…but admit need to step up security first

We all suspected it and now we know it to be true.  Most small businesses (57 percent) are expecting the Internet of Things (IoT) – IP-connected devices, machines with sensors and cloud-based services – to make a significant impact on their bottom line.  Yet almost three quarters (71 percent) admit they are not ready from an IT security and data protection point of view.

These are just two of the key findings in AVG’s latest independent research which polled 1,770 small businesses and MSPs in the United States, Canada, the United Kingdom, Germany and Australia on a number of issues related to monetizing IoT. Over half (55 percent) of MSPs taking part in the study confirmed that customers are demanding IoT-related services and 77 percent are planning to expand their service or product portfolio to meet it. Little surprise then that only 18 percent of the small businesses we spoke to thought their IT provider was ahead of the curve when it came to their capacity to manage IoT.

So just what is IoT’s potential as a money spinner?  Well, more and more devices with built-in sensors are being connected to the Internet.  By remotely monitoring the data on these devices a business can achieve much greater all-round efficiency through raised productivity, lower costs and reduced wastage.  And as cloud services become the default way to make sense of this data you no longer need heavy up-front investment so IoT starts to become affordable for small businesses.

Our research highlighted four industries in particular - IT/telecoms, pharmaceuticals, utilities and manufacturing – that are set to make money from IoT. The IT/telecoms industry, as might be expected, is especially upbeat on IoT. Among the IT decision makers surveyed 84 percent indicate that their organization would shift its product/service offering to make the most out of the rise of IoT.  The proportion of pharmaceuticals companies looking to expand product offerings using IoT was even greater (91 percent).   Three quarters (75 percent) of utilities companies and 73 percent of manufacturers are also expecting to benefit.

Overall our study found the vibe from small businesses around IoT to be extremely positive.  If there was one note of caution it was the recognition that they need to do more about the security side of things.  They are right to be cautious. Many connected devices use the Linux operating system which has its own set of vulnerabilities as highlighted by the recent Shellshock event.  The lesson for companies is that they need to approach IoT just like the rest of their IT – by keeping them regularly updated and using identity management and user authentication.

A summary of the other key findings in the study were:

• Almost half (46 percent) of SMBs think that the Internet of Things will be the IT trend that has the greatest impact on their organization over the next five years.
• Around three fifths (62 percent) of SMB respondents report that their organization has budget specifically assigned over the next 12 months for the development of Internet of Things solutions. 49 percent have a moderate or substantial budget assigned for these solutions.
• Only 18 percent of SMB respondents say that their IT provider is completely ahead of the curve with regard to the Internet of Things and the potential for their business. Of those with an IT provider, 68 percent feel that their provider could improve their service with regard to Internet of Things offerings and understanding.
• The majority (84 percent) of SMB respondents say that their organization has purchased mobile devices within the last year, spending an average of over $6,500 on these devices. Of those who have purchased mobile devices within the last 12 months, SMB respondents estimate that their organization spends an average of around $4,500 in hidden costs annually.

In conclusion, the days when work was confined to an office with four walls and a locked door are gone for good.  Thanks to mobile technology and popular cloud-based applications today’s start-ups are already living in a world where doing business without walls is perfectly normal.  IoT is a further example of how small businesses are becoming more and more connected.  The flexibility and simplicity is great. But is it secure? AVG is ready to help businesses embrace IoT safely. A couple of weeks ago we announced that we will shortly expand AVG CloudCare’s capabilities to include breakthrough integration of Multi Factor Authentication, Secure Sign-On (SSO), Mobile Device Management and Mobile Application Management all managed through Active Directory to ease complexity and simplify management.