IOTDC, now entering its sixth year in business, has grown from a generalised internet of things (IOT) hardware distributor, to a focused industrial IOT solutions provider helping African organisations move into the next generation of data-driven operations.
The journey from start-up to trusted solutions provider for major enterprises has included highs, lows and steep learning curves, says CEO and co-founder Ewald Fourie. However, the team has now built up a unique blend of expertise, and the product and service portfolio necessary to help customers in specific sectors ride the next wave of IT development.
Fourie says: “AI is set to fundamentally transform the IOT landscape, creating a perfect synergy between the two technologies. While AI's potential is exciting, its effectiveness relies on the credibility of the data it processes. With Long Range Low Power technology, IOT can gather data from virtually anywhere – from remote wildlife conservation areas to the busiest intersections in a city – using sensors that can last over a decade. This technology allows data to travel vast distances, while consuming less power than a simple LED. The trustworthiness of this technology, coupled with AI's access to extensive industry and process knowledge, and its ability to propose operational enhancements, is truly game-changing.”
Fine-tuning the IOT business focus
Fourie explains that he and co-founder Tiaan Coetsee started the business with a view to building on their expertise in IT hardware distribution.
“We launched in March 2019, with the idea of formalising the IOT hardware market for the region. At that time, interest in IOT was reaching fever pitch, so we wanted to fill that gap in South Africa. We became local pioneers in finding and testing best of breed IOT brands, putting them into one catalogue and acting as custodians of those brands,” he says.
After five challenging months with no sales, the company secured an initial order for four Raspberry Pi’s and closed out their first year with hardware sales reaching the multimillion-rand mark. It was a strong start, but the path forward proved to be anything but straightforward.
“We then started developing our own products, but we soon realised it wasn't a good idea. You could spend months developing something new only to have someone come to market with something better or cheaper. We also realised that trying to be a general IOT hardware distributor is too broad – we started to focus on areas where there was a use case that was easy to justify and delivered measurable value,” Fourie says.
For IOTDC, this focus turned to industrial IOT for mining and telcos, and IOT for cold chain monitoring and predictive maintenance.
As IOTDC became the preferred supplier of hardware for these use cases, customers increasingly requested solutions and services associated with the hardware.
Fourie says: “Customers kept coming to us saying their installer or IT department needed help setting up the system, or they wanted to integrate their IOT into other systems. They wanted dashboards, reports and alerts. We realised that - because of the unique nature of selling in this space - we could help customers with services to collect the IOT data, make sure it's accurate, and enable it to communicate and integrate in the cloud.”
Growing into the AI era
With a team of 10, IOTDC now deals with customers of all sizes – from SMEs to blue chip companies. “IOTDC is very much a people-driven business, and this is largely why we have been successful."
He believes the company’s focus on delivering predictable outcomes is also part of its recipe for success. “Before an implementation, we sit with the customer to understand what success looks like for them,” he says. People have abused the term IOT by overpromising and underestimating what it can do. It’s not a silver bullet.”
“We have experienced phenomenal growth and some steep declines - notably during Covid, followed by a global component shortage. It hasn't been a straight line for us to find our footing. However, we now have a defined product suite, we know what we are good at, and we have big plans for growth,” Fourie says.
Performance and equipment monitoring remains a growth area, he says: “Over the past two years, we’ve seen IOT becoming critical for real-time visibility of operations. Organisations need this data, supplemented by existing business data. For example, they can layer what’s planned over the actual status of their equipment.”
Fourie says: “A key plan in future is to move into utilities - specifically water metering intelligence. We are also looking at macro factors that might be a tailwind for us - we believe positive sentiment is emerging which will bring with it demand for IOT to deliver outcomes like cost savings through more efficient production, improved safety, employee tracking and alerts, and automated compliance.
"As AI transforms this industry, we see growing demand from organisations across Africa, where we think there are enormous opportunities in the market.”
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