Thursday, 6 August 2015

The Internet of things is not paying the rent

Purportedly, the market opportunity for the Internet of things is gargantuan -- but development in the space clearly isn't paying off yet.

The Internet of things may be hot, hot, hot, according to the Valley, but it’s not paying the bills. In fact, less than 10 percent of IoT developers are making enough to support a reasonably sized team.

That’s one key takeaway from the latest VisionMobile Developer Economics report, released this week. It’s a sobering thought for the companies jumping into IoT as they chase IoT’s purported $11 trillion jackpot.

[ Get the scoop on the Internet of things at its most fundamental level and find out where it's headed, in InfoWorld's downloadable PDF and ePub. | Get a digest of the day's top tech stories in the InfoWorld Daily newsletter. ] As with every other business, the only way companies will realize this value in terms of revenue will be to attack the IoT market with a clear idea of what they’re selling and to whom

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Google's Nest: Big Data And The Internet Of Things In The Connected Home

Formed by ex-Apple AAPL +0.68% engineers, Nest Labs develops products designed to bring Big Data and the Internet of Things into our homes via its smart thermostats, fire alarms and security cameras.

The company was bought out by Google GOOGL +1.94% last year for $3.2 billion, which sees its products as central to the inevitable drive towards “smart” homes with connected data systems designed to make our lives more comfortable, while simultaneously cutting down on wasted energy.

This is all possible because of Big Data and analytics – algorithms in the software used by the devices to monitor and record how they are used, building up a profile which allows them to intelligently “set” themselves.

It has proven to be a successful model and the products have sold well since the first Nest thermostat was released in 2011. Now with the launch of its latest products, the Nest Protect smoke alarm system and the Nest Cam home surveillance camera, it is hoping to save lives as well as make us safer.

Uploading and comparing the thermostat data from all of its users can glean accurate pictures of energy use across communities and the wider world. However when dealing with data as personal as information about your home, the importance of maintaining customers’ privacy cannot be understated. Nest’s General Manager for Europe, Lionel Paillet, explained to me how fundamental this is to the company’s operations.

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