Internet of Things (IoT) is the network of physical devices, vehicles, home appliances and other items, embedded with electronics, software sensors, actuators & connectivity, which enables these objects to connect and exchange data.

For much of IoT deployments, the nerve-center of the system is bound to be in the cloud. Sensors and devices collect data and perform actions, but the processing, commanding, analytics (the “smart” stuff), typically happens in the cloud. Also, the associated predictive and Machine learning on this IoT traffic, will further the cloud demands.

BI Intelligence estimates 24 billion IoT devices to be operational by 2020, while Cisco predicts 50 Billion devices. Whichever number you choose, that’s a lot of new devices, which is going to generate an insane amount of data.

While the traditional cloud-based needs are growing steadily over the years, IoT, is going to be the game changer in the Cloud domain. It is all happening, and with a IoT spend of close to USD 700 Billion expected even in the current year, the coming years are sure to witness an explosive trend in the Cloud business.

Today in the era of Cloud Computing it is all about applications and the ability to develop and host applications in the cloud. To that effect, in order to extract value of the huge investments, Data-center operators are striving to move up the stack, from offering “basic raw services” (BRS) like Co-location, Web-hosting & Basic compute (Virtual Machines, Containers), to offering Platform services (PAAS), that will enable application developers to create Software-as-a-Service apps. It is quite evident that the big-4 cloud-computing companies – Amazon AWS, Microsoft Azure, Google GCP, IBM Softlayer-Watson, are hugely benefiting from this trend, by offering complete platform services, instead of BRS.

In the IoT PAAS domain, the Big 4- have made several acquisitions to jump start this effort over the last 3 years. Examples: Amazon – 2lemetry, Blink, Google – Xively, Microsoft – Solair, Maluuba, Dees. The primary business intent here is to drive their Cloud business, by luring in IoT customers to use their assets to develop IoT applications.

I believe it is important for traditional Data-Center operators of all kinds- Wholesale & Retail DC’s, to evolve into an IoT PAAS player, to be able to attract IoT application developers and enable migration of IoT workloads onto their assets. Innovative companies like Vitalpointz (http://vitalpointz.io) can help these Data-Center operators evolve into viable IOT PAAS players, attracting more revenues from the high-growing IOT application market.