Eighty-five per cent of enterprise decision-makers said that they are in the phase of IoT adoption, according to the new IoT Signals research by Microsoft.
The Internet of Things (IoT) is one of the hottest technologies today that is growing rapidly in the commercial arena. Enterprises are adopting IoT into their businesses at a high rate and most of them have positive responses in terms of business outcomes.
As a forefront player in IoT, Microsoft executed the IoT Signals report to give the industry a unified view on the state of IoT adoption and IoT ecosystem around the world. It will help partners, business leaders, and customers to know the benefits and challenges of IoT adoption, and develop their own IoT strategies.
Having said that, the following are the key findings of the Microsoft’s IoT Signals report.
Key findings of Microsoft’s IoT Signals report
1. 94% of enterprises will be using IoT by 2021
Microsoft’s new state of IoT research shows that 85% of enterprises are having at least one IoT project in either the learning, proof of concept, purchase, or use phase. Many enterprises reported that they had more than one projects in the use phase.
The IoT adoption rates are similar across surveyed countries and core industries.
Further, the adoption of IoT will increase rapidly over the next few years. By the end of 2021, around 94% of enterprises will be using the connected technology.
Related reading: IoT devices will generate 80 zettabytes of data in 2025: IDC
2. 88% of enterprises consider IoT critical to overall success
88% of the enterprises who have already adopted IoT said that this technology is critical to their overall success. This shows that almost every decision-maker is satisfied with IoT, because they think that it has a good ROI (return on investment).
The main reasons behind the adoption of IoT are— operations optimization (56%), improvement of employee productivity (47%), safety and security (44%), and quality assurance (40%).
3. 91% of enterprises experienced increased efficiency and yield
The top benefits of IoT in 2019, according to the Microsoft IoT Signals report, include increased efficiency (91%), yield (91%), and quality (85%).
Enterprises said that IoT delivers ROI by boosting productivity and production capacity, decreasing business expenses, and minimizing human error probability.
It also helps in improving customer satisfaction and making more informed decisions.
4. Complexity and technical challenges are main barriers to IoT adoption
It also comes with challenges that are becoming barriers for some enterprises who are looking for IoT adoption and for the ones who want to use it more.
The biggest challenges to IoT adoption are— complexity/technical challenges (38%), lack of budget and staff resources (29%), and lack of knowledge (29%).
Around half of the IoT adopters reported that it is difficult for them to find the workers who possess the right skills and experience.
5. Security is a concern for nearly all enterprises
97% of enterprises looked concerned about IoT security. However, this is not impacting the adoption of IoT.
The main IoT security priorities for enterprises included management of software/firmware (encryption protocols, testing and updating software/hardware), network-level security, and endpoint security.
38% of enterprises looked concerned about the tracking and management of IoT devices.
6. AI, edge computing, and 5G to drive IoT success
In the next two years, the other modern technologies including artificial intelligence (AI), edge computing, and 5G will significantly drive the IoT adoption.
Business leaders also said that for successful implementation of IoT, the companies need a technology leader with end-to-end accountability.
“IoT is transforming businesses in every industry and is powering breakthrough innovations,” said Sam George, head of Azure IoT.
“Our research shows that unlocking IoT’s full potential requires the industry to address key challenges like the skills shortage, security concerns and solution complexity. Microsoft is leading the way on simplifying and securing IoT so that every business on the planet can benefit.”
Download the full Microsoft IoT Signals report here.
Images source: Microsoft