Avnet AVT recently tied up with software company Trusted Objects to provide comprehensive industrial IoT (IIoT) solution for customers with low-power IoT devices.
Per the terms of the partnership, Avnet will embed Trusted Object’s native proprietary implementation that can be embedded into a customer’s microcontroller unit (MCU) or Secure Element for high levels of security. Moreover, Trusted Object’s security stacks will enable easy, secure connectivity between the MCU, the IoT network and the cloud. Lastly, the advanced features of Trusted Objects’ technology will allow Avnet to efficiently personalize IoT devices and scale engineering solutions.
The alliance aims to address the fragmentation challenge faced by developers while securing their IoT deployments in cloud, middleware and on-device, especially in low-power devices, which are commonly used in IIoT applications. The alliance will ensure faster time to market and cost reduction. Higher costs and complexity arise when security at each level is managed by separate vendors.
Trusted Objects’ native security implementation is particularly designed for IIoT applications, providing a comprehensive platform to manage and implement security throughout the deployment.
Avnet will connect the software from Trusted Objects to the cloud as part of a complete IoT solution as soon as it is embedded in a customer’s MCU.
Avnet, Inc. Price and Consensus
Avnet, Inc. price-consensus-chart | Avnet, Inc. Quote
Growing Efforts in IoT Solutions Bode Well
Over the past couple of years, Avnet has been trying to expand its presence in the IoT space. The company’s IoT partnerships with the likes of AT&T T, as well as acquisitions, such as Dragon Innovation, Premier Farnell, Hackster.io and Softweb enhanced its capabilities in this space.
This apart, early in 2018, Avnet launched a cloud-based software platform and a host of connectivity solutions to assist organizations develop IoT-related products and services. Also, it announced a Sound Capture Platform along with Aaware to improve sound capturing performance for AI applications in smart home, robotics and IIoT markets.
Moreover, the company’s investment in Hanhaa, a U.K.-based IoT innovations provider, strengthened its footprint in the domain.
In the last reported quarter, Avnet’s IoT solutions witnessed rapid expansion of revenue pipeline as a result of its initiatives in the space and deal wins in areas such as retail and healthcare. The pipeline reached $630 million, up 5% sequentially. Also, its IoT strategy continued to benefit from its partnership with Microsoft MSFT.
Intensifying Competition a Concern
Per a Fortune Business Insights report, the global IoT market is expected to hit $1.1 trillion by 2026 at a CAGR of 24.7% between 2018 and 2026.
This remarkable growth prediction is driving many companies to up their game in this space. For instance, in terms of IoT, Cisco Systems CSCO allows its customers to extend connectivity in the toughest of environments and conditions, securely from the enterprise to the IoT Edge.
Earlier this year, Microsoft pledged to spend $5 billion over the next four years on IoT, and is already partnering with smaller companies in the space.
Nonetheless, we expect Avnet’s efforts to boost its presence in the IoT space to revive this Zacks Rank #5 (Strong Sell) stock.
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