Enterprises are expected to increase their adoption of Internet of Things technology in the year ahead despite widespread cybersecurity concerns, according to a recent survey conducted by research firm 451 Research.
The report, “Voice of the Enterprise: Internet of Things (IoT) Organizational Dynamics,” surveyed nearly 1,000 enterprise IT buyers worldwide and found that 90 percent of organizations will increase IoT spending over the next 12 months. Further, 40 percent of respondents are expected to increase their IoT-related investments by between 25 percent and 50 percent compared with 2016.
Additionally, 71 percent of enterprises are currently gathering data for IoT initiatives, a 3 percentage point increase from 451 Research’s “Voice of the Enterprise: IoT Workloads and Key Projects” survey from May 2016.
This increased investment is expected despite the fact that security remains a concern when it comes to IoT, with 50 percent of respondents citing it as the top impediment to IoT deployments. Another 41 percent cited IoT's lack of perceived return on investment and benefits as a the key hindrance to launching IoT solutions.
Despite those concerns, organizations are moving ahead with IoT initiatives and increasing investment to support IoT deployments. Enterprise IT respondents with IoT initiatives under way expect their average IoT-related spending to grow by 33 percent over the next 12 months.
IoT deployments and usage are expected to be particularly strong around data-intensive activities, such as data analytics and security, according to 451 Research. Some IoT projects being planned include data collection and analysis of financial, healthcare or industrial functions; the uptime/reliability of mission-critical line-of-business servers and applications; and the efficiency and costs related to a specific business operation or department, such as a hospital emergency room.
Organizations are also adding sensors to their IT systems, networks and infrastructure. Further, predictive analytics capabilities are being embedded in IT equipment, including semiconductors, motherboards, cameras, HVAC systems, servers, smartphones, switches and routers.
“When it comes to IoT adoption, pragmatism rules,” said Laura DiDio, research director at 451 Research and lead author of the study, in a statement. “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.”
Currently, 68 percent of enterprises surveyed by 451 Research take advantage of IoT data to optimize operations, such as performing preventive maintenance, reducing downtime in factory equipment, and fleet management. Another 42 percent of enterprises use IoT data to develop new products or enhance existing products and services.
The 451 survey is based on research conducted in August through October 2016 with nearly 1,000 enterprise IT professionals worldwide, and the quarterly study combines 451 Research’s analysis with survey responses and in-depth interviews from a panel of more than 48,000 senior IT buyers and enterprise technology executives.