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IoT weakens security, says Strategy Analytics report

Steve Rogerson
July 27, 2016

The IoT weakens security and provides uncertain cost savings, according to a report from Strategy Analytics.
The report found huge concerns on security and that more than half of businesses were uncertain of cost savings benefits. Big data analytics is the primary driver propelling IoT deployments according to 56 per cent of respondents.
The Strategy Analytics IoT 2016 Deployment Trends & Usage survey polled over 350 global businesses from 23 vertical markets including academic, banking and finance, government, healthcare, industrial IoT, manufacturing, retail and smart buildings.
Seven out of ten of firms are now using the IoT in some capacity. However, organisations acknowledge they are grappling with daunting challenges, according to Laura DiDio, director of IoT systems research and consulting. "Integration with legacy systems (41 per cent) and security are the biggest impediment to IoT deployments,” she said. “Only 13 per cent of respondents said that IoT would strengthen security and 56 per cent said security was their top technical challenge. Another concern is that nearly half of businesses have not completed a detailed cost analysis, which is crucial."
Eight out of ten companies surveyed use or plan to deploy IoT within the next three to twelve months. However, only 25 per cent have a full-scale end-to-end IoT deployment.
"While data analytics emerged as the top reason for an IoT deployment, a significant percentage of companies struggle with how to analyse those data to benefit their business," said Andrew Brown, Strategy Analytics executive director. "The data deluge is problematic; over 50 per cent report that they have too much data to be able to analyse them efficiently. We also found that 44 per cent of respondents currently perform some data analytics but admit they could do a better job and 31 per cent of organisations do not currently store IoT data at all."
The top IoT services deployed by users are office security and video surveillance, smart building controls, financial analytics, and healthcare analytics and diagnostics.
Overall, the report concludes that while IoT adoption will continue to surge, users will need to engage vendors, systems integrators and third party consultants to provide training, deployment and on-going maintenance to realise IoT's full technical potential and cost savings, and drive top line revenue.