IoT Investments Rise, But IT Pros Harbor Security Concerns

...

Millennials know exactly what they want and expectations are high - very high. They are empowered

As IoT investment grows, with billions of dollars flowing into new enterprises, IT departments, as well as other parts of the business, are expressing concerns over the security risks the technology poses.

As IT departments begin to adopt internet of things (IoT) technologies to modernize businesses, investment is picking up, specifically benefitting the developers of innovative sensors, according to a report from Lux Research.

That segment cornered nearly 80% of the investment due to demand from IoT technologies, with North America dominating. Specifically, more than 340 companies in the Americas attracted nearly 80%, or $3.4 billion, of the total investment in sensor technologies since 2006, according to the report.

Samsung is investing $13 billion, while Sony is raising $4 billion to ramp up sensor production. In addition, Panasonic has invested $780 million for image sensors, while IBM is investing $3 billion in sensor data, and Ford has opened a research and development center on sensors for transportation --- a further indication that IoT adoption is spreading across multiple verticals, and to companies outside of traditional technology firms.

The Lux research report also found overall investment in innovative sensors tripled between 2006 and 2015, reaching $486 million in 2015, with an investor pool running the gamut from venture capitalists to private equity, investment banks, government entities, and large corporations.

"Innovative sensor startups will continue to attract large amounts of venture investment as the Internet of Things emerges as the next major phase in computing, following on the heels of the PC and mobile eras," Pallavi Madakasira, a Lux research analyst and lead author of the report, wrote in a July 21 statement.

Regarded as the next major phase in computing following on the heels of the PC and mobile eras, IoT sensors constitute the "things," serving as end-points of the network system.

The IoT has applications ranging from heavy industries such as utilities, oil and gas, and manufacturing, to more consumer-based applications such as connected appliances and business appliances like printers.

However, IT departments can expect some pushback from business leaders who are wary about how to implement IoT technologies for the good of the business.

A January report from TEKsystems indicated companies are still laying the groundwork for IoT initiatives, with a majority of organizations (53%) recognizing that forging a partnership between IT and business execs is critical for the success of IoT projects.

[Read more about the hot security technologies IT needs to know about.]

Less than one-quarter of organizations have reached the stage where IoT initiatives are transforming business processes, services, and products, while the vast majority of businesses surveyed reported that they were in either the consideration, planning, or pilot stages of IoT deployment.

There are also issues regarding IT security that appear to be affecting IoT adoption. In its 2016 survey of 440 IT pros in North America and Europe, the Middle East, and Africa (EMEA), security specialist Spiceworks found that security has taken the lead over insufficient bandwidth as the top concern when it comes to keeping users connected.

Topping that list of security concerns is the fact that IoT devices create more entry points into the network, with about three-quarters of IT pros worried that IoT manufacturers aren't implementing sufficient security measures.

Overall, nearly 90% of IT pros report that IoT poses security and privacy issues that need to be addressed.

According to IT research firm Gartner, the primary business case for IoT is internally focused, namely improved efficiencies, cost savings and enhanced asset utilization, as opposed to the externally facing IoT benefits of enhancing customer experience or increasing revenue.

Categories
APPLICATIONS
0 Comment

Leave a Reply

Captcha image


RELATED BY

  • 5300c769af79e

    LinkedIn Begins New Chapter Under Microsoft's Wing

    Integration of the companies' products is under way: "Working across private and public sectors, we can create more opportunity for everyone to participate and share in economic growth," Nadella said.For example, bringing LinkedIn profiles into the overall intelligence of account management could drive "much more intelligent selling," she told the E-Commerce Times.
  • 5300c769af79e

    DEAL: Brand New Nexus 5 at Woot Today for $149.99

    com for a ridiculously low price of $149.These are brand new Nexus 5s.
  • 5300c769af79e

    How to Start Purging Your Digital Life

    If you enjoy a good purge and have a messy digital life, here are some suggestions and tips for getting rid of some old data.I like to create folders for every year and stick old files I might need one day in there.
  • 5300c769af79e

    Oracle's Earnings Call

    Co-CEO Safra Catz said during the earnings call that the quarter's US$816 million in combined revenue from cloud, SaaS and PaaS was up 82 percent from the prior year and up 80 percent from her guidance to analysts.CTO Larry Ellison said that the growth was primarily from new business and not from converting a large portion of Oracle's customer base to cloud solutions.