Welcome!

@BigDataExpo Authors: Kevin Benedict, Pat Romanski, Allwyn Sequeira, William Schmarzo, Elizabeth White

Related Topics: @CloudExpo, Agile Computing, @BigDataExpo, @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
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to transi...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.