Home Internet of Things IoT adoption gaining greater traction in Asia Pacific: IDC

IoT adoption gaining greater traction in Asia Pacific: IDC

Many businesses and organisations in the Asia Pacific region have launched IoT solutions so far this year and an even larger numbers are expected to deploy solutions in the next 12 months as the Internet of Things becomes a key strategic asset for competing in the market.

The latest survey of the Asia Pacific market, excluding Japan, by IDC, reveals that 25.2% of Asia Pacific organisations have already launched IoT solutions this year, and an additional 46% expected to deploy in the next 12 months.

And, the survey also found that 62% of organisations see IoT as strategic to their business in order to effectively compete in the market.

Improving productivity, reducing costs, and automating internal processes are seen as top benefits of an IoT solution, which IDC says highlights an internal and operational focus by organsations over the short term as opposed to external, customer-facing benefits.

Topics covered in IDC’s Global IoT Decision Maker Survey included levels of enterprise awareness of IoT, deployment plans, IoT adoption drivers and inhibitors, perceptions of IoT vendors and vendor selection criteria, organisational factors, and security, cloud, and analytics requirements.

According to IDC, there will be more alignment between IT and business as projects are jointly owned and driven by IT departments alongside functional departments.

And, IDC says functional departments now hold the majority of IoT budgets “as since business units identify specific functional needs such as performance improvement, fault identification and predictive maintenance initiatives”.

"Setting strategies, finding budgets, and supporting IoT solutions have contributed to an ongoing tussle between line of business executives (LOBs) and CIOs,” says Hugh Ujhazy, Associate Vice President of IOT and Telecoms for APeJ, IDC Asia/Pacific.

“In APeJ, the IT department still leads the charge, but line of business and the C-Suite are increasingly influencing or deciding the IOT direction.

"This year we see confirmation that vendors who lead with an integrated cloud and analytics solution are the ones who will be considered as critical partners in an organisation’s IoT investment.

"We also note that network and traditional IT hardware vendors are slipping down the charts, as analytics and software vendors makes strides in customers' minds," Ujhazy observes.

The IDC global survey, conducted in July and August, covered more than 4500 respondents from more than 25 countries worldwide, with findings including:

•    While security/privacy and upfront/ongoing costs are top concerns for decision makers, lack of internal skills is a new, top concern for organisations looking to deploy an IoT solution;

•    Improving productivity, reducing costs, and automating internal processes are seen as top benefits of an IoT solution. This highlights an internal and operational focus by organisations over the short term as opposed to external, customer-facing benefits;

•    Security systems and people tracking will be the most popular IoT use cases across the region; and

•    Strong partner network for IoT project execution, ability to offer a holistic IoT solution and having a well-defined IoT roadmap are top 3 criteria when selecting vendors across Asia Pacific.


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).