12.08.2022 10:00

More German Firms Seek IoT Services for Competitive Edge

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German enterprise investment in the Internet of Things (IoT) is rapidly growing as companies see the technology as a strategic competitive advantage, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Internet of Things — Services and Solutions report for Germany finds the adoption of IoT solutions in Germany has increased significantly in the past three years as enterprises seek to optimize business processes, expand product offerings and improve customer experience.

"German companies understand that enterprise-wide IoT delivers measurable added value,” said Christian Decker, partner and EMEA lead, ISG Smart Manufacturing. "As technologies such as edge AI improve, they have even more reason to build and expand IoT solutions, especially as we see a greater convergence of IT and OT [operational technology].”

AI capabilities at the edge of an IoT network, especially on energy-efficient AI-optimized processors, allows data collected by sensors to be processed without transmission to more central data centers, the report says. ISG expects companies to expand the use of AI in connected devices in the coming years to reduce the latency and increase the scalability of IoT systems.

The growth of IoT continues despite major challenges, including growing data security concerns, slow adoption of sustainability initiatives and especially a lack of qualified personnel in Germany, ISG says. German companies cite IoT as their steepest IT challenge, because it extends beyond traditional IT systems and can encompass components such as sensors, production equipment and medical devices.

The shortage of skilled IT labor is leading many enterprises to seek managed IoT services, because maintaining vast networks of sensors and peripheral devices — often under varying security standards — is nearly impossible for corporate IT departments.

"Managed services give companies the financial and operational flexibility to carry out more comprehensive IoT projects,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

The report also explores a wide range of other issues around IoT in Germany, including the importance of careful project planning, proofs of concept and determining the legality of solutions that handle image data.

The 2022 ISG Provider Lens™ Internet of Things — Services and Solutions report for Germany evaluates the capabilities of 42 providers across five quadrants: Strategy Consulting, Implementation and Integration, Managed Services, Mobile Asset Tracking and Management, and Data Management and AI on the Edge.

The report names Atos, Capgemini, Cognizant and Siemens as Leaders in all five quadrants. It names IBM as a Leader in four quadrants and Accenture and Bosch as Leaders in three quadrants each. HCL and TCS are named as Leaders in two quadrants each, and CANCOM, Deutsche Telekom, HPE, NTT, T-Systems and Vodafone are named as Leaders in one quadrant each.

In addition, TCS is named as a Rising Star — a company with a "promising portfolio” and "high future potential” by ISG’s definition — in three quadrants. HPE is named as a Rising Star in two quadrants.

The 2022 ISG Provider Lens™ Internet of Things — Services and Solutions report for Germany is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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