Is IoT in the broad category of digital transformation? Many would tend to say “yes.” If so, then IoT spending by enterprises might already be reported as part of such transformation initiatives.
A Deloitte survey found that organizations invested around 0.6 percent of their revenues on digital transformation in 2018. Deloitte assumes IT budgets tend to be set at levels roughly 3.3 percent of revenues.
In principle, digital transformation could therefore account for about 18 percent of IT spending at some companies.
Some might argue that new initiatives overall can represent 15 percent to 40 percent of total IT budgets, the broader transformation initiatives including IoT. The larger figures are likely to be relatively short-lived efforts, though. Over a longer period, most of us likely would be more comfortable with something on the order of 15 percent to 20 percent of all “new initiatives.”
Even if one posits that investment is shifting from maintenance to growth or digital transformation initiatives, how much of that could be spent on IoT is a real question, in any single industry, country or firm.
The issue then is what percentage of digital transformation IoT could represent. At this point in time, the answer would seem to be “not too much,” as few firms have likely moved beyond the “thinking about” or “piloting a solution” phase.
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