Press Release  


Eugene Won
Senior Director of Marketing & Client Services
VDC Research
(508) 653-9000, ext.122

IoT & Embedded Engineers See Less Technical Problems and More Business Issues as IoT Adoption Continues, According to New Research by VDC
VDC Publishes Results of Comprehensive Survey of Over 500 Embedded Engineers

Engineers can solve the technical issues of IoT product integration, usually at a higher cost, when truly necessary. Fundamental business issues, on the other hand, such as product-market fit and partner selection are a growing concern among engineers and managers alike.” - Roy Murdock, IoT & Embedded Technology Research Associate at VDC Research

NATICK, MA | February 02, 2017 - Findings from VDC’s new market report suggest that the move towards connected, IoT products is well underway, but that strategic business challenges still loom ahead for many engineers and their organizations. The study, entitled Voice of the IoT Engineer 2016: Survey Dataset and Analysis, addresses major themes such as device development, technology adoption trends, vendor ratings, and strategies for addressing the IoT.

VDC surveyed more than 500 embedded software and hardware engineers at OEMs, systems integrators, and engineering services companies worldwide. Of the survey respondents, 24% indicate that their organization is already deploying IoT capabilities into its products and applications, with a further 55% expecting the integration of IoT capabilities into their company’s products at some point in the future.

The broad nature of the IoT can serve as a useful litmus test for how different stakeholders and “tribes” within engineering organizations view the opportunities and challenges facing their organizations. Respondents rated data collection/analysis as the most important potential benefit of the IoT, with 50% of engineers agreeing that their organization will be able to “use data we gather for many purposes”. A large portion also believe that the IoT will be a powerful differentiator that will allow their organization to sell a higher volume of products, but are less sure whether IoT-enabled products will command higher average sales prices (ASPs).

A common area of concern across all roles and job functions is the perceived lack of IoT manpower and engineering talent, a pain point that tool vendors should be well-accustomed to targeting. Another is the challenge of cloud and datacenter integration, as well as partner coordination at the project and business management levels.

Engineers continue to look toward open source software, and for reasons outside of the most obvious factor – the saved licensing costs. Powerful, mature tools and access to source code are both compelling features of popular open source operating systems and development platforms. Developers are using a higher proportion of scripting languages, such as Python and JavaScript, to write software for their current projects due to the need for portability and analytics across heterogeneous IoT devices. VDC’s report also quantifies trends around the move towards new types of tools outside of the traditional compiler, debugger, and editor toolchain.

“Overall, it is clear that the IoT means widely different things to different stakeholders,” said Roy Murdock, a Research Associate in the IoT & Embedded Technology division at VDC Research. “Embedded engineers, while sometimes skeptical of open-ended technology concepts, do see an increased ability to use data to improve their products and better serve their customers. The challenge for embedded and IoT product vendors lies in building out new service-oriented business models and partnerships to bring the full benefits of the IoT to potential customers.”

Click here for more information on this research.

About VDC Research
Founded in 1971, VDC Research provides in-depth insights to technology vendors, end users, and investors across the globe. As a market research and consulting firm, VDC’s coverage of AutoID, enterprise mobility, industrial automation, and IoT and embedded technologies is among the most advanced in the industry, helping our clients make critical decisions with confidence. Offering syndicated reports and custom consultation, our methodologies consistently provide accurate forecasts and unmatched thought leadership for deeply technical markets. Located in Natick, Massachusetts, VDC prides itself on its close personal relationships with clients, delivering an attention to detail and a unique perspective that is second to none.



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