Software AG (Frankfurt TecDAX: SOW) today shared its predictions for the Internet of Things (IoT) in 2017, derived from our expertise, customer insights, and market observations.
Bart Schouw, Internet of Things Solutions Director at Software AG observed: “There is a lot of buzz around the Internet of Things and especially increased device-to-device communication. Much of this mobile, virtual and instantaneous connectivity is built on seamless integration, cloud computing and networks of data-gathering sensors—building new ‘Smart Things.’ And all of this is going to make our lives easier and more efficient.”
Things have Changed
“Smart Things” have their own needs - drones need landing areas and docking stations for recharging, robots want their own elevators - and architects are realizing that buildings have to accommodate them. Whereas they do not yet fully understand the implications, once they do we will see substantial changes to the layouts of buildings. Architects will turn to hardware and software vendors to gain a better understanding. Form follows function becomes form follows digital functions.
The Year of the Chatbot
Artificial Intelligence capabilities are moving fast and chat engines will not only answer requests, but will engage conversation in your language of choice, withstanding the Turing test for a minute or longer. Banks, retailers and other industries will use this to facilitate omni-channel as AI Chatbot engines become part of the interaction in every channel, driving and enhancing the customer experience. Support organizations will embrace Chatbots to solve simple service requests in a cost-effective way.
Living on the Edge
The transition to Edge Computing begins in earnest as organizations move critical analytics off of the cloud and closer to devices. In remote areas, or in smart factories with lots of IoT-enabled devices, the dependency on the analytics is so critical that even short disconnects to the Internet can be disastrous. Moving part of the IoT stack from the cloud onto gateways will be the way forward.
Brush your teeth
Insurance companies will start monitoring their customers’ smart devices, where the end behavior might influence the price of the insurance premium. Devices such as connected toothbrushes can initiate healthier habits through direct feedback, saving on your insurance bills. Smart home devices will report whether your home is locked securely at night; if not, your premium might rise. Insurance is a prime example where more and more companies feel confident enough to explore new business models: pay-per-use, pay-per-insight and pay-for-features will be gaining mindshare.
Fantastic Voyage
Like the 1966 sci-fi movie Fantastic Voyage, where a submarine with a small crew is shrunken to microscopic size and injected into the bloodstream of a dying man, we will see more and more experiments where IoT is entering the body. Medical IoT implants can manage pain, or even decode signals from the brain and relay them to other parts of the body possibly curing paralysis.
Pokémon Go Further
Pokémon Go was a big hit in 2016 and next year we will see more augmented games hitting the market. Future games will embrace dynamic locations, and smart objects will be able to alter the interaction with your game directly. Surroundings will become more responsive and interactive, laying the artificial world on top of the physical world.
Bart Schouw concluded: “Of all the technology trends that are taking place today, perhaps the biggest one is the Internet of Things. The principal benefit will not be in cost savings (although there are cost-saving to be had), but rather in how smart we make our ‘Things’ because these innovative ‘Smart Things’ will be the foundation for crafting new products and services.”
The digital transformation is changing enterprise IT landscapes from inflexible application silos to modern software platform-driven IT architectures which deliver the openness, speed and agility needed to enable the digital real-time enterprise.
Software AG offers the first end-to-end Digital Business Platform, based on open standards, with integration, process management, in-memory data, adaptive application development, real-time analytics and enterprise architecture management as core building blocks. The modular platform allows users to develop the next generation of application systems to build their digital future, today.
With over 45 years of customer-centric innovation, Software AG is ranked as a leader in many innovative and digital technology categories. Software AG has more than 4,300 employees, is active in 70 countries and had revenues of €873 million in 2015.
