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VMwareVoice: Catch The IoT Wave

VMwareVoice: Catch the IoT wave

  • Just like cloud, IoT is disrupting and redefining customer experiences, product development, service delivery, and of course, business models.
  • In the case of Tesla, you’ve got a connected car that tracks your interactions with it—not only does it know your preferences for your music or temperature, but it also captures data on how fast you drive, where you drive, and when you drive.
  • At the same time, insurance companies could also use that data to better calculate risk and determine that I, Bask, a fast driver who drives greater distances, should pay a higher premium than another family member who may be a more conservative driver.
  • I see three things we CIOs need to do now to ensure we can deliver on our employee and customer expectations in the age of IoT.
  • [1] This is happening now: The IoT wave is upon us, and we need to get on top of it and not let these “things” sneak into the corporate environment without a plan.

The IoT wave is upon us, and we need to get on top of it and not let these “things” sneak into the corporate environment without a plan.

@Forbes: VMwareVoice: Catch the IoT wave

We blinked and now we seem to be fully in the age of the Internet of Things (IoT). Look at what’s happening in our personal lives. The Amazon Echo is listening to you all the time and waiting for that trigger word to magically service your request. Your home knows to change the temperature settings to suit you and to play the music you like. Your connected car seems to increase in value after you drive it off the dealer’s lot, since it updates itself with new software and features over the wire. When did that ever happen with a new car?

All of this is happening today, thanks to connected “things.” And as technology leaders, if we’re not already thinking “IoT,” it’s time we did.

Just like cloud, IoT is disrupting and redefining customer experiences, product development, service delivery, and of course, business models. In the case of Tesla, you’ve got a connected car that tracks your interactions with it—not only does it know your preferences for your music or temperature, but it also captures data on how fast you drive, where you drive, and when you drive.

What might then be possible using this data? Tesla could create behavioral profiles of various drivers. As a result, the car can be customized to each driver in your family. At the same time, insurance companies could also use that data to better calculate risk and determine that I, Bask, a fast driver who drives greater distances, should pay a higher premium than another family member who may be a more conservative driver. But the possibilities don’t end there. Today, the auto insurance industry is disrupting itself by creating a business model in which you and I are billed for insurance coverage that’s in effect only when we’re behind the wheel.

How can we develop strategies to help us adapt to these IoT disruptions?

As a CIO, I realize I have a big part to play in IoT. As our employees and customers continue to enjoy sophisticated and immersive consumer experiences enabled by IoT, they’ll expect their workplace (if they’re our employees) and their strategic IT vendors (if they’re our customers) to offer the same.

I see three things we CIOs need to do now to ensure we can deliver on our employee and customer expectations in the age of IoT.

Catch this IoT wave. IoT is growing at an extraordinary rate. According to IDC, the installed base of IoT endpoints will grow from 9.7 billion in 2014 to more than 25.6 billion in 2019, hitting 30 billion in 2020.[1]

This is happening now: The IoT wave is upon us, and we need to get on top of it and not let these “things” sneak into the corporate environment without a plan. About 15 years ago, corporate IT saw the mobile wave descending on us, but we waited far too long before we had a plan for it. We were late to realize the value of the “crackberry,” and we didn’t foresee the impact of iPhone, Android, and the whole BYOD trend until very late. Then we tried to close the gate after the horse had bolted! We have an opportunity to learn from this experience and get out ahead on IoT.

Make sure we have the infrastructure to support IoT. If you’re at an automotive company, you need to be thinking about connected vehicles and the infrastructure they will require. What about a food company with sensor-enabled food packaging? Or an insurance company with a new coverage and billing model? You must ask: What infrastructure should be in place now in terms of platforms, people, and processes so we can surf this thing?In my case as the CIO of a high-tech company, I am thinking through the architecture needed to support IoT so that this decision is made by me—and not for me by end users or IoT vendors. For example, we’re trying to figure out our approach to connecting building-management systems and other IoT devices without disrupting our core computing environment.

How can we secure all of these sensors and protect the data they’re collecting? Old models of security are failing us, but IT budgets are remaining relatively flat. So it’s time to rethink security and figure out new approaches that will enable us to make the most of the myriad innovations out there on the market.

Of course all things begin with people and processes. We need to think beyond basic block-and-tackle systems and reimagine a world enabled by IoT. We require more experimentation, a mindset of innovation, and a continuous delivery model. How exciting it is to be in IT at a time when things change at the blink of an eye!

What about you? How are you getting ready?

Bask Iyer is the CIO of Dell Technologies and CIO of VMware.

1. IDC. “Worldwide Internet of Things Forecast Update, 2015-2019.” Carrie MacGillivray, Doc IDC #US40983216, February 2016.

VMwareVoice: Catch The IoT Wave