Cloud & IoT Analytics: The Perfect Storm Builds Momentum

Cloud IoT_M

Cloud Computing has continued to gain momentum in recent years and is now an established fact of life in the IT industry. Amazon Web Services (AWS) transformed the market, and all the other leading players – Microsoft, Google, Oracle, and others have picked up the pace of innovation and overall momentum.

Meanwhile, in parallel, IoT is now breaking out of mostly hype mode and into mainstream production and a faster adoption pace. And obviously, analytics for IoT can only proceed if IoT data is connected, captured, managed, and prepare for analysis.

Our experience in the last six months at Vitria is showing a phenomenon relating to all of the above. The customers and prospects we talk to are exhibiting signs of a “virtuous cycle” pattern in their adoption of cloud computing, IoT overall, and IoT analytics specifically.

They are telling us that the interrelationships of these three domains are reinforcing each other, and this dynamic environment is accelerating their adoption of IoT use cases and more advanced analytics with those use cases.

The general pattern goes like this:

  • For a certain use case, they adopt a cloud-based database application or source, and these sources increasingly have a wide range of connectors to legacy data of all types – ERP, CRM, etc.
  • The increased availability of IoT data via these robust cloud services gives them the breadth of data to make a stronger ROI case to senior management. Examples of this include: better diagnostic data for expensive capital equipment, better location data for mobile assets and staff, and detailed operational status from far-flung manufacturing or supply chain partners.
  • The increased data enriches the power of the analytics – improving predictive analytics and the management actions that are based on the analytics. Improved performance is the result.
    A survey of recent articles and industry activity correlates with our experience. Let’s review a few examples.

A survey of recent articles and industry activity correlates with our experience. Let’s review a few examples.

This article in IT-online presents an excellent outline on how analytics unlocks the value of IoT. The survey includes several examples where cloud-based analytics combined with IoT is an enabler for innovative applications. IoT delivers value best when it combines a high number of unprecedented data sources. The rapid integration cycles often inherent in cloud platforms bring in new data quickly – thereby creating a reinforcing cycle of adoption of cloud, analytics, and IoT.

Another great example of this mashing of trends reinforcing each other is this article about the interaction between GIS and IoT, and how Amazon Web Services and other open source tools are used in this space. They make it clear that the scale and speed of IoT data capture and analysis are increasing rapidly and that cloud is at the center of the action:

“What is new, though, is the scale and speed at which IoT data is captured from devices, transferred, stored, and analyzed. This is where cloud and big data analytics technology comes in, as the cloud is the number one choice for handling and analyzing IoT data nowadays.”

Another sign of cloud and IoT reinforcement comes from industry leader Google. They recently announced the beta of Cloud IoT Core, its enterprise IoT platform. Google has combined device management with analytics and other essential services such as the MQTT broker into a complete package for enterprise IoT use cases and scenarios.

Finally, Dell just announced a broad and comprehensive IoT strategy that leverages its cloud and IoT initiatives towards the goal of accelerating IoT adoption. Specifically, Dell knows well from its vast product and service portfolio that the centralized approach of the cloud revolution yields many benefits, but also presents challenges when faced with a data deluge of IoT proportions. Their edge processing strategy for IoT is a positive sub-trend in cloud adoption dynamics that will further accelerate adoption of analytics and IoT itself.

Overall, this series of major moves by some major IT leaders as well as adoption patterns we see at Vitria in the field are all point to an exciting year ahead in the IoT Analytics domain.

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