Internet7.09.2016

The problem with connecting everything to the Internet

By Jan Vermeulen

South Africa Broadband connected internet

As more devices are connected to the Internet, we are on the threshold of a wave of progress that will be likened to the industrial and information revolutions.

This is according to Telkom’s group chief operations officer Brian Armstrong, who was speaking at SATNAC 2016.

Armstrong warned that the benefits of this may carry a cost if appropriate steps aren’t taken, though.

This includes unsustainable growth models, skills disruption, and a potential impact on social cohesion.

Growth at all costs and imperfect competition

Although growth is good, Armstrong said the current approach of “growth at all costs” must be assessed.

Not all companies can achieve billion-dollar valuations in a year, and inflated investor expectations may not lead to sustainable future growth models, he said.

He also said the current model for Internet companies has lead to imperfect competition.

If you are Google, Facebook, or Amazon that wins the race to scale in a particular sector, you become globally dominant.

This could lead to wealth becoming concentrated in a few places.

Skills disruption

Another concern is the risk that the Internet of Things is cutting out people.

As more tasks are computerised, automated, and geographically-decoupled, the need for humans in the chain shrinks.

In the near future, a machine in Nigeria may detect that it needs maintenance and automatically order a part from the supplier in China, for example.

This will cause the need for skilled employees in many IT companies to shrink or stagnate, said Armstrong.

Social fracture

With the risk of wealth and IT skills becoming centralised in a handful of companies, Armstrong said the potential for social disruption was enormous.

“Something we should be wary of is social fracture,” he said.

“What is important for us as industry, regulators, and government is that everyone shares in the prosperity that the Internet of Things promises.”

He said we must ensure that as we connect everything to the Internet, the term “everyone” doesn’t become meaningless.

“We must create a South Africa with the Internet of Things that works for us, rather than despite us.”

Jan Vermeulen was a guest of Telkom at SATNAC 2016.