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Less than a quarter of IT companies prepared for emerging IoT market

Thu 5 Feb 2015

Despite the enthusiasm surrounding the potential of the Internet of Things (IoT) very few companies have actually implemented strategies incorporating smart devices, a Gartner survey has found.

The research body surveyed around 500 IT and business leaders and found that 40 per cent are certain that the IoT will benefit their business in the next three years, while the other 60 per cent believe that it will have an impact in the next five years.

However less than a quarter of the 500 respondents had implemented a clear strategy on how to take advantage of the new market.

“The survey confirmed that the IoT is very immature, and many organisations have only just started experimenting with it,” said Gartner vice president Nick Jones.

“Only a small minority have deployed solutions in a production environment. However, the falling costs of networking and processing mean that there are few economic inhibitors to adding sensing and communications to products costing as little as a few tens of dollars,” he continued.

Jones added that the real challenge around IoT was “less in making products ‘smart’ and more in understanding the business opportunities enabled by smart products and new ecosystems.”

The study underlined that for successful IoT strategy leadership and vision were key, with 35 per cent of respondents expecting IoT to be transformational by having some form of leadership in place.

Senior level understanding of IoT was ranked lowest in government, education, banking and insurance, while the communications and services sectors were rated above-average for c-suite IoT awareness.

“New domains such as the IoT inevitably pose new risks and challenges and survey respondents were acutely aware of the possible factors that could inhibit IoT deployment,” said Jones.

Unsurprisingly security and privacy were listed as top inhibitors, followed by shortage of staff and adequate skills.

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