Derek Proudian, the new CEO of Internet of Things specialist Daintree Networks, says opportunities for solution providers in the enterprise are growing, and he predicts broader IoT adoption over the next two to three years.

The privately held Los Altos, Calif.-based company focuses on the building automation sector of IoT, with 75 percent of its revenue coming through the channel. Daintree provides wireless network control solutions for lighting, thermostats, CO2 sensors and electoral plugs – to name a few – while also controlling, monitoring and analyzing data for its customers based on open standards. Gartner says IoT will produce nearly $2 trillion in economic benefit globally by 2020 through sales and use of the technology.

Proudian, who has worked in various IT roles over three decades, talked to CRN about how solution providers can capitalize on IoT in 2015, along with some IoT oportunities you might not have heard of.

How is IoT paving the way for the future in buildings and how does the channel play a role in it?

Within the enterprise IoT (EIoT), some of the sectors that are gaining tremendous momentum include retail, bank branches, industrial/warehouse, commercial offices, parking garages and education. In these markets, benefits of EIoT/”smart building” solutions can be felt right away in gaining operational efficiencies, up to 70 percent energy savings, enhanced occupant comfort and safety. In some of the sectors like retail, building control solutions are being integrated with indoor positioning solutions to help enhance revenue as well.

Channel partners can play a big role not only in reselling these solutions but also providing end-to-end services to provide customers with a turn-key solution.

Can solution providers become profitable in IoT?

As the EIoT market experiences a record-breaking growth, there will be tremendous opportunities for MSPs, VARs, and other solution providers. EIoT is not just a technology that enterprises buy over the counter and start using it. It requires processes and implementation expertise. Channel partners can play a significant role in implementing these solutions both at the strategic and the tactical level.

Daintree's VARs and other service providers have been playing a critical role in the implementation of the solution at the customer sites. Our partners can add further value by augmenting the solution with their own custom services, which the customers need urgently.

What are you hearing from customers around IoT? Are they scared or excited to jump into IoT and has their viewpoint changed over the past six to 12 months?

Customers are excited about IoT in general as they see the potential. There is still a learning curve they have to go through to really understand the full impact of IoT. Most of them are trying to figure out how to think of IoT in terms of a generic platform or more practical solutions like building automation and how those things come together.

The comfort level has dramatically improved in the last six to 12 months, and we’ll continue to see this trend. Just like when cloud was a new concept, enterprises were not sure what that meant, and now over 80 percent of companies have some type of cloud deployment. IoT will go through the same transformation over the next two to three years.