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Literally hundreds of suppliers are vying to compete in the device connectivity layer of the Industrial Internet of Things (IIoT). Device level IIoT platforms collect, monitor, process, and transmit data from intelligent sensors, devices, machines, products, and other assets to higher levels of the architecture. Along with device connectivity, device level IIoT platform functionality may include Application Enablement, Application Development, and/or Edge Analytics. These platforms reside below the enterprise platforms used for Big Data, Analytics, etc., in the IIoT hierarchy.
ARC Advisory Group’s recent update of our coverage in this area unearthed companies ranging from straightforward IIoT platform suppliers to horizontal M2M connectivity providers to legacy industrial SCADA players targeting their solutions at this space. M2M and industrial SCADA both emphasize remote connectivity to numerous devices, similar to IIoT functionality, but in many cases the architectures of these solutions do not match that of the emerging IIoT or the software industry as a whole. Some current suppliers are essentially marketing a message bus as a device platform.
Adoption of cloud-based architectures and subscription pricing is an important means by which M2M and SCADA suppliers can transform their legacy offerings for use in IIoT applications. These characteristics are not unique to the device level IIoT platform space. In fact, the software industry as a whole is migrating to use of a cloud-based subscription model.
Along with the universal access that typifies cloud-based solutions, scalability is a primary value proposition for cloud-based architectures in the device platform space. Remote servers and even some private clouds can quickly run into capacity issues, particularly once the volume of connected products rises and the desired annuity stream of subscription revenue increases. Cloud-based architectures make it easier for OEMs to generate incremental revenues from applications and services or even migrate to product-as-a-service. Consequently, many providers are looking to migrate their solutions to the cloud-based subscription models that increasingly characterize IIoT architectures.
A number of suppliers offer private clouds, some with many desirable features, but we believe that public clouds, or hybrid public/private clouds, will dominate in the future. The scalability issue is often a primary driver, with hybrid architectures designed to absorb overflow during high traffic times. Capacity, standards support, ongoing incorporation of the latest technology, proven track records of operation, and removal of the need to build your own data center are further incentives. Amazon’s AWS is currently the most popular cloud option in the device platform space, although a select few providers employ Microsoft’s Azure, Rackspace, or Google.
The software industry is similarly moving to a subscription revenue model versus platform licensing. In the IIoT connectivity context, a subscription model is one where the client is charged on the basis of the number of connected devices, the number of users, the amount of data traffic, or a related metric. For device platform providers, this results in an annuity revenue stream for each new connected device shipped by your OEMS.
This information was drawn from the just-published ARC Global Market Research Study Device Level Industrial Internet of Things Platforms.
ARC Advisory Group’s recent update of our coverage in this area unearthed companies ranging from straightforward IIoT platform suppliers to horizontal M2M connectivity providers to legacy industrial SCADA players targeting their solutions at this space. M2M and industrial SCADA both emphasize remote connectivity to numerous devices, similar to IIoT functionality, but in many cases the architectures of these solutions do not match that of the emerging IIoT or the software industry as a whole. Some current suppliers are essentially marketing a message bus as a device platform.
Adoption of cloud-based architectures and subscription pricing is an important means by which M2M and SCADA suppliers can transform their legacy offerings for use in IIoT applications. These characteristics are not unique to the device level IIoT platform space. In fact, the software industry as a whole is migrating to use of a cloud-based subscription model.
Along with the universal access that typifies cloud-based solutions, scalability is a primary value proposition for cloud-based architectures in the device platform space. Remote servers and even some private clouds can quickly run into capacity issues, particularly once the volume of connected products rises and the desired annuity stream of subscription revenue increases. Cloud-based architectures make it easier for OEMs to generate incremental revenues from applications and services or even migrate to product-as-a-service. Consequently, many providers are looking to migrate their solutions to the cloud-based subscription models that increasingly characterize IIoT architectures.
A number of suppliers offer private clouds, some with many desirable features, but we believe that public clouds, or hybrid public/private clouds, will dominate in the future. The scalability issue is often a primary driver, with hybrid architectures designed to absorb overflow during high traffic times. Capacity, standards support, ongoing incorporation of the latest technology, proven track records of operation, and removal of the need to build your own data center are further incentives. Amazon’s AWS is currently the most popular cloud option in the device platform space, although a select few providers employ Microsoft’s Azure, Rackspace, or Google.
| Platform Provider | Primary Public Cloud |
| BrightWolf | AWS |
| CloudPlugs | Google Computer Engine |
| Eurotech | AWS |
| MachineShop (SBA/API-based) | AWS, Google |
| MeshSystems | Azure |
| PTC ThingWorx | AWS |
| Sierra Wireless | AWS |
| Telit IoT Platforms (fka ILS Technology) | AWS; Google Cloud Platform |
| Wind River | Google Cloud Connector |
Select Device Level IIoT Platform Providers by Supported Public Cloud
The software industry is similarly moving to a subscription revenue model versus platform licensing. In the IIoT connectivity context, a subscription model is one where the client is charged on the basis of the number of connected devices, the number of users, the amount of data traffic, or a related metric. For device platform providers, this results in an annuity revenue stream for each new connected device shipped by your OEMS.
This information was drawn from the just-published ARC Global Market Research Study Device Level Industrial Internet of Things Platforms.