For Internet of Things (IoT) designs, the consumer segment is a sexy siren call, but enterprise applications are where the money is, according to a top analyst from IDC.

Vernon Turner, senior vice president of enterprise systems and IDC Fellow, said consumer whims coupled with volatility among  providers — due to mergers and acquisitions — make IoT far less lucrative in the near term than the enterprise. The latter segment is where companies want to drive more efficiency into their operations and nurture loyalty among customers by leveraging IoT technology.
Turner said that by 2018 the consumer sector will account for 30 percent of the installed base of IoT devices, while the enterprise will account for the rest. However, the consumer sector will generate just 10 percent of the anticipated spend in that year, he noted.
“The real value for IoT is in the enterprise space,” Turner said during an IDC online webinar Thursday (July 23).

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