Microsoft announced IoT Signals, a research report that provides an overview of the IoT landscape.
Microsoft surveyed over 3,000 IoT decision-makers in enterprise organizations in order to give the industry a market-level view of the IoT ecosystem, including adoption rates, related technology trends, challenges, and benefits of IoT.
The report said respondents believe 30 percent of their company’s revenue two years from now will be due to IoT.
“IoT is transforming businesses in every industry and is powering breakthrough innovations,” said Sam George, head of Azure IoT.
85 percent of respondents are in IoT adoption, and three-fourths of these have IoT projects in planning.
Among IoT adopters, 88 percent believe IoT is critical to business success.
IoT adopters believe they will see a 30 percent ROI, inclusive of cost savings and efficiencies, two years from now.
Nearly all IoT adopters — 97 percent — have security concerns when implementing IoT, but this is not hindering adoption.
38 percent of IoT adopters cite complexity and technical challenges to using IoT as a barrier to furthering their IoT adoption.
Lack of talent and training present challenges for half of IoT adopters, and 47 percent say there are not enough available skilled workers.
Respondents believe critical technology drivers for IoT success in the next two years are AI, edge computing and 5G.
30 percent fail in the proof-of-concept stage, often because implementation is expensive or bottom-line benefits are unclear.
IDC said there will be 41.6 billion connected IoT devices by 2025 — growing at 8.9 percent over the forecast period.
Leading customers including Starbucks, Chevron, Buhler AG, Steelcase, thyssenkrupp and more are transforming their business with IoT and intelligent edge solutions.
Microsoft identified seven key ingredients for success in IoT: business strategy, leadership and organization, a technology roadmap, talent, operations and core business processes, partnerships, and security.
Microsoft is investing $5 billion in IoT and intelligent edge technologies and ecosystem by 2022.
Microsoft added over 100 features and services and released 70 IoT partner announcements.