A new study of 3,100 information technology and business decision makers across 20 countries finds strong adoption plans for smart devices – or the so-called Internet of Things — but also serious concerns about security and confusion about how to use the data those devices create.

The survey, which was conducted by Hewlett Packard Enterprise Co.’s Aruba Networks subsidiary, found that 85 percent of businesses plan to implement IoT by 2019, up from about 72 percent today. Lessons from early adopters indicate that results often exceed expectations.

For example, only 16 percent of respondents expect a significant profit gain from IoT investments, but 32 percent of companies that have already adopted IoT says profits grew as a result. Similarly, less than 30 percent of executives expect to achieve business efficiency improvements, but nearly half of early adopters have seen that payoff. 

The two most popular applications of IoT are remote monitoring and location-based services, such as those that track and get messages to people or devices when needed. Only one in five respondents is using smart devices to moderate building lighting and temperature, but 53 percent expect to do so in the future.

Information technology organizations appear to be big beneficiaries, which 78 percent of respondents reporting that IoT in the workplace has improved IT efficiency. Three-quarters say it has improved profitability. One reason may be that IoT moves intelligence closer to the edge of the network, which reduces capacity demands and speeds decision-making. Two-thirds of the organizations that report 60 percent or better ROI have moved server compute to the edge, compared to 40 percent overall.

However, some important impediments to IoT adoption still exist. More than nine in 10 of the IT decision-makers surveyed said they are having trouble creating new business value through the IoT, citing implementation cost, maintenance and legacy integration as major issues. The survey indicates a general confusion about how IoT data can be leveraged for strategic value. Also, 52 percent of all respondents believe external attack is a threat and a surprising 84 percent said they have already experienced at least one IoT-related breach.

“Looking beyond 2019, 97 percent or organizations expect IoT to deliver returns over next five years,” the report says. “Failure to prevent security breaches could significantly damage this roadmap.”

The industrial sector leads in adoption, with 62 percent of respondents saying they’ve already connected devices. Equipment monitoring is the top current usage scenario, but IP-based surveillance cameras are expected to quickly gain traction. Across the industrial sector, 83 percent of respondents report increased business efficiency and another 80 percent say IoT has improved visibility across the organization. 

Image: Aruba Networks