The Internet of Things: Making sense of the next mega-trend

This information is presented to allow clients to determine if the publication’s content is relevant, Halberd Bastion advocates reading the 15-page report in its entirety.
Goldman Sachs’s Report Can Be Downloaded Here.

Goldman Sachs ( is a global investment bank that offers a raft of financial services to, primarily, institutional clients.  Goldman Sachs prolifically produces research and position papers regarding markets and this report was compiled by their Global Investment Research division as an Internet of Things (IoT) technology primer.  The report provides an investment perspective into the Internet of Things.

In the 1990’s fixed internet had connected 1 billion users which had doubled to 2 billion in the 2000’s thanks to mobile technology, now, IoT has the potential to connect as many as 10 times that amount (28 billion connected devices by 2020).  This powerful adoption is due to breakthroughs in the cost of components, processing power and bandwidth.

Five verticals of adoption were used as test cases for the IoT:

  1. Wearables
  2. Cars
  3. Homes
  4. Cities
  5. Industrials

The focus for investors is on new products/revenue sources and innovative ways to advance cost efficiency thereby driving sustainable competitive advantages.  The areas to watch out for include privacy/security concerns which are likely to pose challenges to adoption.

Investors were advised to focus on:

  • Enablers: increased share for Wi-Fi, sensors and low-cost microcontrollers.
  • Platforms: software applications for communication management between devices, middleware, storage and data analytics.
  • Industrials: early opportunity in home automation and factory floor optimisation leading to increased efficiency.