With the phase-out of services and platforms like IBM Watson IoT and SAP Leonardo, the IoT market has consolidated over the past years. Has the IoT hit its peak, or should companies expand their vision to turn it into a lasting, profitable solution? Our Director of Cloud Architecture & Innovation, Stefan Hudelmaier, sheds light on the key IoT trends in this context.
Stefan Hudelmaier: “IoT is more than just a passing trend; it’s a tool that supports use cases and solves business-relevant problems, creating real value. Various IoT trends are shaping the market. In the early days of IoT, there was much experimentation – often without clear use cases. As with many new technologies, it became obvious over time that not everything technically possible is economically viable. Often, the commercial success of these early solutions fell short of expectations. We are facing a similar situation today with artificial intelligence.”
Stefan Hudelmaier: “Previously, companies relied heavily on external service providers. Now they recognize the value of building their own resources. This shift is one of the most significant IoT trends over the past year. However, developing in-house software comes with challenges: many companies struggle to find and retain skilled developers, particularly SMEs, which often find themselves in less desirable locations competing for talent.
Problems also arise from IoT platforms introduced during the hype phase, which later proved to be inefficient, unstable, or insufficiently scalable. The consequences include high operational costs, unreliable systems, and significant efforts required to maintain these platforms, tying up developer resources. This is especially burdensome when managing infrastructure and applications is time-intensive due to reliance on Infrastructure as a Service (IaaS).
Furthermore, many older platforms lack modular architecture, which hinders flexibility for new features and enhancements. All of this can negatively impact the entire business. We must recognize that IoT has become an integral part of many products. An unstable IoT architecture or digital component of a larger product diminishes the overall value of the solution, ultimately leading to decreased customer satisfaction and potentially harming the company’s reputation. High operational, development, and security costs drain resources that could be better spent on improving and developing products.”
"IoT remains a groundbreaking technology. It is maturing and must adapt to changing demands. Strategic planning and the use of appropriate cloud services can effectively and cost-efficiently apply IoT trends into digital services."
Stefan Hudelmaier: “First and foremost, acknowledging the issue is the first step toward making improvements. Companies must rigorously evaluate their solutions and draw the right conclusions to achieve real enhancements. The evaluation process begins by asking whether the current IoT solution creates value. If not, it may be worth reconsidering whether the chosen digitalization approach is appropriate for the company. If there is a clear use case or a strong likelihood of one emerging soon, all elements – from tools to services to processes and costs – should be thoroughly examined. Key questions can help guide this process: Are we focusing on the critical pain points? Do we have sufficient internal expertise for migrating to a state-of-the-art solution? What can relieve our developers and reduce operating costs?
External expertise can assist in this evaluation, such as the 5 by 5 Assessment we offer to our clients, which takes current IoT trends into account. Time and again, we find that an IoT migration – from an all-encompassing platform to flexible, cloud-based solution applications -can be advantageous. While this may sound complex (and thus sometimes meets with resistance), our specialized knowledge of hyperscaler offerings, which include numerous Platform as a Service (PaaS) options, often makes the process manageable in a short timeframe.”
Stefan Hudelmaier: “Vendor lock-ins are ultimately unavoidable, but the goal should be to minimize the risk. When opting for a cloud-based solution, it’s crucial to understand that the cloud is not a static construct, and potential changes must be factored in.
If an IoT platform has been terminated or a service has been discontinued, requiring migration during live operations, careful planning is essential. A migration will need additional resources and new expertise at various points. The first step is to decide whereto the migration will occur – such as to AWS or Azure – and to involve someone, whether internal or external, with expertise in the target platform.
Simultaneously, live data from the existing solution must be migrated to the new one to test with real data sets. It’s vital to delve deep into the existing solution to understand why certain decisions were made in the past. Depending on the volume, migrating operational and telemetry data can be time-consuming; a clear roadmap and timeline are crucial to avoid unpleasant surprises.
IoT remains a groundbreaking technology that is maturing and must adapt to changing demands. Strategic planning and the use of appropriate cloud services can effectively and cost-efficiently reflect IoT trends in digital services. However, IoT providers need specialized knowledge to select the right services from the multitude available and develop tailored, modular solutions. If a migration appears promising, careful preparation is key. The effort will pay off: with modern, flexible next-generation IoT solutions, companies will be well-equipped for today’s and future IoT trends and can fully capitalize on their IoT investments.
Find out in our expert paper how you can benefit from an IoT platform migration.
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