MashBlur

A new report shows healthy revenues for 21 benchmarked Internet of Things (IoT) companies in the last quarter of 2015, with revenue growing by almost 15% to levels approaching $7 billion. Cloud computing and IT infrastructure are especially potent drivers of IoT revenues, as vendors help companies cope with ever increasing rivers of data.

In a press release Technology Business Research (TBR) reported that commercial IoT opportunities drove year-over-year growth in the fourth quarter by 14.8% among the 21 companies it tracks in its regular Commercial IoT Benchmark report. Total revenues for the quarter were $6.7 billion among benchmarked vendors that include Verizon, Microsoft, Intel, Google, Amazon, Siemens, Cisco, Ericsson and Oracle.

See also: Hackers drive huge growth in IoT security market

“Effectively, every type of IT and operational technology (OT) vendor will have a stake in the growing commercial IoT market, as IoT solutions will drive increased use of diverse IT and OT products and services,” said Dan Callahan, a TBR analyst specializing in devices and IoT.

TBR says revenue growth is being driven by a rise in go-to-market refreshes by top vendors who are striving to become known as early leaders in the commercial IoT space.

“In addition to building interest in established IT products, commercial IoT will create growth in specialized business consulting, hardware, network, development, management and security components,” said Callahan. “IT and OT vendors that are quick to capture IoT opportunities within their current customer base, and attract new ones through developer programs and investing in growing mindshare, will enjoy additional, immediate, revenue opportunities.”

TBR’s report showed vendors are looking to become early IoT leaders in order to drive profits in this emerging industry. Vendors who take an early IoT leadership position are benefiting because there is less competition, customers have limited outsourcing options due to early IoT’s security challenges, and clients require custom solutions due to the lack of technology standards.

Cloud computing services posted the highest year-over-year revenue growth rate of 79% to record $604 million in the quarter. This growth is being propelled by the vastly increasing need being created for platforms to process and store data.

TSR also noted strong growth in IT services and ICT infrastructure, which charted a 51.4% growth rate in revenue for the quarter. This subsector is benefiting from the increasing capacity requirements created by the huge streams of IoT data that is being generated, as more companies struggle to tame the growing flood of information into actionable insights.