Unless you believe most enterprises operate so effectively that maintenance spending and routine upgrade costs can be capped to prioritize internet of things projects, there are limits to how much most enterprises actually can devote to new IoT initiatives.
In most industries, firm revenue sets boundaries on possible IT spending, since IT spending tends to run at about 3.3 percent of revenue, according to Deloitte. Also, such spending varies widely by vertical. Some manufacturing firms might spend 1.4 percent of revenue, while health care organizations might spend as much as 5.9 percent.
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The broad implication is that all IoT forecasts must be evaluated against total IT spending, as no enterprise can actually allocate all of its IT capital and human resources to IoT alone. And that means IoT has to be some fraction of total IT spending, and likely a relatively small fraction, at this point.
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