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THE SOFTWARE CONNECTING THE INTERNET OF THINGS

A DEVELOPER SURVEY

Dimensional Research | January 2015

Introduction
From smart fridges that will order milk before you run out to fully automated buildings that adjust lights, heat, and
music to the personal preferences of room occupants, the Internet of Things (IoT) promises to bring the stuff of
science fiction into homes and businesses. Stories of cool devices and gadgets abound in the press. But how real are
these “Things” today? When will they begin to impact business results and daily life? And what impact will these
“Things” have on the software developers who are tasked with building connected IoT solutions?

The following report, sponsored by Embarcadero Technologies, is based on a global survey of 1,040 developers
and development managers involved in IoT projects. The goal of the survey was to understand the current status of
IoT projects, their business drivers, and how developers are leveraging new capabilities to deliver remarkable new
solutions.

The Internet of Things (IoT) is the network of “Things” that contain interconnection technology (i.e. Wifi,
Bluetooth) to communicate with other devices, applications, middleware, and online services. These “Things”
can be as diverse as wearable devices, industrial sensors, inventory tracking chips, drones, and smart vending
machines. This survey focuses on understanding trends with new types of “Things”. For this survey, “Thing”
does not include traditional endpoints like desktops, smart phones or tablets.

This survey focuses on the entire solution required to deliver value, including “Things” and the
infrastructure the “Things” communicate with such as computers, smartphones, tablets, middleware,
cloud, and other back-end infrastructure.

Key Findings
“Things” will have significant business impact in 2015, driven by customer demand
-- 49% of “Things” will have business impact by end of 2015, compared to only 12% in 2014
-- Most “Things” are built for business, only 16% are built specifically for consumers
-- Half of “Thing” development is driven directly by customer demand
Software and apps crucial to connect IoT solutions
-- 71% of “Thing” data will move between local devices and remote servers
-- 72% of “Things” will use multiple interaction technologies to communicate
-- 49% will connect to cloud services
IoT solutions drive extreme new world of user experience
-- 76% think about “Thing” user experience differently
-- 97% of “Things” will accept non-traditional input such as sensors, GPS, voice, line of vision, and body
gestures
-- 39% of “Things” will present information in non-traditional ways including virtual reality, haptic feedback,
audible, and making changes to their environment

Sponsored by

© 2015 Dimensional Research.


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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

Detailed Findings
“Things” will have significant business impact in 2015
More “Things” are being built for business than consumers
Much of the buzz around “Things” has centered on consumer gadgets. From wearables to home health monitoring
to smart homes, it is fun to think about using “Things” in our daily lives. However, the practical reality of “Thing”
development is that more things are being made for businesses than for consumers.

Who  is  the  target  market  to  purchase  your  “Thing”?  

Both  consumer   Consumer  only  


and  business   16%  
34%  

Business  only  
50%  

Half of all IoT solutions, 50%, are being built exclusively for business use – either to sell to other businesses, or for
internal business operations. Just a few examples of IoT solutions being built by survey participants for business use
include environmental monitoring for museums and agribusiness, inventory control for manufacturing, laboratory
controls, HVAC sensors, hospital patient trackers, specimen collection and tracking, military drones, and retail
kiosks that respond to personal information of nearby customers.

Only 16% of all IoT solutions are being built exclusively for consumers, from the practical, like tracking devices
for small children and home health monitoring, to amazing new entertainment devices. The remaining 34% of IoT
solutions will be used by both consumers and businesses including “Things” for smart buildings, vehicle operation,
access controls, and cleaner robots.

© 2015 Dimensional Research.


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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

“Thing” development being driven by customer demand


The image of the creative genius coming up with products that cannot be imagined by regular people is part of
technology lore. Although significant “Thing” development is indeed driven by the visionaries in development teams
(57%) who are able to look at new technologies and find exciting new ways to use them, many IoT solutions are
being motivated by pragmatic sources. Half of IoT solutions are driven by customer demand (50%). Market trends
(43%) and management strategy (41%) are also key to these projects.

What  is  driving  development  of  your  “Thing”  solu8on?  

Development    team  vision   57%  

Customer  demands   50%  

Market  trends   43%  

Management  strategy   41%  

0%   10%   20%   30%   40%   50%   60%   70%  

“Things” impact every aspect of the business


The impact of “Things” will be broad and touch multiple areas of operations for many businesses. Business impacts
will be as broad as enabling customers (48%) and enabling strategic business initiatives (43%) through to the
pragmatic outcomes of revenue generation (36%) and increased employee productivity (36%).

What  is  the  expected  business  impact  of  your  “Thing”  solu:on?    

Enable  customers   48%  

Strategic  business  enabler   43%  

Revenue  generator   36%  

Enable  employee  produc?vity   36%  

Thought  leadership  and  brand  building   28%  

0%   10%   20%   30%   40%   50%   60%  

© 2015 Dimensional Research.


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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

Few “Things” were in the hands of end users at the close of 2014
This expected business impact is not being felt yet. By the end of 2014, only 25% of all IoT solutions were in the
hands of end users with only 13% being actually released and a further 12% being in beta or pilot. More than half of
all IoT solutions (53%) in the works are only in planning or idea stage.

What  is  the  current  status  of  your  “Thing”  solu5on?  


40%  
34%  
35%  

30%  

25%  
19%  
20%  
16%  
15%   13%   12%  

10%  
6%  
5%  

0%  
Our  “Thing”  solu8on  has   Our  “Thing”  solu8on  is  in   Used  by  developers  only   Currently  in  development   We  have  plans  for  a   We  have  ideas  for  a  
been  released   beta  or  pilot   “Thing”  solu8on  but  have   “Thing”  solu8on”  but  
not  yet  started   don’t  have  a  plan  yet  

At the end of 2014, developers in the Americas were leading the world in having put their IoT solutions in the hands
of end users with 21% of them having released their “Thing” and a further 16% in beta or pilot. Europe was far
behind, particularly with released “Things”. Only 7% of European developers have released their IoT solution. With
a further 10% having IoT solutions in beta or pilot, Europe is poised to catch up in the coming years.

What  is  the  current  status  of  your  “Thing”  solu5on?  


(By  geography)  
40%  

35%  

30%   Beta  or  pilot,  16%  


25%  

20%   Beta  or  pilot,  12%  

15%  
Beta  or  pilot,  10%  
10%   Released,  21%  
Released,  14%  
5%  
Released,  7%  
0%  
AMER   EMEA   APAC  

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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

2015 a big year for “Thing” development – and “Thing” business impact
While 2014 ended with a lot of intentions to build “Things”, 2015 will be a year of production and shipping. The
majority of IoT solutions, 77%, will be in active development in 2015.

Do  you  expect  to  be  developing  a  


“Thing”  solu8on  in  2015?  
No  
23%  

Yes  
77%  

2015 will also be the year when the business impact of IoT solutions will be felt. While only 12% of all IoT solutions
were generating a clear business impact at the end of 2014, by the end of 2015 almost half of all “Thing” projects
currently scoped (49%) will be generating business results.

When  is  your  “Thing”  solu1on  expected  to  clearly  generate  business  impact?  

40%   37%  

35%  
30%  
25%   23%  

20%   16%  
15%   12%   11%  
10%  
5%  
0%  
2014   2015   2016   More  than  2  years  from   Too  soon  to  say  
now  

© 2015 Dimensional Research.


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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

“Thing” development slowed by competing priorities, not lack of demand


The minority of developers who reported that they wouldn’t be developing IoT solutions in 2015 (23%) were asked
why not. The clear answer was distractions from other priorities (57%). Only a very few reported that IoT solution
development was delayed because of lack of demand (only 17%).

Why  won’t  you  be  developing  a  “Thing”  solu8on  in  2015?    

Other  prioriBes   57%  

No  budget   25%  

Lack  of  skills   18%  

No  demand   17%  

0%   10%   20%   30%   40%   50%   60%  

(n = won’t be developing a “Thing” solution in 2015)

Software and apps are crucial to connect IoT solutions


IoT solutions combine many interrelated pieces in new ways
“Things” will be widely varied in their end user and business impacts. They will also have a wide variety of
capabilities. “Things” will include sensors that read information, controls that accept input, and displays to show
information. Some “Things” will have only one of these properties, such as Beacon that simply sends a signal based
on an environmental change. Others will mix various capabilities for new and unique solutions.

Which  of  the  following  types  of  proper2es  will  be  included  in  your  “Thing”?    

Sensor  –  reads  informa?on  from  the  environment  and  passes  data  


72%  
when  connected    (i.e.  heart  rate  monitor,  Beacon)  

Control  –  can  be  programmed  and  controlled  remotely  or  through  


60%  
input  it  receives  (i.e.  drone,  Google  Glass  )  

Display  –    something  you  send  informa?on  to  and  it  displays  in  a  
58%  
unique  way  (i.e.  smart  watch,  virtual  reality)  

0%   10%   20%   30%   40%   50%   60%   70%   80%  

© 2015 Dimensional Research.


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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

“Things” will be highly interconnected with other infrastructure


Life is not simpler for developers involved in creating IoT solutions. “Things” will be highly interconnected,
requiring developers to know how to connect these pieces and distribute applications between disparate components.

What  types  of  systems  will  be  interconnected  as  part  of  your  “Thing”  solu:on?  

Mobile  apps   78%  

Desktop  applicaAons   69%  

Database   61%  

Cloud  services   49%  

Enterprise  applicaAons   36%  

Middleware   26%  

Other  IoT  device   23%  

Other   2%  

0%   10%   20%   30%   40%   50%   60%   70%   80%   90%  

While mobile apps will unsurprisingly be the most common interconnection point for “Things” (78%), traditional
desktops will remain a very significant part of the infrastructure (69%), as will databases (61%). Almost of half of
IoT solutions will connect to a cloud service (49%). Some “Things” (Other, 2%) will connect to a wide range of
other hardware, from door locks to recording equipment.

“Things” will communicate in many ways


”Things” can connect to the Internet of Things using a wide variety of technologies, each of which requires a
developer to make it work. Unsurprisingly, the most common method of communication with “Things” is Wifi or
other Internet connections (76%).

What is more surprising is that most “Things” (72%) communicate using multiple technologies for interaction. This
increases the need for developers to understand these multiple methods.

How  will  your  “Thing”  communicate  with  the  rest  of  your  solu7on?  

Wifi/Internet   76%  

Bluetooth  LE   38%  

REST  API   33%  

Standard  Bluetooth   31%  

Over  the  wire   25%  

SDK   18%  

Other   8%  

0%   10%   20%   30%   40%   50%   60%   70%   80%  

© 2015 Dimensional Research.


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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

Survey participants took the time to outline the others ways in which “Things” communicate. Satellite and radio
waves were both mentioned frequently.

“Things” will move data between local devices and servers


The data captured by “Things” will be an important part of the business value. Almost all “Things” (98%) will collect
and store data. As well as simply sharing information, this data can be leveraged for analytics and business intelligence.

For developers involved in IoT solutions, the challenge will be to move this data around. Most IoT solutions (71%)
will store data both locally (on the “Thing”, in an app, or desktop) as well as on servers (enterprise database or cloud).

Where  will  the  informa/on  collected  by  your  “Thing”  be  stored?  

In  an  enterprise  database   54%  

In  the  cloud   47%  

On  the  “Thing”  (embedded  database)   40%  

App  on  mobile  device   37%  

Desktop  applica?on   35%  

Other   2%  

Our  “Thing”  does  not  collect  and  store  informa?on   2%  

0%   10%   20%   30%   40%   50%   60%  

Android and Windows top operating systems “Things” connect to


“Things” will connect to many different operating systems. The most common will be Android (78%) and Windows
(77%). The 3% of answers provided in the other types of operating systems included various types of firmware.

What  opera*ng  systems  are  used  by  the  mobile  apps  and  
desktop  applica*ons  your  “Thing”  connects  to?    

Android   78%  

Windows   77%  

iOS   59%  

Linux   33%  

MacOS   30%  

Other   3%  

0%   10%   20%   30%   40%   50%   60%   70%   80%   90%  

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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

IoT solutions drive extreme new world of user experience


“Thing” user experience is different
In the world of “Things”, keyboard entry and pressing buttons are not the only way to interact with a device. The
science fiction world of “Things” creates the possibility for vastly unique user experiences. For the most part
developers recognize this, and realize that new skills are needed to deliver usable solutions in a “Thing” world. Most
survey participants, 76%, described themselves as thinking about user experience differently for IoT solutions than
for traditional software.

Do  you  think  about  the  user  experience  differently  when  developing  


“Thing”  solu<ons  than  when  developing  tradi<onal  so=ware?  
No,  it’s  the  same  
24%  

Yes,  it’s  different  


76%  

Majority of “Things” will accept input that is not traditional touch


Almost all “Things” (97%) will accept input in some other way than traditional touch input like keyboard entry
and pressing buttons. This includes environmental sensors and position tracking, as well as input methods first
experienced watching Star Trek including voice commands (25%), biometrics (24%), line of vision (18%), and body
gestures (17%). Survey participants took the time to tell us that their “Things” can take inputs from brain waves,
scanners (QR, barcode, card readers), and even other “Things”.

While the ultimate vision of IoT solutions completely does away with traditional touch, we’re not there yet. More
than half of all “Things” (56%) will accept input the old fashioned way.

How  will  your  “Thing”  accept  input?  

Tradi@onal  touch  (buUon  press,  keyboard,  etc.)   56%  

Environmental  sensors  (temperature,  etc.)   55%  

Posi@on  tracking  (i.e.  GPS,  IR  tracker)   51%  

Voice   25%  

Biometrics   24%  

Line  of  vision  (where  you  are  looking)   18%  

Body  gestures   17%  

Non-­‐tradi@onal  touch   12%  

Other   7%  

"Thing"  will  not  accept  input   3%  

0%   10%   20%   30%   40%   50%   60%  

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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

While the basic technology for accepting non-traditional input may be similar, the types of “Things” that use these
inputs will vary greatly. Body gestures will be used as input for “Things” ranging from gaming devices and physical
activity monitoring to fly control and smart buildings. “Things” that will get input by sensing where a person is
looking run the gamut from intelligent buildings, traffic, and secure entry, to virtual assistants and medical imaging.
Positional tracking will be used by “Things” as varied as access controls, cleaner robots, and time and attendance
tracking.

Over a third of “Things” will present information in non-traditional ways


“Things” also will present information in non-traditional ways to deliver a broad range of solutions. While mobile
devices, web sites and desktop applications will be the main types of display used by “Things”, 39% will present
information in non-traditional ways such as audible feedback (17%), virtual reality displays (15%), or haptic
feedback (7%). “Things” may also send email or text messages, generate output files, or make a change to the
environment like turning on a light or unlocking a door.

How  will  your  “Thing”  solu1on  present  informa1on?    

Mobile  device   68%  

Web  site   56%  

Desktop  applica:on   53%  

On  the  “Thing”  itself   39%  

Tradi:onal  monitor   33%  

Audible  feedback   17%  

Virtual  reality  display   15%  

Hap:c  feedback  (bio  feedback)   7%  

Other   3%  

Our  “Thing”  solu:on  will  not  present  informa:on   1%  

0%   10%   20%   30%   40%   50%   60%   70%   80%  

Haptic or bio feedback will be used for “Things” including embedded medical devices, entertainment, and vehicle
operations. Audible feedback will be used for many types of monitoring including home monitoring, health
monitoring, security monitoring and asset tracking. Virtual reality will be used for “Things” built to deliver enhanced
retail experiences, simulation training, and emergency situation management solutions.

Survey Methodology and Participant Demographics


In December 2014, developers and development managers from around the world were invited to participate in
an online survey on the topic of developing software for the Internet of Things (IoT). Participants agreed to the
definition of “Thing” and “Thing solution” then were asked a series of questions about involvement in software

© 2015 Dimensional Research.


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THE SOFTWARE CONNECTING THE INTERNET OF THINGS
A DEVELOPER SURVEY

Dimensional Research | January 2015

development for “Things” and their supporting infrastructure as well as business impact of “Thing” solutions,
technology used, and user experience.
Definitions:
The Internet of Things (IoT) is the network of “Things” that contain interconnection technology (i.e. Wifi, Bluetooth)
to communicate with other devices, applications, middleware, and online services. These “Things” can be as diverse as
wearable devices, industrial sensors, inventory tracking chips, drones, and smart vending machines. This survey focuses
on understanding trends with new types of “Things”. For this survey, “Thing” does not include traditional endpoints like
desktops, smart phones or tablets.

This survey focuses on the entire solution required to deliver value, the “Thing” solution, including both the “Thing”
and the infrastructure the “Thing” communicates with such as computers, smartphones, tablets, middleware, cloud, and
other back-end infrastructure.

A total of 1,040 qualified individuals participated in the survey. All were involved in software development for IoT
solutions. Participants represented a wide range of geographies, company sizes, role in software development, and
vertical industries.

Region   Company  Size   Role  


Over  5,000  
AMER   11%   Execu&ve  
APAC   Consultant   20%  
17%   24%   12%  
1,000  –  5,000  
13%   Less  than  10  
37%  

Developer  or  
other  individual   Team  manager  
100  –  1,000  
contributor   23%  
16%  
45%  
EMEA  
59%   10  –  100  
23%  

About Dimensional Research


Dimensional Research® provides practical market research to help technology companies make their customers more
successful. Our researchers are experts in the people, processes, and technology of corporate IT and understand how
corporate IT organizations operate. We partner with our clients to deliver actionable information that reduces risks,
increases customer satisfaction, and grows the business. For more information visit www.dimensionalresearch.com.

About Embarcadero Technologies


Embarcadero Technologies Inc. is a leading provider of award-winning tools for application developers and database
professionals so they can design systems right, build them faster and run them better, regardless of their platform
or programming language. Ninety of the Fortune 100 and an active community of more than three million users
worldwide rely on Embarcadero products to increase productivity, reduce costs, simplify change management and
compliance, and accelerate innovation. Founded in 1993, Embarcadero is headquartered in San Francisco, with
offices located around the world. www.embarcadero.com

© 2015 Dimensional Research.


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