The internet of things (IoT) became a   when Google hinted it could index the physical world and China made IoT a strategic priority, but the concept has been around since the 1970s. Automated teller machines (ATMs), as an example, were computing devices that communicated over a proprietary network for the exchange of data with a centralized system. However, it was almost 30 years before the term internet of things (IoT) came to represent the interconnection of computing devices via the internet to exchange data.

Technology moved the IoT concept into an IoT reality, and cloud computing propelled IoT from simple in-home solutions to enterprise-wide deployments. Today’s IoT platforms drive systems in markets such as manufacturing, logistics, healthcare, and transportation.

As the market shifts from the consumer- to corporate-based deployments, IoT architectures become more complex and the platforms more robust. The infrastructure demands support for strong cybersecurity, high-performance protocols, and data governance. A typical IoT architecture consists of multiple layers that incorporate:

• Devices and actuators
• Gateways and edge pre-processing
• Data Management
• Data Analysis

While IoT platforms are not directly responsible for the first layer of devices and actuators, they must communicate with them to deliver an IoT ecosystem’s availability, functionality, scalability, and sustainability.

What Are IoT Platforms?

IoT platforms acquire data from various endpoints and deliver the information to a data center or cloud. The platforms enable the development of applications to monitor and manage endpoints with pre-processing capabilities at the edge. The web-scale platforms leverage IoT infrastructures to deliver advanced solutions that drive business operations.

Why Use IoT Platforms?

Companies are moving towards IoT platform solutions at an unexpected rate. The annual growth is projected to hover around 25% for at least another five years. So why are organizations turning to IoT platforms?

Reduce Expenses

IoT systems can automate maintenance to ensure equipment is serviced when needed – not to a predetermined schedule or as the result of a system failure. Maintenance costs go down because of “just-in-time” notifications. Companies make informed decisions based on IoT data that can reduce production costs through operational efficiencies. They can even use data to reduce fraud and improve security.

Monitor Production

Sensors placed throughout the factory floor can monitor environmental and equipment conditions 24/7. If a problem in the heating and cooling system causes a rise in temperature and humidity, the system alerts staff who can take action to maintain optimal production.

Devices placed inside equipment can monitor pressure or heat to identify potential points of failure. If pressure declines, it may point to a leak in the hydraulic system. Heat increases could indicate friction between parts, indicating a need for unplanned maintenance.

Helping manufacturers maintain operational efficiencies means less unexpected downtime. With an hour of downtime costing between $1,000 and $17,000 per minute, ensuring continuous operation makes IoT solutions essential to improving the bottom line.

Add Revenue

IoT platforms can add revenue sources. Hewlett-Packard (HP) is an excellent example of how IoT can increase revenue in an existing product line. HP increased its revenue by adding IoT capabilities to its printers. Consumers can allow their printers to notify HP when a cartridge is low and have a replacement sent automatically.

HP gains a more reliable revenue stream, and consumers have the convenience of never running out of ink. The IoT implementation presents a win-win for both HP and their customers.

Gain Insight

Online merchants have access to a steady stream of data on their potential and existing customers. Devices can collect data on how often they visit their site, what products they browse through, and how often they purchase. Before IoT, brick-and-mortar merchants were at a disadvantage. With IoT platforms, retailers can gain valuable insights into consumer behavior.

By placing sensors across the storefront, merchants can learn how many people stop at their display windows but never enter. They can even determine what products within a store display seem to be of most interest.

This information helps merchants alter their displays to attract more customers. It can even let retailers know how many people enter their store and leave within minutes, making it possible to change the store’s layout to attract and retain more visitors.

Improve Customer Service

The more information companies have about their customer base, the more they can personalize the customer experience. Whether it is analyzing in-store behaviors or learning more about products being used, IoT solutions can acquire and analyze the data to identify areas for improvement.

How Do IoT Platforms Work?

Initially, IoT platforms focused on managing, monitoring, and maintaining IoT devices. IoT platforms now go beyond devices and data collection to include edge computing, data storage, and analysis. They provide an environment for developing and deploying applications that can send and receive data, as well as provide insights for improved decision-making.

A comprehensive solution connects to data collection devices located on-premise, across town, or around the world. As the data is collected, some platforms may support edge computing to allow local analysis before connecting to the cloud.

Platforms use different protocols for sending and receiving data to and from the cloud. Some platforms may support on-premise and cloud connectivity; others may only allow cloud configurations. Depending on the platform, data may be stored locally or in the cloud.

Applications analyze the data to create insights that can direct devices to perform specific tasks while others present charts and tables to help end-users visualize results. Throughout the process, the platforms must maintain secure operations at scale.

What Functionality Should IoT Platforms Have?

IoT platforms are not equal. Some platforms support the entire ecosystem, while others focus on only a few of the architectural layers. For example, a platform may focus on the device and gateway layers, while another focuses on data management and storage.

More platforms include analytics capabilities and development environments as part of their end-to-end solution. With the diversity in solutions, finding the best solution can be challenging. However, asking the following questions can help identify the essential functionality for a given implementation.

How Flexible is the Platform?

IoT technology and its applications continue to evolve. What seems impossible today may be routine in months. Unless the IoT platform is flexible, companies may not be able to take advantage of technological advancements. As a result, organizations should evaluate the following:

• Does the platform support existing IoT devices?
• Will existing devices require upgrading or replacing to work with the platform?
• Does the platform support open-source options?
• Will the solution work in on-premise, cloud, and hybrid environments?
• How does the platform handle integration with other applications?

Implementing IoT solutions takes time, and failures are costly. Making sure the solution can grow is essential for a reasonable return on investment.

Does the Platform Support Analytics and Machine Learning?

Analytics and machine learning (ML) applications require data – lots of data. IoT platforms should enable organizations to leverage the collected data to produce solutions that can deliver actionable insights. Asking the right questions can ensure that the capabilities are there when needed.

• How is data stored?
• Where is data stored?
• Does the platform include data analytics tools?
• Does the solution incorporate machine learning capabilities?
• Does the solution provide development tools?

Few IoT platforms provide a comprehensive set of tools for analyzing data or developing machine-learning applications. However, all solutions should integrate with API endpoints to expand their capabilities to include external tools.

How Secure is the IoT Platform?

IoT configurations are known for their weak cybersecurity. No standards exist, making it difficult to sustain a strong level of security. IoT platforms should provide resources to fill in the gaps to secure an IoT deployment from outside attacks.

• Is data encrypted from the point of origin?
• Is data encrypted when stored?
• Does the solution provide network security as well as data security?
• Is the solution configured to shut down or isolate attacks?

If IoT solutions do not provide adequate cybersecurity protections, they should enable the integration of external tools to deliver end-to-end security.

What is the Return on Investment?

Deciding on the best solution requires careful analysis of the total cost of ownership, not just the initial cost of implementing an IoT platform. For example, registering devices should be straightforward to scale. If the platform makes it difficult to add devices, the cost in time and labor can reduce the ROI over time. Similarly, an inability to scale can hamper an organization’s growth.

For platforms that provide development environments, are those environments easy to use and quick to deploy? As more companies move to distributed workforces, the ability to securely develop applications directly impacts a solution’s ROI.

What Are the Pros and Cons of IoT Platforms?

Not every technology is the perfect fit for an organization. Sometimes the disadvantages outweigh the advantages. Here are some pros and cons to consider before deploying an IoT platform.

Pros

IoT platforms can help reduce costs, increase productivity, improve customer service, and provide actionable insights.

• Lower Costs. IoT devices can help optimize workflows and reduce operating costs by providing real-time information. Staff can be notified if a sensor reports an out-of-bounds behavior that may indicate a potential equipment failure.
• Increase Productivity. IoT devices deliver real-time information to help staff make data-based decisions about processes and procedures that impact productivity. They can identify bottlenecks that slow delivery or analyze strategies to simplify operations. These capabilities improve the productivity of a company’s resources.
• Improve Customer Experiences. IoT devices improve customer experiences through the collection and analysis of customer data. IoT platforms can deliver results faster, making it possible for businesses to provide personalized services to their customers. As more consumers look to experience as a determining factor in deciding what companies to do business with, enhancing the customer’s journey improves the bottom line.
• Provide Actionable Insights. IoT platforms can gather data from inside as well as outside an organization. Supply chains can use IoT-provided data to make adjustments in delivery schedules. Logistics firms can track transportation channels to ensure materials arrive on time. Companies use IoT platforms to modernize their organizations so their time to market is faster and their customer service is better.

Cons

The top concerns for IoT deployments include security, complexity, time to deployment, integrations, and connectivity.

• Organizations must protect their IoT networks from physical tampering, hardware- and software- attacks, as well as network and internet breaches. The difficulty of ensuring a robust cybersecurity infrastructure is compounded because IoT devices lack security standards, making it difficult for an enterprise to deploy appropriate encryption and integration to reduce vulnerabilities.
• IoT ecosystems are complex. They can struggle to sustain operations. Their multi-layers of operations and distributed infrastructure can make maintenance time-consuming and resource-intensive. For most organizations, IoT deployments come with a steep learning curve. The architecture alone covers multiple disciplines. Companies should prepare for the technical complexities through a measured strategy for implementation.
• IoT implementations require a continuous internet connection. Whether the link breaks because of communication or power difficulties, IoT networks stop working when they lack power or internet access. As IoT becomes integrated into the business fabric, resources will be needed to develop continuity plans to maintain mission-critical services.
• Because the IoT landscape lacks security and protocol standards, integrating devices and applications can be problematic. IoT platforms may have difficulty providing the flexibility needed to ensure integration for current and future deployments.

Top Vendors

IoT platform companies range from hyper-scalers such as Amazon or Microsoft to smaller, even open-source, solutions. Here’s a list of the better-known suppliers.