‘The Internet of Things is not a priority for businesses, many of which do not see the connected space as an area to invest in the next 12 months.’
This finding from a survey by Daisy Distribution looked at the digital strategies of various business and its results were reflected by the dealer channel.
Many are reluctant to invest and, despite a wide variety of connected products available, prefer to focus on more revenue rich areas of the market such as cloud.
Securing the sale
In the b2b sector IoT is not an easy sell not least of all because it is quite complicated to explain it to a customer. This makes it very difficult to convince clients that they should swap their current solution for an IoT alternative, one that needs to be cheaper both in terms of efficiency and money.
In order to sell this, dealers need to either upskill their current sales staff to sell this new technology or hire new recruits, both of which require significant investment.
Not such a suite deal
A major stumbling block for IoT has been the way it is introduced to the market. IoT provider Pangea warned that market expectations were getting ahead of reality: ‘We hear about the wonderful of connected toasters but actually in the b2b space it’s more about driving a return on investment and showing efficiency’.
There has been a big push by distributors Exertis and Brightstar to create a connected suite of products and get ahead of the market. Although having a large range could be doing more harm than good, with businesses already reluctant to invest further put off by multiple products.
However, flooding the market has its merits especially when it comes to generating interest and introducing new technology.
Betting on the slow burner
You only need to look at other aspects of the b2b market to know that businesses just aren’t ready for IoT at the moment. The main focus is on cloud, a market which sat on the back burner for years waiting for the market to catch up to it.
Now the industry demand for cloud is huge, with Azzurri, Annodata and Connect Telecom seeing strong growth as a result.
This spells good news for IoT and those stocking up in preparation may soon be reaping the rewards. Cloud has proved that dealers have no problem making the investments needed when they know it will pay off.