FINLEY NEWSLETTERS

THE GRID

COMMUNIQUE

Social Links

Business IoT Adoption Survey Finds 60% Use it Already

June 29, 2016 By Molly White in

It seems that many organizations were making use of Internet of Things (IoT) technology prior to the term’s common use. More than 6 in 10 organizations in a business IoT adoption survey conducted by 451 Research are already using IoT technology to monitor, collect and make use of data from equipment, devices or other connected endpoints.

Data center IT equipment is the most common source of IoT, having been installed by 51 percent of respondents to the business IoT adoption survey. Camera/surveillance equipment follows at 34 percent, with data center facilities ranking third (33 percent) and smartphones/end-user devices fourth at 29 percent.

Manufacturing and healthcare companies play a big part among economic sectors, with half (49 percent) of respondents in both sectors saying they are using IoT technology and data from factory equipment and medical devices, 451 highlights in an excerpt from its inaugural quarterly edition of its ¨Voice of the Enterprise: Internet of Things¨ report.

Business IoT Adoption Survey

Reducing risk (66 percent), optimizing operations (63 percent), developing new or enhancing existing products (33 percent) and enhancing customer targeting (21 percent) were the leading applications from which businesses are deriving value from applications of IoT technology, 451 found.

“The term, ’Internet of Things‘, has proliferated rapidly and taken on different meanings depending on the audience. As is reflected in our survey data, these connected endpoint scenarios are both old and new,¨ Research Director Dan Harrington was quoted. ¨They vary immensely from traditional use cases such as IP connected cameras, building automation, warehouse automation and telematics to emerging industrial use cases such as crop monitoring and remote patient monitoring.

¨Organizations are both enhancing their already connected endpoints with greater capabilities as well as connecting new objects with sensors and circuitry to derive net new value for the business.”

IoT Data Sources

451 Research categorizes the IoT data being collected into three major categories: that gathered from machines, that gathered from humans and animals and that gathered from the environment.

The majority of IoT data being gathered today (71.5 percent) arises from machine-to-machine (M2M) connections for business use. Biological IoT data was being gathered by 8.5 percent of respondents, while 20 percent were gathering environmental data using IoT technology.

In terms of limiting factors, 46 percent cited security concerns as the primary impediment to IoT deployments. One-third (32 percent) cited lack of internal skill and 29 percent said lack of IT capacity. The same percentage cited a perceived lack of ROI/benefits.

When it comes to managing IoT initiatives, most respondents (61 percent) said their organizations manage their own without the help of external consulting or professional services providers. But that could change, according to Harrington.

”There is a clear need for external expertise to help convince organizations of the business value of IoT as well as to fill internal skillset gaps in areas like security, big data and network infrastructure,¨ he said. ¨As these projects mature, many organizations will find themselves looking to outside consulting and professional services firms for these capabilities.”

It’s still early days in the evolution of the IoT and organizations will find new use-cases and applications, as well as refine and improve on early deployments, 451 notes. Security concerns need to be addressed as does the need for standards that encompass the full range of stakeholders. Enterprise-scale businesses and vendors also need to reduce the cost and complexity of IoT networks and platforms, Harrington added.