Right now, ABI Research said cloud suppliers bring in around $6 billion from IoT data and analytics.
A new report from ABI Research predicts that cloud platform suppliers will see a more than $50 billion increase in their share of IoT data and analytics revenue by 2026.
Companies providing cloud services have spent years building out their investments in the IoT space and continue to make headway in spreading cloud usage throughout the IoT value chain. The figures come from ABI Research's IoT Analytics and Data Management Services Strategies of Major Cloud Suppliers application analysis report, which examined the competitive outlook of the cloud vendor market and recent acquisitions.
SEE: AWS: 9 pro tips and best practices (free PDF) (TechRepublic)
The report takes an in-depth look at how leading cloud providers like AWS, Azure, Oracle, Cisco, Huawei, SAP, Google, PTC, Cloudera are positioned in the IoT market and it compares the tools and services offered by each company. It is designed to help IoT companies figure out who the market leaders are, which cloud platforms would be most relevant for their particular industry and revenue forecasts from 2019 until 2026 for IoT integration, storage, analytics, presentation and professional services.
"The overall approach shown by cloud suppliers in their analytics services reflects the dilemma they face in the complex IoT partnership ecosystem," said Kateryna Dubrova, research analyst at ABI Research. "Effectively, do they rely on partners for analytics services, or do they build analytics services that compete with them?"
SEE: Special report: Harnessing IoT in the enterprise (free PDF) (TechRepublic Premium)
The report found that most cloud vendor revenue is derived from the storage, orchestration and streaming of data in addition to generic analytical tools like AWS Sagemaker and Microsoft Azure Notebooks. Many cloud vendors are also leveraging partnerships with other companies to fill any gaps they may have concerning the analytical tools they have to offer customers.
According to ABI Research, AWS, Microsoft, Google, IBM and Oracle are all prioritizing streaming capabilities to provide IoT companies with data management with near real-time analytics.
"AWS, Microsoft, Google, IBM and Oracle, for example, are promoting their proprietary streaming solutions to differentiate, accelerate time-to-market, and win over customers. In contrast, companies like Cloudera, Teradata and C3.ai are introducing streaming analytics services heavily reliant on open source technology, such as Spark and Flink," the ABI Research study said.
SEE: Cheat sheet: The most important cloud advances of the decade (free PDF) (TechRepublic)
Most cloud vendors are working with advanced analytics companies to gain a foothold into the IoT ecosystem. According to the report, both Azure and AWS have joined forces with Seeq for analytics services while others like Oracle, Cisco and Huawei are expanding their edge portfolio by pushing analytics as well as intelligence closer to the IoT devices themselves.
"Ultimately, businesses are moving to an analytics-driven business model which will require both infrastructure and services for continuous intelligence," Dubrova added. "Cloud vendor strategies need to align with this reality to take advantage of analytics value and revenues that will transition to predictive and prescriptive solutions."
- Multicloud: A cheat sheet (TechRepublic)
- Hybrid cloud: A guide for IT pros (TechRepublic download)
- Public cloud providers' network performance wildly varies (ZDNet)
- Best cloud services for small businesses (CNET)
- Microsoft Office vs Google Docs Suite vs LibreOffice in 2018 (Download.com)
- Cloud computing: More must-read coverage (TechRepublic on Flipboard)