Berg Insight affirms hyperscaler influence on IoT platform space – but room for innovation remains

2020/12/02 Innoverview Read

The hyperscale cloud providers – Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform, Alibaba Cloud, and one or two others depending on your definition – have their fingers in many technological pies. Internet of Things (IoT) application platforms are no different, as a new note from Berg Insight explains.

The analyst firm has argued the global market for IoT device management and application enablement platforms hit $2 billion (£xbn) in 2019. The overall market ‘is in a stage of transformation where major cloud service providers [are investing] heavily to move up the stack’, the company added.

In June, a report from Counterpoint Research backed up Berg Insight’s findings, with the largest cloud providers finding success in extending their IoT capabilities to the edge. Microsoft came out on top in Counterpoint’s analysis, ahead of AWS and Huawei. The latter is part of wider hardware companies who play a part in the IoT platform space, alongside traditional enterprise software vendors and niche players.

For the hyperscalers, building IoT platforms on public cloud infrastructure means they can ‘transition to provide higher-level building blocks that can be used as a starting point when building solutions and even end-to-end solutions for specific use cases,’ Berg Insight noted. With regard to AWSAzure and Google, its IoT solutions are marketed as inextricably linked to the wider cloud portfolio.

Yet Fredrik Stalbrand, senior analyst at Berg Insight, affirmed the need for smaller players to drive solutions outside of the hyperscalers’ remit. Stalbrand cited IoT device management providers AVSystem and IoTerop as examples.

“Device connectivity and management services for low-power constrained devices comprise a key focus area for cellular IoT module providers such as Sierra Wireless and Telit, but also vendors like Pelion that was launched as a wholly-owned subsidiary of Arm in November,” said Stalbrand. “Efficient and secure device management solutions are crucial to meet the requirements of massive IoT deployments in the 5G era.”

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