FOR IMMEDIATE RELEASE
Senior Director of Marketing & Client Services
(508) 653-9000, ext.122
Leaders Begin to Emerge in Highly Competitive IoT Cloud Platforms-as-a-Service Market, According to New Report by VDC Research
The Line Between Friend and Competitor Blurs as Vendors Partner to Enable End-to-End Cloud Connectivity and Application Deployment Solutions
“Vendors will need to educate and engage their way to success in the nascent IoT cloud PaaS market, which could very well define how customers perceive an entire organization’s IoT capabilities and brand going forward.” - Roy Murdock, IoT & Embedded Technology Research Associate at VDC Research
NATICK, MA | February 17, 2017 - Findings from VDC’s new market report confirm that competition is heating up amongst the most relevant and well-funded software and infrastructure giants of the IoT. The study, entitled The Global Market for IoT Cloud Platforms-as-a-Service, quantifies the market, outlines the new technology required to create scalable IoT applications, and examines the changing business model of leading IoT connectivity and compute vendors.
Overview of IoT Cloud PaaS Architecture
An IoT cloud PaaS architecture generally consists of four core software components: (1) a client or agentless solution that is configured on the target device/gateway to push thing data over the Internet, (2) a software framework for the provisioning and load-balancing of component virtual machines (VMs) on top of generic, server-grade infrastructure, and (3) host VMs that run on top of the infrastructure VMs and include OS, middleware, and runtime framework stacks specific to each (4) application. Applications are most often used to monitor, track, and improve the efficiency of connected assets or system through analytics. From a functional standpoint, IoT cloud PaaS solutions provide device provisioning and firmware update support, data ingestion, data storage, user authentication, rules engine, web dashboard, and application support.
VDC categorizes vendors in this market into five main archetypes: Pure Play (Cumulocity, Electric Imp, Exosite, etc.), IaaS (Amazon, Microsoft, IBM, etc.), Cellular Network Operator (Cisco Jasper, Sierra Wireless, Telit, etc.), Industrial Conglomerate (Bosch, GE, Siemens, etc.), and Enterprise SaaS (Oracle, Salesforce, SAP, etc.). The current market leading vendors are of the Industrial Conglomerate and IaaS archetypes, with Pure Play vendors facing acquisition and market consolidation over the next five years. The Enterprise SaaS archetype will see the fastest revenue growth through 2021. Leading vendors are working towards enabling advanced platform functionality, such as edge applications that run on IoT devices or gateways, and drag and drop application development tools to lower the programming barriers to entry for users of the platform.
“Findings from our annual survey of embedded engineers indicate that there is currently no dominant IoT cloud PaaS provider, but that engineers expect to consolidate around solutions from one of the five leading vendors within the next three years,” says Roy Murdock, a Research Associate in the IoT & Embedded Technology division at VDC Research. “The IoT cloud PaaS represents the next step in the convergence of scalable IT architectures and untapped embedded systems. Engineers understand that this new class of solutions will be key for deriving analytical insights from new IoT data streams.”
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.