In our day and age technical advances are occurring in increasing frequency, making it harder for customers to understand which product or service or which combination of products and services can offer value to their business.

In this complex jungle of innovative applications, companies that specialize in bringing together component subsystems into a whole and ensuring that those subsystems function together are desperately needed. In the information technology (IT) field this role traditionally has been filled by System Integrators (SIs). The rising prominence of Internet of Things (IoT) applications in most industries, creates another sector that is in dire need of system integration. Especially challenges with interoperability, end-to-end performance and security need to be addressed.

IoT benefits of and for SIs

According to cms wire, SIs are at the ideal position to act as bridges, linking vendors and clients. As the worldwide IoT market is forecast to grow from $1.3 trillion in 2013 to $3.04 trillion in 2020 these bridges are needed more than ever and offering tremendous value for companies providing theses connections.

System integrator will benefit customers and vendors mutually, states Forbes Magazine. Customers in need of an IoT solution will be educated on how to find, integrate or combine solutions that cater best to their needs. For vendors on the other hand system integrator can help in accelerating adoption and usage of their product in segments which all have their own specific needs and problems. SIs are highly engaged with the end users and are built for stitching together solutions from multiple vendors to solve operational technology (OT) problems.

It therefore seems, that hardware and software vendors with the most robust SI channel will be the fastest to market and the quickest to create revenues. This puts SIs into the unique opportunity to be sought after by both solution providers and users, offering them great market potential. According to IDC Analysts an average of 40% of any IIoT system's cost will be related to services (consulting, design, application development, integration, deployment, maintenance, etc.), constituting in an opportunity of 40% of a multi-trillion dollar market.

Asia IoT market

One market where the IoT potential is rising significantly is the Asian market. According to Business Korea large, SIs have been focused on internal stability in their domestic country, but now start to tap into global markets, being active mainly in Japan, South Korea, Taiwan and China. Especially in China you can find large SIs like Samsungs SDS, with its expertise in distribution and manufacturing or SK Holdings C&C and POSCO ICT who both have decided to accelerate the smart factory business in China by using IoT and Big Data.

ASEAN IoT market

Our Area of expertise is in the countries Philippines, Thailand, Indonesia and Malaysia. The 2015 Frost & Sullivan report expects IoT spending within those countries to rise by 1648% until 2020. With such an increase in spending SIs will be vital, but in our experience have not been particularly active yet.

Subin Bhatia, Chief Executive Officer of Suvitech, with its HQ located in Thailand, sees the full potential of IoT for SIs in the ASEAN region to develop within the coming 2- 3 years. He states that the ASEAN region is more of a follower with use cases coming mostly out of japan and South Korea. This is due to the fact that infrastructure and legislation in the ASEAN regions (with exception of Singapore) is not as advanced jet. Which is the cause for slower adoption and regulation. According to Mr. Bhatia these markets are nonetheless very interesting, as the ROI in these countries is higher than in further advanced nations. The only thing missing is a wider government support and company as well as government education about IoT possibilities for their country and company.

In our Asia IoT Business Platform conferences both the government and local companies looking for IoT solutions, have over the years shown increased interest in educating themselves about Iot products and services, leading to more attending government branches as well as decision makers of companies investigating IoT solutions in the verticals of healthcare, smart city, manufacturing, logistics & transport, banking & finance, automobile, cloud and data security. We expect a rise of participation of about 20% in these years events.

With the high potential and increasing interest in IoT it is time for system integrator to take an active stake in developing the IoT market in the ASEAN region. We would love to welcome you to our 2016 IoT stakeholder gathering in the Philippines, Thailand, Indonesia and Malaysia. Where you and your company can connect and educate the government and local companies about IoT possibilities and contribute your share to the development of the ASEAN IoT environment.

For more information please contact us under Jazon@industry-platform.com or +65 6733 1107