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Channel crucial as 25% of Kiwi businesses deployed IoT in 2017

Channel crucial as 25% of Kiwi businesses deployed IoT in 2017

Adoption increased to 25.7 per cent in 2017, up from 13.7 per cent in 2016

More than a quarter of businesses in New Zealand implemented an Internet of Things (IoT) solution in 2017, with adoption practically doubling during the past 12 months.

That’s according to newly released IDC findings, which reports that adoption increased to 25.7 per cent in 2017, up from 13.7 per cent in 2016.

As a result, IoT could bring $2.2 billion of benefit to the New Zealand economy over the next ten years, with the channel expected to play a leading role as trusted advisors for customers across a range of sectors.

“New Zealand organisations are understanding that the value of the Internet of Things is in the data it produces and, more importantly, what that data enables companies to act upon or improve,” IDC research manager of telecommunications Monica Collier said.

“Additionally, endpoint costs continue to decrease and the range of connectivity options is increasing; it's easier to get an IoT business case across the line.”

As outlined by Collier, New Zealand companies deploying IoT are more influenced by improving the customer experience, than on improving internal processes.

In fact, Kiwi organisations place more focus on the customer, as a driver for IoT, than any other country surveyed across Asia Pacific.

“Some key shifts are occurring in IoT vendor perception by New Zealand companies with Rockwell Automation, Google, IBM and Dell performing well in terms of IoT mindshare,” Collier added.

Delving deeper, Collier said low power WAN adoption is growing fast across the country, despite the continued popularity of Wi-Fi as the leading IoT connectivity tool.

“Low power WAN lets organisations deploy long-life battery operated sensor devices in remote locations, for example water meters and remote asset tracking,” Collier added.

Specific to sectors, Collier added that IoT is no longer just about "connected cows" in the context of New Zealand, with increased opportunities across industries from manufacturing to retail to healthcare.

For example, While Australia leads Asia Pacific (excluding Japan) for asset performance tracking in manufacturing, 21 per cent of Kiwi manufacturers have deployed IoT in this space.

“We would encourage tech buyers to ensure their IoT plans are not siloed; the plans should fit within their overall digital roadmap,” Collier added. “For vendors, to step ahead you'll need a good IoT partner ecosystem in context with the industries you are servicing.

“Customers want a technology partner that understands their business as well as their technology.”


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