"Internet of Things" Presents Enormous Untapped Potential for Canadian
NEWS RELEASE TRANSMITTED BY Marketwired
FOR: Telus Corporation
TSX SYMBOL: T
NYSE SYMBOL: TU
JULY 15, 2014
"Internet of Things" Presents Enormous Untapped Potential for
IDC survey commissioned by TELUS finds current adoption by Canadian businesses
is low, but predicts IoT spending will rapidly grow to $21 billion annually by
TORONTO, ONTARIO--(Marketwired - July 15, 2014) - The "Internet of
Things" (IoT) presents a massive opportunity that Canadian businesses have
yet to capitalize upon, according to a TELUS-commissioned IDC survey released
today. The survey, which examined the current state of IoT deployments in
Canada, found that only 6 per cent of Canadian businesses have implemented an
IoT solution, and that another 7 per cent are preparing to deploy in 2014. The
technology is on the cusp of rapid growth however, with an additional 30 per
cent of businesses intending to deploy in the next 24 months and annual IoT
spending in Canada predicted to grow from $5.6 billion in 2013 to $21 billion
in 2018 - a 375 per cent increase.
IoT - the evolution of machine-to-machine (M2M) technology - is a network of
uniquely identifiable end points (or things) that communicate without human
interaction, most commonly over a wireless network. The systems collect,
analyze and act on information in real time and are being deployed to create
"smart" connected businesses, homes, cars and cities.
"The Internet of Things can fundamentally alter the way Canadian companies
do business and we expect a sharp spike in growth as business leaders embrace
the technology," said Jim Senko, senior vice-president of Small Business
and Emerging Markets. "We're currently working with companies of all
sizes to help them understand the potential of IoT and developing solutions
that transform how they operate; making them more productive and
First-generation IoT technology is more common in the utilities and
transportation sectors, where companies have operated basic applications like
remote monitoring and fleet tracking for more than a decade. However, recent
advancements in the reach and speed of wireless networks and technologies like
cloud computing are fueling the growth of IoT and opening up its potential in
other industries like manufacturing, oil and gas, healthcare, retail, financial
services and insurance.
"We have customers across a wide range of industries using IoT. We are
implementing applications in the financial services industry with wireless
connectivity for ATMs, in the oil and gas industry with lone-worker safety
solutions and remote monitoring of field equipment, and in retail with wireless
point-of-sale devices and smart interactive digital displays," added
Senko. "There's tremendous innovation in this area and I believe that
the opportunities that IoT technology can offer businesses is limited only by
IoT offers many benefits, but Canadian businesses have yet to tap into its full
An IoT solution can help a business quickly achieve greater productivity,
reliability and quality of service, while reducing costs. The data collected
can help automate processes and enable improved decision making; leading to
outcomes like higher quality manufacturing, faster delivery times, reduced
waste, shorter wait times and better patient care.
In the transportation industry for example, IoT technology can enable real-time
monitoring of vehicle speed, idling time, routes and driver behaviour to
optimize fuel usage, improve scheduling and ensure safety - with potential
savings of thousands of dollars a year per vehicle.
Arrow Transportation Systems, a Vancouver-based trucking and distribution
company, implemented an IoT solution that connected every truck to the TELUS
wireless network and allows Arrow to monitor location, mechanical and driver
"Transportation is a business with high variable costs; when TELUS
connected our fleet with an IoT solution, we immediately realized a savings of
8 per cent on fuel costs alone," said Mitchell Zulinick, COO, Arrow
Transportation. "By collecting and acting on data in real-time, we're
able to provide better service to our customers and realize enough direct
savings for the solution to completely pay for itself."
Despite its massive potential, only 13 per cent of current IoT projects are
considered to be "transformational" - meaning they fundamentally
change business processes or become a launch pad for new businesses. IDC
predicts that the number of transformational projects will rise over time as
business leaders recognize the possibilities of IoT and learn from pilot
"IoT can not only increase productivity, it can enable entirely new
business models. However, despite its transformative nature, only one out of
every eight IoT projects taps into the technology's full potential,"
said Tony Olvet, Group Vice President, Research at IDC Canada. "CXOs
looking to gain a competitive advantage need to examine how IoT can reshape
what is possible in their business. The alternative is to fall behind global
innovators that are already utilizing new applications to creatively reinvent
Guidance for businesses considering an IoT solution
IoT solutions are built with three key components: hardware, software and
connectivity. As 75 per cent of current IoT deployments require some degree of
customization, companies are best to work with external providers that have a
network of partners and experience deploying tailored IoT solutions.
Businesses should consider four key enabling technologies - wireless
connectivity, cloud computing, Big Data analysis and IT security - when
evaluating an IoT solution.
"We are still very much in the early stages of IoT maturity in Canada and
organizations without internal experience should learn from early adopters and
work with external providers that understand the challenges of deploying IoT
solutions," said Olvet. "Businesses should select partners that can
show leadership around IoT both in terms of innovation as well as practical
guidance in key areas like wireless networks and IT security."
Additional research findings
-- Wireless network technologies are currently used in 82 per cent of IoT
deployments; this figure is expected grow going forward due to the
pervasiveness of wireless connectivity.
-- While 74 per cent of businesses are storing data generated from IoT
internally, IDC expects the amount of "Big Data" generated by millions
of connected devices to become a constraint that will require hosted or
-- Where external providers are employed to manage the IoT platform or
application, cloud solutions are used in 61 per cent of the time. Due to
the inherent flexibility and scalability offered by cloud, IDC predicts
this number will grow.
-- Ensuring the security of IoT solutions was considered a major challenge
by 31 per cent of respondents; IDC recommends that organizations be
proactive about security and select the right partner to fortify
networks, devices, applications, data and other physical assets.
The TELUS/IDC Internet of Things Study 2014: The Connected Canadian Business
surveyed 209 medium and large (i.e., with more than 100 employees) Canadian
organizations by phone and web between March and April 2014. This included 122
IT decision-makers as well as 87 business leaders across a variety of
departments. To read the study in its entirety, please visit telus.com/IoT.
TELUS (TSX:T)(NYSE:TU) is Canada's fastest-growing national
telecommunications company, with $11.5 billion of annual revenue and 13.3
million customer connections, including 7.8 million wireless subscribers, 3.2
million wireline network access lines, 1.4 million Internet subscribers and
842,000 TELUS TV customers. TELUS provides a wide range of communications
products and services, including wireless, data, Internet protocol (IP), voice,
television, entertainment and video, and is Canada's largest healthcare IT
In support of our philosophy to give where we live, TELUS, our team members and
retirees have contributed more than $350 million to charitable and
not-for-profit organizations and volunteered 5.4 million hours of service to
local communities since 2000. TELUS was honoured to be named the most
outstanding philanthropic corporation globally for 2010 by the Association of
Fundraising Professionals, becoming the first Canadian company to receive this
prestigious international recognition.
For more information about TELUS, please visit www.telus.com.
International Data Corporation (IDC) is the premier global provider of market
intelligence, advisory services, and events for the information technology,
telecommunications and consumer technology markets. IDC helps IT professionals,
business executives and the investment community to make fact-based decisions
on technology purchases and business strategy. More than 1,000 IDC analysts
provide global, regional and local expertise on technology and industry
opportunities and trends in over 110 countries. For more than 50 years, IDC has
provided strategic insights to help our clients achieve their key business
objectives. IDC is a subsidiary of IDG, the world's leading technology
media, research and events company. You can learn more about IDC by visiting
FOR FURTHER INFORMATION PLEASE CONTACT:
TELUS Media Relations
INDUSTRY: Telecom - Telecommunication Services
-0- Jul/15/2014 12:00 GMT
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