7 in 10 enterprises worldwide now collecting IoT data

7 in 10 enterprises worldwide now collecting IoT data

7 in 10 enterprises worldwide now collecting IoT data
7 in 10 enterprises worldwide now collecting IoT data

Research finds that Internet of Things (IoT) deployments and usage focus on data analytics with over seven in 10 (71 percent) enterprises worldwide collecting IoT data.

The study of nearly 1,000 enterprise IT buyers globally by 451 Research found this figure has increased by three percentage points from the previous quarter.

The latest Voice of the Enterprise: Internet of Things (IoT) Organizational Dynamics survey found that security remains a concern, with 50 percent of respondents citing it as the top impediment to IoT deployments. This was followed closely by 41 percent who cited IoT’s lack of perceived return on investment (ROI) and benefits. Around 42 percent of enterprises use IoT data to develop new products or enhance existing products and services.

Despite these concerns, organizations are going ahead with IoT initiatives and spending money on supporting IoT deployments. Enterprise IT respondents with IoT initiatives underway expect their mean IoT-related spending to grow by 33 percent over the next 12 months. It also said that 90 percent of enterprises will increase IoT spending over the next 12 months and 40 percent of respondents will raise IoT-related investment by 25 percent to 50 percent compared to 2016.

The analyst firm said that IoT deployments and usage will be particularly strong in enterprise initiatives around data and transactional-intensive workload categories, such as data analytics and security. IoT-specific projects include things like data collection and analysis of financial, healthcare or industrial functions; the up-time/reliability of mission-critical line of business servers and applications; as well as monitoring the efficiency and costs related to a specific business operation or departments such as a hospital’s accident and emergency.

The analysts said that there is a distinct and significant portion of IoT transitions occurring organically as enterprises’ IT systems, networks and infrastructures are naturally becoming IoT-enabled by intelligent sensors and predictive analytics capabilities embedded in IT equipment, such as semiconductors, motherboards, devices (e.g., cameras and HVAC systems), servers, applications, smartphones, switches and routers.

Related: The IoT needs a new kind of database

Optimizing operations with IoT data

The survey found that 68 percent of corporations currently take advantage of IoT data to optimize operations, such as performing preventative maintenance, reducing downtime in factory equipment and fleet management.

The study also found that firms are split regarding a present IoT skills shortage: 54 percent of respondents to this question said lack of trained IoT staff is not an issue for their organisation, versus 46 percent who said they are having difficulty filling IoT-related positions. The latter group identified IoT security and data analytics as the areas with the greatest dearth of expertise.

“When it comes to IoT adoption, pragmatism rules,” said Laura DiDio, research director at 451 Research and lead author of the study. “The survey data indicates enterprises currently use IoT for practical technology purposes that have an immediate and tangible impact on daily operational business efficiencies, economies of scale and increasing the revenue stream.”

Simon Wood, head of design at Capita Technology Solutions, told Internet of Business that more data is being collected because more people are connected to more things on the IoT.

“We will see ever more and deeper insights into that data, whether it’s in the public or organizational domain. Embedding security into digital transformation will be crucial given the increasing sensitivity of data we are sharing,” he said.

Related: IoT streams fill up the data lake