Welcome!

@DXWorldExpo Authors: Kevin Benedict, Pat Romanski, Elizabeth White, Liz McMillan, Yeshim Deniz

Related Topics: @CloudExpo, Agile Computing, @DXWorldExpo, @ThingsExpo

@CloudExpo: Article

Economics and the "Internet of Things"

The Internet of Things Can Transform the World. Right?

I look at the IoT as having three great components: M2M, wearables, and grids. The components can also be seen (roughly) as enterprise, personal, and government/organizational.

I'll examine each area in follow-up articles. I'll start with the third, as it applies to research I've been conducting for the past three years and dovetails with the very high-level view of the IoT being taken by the largest technology companies in the world.

And I'm looking forward to discussing issues great and small with all in attendance at the upcoming @ThingsExpo, for which I serve as Conference Chair.

A Dismal Look
Smart grids, cities, and nations hold transformational potential, especially but exclusively for the developing world. It that holds the promise of fixing the millenium-old human problems of poverty, disease, violence, and poor leadership.

Right?

To examine the IoT's potential to transform society means starting with a big-picture look at economics, or the "dismal science," as it's lovingly known by its practitioners.

Global economics is not a zero-sum game, although it can feel that way when a competitor is eating your lunch. It can also look that way when comparing the extremes of the wealth of nations.

But I think the IoT can not only solve a particular company's problems but is also the key to long-term, fair-minded global economic growth and societal development.

A Brief History
We've come a long way since Adam Smith's first articulated his principles of enlightened self-interest and an "invisible hand" that guides economic development without the need for government regulation or intervention. Even seemingly altruistic acts are ultimately done with a personal, self-centered goal in mind, in this view.

The Keynesian revolution (ie, government stimulation is desirable) followed by a few decades of increasingly scientific, mathematically inclined studies of societies and their economics has led to much re-interpretation of Smith's original thinking.

Recent economic developments, led by Joseph Stiglitz and centered around the power of "information asymmetry" can lead to almost the opposite conclusion; there's nothing enlightened about self-interest, people with an upper hand won't play fair, and only tough, enforceable government regulation can address it, in this view.

Ha Joon-Chang is another modern-day economist who, in essence, thinks the developed world is not playing fair as developing nations struggle to lift their way out of poverty. I interviewed him a few years ago.

On a separate tangent, Dambisa Moyo (pictured) is another modern-day economist who has taken the controversial stance that altruism is, in fact, damaging to the people it ostensibly tries to help.

Does IT Matter?
Meanwhile, it's been more than 30 years since the personal computer entered the scene in a big way.

Yet to this day, academic research on "IT economics" seems sparse. Even though so many of us in the industry believe in the rising tide of technology that lifts all boats, and utopian dreams flow out of Silicon Valley and its mimickers with each new gadget or app, it's hard to find pure research that connects the dots between the aggressive use of technology, economic development, and societal progress.

There's plenty of history at this point. The 80s were famous for $1 trillion worth of PC sales, with no apparent productivity increase in the global economy. The 90s showed that the benefits of this technology took awhile to become apparent; they did become apparent once widely connected to networks and with the invention of the Worldwide Web.

The 2000s were a disaster, with the dot-com meltdown, the post-Y2K technology recession, the Great Recession, and war disaster by the US. Even so, enterprise IT-including tens of millions of personal computers sold each year-rose by the end of the decade to several trillions of dollars.

Now, as we progress through the second decade of the 21st century, we see cloud computing, Big Data, and the Internet of Things. It's time for economists to study the "IT effect" with rigor.

As a non-academic with perhaps just enough graduate school experience to be dangerous, I won't be the person who seizes this field of study and emerges as the Joseph Steiglitz of IT economics. But to paraphrase the Dennis Hopper character in True Romance, I find this stuff to be fascinating.

Relatively Speaking
Our research at the Tau Institute is socio-economic in nature, but as of yet lays out no grand theories.

We abide by the principle that technology is not only inevitable but inevitably good for the human species; though Google Glass today is seen as having great comedic value, the same twitters could be heard (well before Twitter) with images of people lugging around computers, talking on wireless phones, and seeking hotspots.

The big caveat, of course, is that our political and societal leaders don't abuse the wonders of technological progress. Wishful thinking, perhaps.

Yet the net gain to the world economy brought by personal computing devices is enormous. Mobile phones are the only way to communicate in much of the developing world, and are also used as virtual banks. Mobile computers in the developed world have surely reduced the number of people-an therefore, congestion--showing up to work every day in central cities.

Wireless connectivity has freed people to work and access information from almost wherever they choose, and it's cut down on the time people watch television-a development that cannot, on the whole, be deleterious.

(More to come in future postings!)

Contact Me on Twitter

Follow @ThingsExpo on Twitter

More Stories By Roger Strukhoff

Roger Strukhoff (@IoT2040) is Executive Director of the Tau Institute for Global ICT Research, with offices in Illinois and Manila. He is Conference Chair of @CloudExpo & @ThingsExpo, and Editor of SYS-CON Media's CloudComputing BigData & IoT Journals. He holds a BA from Knox College & conducted MBA studies at CSU-East Bay.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@BigDataExpo Stories
Announcing Poland #DigitalTransformation Pavilion
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
CloudEXPO | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
The best way to leverage your CloudEXPO | DXWorldEXPO presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering CloudEXPO | DXWorldEXPO will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at CloudEXPO. Product announcements during our show provide your company with the most reach through our targeted audienc...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution. In his session at @ThingsExpo, Akvelon expert and IoT industry leader Sergey Grebnov provided an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
JETRO showcased Japan Digital Transformation Pavilion at SYS-CON's 21st International Cloud Expo® at the Santa Clara Convention Center in Santa Clara, CA. The Japan External Trade Organization (JETRO) is a non-profit organization that provides business support services to companies expanding to Japan. With the support of JETRO's dedicated staff, clients can incorporate their business; receive visa, immigration, and HR support; find dedicated office space; identify local government subsidies; get...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, added the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor analytic...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
In a world where the internet rules all, where 94% of business buyers conduct online research, and where e-commerce sales are poised to fall between $427 billion and $443 billion by the end of this year, we think it's safe to say that your website is a vital part of your business strategy. Whether you're a B2B company, a local business, or an e-commerce site, digital presence is key to maintain in your drive towards success. Digital Performance will take priority in 2018 for the following reason...