Security concerns are raising costs, with enterprises reporting that security was taking up between 10% and 30% of their IoT budgets.
Of 200 companies polled between January and March of this year, 86% said their IoT projects had hit obstacles caused by security concerns. The Omdia-Syniverse IoT Enterprise Survey was commissioned by IoT networking provider Syniverse.
The companies surveyed represented healthcare, financial services, manufacturing, retail, transportation, and hospitality. It found that the biggest worry for manufacturing companies was the unauthorized usage of their network, while regulatory compliance was the number one concern for the healthcare and finance industries.
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These and other concerns are raising costs, with enterprises reporting that security was taking up between 10% and 30% of their IoT budgets. Healthcare and retail companies reported their budget share to be at least 20% to 30%. Top security concerns were network/device security and data integrity, and companies are responding with network-based security policies, real-time monitoring, dedicated security teams, end-to-end encryption, and regular risk assessment.
“The risks with IoT potentially increase because of the diversity of deployments and technologies in IoT networks – general enterprise security is much more standardized and so easier to deploy and keep updated,” says Alexandra Rehak, chief analyst with the London-based consultancy Omdia and head of its internet of things practice.
Fifty percent of respondents said they are putting their IoT devices on private networks isolated from the public internet. 40% said those networks were LPWANs, with the remainder using LTE, 5G, or other types of connectivity.
“An enterprise can control and manage every device, monitor the activity, apply policies to devices, and control all aspects of the network. When utilizing a public network, the enterprise will only be able to use utilize whatever capabilities (e.g. administration, application of policies, etc. are offered by the public network provider,” said Dan Klaeren, senior director of product management at Syniverse.