The growth rate of the Internet of Things (IoT) is unprecedented with about 127 new device connections every second. With this expansion rate, IoT is likely to contribute a 15% rise in the connectivity expenses incurred by companies by 2022. To this end, even the connectivity providers are shifting their focus to new technologies such as low-power, wide-area networks (LPWANs). In this article at McKinsey & Company, Kim Baroudy and co-authors share some major impacts that such changes are likely to bring and how companies need to be more intuitive while selecting a service provider.
The Shift in Mindset
With the increasing cost factor and its subsequent effect on the bottom-line profitability, it is high time for companies to reevaluate their networking needs and be more selective in making decisions in view of global coverage, intelligent-switching capabilities, service delivery, pricing, security, and IoT expertise. Here are some factors that must be considered while making these decisions:
Single Contract – Global Coverage
Instead of signing numerous contracts specific to different countries, it’s better to have an agreement with a single network provider that has global penetration capability. This is likely to reduce the intricacy and coverage issues commonly faced by companies.
Strong Intelligent-Switching Abilities
IoT based providers are exploring the use of two intelligent-switching technologies – intelligent mobile switching (shift of IoT devices from one MNO or MVNO to another) and intelligent platform switching (device transition among unlicensed, cellular, and mobile platforms). Though both the technologies are relatively new, mobile switching is more scalable. A useful solution for this is embedded universal integrated-circuit cards (eUICCs) that can host multi-MNO profiles, provide better control on roaming expenses and quality. Once this becomes conventional, it is likely to cut down costs immensely.
Focus on Service-Delivery
Any organization should not undermine service quality and focus only on cost issues while choosing an IoT solution. Weak service quality can hamper the prospects of your IoT offerings. While choosing a service provider, it is essential to consider the following traits – leadership and business vision, domain expertise, tailored campaigns, performance metrics, and contingency plans.
The foremost step is to understand your networking needs and data usage patterns. Then, request a customized package and pricing plan. Through this, you are less likely to pay for redundant features.
Security Is Primary
Threats will increase in sync with IoT implementations. To counter them, companies must establish design protection measures for their infrastructure, strong endpoint security for validation processes, and implement robust cryptography standards.
Look for service providers with exceptional domain expertise and a strong track record of offering customized and need-specific packages. Such providers will go beyond the conventional approach to understand the business case better and deliver tailored solutions.
To understand these insights better, read the full article here – https://www.mckinsey.com/industries/high-tech/our-insights/unlocking-value-from-iot-connectivity-six-considerations–for-choosing-a-provider