IoT and Cloud Computing: The Internet of Things (IoT) should move more than 11 trillion dollars by 2025, according to a study by McKinsey.
It is one of the main pillars of the phenomenon known as the “era of digital transformation,” which is in full swing in the corporate world.
In this article, in addition to understanding in depth what Internet of Things is, you will also learn about its relationship with cloud computing.
Keep reading to understand the impacts of IoT and Cloud Computing on the routine of companies from the most varied segments and see how you can take advantage of these trends in your business!
What Is IoT?
Gartner’s IT glossary, the most influential information technology research firm, defines IoT as “the network of physical objects that contain embedded technology to communicate and sense or interact with their internal states and/or the external environment.”
In practice, we are talking about connecting any device (any “thing”), through an on/off button, to the internet (or vice versa).
This includes everything you can think of — from smartphones and tablets to lamps and office furniture, machines, and much more.
On a larger scale, with extreme connection, we can achieve the much-desired “smart cities” that can reduce waste, organize traffic, and improve fuel efficiency.
Gartner analysts estimate that by 2020 there will be more than 26 billion connected devices, demonstrating that IoT is also a phenomenon.
In short, one thing to keep in mind is that the IoT allows for virtually endless opportunities and connections, the impacts of which we cannot even think about or fully understand.
How Does IoT Work?
To more easily visualize how the IoT works, we need to go back to the origin of this concept. The term “Internet of Things” was created in 1999 by Kevin Ashton, an executive at the multinational Procter & Gamble.
Ashton came up with the idea of putting an RFID tag on merchandise and having it communicate with a radio receiver on the shelf to track sales and inventory and signal when restocking was needed. He then realized that such data collection could be used to solve many other challenges and problems.
Since then, billions of devices have been connected through other technologies and methods. They use integrated hardware and software to send and receive data over various communication protocols.
These connected “things” might, for example, use our smartphones as a gateway to the web, connect to some other hardware in our homes that acts as a hub, or connect directly through our Wi-Fi. -Fi.
Connected devices often send data to cloud computing servers, where it is aggregated and analyzed. We can access results through apps or browsers on our mobile devices.
What Are The Impacts Of IoT On The Routine Of Companies?
The impact of IoT on the corporate world is already huge. It is possible to notice advantages and challenges in the most varied segments.
In general, we highlight the following:
- Greater visibility throughout the fulfillment process, allowing retailers to track orders from the moment they are placed until they reach consumers;
- Durable goods manufacturers can leverage connectivity to build long-term relationships with consumers by offering ancillary services such as predictive maintenance and performance analysis;
- More data from which marketers can derive insights into consumer behavior, leading to more intuitive and personalized websites for the individual consumer;
- Improved customer engagement, which includes customized communication and recommendations from the use of connected devices;
- Improvement in the analytical power of the business, which can capture data and generate insights from the perception of patterns, for example;
- Facilities for innovation, since the high connectivity allows combinations to generate value in processes, products, and services.
What Is The Relationship Of IoT With Cloud Computing?
Now, how is this sea of devices constantly connected to the web? And most importantly: how do they work together? That’s where cloud computing comes in!
In practice, IoT is to cloud computing in the same way that fuel is to the automobile. In this simplifying metaphor, the energy produced by the power (IoT) moves the car (cloud computing).
The opposite is also valid: cloud computing supports and makes the IoT effective — it provides the ability to use computing and storage resources on demand, flexibly, and with the necessary mobility.
Assume you have a thousand sensor arrays in your factory. They can measure various data types, from pollutant emissions to intrusion detection (sensors are the “things” of IoT).
Imagine the amount of data sensors generate and the computational power required to store, process and analyze this information.
With a cloud computing structure, data collected through IoT devices are stored and processed in large data centers. All the capacity, in addition to the necessary flexibility and mobility, is the responsibility of companies (cloud providers) wholly dedicated to this — which reduces costs and adds information security (reliability, availability, and integrity), among other benefits.
How To Prepare To Take Advantage Of The Combination Of IoT And Cloud Computing?
Finally, we emphasize that an IoT strategy needs to have a cloud structure. In this way, it is possible to use the solutions brought by the IoT without overloading the internal IT infrastructure and freeing up the technology team for strategic and analytical work — reducing concerns with hardware (servers), for example.
Here are some tips for building your IoT strategy combined with cloud computing:
- Qualify your team — IT personnel need to know IoT and cloud computing in-depth, so seeking certifications and benchmarking with experienced professionals are practical ways to achieve this;
- Seek outside help — a good consultancy can help you put together a strategy linked to your business goals;
- Invest in solutions — contracting IoT and cloud computing solutions and services from a specialized provider is essential. In this case, give preference to suppliers with experience in the subject.
As you’ve seen, combining IoT with cloud computing is the ideal scenario to boost your business results. The good news is that this strategy is getting cheaper and simpler every day. The secret is to partner with qualified suppliers.