The “Internet of Things” is becoming an increasingly tangible concept every year. How are IT giants preparing to conquer new territory?

Electronics manufacturers are preparing for the Internet of Things (IoT) era, when everyday objects will become part of the global network. Although the concept of the “Internet of Things” was formulated a long time ago, only now the technologies are ripe for the full implementation of the idea. The foundation for a new type of network is being laid today, and key players in the mobile segment are rushing to take a place in the promising market.

The nodes of the Internet of the future will be not only familiar computers and gadgets, but also a host of other devices - from toasters and toothbrushes to cars and industrial machines.

Living beings can also be a source of data. Wristbands for collecting information about physical activity or electronic glucose meters that save reports online are prime examples of IoT.

The resounding term IoT describes only the concept, without imposing restrictions on the way devices are connected or the protocols used to transmit data. A suitable technology stack can be selected according to the purpose of the system. For example, to implement smart home projects, it is logical to use Wi-Fi and Bluetooth interfaces, which are found in almost every mobile device. And in an enterprise environment with hundreds of sensors and other devices, it makes more sense to rely on a reliable wired connection that will provide both power and information transfer.

According to Cisco's forecast, by 2020 the number of devices connected to the Internet will reach 50 billion. By collecting information and exchanging data with each other, they will be able to ensure the operation of controlled systems without human intervention. This approach is applicable in many areas, but is especially in demand in smart home systems, production process automation projects, etc.

It is smart home solutions that primarily attract representatives of the mobile industry.

The reason for this is a potentially huge market that is just starting to grow. Currently, the premium segment of “intelligent” buildings is the most developed, implying individual design at a high cost. Budget solutions are often unable to satisfy consumer needs; in addition, their use is hampered by problems with the compatibility of products from different manufacturers. However, the growing range of standardized devices available will help generate widespread interest.

Buyer's itch

Many industry leaders have followed the usual path, buying up pioneers of a still small market. Thus, in mid-August, Samsung announced the purchase of SmartThings, a company that produces sensors, electronically controlled sockets and other smart home components. To manage its devices, the company develops mobile applications for iPhone and Android smartphones.

SmartThings will operate under the Open Innovation Center program, launched by Samsung in 2013 to find startups that can boost the corporation's business. According to unofficial data, in order to win SmartThings over to its side, Samsung had to shell out $200 million.

However, the investments of the South Korean concern pale in comparison to the costs of Google, which at the beginning of the year bought the creator of the advanced thermostat Nest Labs for $3.2 billion.

The company, headed by Apple native Tony Fadell, has long attracted the attention of the IT giant - through the investment division of Google Ventures, millions of dollars have already been poured into the young manufacturer. Among the most expensive purchases, Google Nest ranks second, second only to Motorola Mobility, acquired in 2012.

Nest, which now has more than four hundred employees and continues to grow rapidly as it hires new engineers, has two commercial products in its portfolio. In addition to the already mentioned thermostat, the manufacturer offers a smoke detector, which is designed to replace its unfriendly predecessors and organically fit into the “smart home” concept.

In June, the Nest team was replenished with employees of the startup Dropcam, the purchase of which cost $555 million. Dropcam offers customers Wi-Fi cameras for video surveillance of a home or small office.

Lead the trend

Another leader in the mobile market, Apple does not yet plan to independently enter the market with smart home devices, but it is also not standing aside. The latest version of the iOS mobile operating system includes the HomeKit platform, which will help third-party developers create devices and applications to make life easier for homeowners. Apps using HomeKit will be able to access a common base of compatible devices installed in the home. The platform will also allow you to create scripts to automate routine actions.

Apple will control the development of the platform through a mandatory certification process that HomeKit-compatible devices must go through. On the one hand, this will significantly complicate the use of the platform by enthusiasts, but on the other hand, it will ensure full compliance with the specifications. The buyer will only need to choose a product with the Made for iPhone sign to be sure that it will work on the home network.

Since Apple leaves the saturation of the market with products for the “smart home” to third-party manufacturers, the company is tolerant even of the products of its irreconcilable competitor in the mobile market. In US Apple Stores, you can buy Nest and Dropcam products, along with other home devices such as controllable lamps from Philips.

It is worth noting that Nest, after it came under the wing of Google, gave third-party developers the opportunity to interact with the company’s devices. However, this solution is not universal and the strategy chosen by Apple so far looks the most mature in comparison with its competitors. Although the company will not receive profit from smart home devices, the HomeKit platform will benefit the entire Apple ecosystem: the number of sales of smartphones and tablets should increase, and the volume of application downloads will increase.

One of the obstacles to a connected world may be concerns about privacy and security.

Thus, after the Google-Nest deal, experts and ordinary users expressed concern that data from devices could be used by Google for its own purposes, which do not always correspond to the interests of the user. Everyone can decide for themselves whether to risk their privacy in exchange for comfort.

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