Operators should consider radical organisational changes for their IoT solutions businesses

When Bob Kahn and Vint Cerf developed TCP/IP in the early 1970s, they created a protocol that could work independently of the network. They did so simply because they were designing for applications that would run across multiple different types of network (AT&T’s leased lines, private government networks and even satellite) over which they had no control.

The separation of networks and applications means that operators have no in-built advantages over other application developers. Indeed, the thinking and processes created for the network business can act as a disadvantage when developing applications.

This has implications for IoT. Operators typically combine teams to develop IoT connectivity and applications in a single division. Most operator efforts to develop IoT applications and solutions are failing, partly due to this structure. Operators should therefore explore placing IoT applications and solutions in a division that is separate from that for connectivity.