The virtualization of business-critical infrastructure is transforming the production and distribution of goods and services throughout the supply chain as industrial organizations shift focus from private to public and ultimately hybrid cloud deployments that connect and integrate on-premise resources with cloud resources. According to a new report by ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies, hybrid industrial cloud adoption will more than double over the next five years at a respectable 21.1% CAGR.
Initial IoT deployments in industrial markets reflect the sector’s Machine to Machine (M2M) heritage: private cloud Infrastructure-as-a-Service (IaaS). IaaS served as a solid starting point for many organizations that wanted the benefit of cloud scale, but with minimal interruption to normal Information Technology (IT) operations; the industrial cloud Platform-as-a-Service (PaaS) model extended the functional capabilities of on-premise IaaS solutions by shifting commodity tasks (capacity planning, software maintenance, patching) to Cloud Service Providers (CSPs); Software-as-a-Service (SaaS) took it a step farther but in the form of managed services.
“Manufacturing and industrial organizations were not born from the same digital core as the people they employ or the products they produce,” said Ryan Martin, Principal Analyst at ABI Research. “But they also harness some of the greatest potential thanks to massive amounts of untapped plant and process log data. And this is exactly what companies like Amazon, Microsoft, and IBM are after. Harvested with the right analytical tools and guidance, these data streams can deliver value greater than the sum of their parts.”
The factory floor’s historical predisposition toward on-premise solutions has been supplanted by a campus-led approach underscored by a more recent push to connect HMI, SCADA, and control networks to higher-level enterprise systems, as well as the cloud. However, getting to the point where all these moving pieces come together in a real-world, production environment can be messy. Many Operational Technology (OT) devices come up short in key areas such as interoperability and security due to the prevalence of proprietary protocols in the legacy M2M market that the IoT grew out of.
“Most OT systems depend on infrastructure with lifetimes measured in decades, while IT systems can be upgraded frequently at little or no cost,” concludes Martin. “As a result, industrial and manufacturing markets typically employ a staged technology integration strategy that favors suppliers whose hardware, software, and services can be acquired incrementally, with minimal disruption to existing operations. Companies like GE refer to this as ‘minimum viable change’."
These findings are from ABI Research’s Industrial Cloud report. This report is part of the company’s Smart Manufacturing research service, which includes research, data, and Executive Foresights.
About ABI Research
ABI Research provides strategic guidance for visionaries needing market foresight on the most compelling transformative technologies, which reshape workforces, identify holes in a market, create new business models and drive new revenue streams. ABI’s own research visionaries take stances early on those technologies, publishing groundbreaking studies often years ahead of other technology advisory firms. ABI analysts deliver their conclusions and recommendations in easily and quickly absorbed formats to ensure proper context. Our analysts strategically guide visionaries to take action now and inspire their business to realize a bigger picture. For more information about ABI Research’s forecasting, consulting and teardown services, visionaries can contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.
About ABI Research
ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.
ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.
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