The convergence of Information Technology (IT) and Operational Technology (OT) is fast becoming a cornerstone of digital transformation for many businesses. However, this integration is not just a buzzword; it represents a significant shift in how organisations operate, leveraging the Internet of Things (IoT) to enhance efficiency and decision-making processes.
According to IDC, the global IoT market is on an accelerated growth trajectory with investments surpassing $1 trillion by 2026. McKinsey also notes that converging IT and OT can significantly enhance business operations, potentially adding over $100 million in incremental value for organisations that successfully navigate this transition.
While these numbers highlight the massive scale and potential of IoT and IT/OT in transforming various industries, understanding and leveraging this convergence is essential to maximise the benefits.
Understanding IoT in IT/OT
IoT refers to a network of interconnected devices that communicate data over the internet. These devices include sensors, actuators, and other smart technologies that collect and transmit information, enabling real-time monitoring and control.
OT, on the other hand, encompasses hardware and software used to manage and monitor physical processes in industries such as manufacturing, energy, and transportation. OT systems include Industrial Control Systems (ICS) and Supervisory Control and Data Acquisition (SCADA) systems that facilitate real-time operational management.
In essence, IoT is the backbone that supports the convergence of IT and OT, effectively bridging the gap between the digital world of IT and the physical realm of OT. By facilitating real-time data exchange, IoT enables the seamless integration of these traditionally separate systems. This connectivity allows for a dynamic interaction between IT systems that process and analyse data and OT systems that manage and control physical processes.
The convergence of IT and OT
There is another term that regularly pops up in the IT/OT discussion—Industrial IoT (IIoT)—which refers to IoT applications in industrial and manufacturing sectors. According to McKinsey, this sector has been driving the momentum of the IT/OT convergence in large part due to the need for real-time data, analytics, end-user digital applications, data management, and storage.
At Westcon, we’re witnessing firsthand how the boundaries between IT and OT are blurring, with vendors from each domain stepping into new territory to leverage opportunities. IT vendors are keen to tap into the OT market to expand their offerings, while OT vendors are embracing IT solutions to enhance connectivity and data analytics.
The resulting IT/OT convergence can lead to some very valuable organisational gains, such as:
- Automation for productivity gains: Minimises the gap between planning and execution, allowing workers to perform tasks more efficiently and effectively. Automated systems can handle routine operations, freeing up human resources for more strategic activities.
- Strengthened cybersecurity: Allows for a unified approach to cybersecurity, ensuring consistent security measures across both domains. By implementing robust security protocols that monitor threats in real-time, organisations can safeguard critical assets and sensitive data.
- Reduced downtime: Integrated systems enable predictive maintenance, where potential issues are identified and resolved before they lead to downtime. This proactive approach ensures that operations remain smooth and uninterrupted.
- Resource optimisation: With a holistic view of both IT and OT resources, businesses can optimise the use of assets, reduce waste, and achieve better sustainability outcomes. Efficient resource management leads to cost savings and improved environmental performance.
- Improved quality & compliance: Real-time monitoring enables proactive quality control measures that ensure products meet specifications while facilitating audit trails for compliance purposes.
Unlocking the full value of IT/OT convergence
In an era where staying ahead means embracing the latest technological advances, the convergence of IT and OT through IoT becomes a game-changer for tech resellers and enterprises. Embracing IT/OT convergence through IoT offers businesses practical opportunities to enhance their operations and stay competitive.
Westcon acts as a pivotal partner, ready to support businesses with strategic IoT solutions that cover crucial areas like cloud and edge computing, data analytics, security, and connectivity. These offerings are designed to help businesses streamline operations, boost productivity, and align with Environmental, Social, and Governance (ESG) goals.
We invite you to reach out and discover how Westcon's expertise can support your business goals and drive innovation. Let's explore the possibilities together.
Westcon IoT: Explore the building blocks to unlock your full potential
