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Business News/ Opinion / Online-views/  R. Chandrashekhar | Internet of Things: Machines too think
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R. Chandrashekhar | Internet of Things: Machines too think

India needs talent which is adept at developing, using and deploying high-end technology

A file photo of R. Chandrashekhar. Photo: Hemant Mishra/MintPremium
A file photo of R. Chandrashekhar. Photo: Hemant Mishra/Mint

Nasscom’s plan to set up a 50,000 sq. ft start-up Next-Gen warehouse in Bangalore in partnership with the government of Karnataka is aimed at creating a hub that will nurture, mentor and provide technology entrepreneurs with funding through venture capitalists (VCs).

Notably, an exclusive space in the warehouse has been earmarked as an IoT (Internet of Things) Lab. The concept of IoT (KNoT-Konnected Network of Things) was initially floated by Kevin Ashton—co-founder of the Massachusetts Institute of Technology Auto-ID Centre—in 1999, but it took some years before it could become a commercially viable idea.

Figures often in the range of billions, whether it be the number of interconnected devices or the opportunities that exist. The scope boggles the mind, but equally true is the fact that all this is happening—here and now.

Globally, the focus of the government in IoT has been a function of intensity of commitment. Countries like China, Australia, the US, Germany and the European Union (EU) can stake a claim to a high level of penetration. Expectedly, Malaysia, India, South Korea, Japan and Singapore fall in the medium range.

The Chinese government, in its 12th Five-Year Plan, has made a commitment of $800 million and allocated 23 sq. km area for IoT in one of the special economic zones. Both the US and Australia are focusing on building a strong broadband network which will form the backbone of smart cities. Germany has proposed heavy usage of IoT in manufacturing and though the EU is equally upbeat, concerns around data security are being regularly addressed.

Worldwide, the focus areas for IoT adoption have been in personal technology, retail and commerce, and smart cities. Other sectors like home and office automation, health, wellness and safety, industrial automation, SCM (supply chain management), energy and environment are rapidly making inroads.

Till only recently, the devices connected were mostly computing devices. KNoT has changed all that. Any device that can be fitted with a sensor is a potential source of data capture. These devices can now communicate with one other and make their ubiquitous presence felt with dogged precision, almost unreal.

The concept of privacy often becomes a low priority, not that people are not aware of its consequences. It can throw up unforeseen challenges pertaining to data security. With this kind of exponential growth and the constant need to stay connected, the threat only multiplies. Consequently, security solutions are flooding the market.

Betting on economies of scale, as we inch closer to the 33 billion-mark (connected devices) and $309 billion (market size by 2020), it is reasonable to expect that prices of devices will fall rapidly, increasing adoption further.

In comparison, the Indian case for IoT is still emerging. More obvious opportunities exist in healthcare, power and waste management, and vehicular safety. Notable adaptation is seen in the Indian Railways, Delhi Police and ministry of agriculture. Also, government initiatives like Aadhaar will foster an IoT-enabled environment. The SCM industry, one of the early adaptors of RFID/GPRS (radio frequency identification/general packet radio service), is better poised to benefit from these newer technologies.

In the private sector as well, there has been a positive movement in healthcare. The current budget with a focus on urbanization, sees a promised outlay of 7,060 crore towards building smart cities. This will open up opportunities for PPP (public-private participation)-based models, which has been the trend globally.

Interestingly, start-ups and small and medium-sized enterprises are leveraging IoT as well, with some of the brightest minds throwing their weight behind it. In the last two years, start-ups—especially in B2B services—are getting funded by VCs as well. Needless to say, a whole range of opportunities exist and it is only increasing with time.

To address this market would necessitate the need for talent which is adept at developing, using and deploying high-end technology. If it happens only in pockets, then the country will not be in a position to truly reap the benefits. Large Indian SIs (system integrators) are setting up dedicated teams for IoT, and start-ups can build partnerships to have access to such talent. For an idea as revolutionary as this, it will not suffice to think out of the box, but more appropriately to realize that there is no box.

The author is president of software lobby body Nasscom

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Published: 13 Aug 2014, 04:16 PM IST
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