Gartner: Global expenditure on IoT security to hit $1.5 billion in 2018

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A new report from Gartner has projected that expenditure on IoT security across the globe will hit $ 1.5 billion in 2018 from $ 1.2 billion in 2017 due to the growing efforts from enterprises to shield themselves from IoT-based threats.

The analyst firm found that over the last three years, nearly 20% of enterprises were hit by at least once IoT-based attack.

Ruggero Contu, research director at Gartner, said: "We expect to see demand for tools and services aimed at improving discovery and asset management, software and hardware security assessment, and penetration testing. In addition, organisations will look to increase their understanding of the implications of externalising network connectivity. These factors will be the main drivers of spending growth for the forecast period with spending on IoT security expected to reach $ 3.1 billion in 2021.”

According to Gartner forecast, the leading obstacle to IoT security spending growth will arise from a lack of prioritisation and implementation of security best practices and tools in IoT initiative planning. This will slow down the possible expenditure on IoT security by 80%.

By 2021, regulatory compliance is predicted to emerge as the major influencer for IoT security uptake.

Contu said: "Interest is growing in improving automation in operational processes through the deployment of intelligent connected devices, such as sensors, robots and remote connectivity, often through cloud-based services. This innovation, often described as Industrial Internet of Things (IIoT) or Industry 4.0, is already impacting security in industry sectors deploying operational technology (OT), such as energy, oil and gas, transportation, and manufacturing."

Earlier this month, a new report from Navigant Research held the increasing popularity of IoT was one of the primary reasons behind greater cybersecurity attacks against enterprises and utilities.

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Gartner: IoT security spend hitting $1.5 billion – but strategy poor

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Worldwide spending on Internet of Things security will hit $ 1.5 billion in 2018, a 28 per cent increase from 2017, says Gartner.

However, the analyst company warns that IoT security is being left up to business units, with a lack of overall business strategy, poor “security by design”, and little control over the technology within connected devices.

Its report, Forecast: IoT Security, Worldwide, 2018, says that IoT-based attacks are already a reality. A recent Gartner survey found that nearly 20 per cent of organisations have experienced at least one IoT-based attack in the past three years.

“In IoT initiatives, organisations often don’t have control over the source and nature of the software and hardware being used by smart connected devices,” said Ruggero Contu, research director at Gartner.

“We expect to see demand for tools and services aimed at improving discovery and asset management, software and hardware security assessment, and penetration testing. In addition, organisations will look to increase their understanding of the implications of externalising network connectivity.”

These factors will be the main drivers of growth in IoT security, with spending hitting a forecast $ 3.1 billion in 2021, says the company.

How the market breaks down

Gartner explains that endpoint security spending will be roughly one-third of the value of professional services security spending this year: $ 373 million against $ 946 million. Meanwhile, gateway security spending is forecast to hit $ 186 million.

However, in 2021 professional services security spending is likely to exceed $ 2 billion, with endpoint security hitting $ 631 million, and gateway security $ 415 million.

Despite healthy year-on-year growth in worldwide spending into the next decade, Gartner predicts that the biggest inhibitor to the growth of IoT security will be a lack of prioritisation and implementation of security best practices and tools. This will hamper spending on IoT security by 80 percent: an extraordinary figure.

No co-ordinated strategy

“Although IoT security is consistently referred to as a primary concern, most IoT security implementations have been planned, deployed, and operated at the business-unit level, in cooperation with some IT departments to ensure the IT portions affected by the devices are sufficiently addressed,” said Contu.

However, coordination via common architecture or a consistent security strategy is all but absent, and vendor product and service selection remains largely ad hoc, based upon the device provider’s alliances with partners or the core system that the devices are enhancing or replacing.”

While basic security patterns have been revealed in many vertical projects, they have not yet been “codified into policy or design templates to allow for consistent reuse”, continues Gartner.

“As a result, technical standards for specific IoT security components in the industry are only now just starting to be addressed by IT security standards bodies, consortium organisations, and vendor alliances”, adds the report.

This absence of “security by design” comes from a lack of specific and stringent regulations. Going forward, Gartner expects this trend to change, especially in heavily regulated industries, such as healthcare and the automotive sector.

By 2021, Gartner predicts that regulatory compliance will be the prime influencer for IoT security uptake – hence the significant uptick in spending.

Internet of Business says

As Gartner says, spending is up, but the consistent theme in all 2018 IoT security reports has been exactly the same: users’ approach to the specific problem of securing IoT implementations is lax, device manufacturers are rushing to market to compete, and strategy is poor at board level. Meanwhile, regulations are playing catchup with the market, just as the law is years behind the advance of AI in other areas of the connected world.

Read more: Cambridge Analytica vs Facebook: Why AI laws are inadequate

The result of all this is a vacuum where security policy should be, even as people are throwing money at the problem. As the IoT grows, this poses a serious challenge to decision-makers, who are leaving the big decisions to line-of-business departments that may lack both a big-picture view and security expertise.

Hopefully, Gartner’s name and reputation will persuade more people to listen to the subtext beneath the healthy spending figures.

• Just some of our 2018 security coverage so far:-

Read more: Reports reveal critical need for IoT cybersecurity upgrade

Read more: IIoT security: How to secure the ‘Internet of Threats’, by IBM

Read more: Tenable unveils cybersecurity benchmarking tool

Read more: Vendors, users ignoring IoT security in rush to market – report

Read more: IoT ramps up cyber security risk, says in-depth report

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Gartner: Four best practices for managing digital twins

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Gartner analysts set out four best practices for deploying and sustaining digital twin programmes, on the back of research that finds a big increase in their usage.

Nearly half of firms are planning to use digital twin technologies as part of their Internet of Things (IoT) deployments, according to new research published by Gartner.

Digital twins are virtual and data counterparts of physical objects, such as a component, machine, product, or entire facility. Using digital twins, organisations can manage, maintain, and repair their physical assets, and store detailed knowledge about how components fit together.

Gartner found that 48 percent of organisations that are implementing IoT programmes said they are already using, or plan to use, digital twins in 2018.

The research was conducted during June and July 2017 among 202 respondents in the US, Germany, China and Japan, who had already delivered IoT solutions or have IoT projects in progress.

Gartner predicts that by 2020, at least 50 percent of manufacturers with annual revenues in excess of $ 5 billion will have at least one digital twin project in play for either products or assets.

“There is increasing interest and investment in digital twins and their promise is certainly compelling,”said Alexander Hoeppe, research director at Gartner.

“However, creating and maintaining digital twins is not for the faint-hearted,” he warned, “but by structuring and executing digital twin initiatives appropriately, CIOs can address the key challenges they pose.”

Four best practices

Gartner has identified four best practices to tackle the main challenges posed by digital twins.

• Involve the entire product value chain
Digital twin investments should be value-chain driven, to enable stakeholders to govern and manage products, or assets such as industrial machinery, across the supply chain in more structured and holistic ways.

For example, some of the challenges that supply-chain officers face include a lack of cross-functional collaboration, and a lack of visibility across the supply chain.

• Establish well-documented practices
Establishing well-documented practices for constructing and modifying digital twins will help ensure that the twins have long, useful life cycles.

“Best-in-class modelling practices increase transparency on often complex digital twin designs, and make it easier for multiple digital twin users to construct and modify digital twins collaboratively,” said Gartner.

“When modelling practices are standardised, one user is more likely to understand how another user created a digital twin. This enables the downstream user to modify the digital twin in less time, and with less need to destroy and recreate portions of the digital twin.”

• Include data from multiple sources
CIOs can expand the utility of digital twins by recommending that IT architects and digital twin owners define an architecture that allows the access and use of data from multiple sources.

“While 3D geometry is sufficient to communicate the digital twin visually and how parts fit together, the geometric model may not be able to perform simulations of the behaviour of the physical counterpart in use or operation,” explained Gartner.

“At the same time, the geometric model may not be able to analyse data if it is not enriched with additional information.”

• Ensure long access life cycles by avoiding proprietary software
Proprietary implementations risk locking digital twin owners into a single vendor, which ties the viability of digital twin programmes into proprietary formats, not to mention the supplier’s financial health and ability to provide long-term support.

“Digital twins created in proprietary design software formats have a high risk of being unreadable throughout their service life,” said Gartner’s Hoeppe.

“CIOs can guard against this by setting a goal for IT architects and digital twin owners to plan for the long-term evolution of data formats and data storage.”

Internet of Business says

Perhaps the biggest digital twin programme currently in existence can be found at CERN in Geneva, where the 27km loop of the Large Hadron Collider remains the largest machine ever built. Every component in the LHC – and on the CERN campus, which is the size of a small town – is logged in an enterprise asset management (EAM) system as a digital twin. This enables engineers to keep the big science running, and for repairs, upgrades, and replacements to be planned for well in advance.

And the system has another, equally important benefit: in a 27km complex full of expensive equipment, the digital twin system also tells engineers exactly where the tiny bolt that needs replacing is located. That’s not to be sniffed at when a round trip on a slow maintenance vehicle may take several hours.

Read more: Double vision: Why industrial companies are embracing digital twin technology

Read more: Shell joins digital twin initiative for offshore oil and gas assets

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Success of smart cities depends on citizen engagement, says Gartner

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The success of smart cities is very much reliant on the engagement of its citizens and discussions between the government and citizens are critical to ensure that the right issues are taken care of, according to Gartner.

At the Gartner Symposium/ITxpo in Dubai, UAE, Gartner analysts have underscored certain recommendations that CIOs in local government need to consider for the success of smart cities. Among the recommendations underscored are identifying and prioritising the issues that are negatively impacting the citizens and using technology to resolve these problems. CIOs are also recommended pay attention to the problems faced by citizens who are less tech-savvy.

Bettina Tratz-Ryan, research VP at Gartner, commented: "The key to CIO success is building objectives by developing key performance indicators (KPIs) that detect stakeholder priorities and measure success and impact. The United Arab Emirates, especially Dubai, is a perfect example of how incorporating these guidelines help in the execution of the of the smart city framework.”

By 2020, KPIs will be incorporated in nearly 66% of all smart city execution strategies to visualise the impact of mobility-related urban services.

The VP concluded: "Business strategies must clearly focus on the development of a seamless citizen service experience through digital access to information and government services. While preparing for the World Expo 2020, the Dubai government is focusing on creating thought leadership by implementing the most innovative technologies that create new modes of transportation (Hyperloo), energy generation (in conjunction with Masdar), or health and safety experiences.”

Meanwhile, Gartner argues that enterprises often seem to overlook the necessity to introduce change to the mindsets of their employees while initiating for a digital business transformation. An enterprise’s digital business transformation moves may become unsuccessful or slow down with the "fixed" mindset of its employees.

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Gartner: Four strategies to make smart cities work for citizens

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Smart cities can only be successful if local government engages with citizens, opening up the dialogue to meet their needs, said Gartner today. Developing IoT programmes without consulting the community is the wrong strategy, said the analyst company.

Smart cities are no longer just about optimised traffic patterns, parking management, efficient lighting, or improvements to public works, said analysts, but should instead be about a community-driven approach to deciding local priorities.

Gartner has proposed four strategies to refocus smart city developments on citizens’ needs.

Bettina Tratz-Ryan, research VP at Gartner, said that a top-down focus on technology platforms alone should be set aside in favour of asking citizens what their needs are, and which services could be improved.

In this way, technologies such as AI and machine learning could be put to better use, she said. “Changes in citizen mindsets mean that governments must change their mindsets,” explained Tratz-Ryan.

“Government CIOs today need to look at creating innovation strategies to attract new industries and develop digital skills. They need to look at changing their spatial planning, road infrastructure, data and service management.”

Gartner recommends

Gartner’s four strategies are designed to help local government CIOs bring this change about. They are:-

First, understand which issues directly impact citizens and apply technology to solving those problems first. This might include aligning the data gathered via AI and machine learning platforms to meet specific citizen or business requirements.

Second, CIOs should be mindful of the digital divide and pay equal attention to the challenges faced by citizens with fewer IT skills.

Virtual assistants powered by natural-language processing could be one way of achieving this, suggested Gartner, creating a more intuitive way for people to communicate with smart services.

Third, create an open data strategy. Gartner said that open data portals could allow businesses, schools, colleges, universities, and citizens access to data that had previously been hidden. This could help them to design better or more efficient services that are focused on proven needs.

And fourth, CIOs are urged to use clear measurements and KPIs to explain the progress of smart city programmes to their stakeholders.

Gartner claimed that by 2020, two-thirds of all smart city strategies will incorporate KPIs to visualise the impact of mobility-focused urban services.

Internet of Business says

For all the talk of smart city programmes, data gathering, smart street lighting, and more efficient transport systems, it is rare to hear technology commentators talk about community need and what citizens or local businesses actually want. So we commend Gartner for doing exactly that.

If more councils asked residents what could be better, what doesn’t work, and what needs fixing urgently, then more of them might be seen as enablers and allies rather than as remote or inefficient bureaucracies.

Smart city technologies and the IoT, combined with open data sets, could not only connect services better within local communities, but also connect citizens to their elected representatives and the services that work for them.

Read more: Councils partner with Telensa on smart city programmes

Read more: Poles apart: Five cities putting smart streetlights to new uses

Read more: Portugal teams with Cisco on national digitisation plan

Read more: Rotterdam and IBM plan to create world’s smartest port with IoT

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Gartner: Smartphone sales declined for first time ever in Q4 2017

Global smartphone sales reached 408 million units during the 2017 holiday season, Gartner reported. This is a 5.6% decline, compared with Q4 2016, when over 432 million phones found a new owner, marking the first time sales go down since Gartner started tracking in 2004. According to Anshul Gupta, research director at Gartner, two factors led to the fall: the upgrade from feature phones to smartphones slowed down due to lack of ultra-low-cost devices and users deciding to choose a quality model and stick with it for a longer time before switching. “Moreover, while demand for high…

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Global smartphone sales fell for first time in Q4 2017, says Gartner

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There’s no question that smartphones have been getting increasingly popular over the past 10 years or so as devices get more features, faster performance, and lower prices. However, during the final months of 2017, smartphone adoption actually declined for the first time.

Gartner Research reports that during Q4 2017, global smartphone sales totaled nearly 408 million units, which is a 5.6 percent decline compared to Q4 2016. That’s the first year-over-year decline that Gartner Research has found since it started tracking the smartphone market in 2004.

As for why this decline occurred, Gartner research director Anshul Gupta points to two factors. The first is upgrades from feature phones to smartphones declined due to a lack of good “ultra low-cost” smartphones and those people buying good feature phones instead. The second factor is that consumers buying a replacement smartphone are increasingly choosing to buy a quality device and keeping it longer, which lengthens the typical replacement cycle of smartphones.

This is really interesting news, but it was also bound to happen. Most smartphones have gotten to the point where they can handle the majority of tasks that their owners give them, and in recent years there hasn’t been a huge new feature to give consumers a reason to upgrade. An example of something that could convince a lot of people to upgrade is 5G, but it’ll be at least two or three years where the device selection and 5G coverage are wide enough to convince regular people to upgrade.

Gartner Research worldwide smartphone sales Q4 2017

Other notable tidbits from Gartner’s report include Samsung being the leading smartphone manufacturer in terms of sales, taking 18.2 percent of the market share. Apple came in second with 17.9 percent, Huawei in third with 10.8 percent, Xiaomi in fourth with 6.9 percent, and Oppo in fifth with 6.3 percent.

Also of note is that Huawei and Xiaomi saw significant market share growth from Q4 2016 to Q4 2017, with Huawei growing 1.4 percent and Xiaomi growing 3.3 percent.

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Apple’s iPhone outpaces overall smartphone market, Gartner finds

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New data from market analyst firm Gartner saw Apple’s holiday percent of sales slightly drop to 17.9 percent, with Samsung holding a slight edge at 18.2 percent in a contracting market fighting a consumer base reluctant to upgrade.
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Gartner reports first ever global decline in smartphone sales

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 Global smartphone sales have not been firing on all cylinders for several years now but Gartner’s latest figures record the first ever decline since the analyst began tracking the market all the way back in 2004. Read More
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Gartner and IDC agree: HP shipped the most PCs in 2017


The PC market is still declining, according to research firm Gartner, while IDC found positive growth in Q4 2017 and determined it was the most stable year the market has seen since 2011. But the two agreed on the year’s top three computer makers: HP won, followed closely by Lenovo, with Dell bringing up the rear.

Both firms were also optimistic about the PC market, despite more quarters and years in the red than in the black. In short, Gartner and IDC believe computers have hit rock bottom, and a turnaround, or at least a plateau, is due.

Q4 2017

Gartner estimates worldwide PC shipments fell 2.0 percent to 71.6 million units in Q4 2017, marking the 13th quarter of PC shipment declines.

In Q4, the top six vendors were HP, Lenovo, Dell, Apple, Asus, and Acer. As you can see in the chart below, Gartner found that Lenovo, Asus, and Acer experienced decreases in PC shipments, while HP, Apple, and Dell grew. The rest of the market was down 10.3 percent.

Meanwhile, IDC estimates worldwide PC shipments inched upwards 0.7 percent to 70.6 million units in the fourth quarter. The top six vendors in IDC’s results were HP, Lenovo, Dell, Apple, Asus, and Acer.

IDC agrees with Gartner on the trajectory of the five companies, except for Lenovo, which it estimates was flat. The rest of the market was down 2.2 percent. The exact numbers, for your perusal:

2017

Gartner found that 2017 was the sixth year of annual declines. The trio of companies that grew and the trio that shrank were the same for the year as for the previous quarter:

IDC’s Q4 and full year results were also mirrored, save for Lenovo, which IDC found declined in 2017, bringing the full year in line with Gartner’s findings:

Gartner found that worldwide PC shipments totaled 262.5 million units in 2017, a 2.8 percent decrease from 2016. The PC industry continues to consolidate, Gartner points out. “The top vendors have taken advantage of their volume operations to lower production costs, pushing small to midsize vendors out of the market,” Gartner principal analyst Mikako Kitagawa said in a statement.

IDC found that the PC market only shrank 0.2 percent to 259.5 million units but cautioned that a return to growth won’t be easy.

“The fourth quarter results showed some potentially encouraging headway against the difficult environment in retail and consumer PCs,” IDC research manager Jay Chou said in a statement. “Enticed by a growing array of products that promise all-day battery life, high portability, and address emerging use cases that require more compute power, pockets of the consumer base are taking a serious look at these revamped PCs. However, the overall PC market remains a challenging one.”

The PC Gaming channel is presented by Intel®‘s Game Dev program.

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