Welcome!

Agile Computing Authors: Elizabeth White, Yeshim Deniz, Liz McMillan, ManageEngine IT Matters, Carmen Gonzalez

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.


@ThingsExpo Stories
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
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.
SYS-CON Events announced today that WineSOFT 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. Based in Seoul and Irvine, WineSOFT is an innovative software house focusing on internet infrastructure solutions. The venture started as a bootstrap start-up in 2010 by focusing on making the internet faster and more powerful. WineSOFT’s knowledge is based on the expertise of TCP/IP, VPN, SSL, peer-to-peer, mob...
SYS-CON Events announced today that EARP Integration 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. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
SYS-CON Events announced today that Carbonite 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. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that Progress, a global leader in application development, 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. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
SYS-CON Events announced today that Cloud Academy 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. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
SYS-CON Events announced today that Outscale 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. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
The 21st International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that Interoute 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. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
SYS-CON Events announced today that Progress, a global leader in application development, 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. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.