50 Billion Connected Devices by 2020 is not something that we should ignore. The potential of the number of its investment makes various innovations from startups. These innovation are competing in growing their product so once the product is ready, people can easily use them right away.
With big numbers come big players. Amazon, Apple, Samsung and many tech giants don’t want to lose any step taking a chance in this Internet of Things potential. As the world becomes increasingly connected, investing in the Internet of Things, or IoT, appears to be an attractive prospect.
If you ever thinking of investing in Internet of Things, you can take a look at these important points before jumping in:
1. Is Investing in IoT Something You Really Want?
As you might already know, investing on something big needs an effort. An IoT investor should understand the risks associated with investing in individual stocks, have a strong stomach for high volatility typically associated with investing in an emerging field, and not have an immediate need for the invested funds. Highly recommend that you have to check the time horizon at least 3 years back to see whether you’re investing right or not.
2. Know Where to Invest
Know your technological interest and field. IoT is a wide industry. You can find it implemented on farmer until office. It can be implemented in logistic, smart office, medical, or cloud computing services. By understanding your field, at least you can predict and analyze the next step.
3. Understand the Risk
Every sector of IoT brings different risk. Understanding major risks that can derail the investment thesis prior to investing can save investors from making regretful decisions such as high valuation that leaves little or no margin of safety, weak financials, poor earnings, and bad management decisions.
Those are small notes of Important Points before you are investing on Internet of Things. There are also another points such as market potential and not forgetting about the technical system.
Whether you want to invest or not, you have to understand that by 2020 Internet of Things will be the most profitable Industry and every companies are making their way to it. So, be ready!