Why would buyers like Google, Cisco, Intel and Qualcomm spend $15B to acquire over 60 IoT-related companies last year? This doubled the number of IoT acquisitions and showed a 40-fold increase in spending.
This is because the Internet of Things is changing the world and driving tremendous innovation, differentiation and value. The majority the financial value to be mined fro the IoT space is not in the device, but in how they are connected. That value will flow to IoT software innovators.
Last year, Apple released HealthKit and HomeKit developer tools in iOS8 and GE now offers Predix for the Industrial Internet, and Ford has OpenXC for smart mobility. At the same time, PTC dev platform ThingWorx, then Axeda for its machine connectivity software. Google acquired Nest and Dropcam as home automation platforms. Other bellwether IoT software deals included Tail-f going to Cisco, SmartThings to Samsung and Cobra Automotive to Vodafone.
Looking ahead, Cisco reports that only 1% of potentially connected devices are actually connected. As the other 99% come online, the opportunities for IoT software are remarkable. If the consumer electronics show last week is any indication, the activity is heating up very rapidly.
Thank you, Jeff.
Now we’re going to go to the Create section, with a close cousin and integral part of the Internet of Things, Enmeshed Systems, with John Simpson.
Enmeshed System technology is closely following Moore’s Law, with millions of ever-smarter lines of code buried in smaller and faster hardware every 18 months. We’re already blasé about our computer-laden cars and gesture-driven TVs, and factory floor controls for food processing, water treatment, and car manufacturing are routinely embedded in microchips.
Now comes intelligent and interconnected home heating, lighting and security devices, all controlled by our smartphones. So what’s next? Likely we’re going to move to supercomputer chips like the NVIDIA Tegra X announced at last week’s CES show. This is a truly exploding area in our industry.
Thank you, John.
Now from microchips to more business models, as Rob Schram discusses Digital Force Multipliers.
When we first went to market, Corum, with their experience and offices all over the world, spent time with us going through who the potential partners could be. And, frankly they were everywhere. The tech headlines can just as easily be out of England, Germany, France, Finland, Korea, China or North America. Some of the biggest and fastest growing firms in the tech world are not in the U.S. so we felt it imperative to do a truly global buyer search. We’re glad we did.