Everyone seems focused on whether major device makers can ship 5G-ready phones. And indeed they are coming forward with devices (e.g., Samsung, Huawei) based on chip designs from major manufacturers (e.g., Qualcomm, Huawei, Intel).

But while many are focused on the device challenges (such as will Apple’s iPhones use Qualcomm or Intel modems, or design their own?) and the potentially billions of connected “things” expected in the next few years, the devices are just the tip of the iceberg when it comes to 5G. The real “below the water line” challenges, the more than 80% of the challenges in making 5G real, are in updating and creating networks that can truly provide all of the variety of services and capabilities that we expect.

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Over the next two to three years, we will see an explosion of new complex processors that not only do the general-purpose computing we commonly see today (scalar and vector/graphics processing), but also do a significant amount of matrix and spatial data analysis (e.g., augmented reality/virtual reality, visual response systems, artificial intelligence/machine learning, specialized signal processing, communications, autonomous sensors, etc.).

In the past, we expected all newer-generation chips to add features/functions as they were being designed. But that approach is becoming problematic. As we scale Moore’s Law closer to the edge of physical possibility (from 10nm to 7, then 5), it becomes increasingly lengthy and costly to perfect the new processes. What was generally about 12 months between processing improvement steps now is closer to two years, and newer process factories can cost upwards of $10 billion or more.

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The Internet of Things (IoT) has captured much attention recently as more devices like wearables, AR/VR headsets and sensor-based products make their way to market. But off-the-shelf consumer-oriented devices are not always what enterprises need. Rather, most companies need a more specialized approach than just deploying things all over the place.

As a result, the more specialized Enterprise of Things (EoT) is becoming a significant part of nearly all companies' plans for the next three to five years. Indeed, we expect EoT to become a top 3 item on most organizations' strategic initiatives in the coming two to three years. EoT will partner with ongoing enterprise cloud and security initiatives as organizations look to transform how they do business and run more efficient and user-responsive operations. But research shows that for many companies currently deploying or planning deployments of EoT, it’s a waste of money.

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When it comes to security and manageability, Enterprise of Things (EoT) devices must have far more stringent requirements than consumer IoT devices, which often have virtually no built-in security. Indeed, enterprise use of consumer-grade IoT is highly risky.

Making the matter even more urgent is the growing number of deployed EoT devices, which is expected to increase significantly over the next two to three years. (I estimate there will be more “things” in an enterprise than PC and mobile phone clients combined within three to four years.)

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