Internet of Things ‘bubble’ to burst 14 years after Dotcom bubble

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DotComBubbleThe year 1997 was a remarkable year in the IT world. From this period until the year 2000 there happened something called “the dot-com bubble,” a phenomenon realized through fast-growing Internet companies which resulted in high stock prices. The high stock prices resulted in speculations which led to the bubble burst in March of 2000. The bubble burst was followed by a worldwide recession. That was back in 2000; what have we learned from that period? 

Today I read an article from Fernando Labastida called: “Why this year the “Internet of Things” will explode”. Where in today’s world the big Industrials are claiming their own Internet of Things related marketing buzzword, Labastida is talking about the IoT bubble which will burst in 2014.

In his article Labastida gives us 4 reasons to explain his vision:

  1. Energy consumption for internet connectivity for devices has gone way down
  2. The price of technology has gone way down, just like modems in the 90s
  3. The Maker Movement has exploded
  4. Crowdfunding has become mainstream

When we look at the 4 reasons why Labastida thinks the IoT will burst we cannot say he is not right on his reasons. Yes, energy consumption has gone way down. Yes, the price of technology has gone way down. Websites like Kickstarter and Indiegogo are proving he is also right on his third and forth point. The only question is, will those reasons be enough to let the IoT market burst?

The collective noun of the Internet of Things is not new. For years, similar ideas have been done around globe. The key message? Connect the unconnected to create insights where companies can steer on. But, not only the collective noun is not new. Also its harbingers are not, fast growing IT companies, start-ups, youngsters at the head of a global company and so on.

What is your opinion on the Internet of Things? Internet of Things here to stay, or here to burst?

Image credits: CNET, NationalPayDay.com, Marketing Minefiel, Wikipedia

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  1. Dr. Raju M. Mathew March 23, 2014 Reply

    In August 2000 I wrote in my the then personal website (www.r.m.mathew.com) that “…within five months, a major crisis will hit the entire IT sector and thousands of IT professionals will lose their jobs..” and after the crisis,so many newspapers wrote about it. In April 2005, when I was introducing ‘Knowmatics’, I talked about the death of IT and Internet.

    The recent development in ‘Internet of Things’ or ‘Internet of Every Thing’ is a welcome development in saving Internet and a major step towards the Intelligent Internet. Internet must be redesigned to process and handle not only Information but also ‘KNOWLEDGE’. KNOWMATICS has been formulated to process and handle KNOWLEDGE and to make Internet Intelligent. It is based on Mathew’s Theories of Knowledge Consumption and Production. My works on Knowmatics can be found in the net, including http://www.sldieshare.net/drrajumathew

  2. Lance Harvie March 23, 2014 Reply

    IOT’s has just started – connected objects is a relatively new concept, energy harvesting combined with advances in battery technology and the ever shrinking powerful microcontrollers will bring forth business opportunities which may outstrip the internet opportunities of the 90’s and noughties. The internet is reaching out of the digital domain and into the analog world of everyday life.

  3. Dave Rensberger March 24, 2014 Reply

    “Internet of Things here to stay, or here to burst ?”

    How about both. The original internet “bubble and burst” was a market phenomenon. Only the market “burst”. The technology and infrastructure that were created during that time was real and really did change everything. I see I reason to expect that our new “bubble” will be any different.

  4. jean March 26, 2014 Reply

    Each year since 2010 has been touted as the year of IoT. So 2015 and 2016 will be as well. The reality is that periods of over optimism and disappointment always alternate. And 20 years from now, we’ll wonder how cars or bags could’ve been used without connectivity.