Is The Internet of Things Like Betamax?

We have all seen the numbers related to the Internet of Things (IoT). 50 billion devices will be connected by 2020 with $19 trillion of business opportunity. It’s a big deal.

But, there is a hidden side to the numbers that a new feature in Forbes magazine has explored. Ten different industry groups are trying to define standards and frameworks for the IoT. Six companies that employ 780,000 people, and have net annual sales of $428 billion, are almost entirely controlling the entire industry.

Forbes suggests that it’s like a giant casino. Each of these big technology companies is presented a united front to their clients, but behind the scenes everyone is fighting to create a dominant position on the bodies that are defining standards.

Wars over standards always break out when new technologies come along. Who can forget the old days of VHS vs. Betamax video? However, this time the prize for being a dominant player is enormous.

The problem here is that the Internet of Things is a concept or strategy. It requires the creation of an entire ecosystem that involves both hardware and software. If every device needs to be connected to every other device then manufacturers across several different industries need to start working together.

To continue reading this blog, please click here for the IBA Group blog where it was originally published... 

What do you think about the battle for control of the IoT? Leave a comment here or tweet me on @markhillary. Photo by Joel licensed under Creative Commons.