efficient, have rapid adoptions cycles, superior user experience, social/community
involvement, and some model for both upfront and recurring revenue sources.
Selective investments may also include enablement platforms that can reduce
time to market for vertical applications and ultimately become important elements
of the IoT landscape.
Ecosystem
Most elements are already in place to support the growth forecasted in the
IoT sector. These elements include: (i) global proliferation of billions of smart
and/or feature phones; (ii) emergence of affordable and energy efficient ARM-
based processors; (iii) Bluetooth Low Power that allows seamless and energy
efficient communications; (iv) miniaturization of sensors, MEMS, and cameras at
affordable prices; (v) adoption of IPV6 (opening up to 8x10
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addresses for these
devices); (vi) big data collection and analytics that provide ubiquitous access to
information and enable autonomous operations; and (vii) low-cost wireless and
cloud networks.
In addition, several companies like TI, Qualcomm, Broadcom, Mediatek,
Arduino, Intel, and others are focusing on two important parts of the value chain
to enable IoT rollout on a large scale. The first is sensor technology and chips
that will be ubiquitous in all connected devices making up the Internet of Things.
The second is the development of IoT Systems on Chip (SoCs) and related
platforms that enable startups to accelerate the development and adoption of IoT
sub-systems.
Summary
IoT is the largest market opportunity for VC investors today and in the
foreseeable future, however VC investors must use caution to find quality
investments that have all elements of a successful business in the long-
term. There will be few, if any, "quick hits" on the M&A front. Instead acquiring
companies, and more so public markets, will seek out and reward only the
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