Channel Partners

SPR 2016

For 25 years, Channel Partners has been a resource for indirect sales channels, such as agents, VARs and dealers, that provide network-based communications and computing services, associated CPE and applications, and managed and professional services

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COVER STORY Meanwhile Verizon, which estimated its 2015 revenue from IoT and telematics offerings at more than $495 million, launched ThingSpace, an IoT platform through which partners can connect with innovative developers to resell systems that do everything from conserve water at wineries to help pharma companies secure their supply chains. The company estimates that by 2020, IoT will result in 5.4 billion connected devices. Mike Lanman, senior vice president of enter- prise and IoT products, says his division is seeing double-digit growth and has signed on more than 1,000 IoT partners. Not that we're in a hype-free zone: Cisco famously insists that the IoT's eventual economic impact will top $19 trillion, more than the annual gross domestic product of the United States, and predicts that annual global data center IP traffic will reach 10.4 zettabytes by the end of 2019, up from 3.4 zettabytes in 2014, partly thanks to IoT devices. Juniper Research forecasts that 38.5 billion connected things will be in use worldwide in by 2020 — by an expected global population of 7.7 billion people. That's a lot of Fitbits. Listening to vendors wax poetic about IoT's potential is like listening to one of those thoroughbred owners predict a Triple Crown — they have a vested stake in rosy predictions. But even when you strip away visions of roses and six-figure stud fees, there's plenty of reason to get into the IoT race, not least the possibility of healthy new monthly recurring revenue streams for you and your customers. We're seeing examples now. Avaya worked with Tesla to enable its cars to send alerts when sensors report low air pressure. "They'll automati- cally alert a support guy to drive and meet the person and change their tire for them," says Steve Biondi, vice president of Avaya's Global Partner Organization. "Imagine other kinds of diagnostics like that. This is fantastic." The idea is that IoT can prevent waste, engage customers and enable new markets that, sensor by sensor, tire service by tire service, add up to pretty staggering sums. Getting to Cisco's $19 trillion takes some leaps in cause-and-effect thinking, but the idea is right: We do a lot of things based on expected outcomes rather than actual measured needs. Here's what we mean. You have a customer that depends on fleets of delivery vehicles. They change fuel filters annually, no matter whether a van did 18,000 hard city miles or 8,000 on IOT: WHERE'S THE MONEY? Gartner predicts that the IoT will have an economic impact of about $1.9 trillion by 2020, with about 60 percent of spending spread across manufacturing, health care, insurance, banking and retail. SOURCE: GARTNER $ 1.9 Trillion 15 % MANUFACTURING 4 % AGRICULTURE 3 % OTHER 15 % HEALTH CARE PROVIDERS 5 % UTILITIES 4 % REAL ESTATE & BUSINESS SERVICE 11 % INSURANCE 7 % GOVERNMENT 6 % TRANSPORTATION 10 % BANKING & SECURITIES 8 % RETAIL & WHOLESALE 8 % COMPUTING SERVICES FOGGY WEATHER: You may have heard the term "fog computing" in relation to IoT. Cisco defined the fog as bringing the cloud closer to the things that produce and act on IoT data; essentially moving analysis closer to sensors, like those on a factory floor or in a fleet vehicle. Any device with computing, storage and network connectivity can be a fog node. Examples include embedded servers and video surveillance cameras. Fog nodes close to the network edge collect data from IoT devices and may do some analysis; they then periodically transmit the data to its destination. 16 CHANNEL PARTNERS DIGITAL ISSUE SPRING 2016

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