• Several high-profile vendors of enterprise IoT platforms disbanded their offerings in 2022/23 as products commoditized, margins shrank, and/or some platforms never generated sufficient revenue.
• However, the overall IoT market is still healthy. On the platform side, existing vendors are enhancing feature sets and vertical players are becoming leaders.
Since 2018, the size and scope of the IoT platforms market has grown. These platforms facilitate deployment and management of IoT projects and provide tools to develop and run IoT applications. However, high-profile dropouts that have disbanded their platforms have plagued the market recently. GlobalData has the position that this does not indicate softness in the IoT market overall. However, it does highlight a trend in which vendors blend IoT with adjacent solutions or use a third-party platform go-to-market approach rather than maintain their own expensive platforms, which may not yield sustainable margins.
• Telcos have a good opportunity to leverage AI-video systems in their wider industrial solutions portfolio as the market has rapidly matured.
• Rather than develop solutions in house, telcos should look to partner with existing vendors due to the complexity of developing AI video algorithms and integrating with industrial systems.
The use of AI-enabled video surveillance systems continues to rise across Australia as well as globally with a myriad of use cases like public safety, facilities management, crowd management, asset management, and more. However, these systems also generate a large amount of video data, which requires significant bandwidth and storage capacity to process and store. This makes the video or video surveillance as a service an attractive market for telcos and managed service providers as they seek to expand their revenue base as traditional service margins decline. However, the market for AI-video solutions is rapidly maturing and diversifying, with a growing field of specialists developing specific vertically aligned use cases for AI-video from retail, to government, to mining, education, and more. Further, video systems are increasingly integrated with other IT and operational systems such as physical security, communications networks and IoT platforms creating a complex ecosystem of solutions, vendors, use cases, and monetization models to navigate.
• Since customer databases are available for mass business markets alongside providers’ existing major enterprise knowledge, service providers have traditionally segmented target markets by number of employees.
• Service providers are realizing they need to be more sophisticated and are trying to identify factors like digital maturity and proportion of knowledge workers.
More often than not, enterprise telecoms service providers segment the market in terms of employee numbers. Typically, they divide the market into SOHO/micro (0-5 employees: owner-managers don’t count as employees), SME/SMB (from 6-250 employees), and corporate/enterprise (250+ employees). Of course, these definitions vary from one service provider to the next, and often, specialist markets such as the MNC segment and public sector are addressed outside of the employee count model. The main drivers behind this are: (1) ‘this is how we’ve always done it,’ (2) ‘we can get databases of the target market by employee numbers,’ (3) and ‘any other approach is too difficult.’
• AIS and Singtel continued their momentum with various initiatives to extend their enterprise 5G leaderships in their respective markets.
• Other telcos in the region had a slower start to the year with only several initiatives and collaborations.
In 2022, telcos aggressively expanded their 5G networks and built enterprise 5G capabilities through various partnerships with technology vendors and collaborations with industry players. While many initiatives were still in the proof-of-concept and trial stages, leading telcos such as Singtel and AIS have launched their respective solutions commercially in the market. For more, please see GlobalData quarterly ASEAN 5G 2022 reports here:
• Tech buzzwords work when they successfully communicate innovation in a catchy phrase.
• The emerging ‘AIoT’ construction is awkward, but it may help IoT providers communicate their value to knowledgeable tech audiences.
The concept of combining AI and IoT has been around for a few years. More recently, some tech market players have begun using the phraseology ‘AIoT’ to capture it. A good technology buzzword helps communicate instantly to tech and non-tech audiences what the innovation is all about, or at least provides a sizable hint. Both ‘artificial intelligence’ and ‘Internet of Things’ have been pretty good at this, but the mashup term AIoT (or ‘artificial intelligence of things’) is awkward, not self-explanatory, and ultimately, unhelpful.
• As enterprise embrace hyperscale cloud platforms and networking services are more tightly integrated with cloud offerings, a diverse range of vendors are now competing for digital infrastructure services in Australia.
• Telcos are focused on evolving a network as a service approach, connecting as many clouds as possible, while systems integrators (SIs) and IT managed services providers (MSPs) are looking more at the migration towards an ongoing management of multi-cloud infrastructure.
The market for digital infrastructure services in Australia is served by a broad range of players that include both domestic and international players across telecommunications companies, IT MSPs, SIs, hyperscalers, and data center specialists. Further, many of the leading providers rely on packaging products and services from other vendors alongside their own to provide more complete set of solutions. For example, a telco offering its networking services alongside re-selling IaaS from a hyperscale cloud provider, or an SI offering managed network and managed cloud contracts from multiple vendors. As enterprise databases and applications increasingly move towards hyperscale environments led by a few players, digital infrastructure providers need to differentiate around areas like network visibility and performance, service automation, consulting and advisory, service orchestration, cost management, and managed services. As such, the covered vendors all have different strengths based on their background.
• New vendor training programs make high-value digitization roles more accessible to IT workers.
• Red Hat, Cisco, and Google report progress in training and education.
The tech industry has undergone a sea change in how software and technology resources are created and consumed. Now enterprises are hard-pressed to fulfill new skillsets for implementing business transformations. This dearth in skilled workers poses a grave danger to the global economy by threatening to stall the implementation of important technological innovations which will advance corporate progress.
• The Italian National Authority for Data Protection has temporarily banned ChatGPT after a leak exposed the personal data of users of the paid-for version of the service.
• OpenAI, the company behind the popular chatbot, has 20 days to respond to the privacy watchdog or risks a fine equivalent to 4% of its annual turnover.
The Italian National Authority for Data Protection became the first regulator to start an investigation into OpenAI’s ChatGPT last week. Debate turned to the inevitability of increased regulatory oversight to control the effects of the explosion in the use of generative AI, and the possibility that the measure could be followed by other Western democracies, as the conversation around AI and ethics becomes more urgent.
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