:

Operational: One organisation responsible for combined fault resolution removes some friction in deployments.
Competitive: Involvement in devices ensures that a vendor is considered earlier in the process. Providers of other aspects of IoT will benefit from adding a consistent device aspect to their offering.
Commercial: The vendor of either the connectivity or the hardware can offer more appealing commercial terms due to offering both elements.
Technical advantages: One provider can ensure that all the required design, testing and certification take account of both the device and connectivity.
Contextual: The provider can better advice about the choice of network technologies to ensure the options meet the technical specifications of the deployment and are compatible with the connectivity requirements based on countries or operators.
Form factor: The move to eSim and iSim, where each device ships with embedded connectivity options.

The new IoT market landscape

Previously, almost all IoT deployments involved a heavy lifting process of enterprises, OEMs or solution providers piecing together hardware and software to get a solution off the ground. New optimised technologies have emerged for IoT that simplify developing products and solutions.

Further evolution is underway in the IoT landscape, driven by trends like network virtualisation, cloud and edge computing, and evolving regulatory and security requirements. Transforma Insights identified new service domains separate from the more traditional infrastructure domains that were preeminent in IoT until now. They focus on flexible software aspects of the infrastructure domains and other business services.

Service domains

Device management: The traditional device management functions of provisioning, configuration, authentication, monitoring, controlling and updating devices deployed in the field. It also involves ensuring device management is done properly and even managing inventory of devices.
Connectivity management: Providing connectivity services, including connectivity management platform, core network, subscription management and ultimately management of multi-country network access, independent of operating a radio access network.
Cloud/edge management: Software capabilities related to delivering data to the cloud (or edge) via cloud connectors and orchestrating where IoT data storage and processing occurs.
Business integration management: Managing how IoT data is delivered into enterprise backoffice systems, such as ERP and CRM.
Security: Comprises security components, such as device IMEI locking, IPSec VPNs and IoT SAFE, as well as end-to-end security and policy management.
Compliance: Ensuring enterprises comply with the growing number of IoT-related regulations through a compliance-as-a-service for regulations and relevant partner policies.
Contextualisation: IoT vendors need to understand the pain points of enterprises and be able to deliver services that specifically help that client with their deployment.

Choosing an IoT connectivity provider in the new environment

Look for a vendor that provides the appropriate levels of support and management.
Look for a vendor with experience that matches your needs.
Get someone who can optimise the different solution elements.
Prioritise security and compliance.
Do your counterparty risk analysis.

About Transforma Insights
Transforma Insights is a technology industry analyst firm focused on the impact of emerging technologies and the associated technical and commercial best practice. We help technology adopters understand the opportunities associated with new technologies, particularly the internet of things, but also in artificial intelligence, distributed ledger, edge computing and others under the umbrella of “Digital Transformation”. We help technology vendors understand the changing market dynamics and the associated market opportunity.

About Telit Cinterion
Telit Cinterion is a global end-to-end IoT enabler and innovation pioneer. We deliver secure, award-winning IoT solutions, modules and services for the industry’s top brands. We provide complete solutions that reduce time to market and costs and deliver custom, ready-for-market connected devices. Our portfolio of enterprise-grade wireless communication and positioning modules is the broadest in the industry. As an MVNO, Telit Cinterion offers cellular connectivity plans and management services. We also provide edge-cloud software, data orchestration and industrial IoT platforms.