Manufacturers will more than double Multicloud use in the next two years, a new report predicts.
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Jul 04, 2019 • Future Technology • News • future of field service • manufacturing • cloud • IoT
Manufacturers will more than double Multicloud use in the next two years, a new report predicts.
Nutanix has announced the findings of its Enterprise Cloud Index results report for the manufacturing sector, measuring manufacturing companies’ plans for adopting private, public and hybrid clouds.
The report revealed that the manufacturing industry’s hybrid cloud usage and plans outpace the global average across industries. The deployment of hybrid clouds in manufacturing and production companies has currently reached 19% penetration, slightly ahead of the global average. Moreover, manufacturers plan to more than double their hybrid cloud deployments to 45% penetration in two years; outpacing the global average by 4 percent.
The manufacturing industry is at an “innovation impasse,” 1 meaning manufacturers have a desire to innovate and drive transformation, but legacy IT systems have the potential to constrain their ability to do so. The opportunity for manufacturers to embrace digitization efforts including “Industry 4.0” initiatives can break the impasse, but executives must focus on new opportunities to create value and not only prioritize traditional business operations. Manufacturing organizations face the constant challenge of trade-offs: they are under pressure to meet current productivity and operational goals in an increasingly global and highly competitive marketplace, but they also need to invest in future growth.
This challenge has created a demand for new technology solutions that can help balance the trade-off between current and future goals. IT leaders in manufacturing must avoid the beaten path of finding short-term fixes for increasing revenue; instead, they should look to long-term solutions that enable automation, enhanced use of data and improvements in customer experience. The Enterprise Cloud Index findings indicate that manufacturing leaders are aggressively adopting new technology to embrace modernization instead of getting left behind with legacy systems. The distributed cloud model offers a solution that delivers speed, flexibility, and localization, allowing manufacturers to improve efficiency without compromising quality.
While 91% of survey respondents reported hybrid cloud as the ideal IT model, today’s global average hybrid cloud penetration level is at 18.5% — the disparity due in part to challenges of transitioning to the hybrid cloud model. Manufacturing industries reported barriers to adopting hybrid cloud that mirrored global roadblocks, including limitations in application mobility, data security/compliance, performance, management and a shortage of IT talent. Compared to other industries, manufacturers reported greater IT talent deficits in AI/ML, hybrid cloud, blockchain, and edge computing/IoT.
Other key findings of the report include:
- 43% of manufacturers surveyed are currently using a traditional data center as their primary IT infrastructure, slightly outpacing the global average of 41%;
- However, manufacturers currently use a single public cloud service more often than any other industry. 20% of manufacturing companies reported using a single cloud service, compared to the global average of 12% — a testament to the fact that manufacturers are starting to turn to the cloud as a solution, given that they deal with legacy IT systems and cannot handle workloads on-prem;
- Manufacturers are also advancing the movement to private cloud: 56% of manufacturers surveyed said that they run enterprise applications in a private cloud, outpacing the global average by 7%;
- Manufacturers are struggling to control cloud spend. One motivation for deploying hybrid clouds is enterprises’ need to gain control over their IT spend. Organizations that use public cloud spend 26% of their annual IT budget on public cloud, with this percentage predicted to increase to 35% in two years’ time. Most notable, however, is that more than a third (36%) of organizations using public clouds said their spending has exceeded their budgets;
- Manufacturers chose security and compliance slightly more often than companies in other industries as the top factor in deciding where to run workloads: while 31% of respondents across all industries and geographies named security and compliance as the number one decision criterion, 34% of manufacturing organizations chose security and compliance as the top factor.
The bullish outlook for hybrid cloud adoption globally and across industries is reflective of an IT landscape growing increasingly automated and flexible enough that enterprises have the choice to buy, build, or rent their IT infrastructure resources based on fast transforming application requirements.
“Manufacturers are investing in modernizing their IT stack, and adopting industry 4.0 solutions to keep up with ever-changing business demands in areas like production and supply chain management,” said Chris Kozup, SVP of Global Marketing at Nutanix. “A hybrid cloud infrastructure gives manufacturers a fresh approach to modernizing legacy applications and services, enabling manufacturing IT leaders to focus on their long-term investments in big data, IoT, and next-generation enterprise applications. While the manufacturing industry is still facing obstacles in transitioning to multi-cloud use, this study shows us that manufacturing organizations are ready to accelerate growth and take the lead in IT innovation in the future.”
To create this report, Nutanix commissioned Vanson Bourne to survey more than 2,300 IT decision makers, including 337 worldwide manufacturing and production organizations, about where they are running their business applications today, where they plan to run them in the future, what their cloud challenges are and how their cloud initiatives stack up against other IT projects and priorities. The survey included respondents from multiple industries, business sizes and geographies in the Americas; Europe, the Middle East, Africa (EMEA); and Asia-Pacific and Japan (APJ) regions.
1 IDC FutureScape: Worldwide Operations Technology 2018 Predictions, doc #US42126317, October 2017
Jul 03, 2019 • News • future of field service • research report • Berg Insight • IoT • cellular
Growth was driven by exceptional adoption in China, which accounted for 63 percent of the global installed base. By 2023, Berg Insight's research now projects that there will be 9.0 billion IoT devices connected to cellular networks worldwide.
“China is deploying cellular IoT technology at a monumental scale”, said Tobias Ryberg, Principal Analyst and author of the report. “According to data from the Chinese mobile operators, the installed base in the country grew by 124 percent year-on-year to reach 767 million at the end of 2018. The country has now surpassed Europe and North America in terms of penetration rate with 54.7 IoT connections per 100 inhabitants.”
The Chinese government is actively driving adoption as a tool for achieving domestic and economic policy goals, at the same time as the private sector implements IoT technology to improve efficiency and drive innovation. Berg Insight believes that the role of the government is the main explanation for why China is ahead of the rest of the world in the adoption of IoT. Like other advanced economies, the country has widespread adoption of connected cars, fleet management, smart metering, asset monitoring and other traditional applications for cellular IoT. It has also given rise to new consumer services enabled by connectivity like bike sharing. The most distinctive characteristic of the Chinese IoT market is however the way that the government is systematically using new technology to implement its vision for urban life in the 21st century.
In the report, Berg Insight also analyses the IoT business KPIs released by mobile operators in different parts of the world and found significant regional differences. The monthly ARPU for cellular IoT connectivity services in China was only € 0.22, compared to € 0.70 in Europe. Global revenues from cellular IoT connectivity services increased by 19 percent in 2018 to reach € 6.7 billion. The ten largest players had a combined revenue share of around 80 percent.
Jul 03, 2019 • Features • future of field service • IoT
The Internet of Things (IoT), another buzz world (and acronym!) is a crucial element of Industry 4.0, or the fourth industrial revolution as it’s also called; the use of data automation and data exchange in modern manufacturing. Loosely described, IoT is everything that is connected to the internet.
However, it’s the increasing ability of devices such as laptops, phone, watches, cars and fridges to “talk” to each other that is coming to define what it actually is. But how does it work? The blood of this digital eco-system is data, and its oxygen is automation. When combined, information is gathered, analysed and acted on producing an outcome. We’ve all probably got an Alexa-type smart device blinking in the corner of our living room or kitchen, our TV knows when to record Game of Thrones and our thermostat remembers when we’re coming home from work so the living room is nice and toasty but as much as your fridge sending you a text to tell you you’re out of milk is handy, it’s in the realm of service that IoT can really make an impact.
On the surface, its potential is enormous. I often write about the asset becoming more important than the engineer and enjoy the debate that comes from such a statement. Yet, with machine learning, AI and in particular IoT it’s looking more and more likely that eventually, at some point, the role of the human in service could go all together. The smart asset – a wind turbine, for example – could flag-up a fault through a sensor, communicate with another turbine about the failure, who could respond with a solution, without the need for an on-site engineer.
This, example, I admit is rather woolly, but you get the idea; the potential is huge and in the industrial sector its impact is starting to be felt. Research conducted by PwC on US manufacturers’ attitudes towards digitization revealed 70% of those surveyed predict to be at a stage of digital advancement by 2020, compared with 33% currently. Furthermore, those firms are investing $907 billion annually on greater connectivity and smart factories suggesting, firms are realising the financial benefits of such technology. However, with all disruptions there comes challenges.
"On the surface, its potential is enormous..."
A report from Gartner in 2014, around the time the IoT enthusiasm was building, checked the momentum slightly by highlighting issues around security and consumer privacy. Given the vast amount of data being shared by the possibility of a breach could have severe consequences. On the flip-side data collected on consumers and their behaviour is another area for concern. And while data collection can enhance a company’s ability to provide better services, any sort of mis-hap can in-turn, be just as damaging to firm’s image and the market in general.
Furthermore, as the number of connected devices increase real-time processses could be affected as storage and security requirements widen Five years on, where are we with IoT governance? Gartner’s 2018 report Top Strategic IoT Trends and Technologies Through 2023 suggested that some sort of protocol was essential. “As the IoT continues to expand,” the report’s summary read, “the need for a governance framework that ensures appropriate behaviour in the creation, storage, use and deletion of information related to IoT projects will become increasingly important.
Governance ranges from simple technical tasks such as device audits and firmware updates to more complex issues such as the control of devices and the usage of the information they generate. CIOs must take on the role of educating their organizations on governance issues and in some cases invest in staff and technologies to tackle governance.” There’s no doubting the potential of IoT. As mentioned, it can truly change the way service is delivered.
However, citing the statistic in the standfirst of this article, 75 billion devices are projected to be connected by 2025 and with that, the potential for. It’s the role of all firms, from the top-down to ensure they’re ring-fenced accordingly.
* https://www.statista.com/statistics/471264/iot-number-of-connected-devices-worldwide/
Jul 01, 2019 • News • future of field service • digitization • Shaun West • Survey • Industry 4.0
Researchers from Lucerne University have shared an industry survey they hope will determine some of barriers associated with enterprise digital transformation.
Academics including Günter Zepf, Shaun West, Barbara Kummler and Ute Klotz intend to carry out interviews from the survey, with the results eventually leading to a white paper on digitization change management.
The survey can be completed in English here, German here and Italian here.
Jul 01, 2019 • Ageing Workforce Crisis • Augmented Reality • future of field service • PTC • Remote Assistance • Field Service News
Manufacturing and service companies are facing a looming skills crisis—but industrial AR can help...
Manufacturing and service companies are facing a looming skills crisis—but industrial AR can help...
Jun 27, 2019 • News • ATOS • future of field service • Mobility • research report • supply chain • transport
The launch of Digital Vision for Mobility was marked with a keynote address by Atos UK & Ireland SVP for Strategy & Communications and former Transport Advisor to the Mayor of London, Kulveer Ranger, to an audience at University College London on 4 June.
Introducing the paper to illustrate the future of transport in London, the address to business management students underlined the profound transformation experienced across the mobility industry, underpinned and enabled by digital technology.
“Increasingly with population growth and denser metropolitan conurbations, we see the need to support the mass movement of people and goods with efficient, effective and integrated multi-modal public and personal transport systems,” said Kulveer Ranger. “Transport operators are beginning to rely heavily on data: harvested both from within their own networks and systems and from the personal mobile devices of individuals. To realise a vision of truly personal mobility, vast amounts of data will need to be aggregated. This will be a huge technological feat for innovative integrators and digital architects.”
The Atos Digital Vision for Mobility paper sets out how digital technology has transformed the UK’s transport sector and considers the role of AI, automation and blockchain in determining the mobility solutions of tomorrow for road and rail, broader public transport and logistics. Contributions from ITS-UK, Google, Siemens, KPMG, Worldline, TfL, MyTaxi and TechUK explain how data is being used as a driver for intelligent infrastructure and how developments like IoT can be strategically deployed to create more reliable services and more convenient access for transport users, including the rail network.
Commenting on the launch of the report, Adrian Gregory, Atos Senior Executive Vice President and CEO, UK & Ireland, said: “More change is now underway across the transport and logistics industry than at any time since the invention of the combustion engine. Vastly increased computing power and hyper-connectivity are helping to transform the operation and maintenance of vehicles and national infrastructure.”
Mark Ferrer, Operations Director – Digital Railway, Siemens Rail Automation UK, added: “Digital technologies are integral to the future of rail, enabling train operators and infrastructure owners to safely increase the capacity, reliability and efficiency of their networks and assets whilst increasing levels of passenger satisfaction. For operators and passengers, digital signalling and control systems together with advanced data and analytics are key to meeting intense demands while driving down costs – which can only be good for the UK’s economic future.”
Jun 25, 2019 • News • 5G • future of field service • Berg Insight • IoT
Berg Insight estimates that global cellular IoT module shipments increased by 16 percent in 2018 to a new record level of 221 million.
Berg Insight estimates that global cellular IoT module shipments increased by 16 percent in 2018 to a new record level of 221 million.
Annual revenues grew faster at 24 percent, reversing the previous trend of decreasing average module prices. The 3GPP standards for LTE – Cat M and NB-IoT – will contribute substantially to growth in the next coming five years.
These new standards are designed to be less complex to limit power consumption and are priced more favourably to address the mass market and make it viable to connect entirely new applications. In the first half of 2019, several vendors announced 5G NR modules that will become available to developers in the second half of the year. Early adopters will include companies active in the PC, networking and OEM automotive segments.
The results of Berg Insight’s latest cellular IoT module vendor market share assessment show that the four largest module vendors have 61 percent of the market in terms of revenues. “Annual module revenues for the four largest market players Sierra Wireless, Sunsea AIoT, Gemalto and Telit increased by 13 percent to US$ 1.85 billion, with the total market value reaching approximately US$ 3.0 billion”, says Fredrik Stalbrand, Senior Analyst at Sweden-based IoT analyst firm Berg Insight. Sierra Wireless leads IoT module revenues, followed by Sunsea AIoT and Gemalto. Sunsea AIoT leads in shipments and Quectel is number two in terms of volumes and in fifth place in terms of revenues. Fibocom reported the highest growth of 122 percent during the year, reaching US$ 189 million in cellular module sales.
The year marks the first in which a China-based vendor ranks as high as the second largest cellular IoT module vendor by revenue and six of the top ten vendors were from China in 2018. Sunsea AIoT emerged as a new major industry player in 2017 through the acquisitions of Longsung and SIMCom, which had been the market leader by volume for three consecutive years. While there has been some consolidation among the larger suppliers, the long tail of companies with activities in the cellular IoT module market is growing. A number of new players have been attracted to the market, particularly in the emerging NB-IoT and LTE-M segment. Notable examples include the major Bluetooth LE SoC vendor Nordic Semiconductor and the Japanese electronics company Murata.
Jun 21, 2019 • News • 5G • future of field service • UK Government
Previous investment in the 5G testbeds and trials programme has driven work in the healthcare, tourism, transport and broadcasting sectors. The latest investment will support similar work in the logistics and manufacturing sectors. Projects will trial ways which can help these sectors increase their productivity and output, boosting the UK economy. The trials could cover different manufacturing processes as well as across road, air, and sea based freight logistics.
The funding was announced by Digital Secretary Jeremy Wright at the 5G World Conference as part of London Tech Week. The latest round of investment is through the £200 million project to test 5G technology that’s up to ten times faster than 4G and able to support more than a million devices per square kilometre.
Wright said: “As part of our modern Industrial Strategy, we’re making sure that Britain has a telecoms infrastructure that is fit for the future. “5G is about more than mobile phone consumers having a fast and reliable connection anywhere in the country. It’s a vital piece of technology that can be used to improve the productivity and growth of our industrial sectors. That’s why we’re excited to develop new trials in areas such as manufacturing and logistics that can really benefit from 5G.” In addition to the new funding, the Government has confirmed that it will consult on proposals to simplify planning processes in England to both support the further roll-out of 4G and aid the faster introduction of 5G.
Hamish MacLeod, Director at Mobile UK, said: “Getting the planning system right for future 5G and today’s 4G networks is critical to ensure the UK continues to lead the world in digital connectivity. It is right that the Government has announced it is to look at simplifying planning processes and we stand ready to work in partnership to ensure this can happen as quickly as possible to aid the continued rollout of mobile networks.”
This is part of the Government’s long-term strategy for meeting its digital connectivity targets, outlined in the Future Telecoms Infrastructure Review. The plans involve tackling barriers to deployment and creating the right conditions for investment to deliver better network coverage that supports the way we live and work today. A key part of this is making new spectrum available to increase capacity for mobile connectivity.
The Ministry of Defence, in partnership with the Department for Digital, Culture, Media and Sport, has committed to making 168MHz of new spectrum available to facilitate the deployment of fixed and mobile networks. This means the Government has already exceeded its target to make 500MHz of public sector spectrum available for commercial use by 2020, and will continue to work with departments to explore opportunities for more spectrum to be made available.
Jun 20, 2019 • News • 5G • future of field service • Ericsson
Rapid early momentum and enthusiasm for 5G has led Ericsson to forecast an extra 400 million enhanced mobile broadband subscriptions globally by the end of 2024. The June 2019 edition of the Ericsson Mobility Report forecasts 1.9 billion 5G subscriptions – up from 1.5 billion forecasted in the November 2018 edition – an increase of almost 27 percent.
Other forecasts have also increased notably as a result of the rapid 5G uptake. 5G coverage is forecast to reach 45 percent of the world’s population by end of 2024. This could surge to 65 percent, as spectrum sharing technology enables 5G deployments on LTE frequency bands.
Communication service providers in several markets have switched on 5G following the launch of 5G-compatible smartphones. Service providers in some markets are also setting more ambitious targets for population coverage of up to 90 percent within the first year.
The strong commitment of chipset and device vendors is also key to the acceleration of 5G adoption. Smartphones for all main spectrum bands are slated to hit the market over the course of this year. As 5G devices increasingly become available and more 5G networks go live, more than 10 million 5G subscriptions are projected worldwide by the end of 2019.
The uptake of 5G subscriptions is expected to be fastest in North America, with 63 percent of anticipated mobile subscriptions in the region being for 5G in 2024. North East Asia follows in second place (47 percent), and Europe in third (40 percent). Fredrik Jejdling, Executive Vice President and Head of Networks, Ericsson, says: “5G is definitely taking off and at a rapid pace. This reflects the service providers’ and consumers’ enthusiasm for the technology. 5G will have positive impact on people’s lives and businesses, realizing gains beyond the IoT and the Fourth Industrial Revolution.
However, the full benefits of 5G can only be reaped with the establishment of a solid ecosystem in which technology, regulatory, security, and industry partners all have a part to play.” Total mobile data traffic continued to soar globally in Q1 2019, up 82 percent year-on-year. It is predicted to reach 131 exabytes (EB) per month by the end of 2024, at which time 35 percent is projected to be over 5G networks.
There are 1 billion cellular IoT connections globally, a figure that is expected to rise to 4.1 billion by the end of 2024, of which 45 percent are represented by Massive IoT. Industries using Massive IoT include utilities with smart metering, healthcare in the form of medical wearables, and transport with tracking sensors. The June 2019 report also features three articles written jointly with service providers that offer a glimpse of the progress being made in markets that are on the verge of, or already deploying 5G.
With Telstra in Australia, Ericsson explores how to manage the ever-growing demand for data and video while maintaining consumer experience, particularly for live content streaming. MTS in Russia helps to describe how mobile networks should evolve to ensure the level of network performance that will meet customer experience expectations during preparations for 5G. The article co-written with Turkcell in Turkey looks at how network performance and service offerings are managed in a successful fixed wireless access (FWA) implementation.
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