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Towards a Digital Transformation with the Internet of Things

After the Web and then social networks, the Internet of Things (IoT) forms the third revolution of the Internet. Its value creation potential has been estimated by McKinsey to range between $ 4 billion and $ 11 billion a year. If some companies have not yet initiated their digital transformation, the Internet of Things will help them to switch to Big Data and change their business models.

Data is the main fuel of the IoT. The multiplication of sensors placed on connected objects – from the watch or the connected refrigerator to industrial equipment and stand-alone vehicles – generates an almost infinite mass of information that has to be stored for processing, using Artificial Intelligence algorithms or analytical systems. According to IBM, since 2011, the amount of data created and traded in the world has multiplied by 7, which represents 2.3 trillion Gb per day.

Data: always more, always faster

While many tools are now available to companies to analyze these data in order to develop their activities (e.g., customer knowledge, predictive maintenance, etc.), the issue of storage of their ever-increasing volumes remains a matter of concern. Because of the acceleration of the data velocity, partners and suppliers raise the need for flexibility and performance of the information system, and hence we see the massive adoption of the cloud.

Optimal connectivity and ecosystem

Today’s economic world demands real-time exchanges. The development of a new service, in response to a need via data analysis, should not exceed a few weeks. If failing this, your competitors will take a crippling advance. The network is thus of strategic importance. It is like the high-frequency trading, where every millisecond makes a difference, and companies today need high-performance connectivity to get closer to their ecosystem.

A recent study by Bain & Company on related Internet-related markets for objects describes the tremendous momentum that IoT is driving in different markets: analytics and Big Data, storage, networking, Industrial internet, and home automation … all will benefit from the mass adoption of the Internet of Things.

The stand-alone car illustrates perfectly the benefits of interconnection. Sensors collect various information (weather, traffic conditions, etc.), which are routed to a storage location where they are processed. The data generated by these treatments add value to a variety of other companies and stimulate innovation. On this model of exchange and enrichment, the Internet of Things contributes to the creation of new value chains in sectors as diverse as health, insurance, industry, etc.

Interconnection: Towards New Development Models Focused on Innovation

Direct interconnection within a neutral datacentre not only brings more proximity and therefore increased responsiveness, but also allows companies to free themselves from unsafe Internet connections. This is essential when it is known that 59% of IT decision-makers place security at the forefront of their concerns.

Moreover, the processing of the data in order to exploit them in a commercial context induces important data migrations. The proximity, within the same building, of the actors involved in these treatments and the restitution of data is a plus, not only in terms of performance and safety, but also costs.

As can be seen, data centers have a central role to play in the exploitation of data received or transmitted by connected objects. They become true marketplaces, providing the levels of connectivity, performance, and security necessary to fully enter the Internet era of Things.

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