According to analyst firm GlobalData, among IT practitioners the spending on AI and big data has increased significantly, with companies spending heavily on laying the foundations of a company-scale digital twin -- big data and AI.
Brad Shimmin, Service Director at GlobalData says that compared with a diminutive spending increase between 2017 and this year of only 2% for IoT platforms, these two areas saw a combined increase of more than an 11% on average.
“Big data platforms on their own saw a massive 19% increase in spending over the past year with 69% of IT budget holders setting money aside for data at scale across the enterprise.
“But the great myth of IoT, that it alone can miraculously enable factories and cities to run themselves is just that – a myth. Without a view into the business as a whole, IoT is nothing but the instrumentation and reporting of select functions. Real digital transformation requires not just IoT but IoT in context, which is to say alongside big data and analytics, all fuelled by AI,” Shimmin says.
According to Shimmin, “the idea of the digital twin has not yet found traction beyond smaller, targeted IoT use cases”.
“This is of course in no small part due to a continuing emphasis on the here and now, not the future. Within our recent survey of over 3,200 global IT practitioners, we found that only 45% of annual IT budgets goes toward projects that might actually ‘change’ the business.
“The lion’s share of available funds flows into the maintenance of existing systems, to keeping everything running as is.”
Shimmin says that as companies come up to speed on AI and big data, GlobalData expects to see continued efforts by IoT players in driving digital twin-enabling technologies – “for example blockchain, that will help companies understand how those foundational investments can be put to work more broadly,” he concludes.