The above introductory comments are edited excerpts from an article* by Michelle Jones (ValueWalk.com) entitled Internet Of Things: Shifting From Proprietary To Standard.
The following article is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Jones goes on to say in further edited excerpts:
Internet of Things for consumers
Goldman Sachs analyst Heather Bellini and the rest of the team at Goldman Sachs analysts say the consumer side of the Internet of Things is already seeing standards emerge. However, they expect the pace of innovation in this area to speed up and believe that leaders in the mobile industry are already shaping the consumer IoT through the creation of their own platforms.
They expect a platform-centric approach utilizing APIs across multiple third party hardware and software providers. They say Apple Inc., Google Inc. and Microsoft Corporation are among those already shaping the consumer IoT.
Internet of Things for enterprises
On the enterprise side, however, the Goldman Sachs team thinks the development of standards will “be a drawn-out process over the next decade,” especially because of competition among the major players. They say enterprises will implement an IoT strategy in four steps:
- using connected devices and sensors to manage communication;
- finding ways to store and secure their data; and
- finding ways to analyze and visualize their data.
The analysts think that the IoT players who end up being most successful on the enterprise side are those that master just one or two of the steps rather than those who try to cover all of them.
Apple, Google, Microsoft have exposure to IoT
Bellini and the rest of the team expect the Internet of Things to have an impact on numerous companies, both private and public. However, they don’t think that exposure to it will necessarily be positive for these companies’ price targets over the next 12 months, which is why they have included some names that are Neutral– and Sell-rated.
In addition to the companies listed here, they think the IoT will create new companies and categories. Indeed, many new companies in this area have already emerged:
Technology that’s fueling growth of the Internet of Things
The analysts have listed a number of types of technology that have come together to make the IoT possible. For example, the cost of sensors has come down dramatically, from $1.30 a decade ago to 60 cents now. Because sensors have become so cheap, they can be used in more devices. In addition, the costs of bandwidth and processing power have declined as well.
Of course smartphones are also growing, and others have already suggested that they could end up being a sort of remote control for the connected home, car or wearable device. Wireless coverage has also expanded around the world, making connectivity easier. In addition, big data analytics is making the IoT possible, and IPv6 is becoming a new standard. It supports larger 128-bit IP addresses, which means nearly all IoT devices are covered.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.valuewalk.com/2014/07/internet-of-things-iot/ (© 2014 ValueWalk LLC All Rights Reserved;Sign Up For Our Free Newsletter to never miss an article.)
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