According to new research from GlobalData, there was just a 2% increase in spend for Internet of Things platforms, while combined big data and AI budgets witnessed an 11% rise.
Big data platforms alone saw a 19% increase in spending over the past year with 69% of IT budget holders setting money aside for data at scale across the enterprise.
GlobalData service director Brad Shimmin said that the findings blow the myth that IoT alone can enable factories and cities to run themselves and that without a view into the business as a whole, IoT is nothing but the instrumentation and reporting of select functions.
He maintains that real digital transformation requires not just IoT but IoT in context, alongside big data and analytics, all fuelled by AI.
Shimmin added: "This idea of the digital twin has not yet found traction beyond smaller, targeted IoT use cases. This is of course in no small part due to a continuing emphasis on the here and now, not the future. Within our recent survey of over 3,200 global IT practitioners, we found that only 45% of annual IT budgets goes toward projects that might actually 'change' the business.
"The lion's share of available funds flows into the maintenance of existing systems, to keeping everything running as is.
"But as companies come up to speed on AI and big data, we expect to see continued efforts by IoT players in driving digital twin-enabling technologies, for example blockchain, that will help companies understand how those foundational investments can be put to work more broadly."