25% of APeJ organizations have launched IoT solutions – 62% see IoT as strategic: IDC


Sep 28, 2016

SINGAPORE, September 28, 2016 – Initial results from the IDC 2016 Global IoT Decision Maker Survey highlights that 25.2% of Asia Pacific excluding Japan (APeJ) organizations have launched IoT solutions and expects an additional 46% to deploy in the next 12 months. Furthermore, the survey reveals 62% of organizations see IoT as strategic to their business in order to effectively compete in the market.

For Asia Pacific excluding Japan, some of the other key findings from the 2016 survey include:

  • There will be more alignment between IT and business as projects are jointly owned and driven by IT departments alongside functional departments.

  • 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.

  • While security/privacy and upfront/ongoing costs are top concerns for decision makers, lack of internal skills is a new, top concern for organizations 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 organizations 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.

  • 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.

The survey, now in its third year, serves as a way to gain insights from enterprise IT and business decision makers about their perception of IoT as well as their early deployments or plans for deployment of IoT solutions. Topics covered in the survey include: levels of enterprise awareness of IoT; deployment plans; IoT adoption drivers and inhibitors; perceptions of IoT vendors and vendor selection criteria; organizational factors; and security, cloud, and analytics requirements.

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

"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 organization’s IoT investment," added Shaily Shah, Research Manager, Internet of Things. "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."

This year’s edition of IDC's Global IoT Decision Maker Survey was conducted in July and August 2016 and includes over 4,500 (WW Total) respondents from more than 25 countries worldwide, spanning a wide array of industries (including manufacturing, retail, utilities, government, health, and finance).

The purpose of the survey is to gain insights from enterprise IT and business decision makers about their perception of IoT as well as their early deployments or plans for deployment of IoT solutions. The survey covered responses from enterprises where respondents were moderately to very familiar with the term ‘Internet of things’ and managed a minimum of 100 employees. Respondents are required to be involved in IT and/or business decisions at their company.

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