The Internet of Things (IoT) is observed as beneficial and vital to success of business projects and is generating opportunities to influence more advanced cloud and networking technologies, according to Microsoft's latest report IoT Signals.

The report gives an insight into the state of IoT implementation, and how a company can better supply its partners and customers, and assist business leaders in the development of their own IoT strategies. Microsoft studied more than 3,000 IoT decision-makers in enterprise organizations to give the business a holistic, market-level view of the IoT environment, including adoption rates, related technology trends, challenges and advantages of IoT.

The report shows, almost nine in 10 (85 percent) surveyed say they have at least one IoT project in either the learning, proof of concept, buy, or use phase, with many reporting they have one or more projects now in ‘use’.

Adoption is likely to increase with 94 percent of businesses saying they will be using IoT by the last part of 2021, while 88 percent of adopters state IoT is vital to the success of their particular companies.

By adopting IoT, businesses think they will see a 30 percent return on investment on their IoT projects going ahead. As they look forward, respondents think critical technology drivers for IoT accomplishment in the subsequent two years include artificial intelligence, edge computing and 5G, followed by digital twins and blockchain.

Almost all respondents (97 percent) have security concerns while executing IoT, however this is not delaying adoption. Internet connectivity is a two-way avenue. With these devices fetching a gateway to our homes, workplaces, and industries, they also develop into targets for attacks. The cost of a data breach averages between $4 million and $8 million, and the costs only amalgam as one thinks about extra damage to one's brand and to the operational technology driving one's business’s returns.

The top three security concerns found in IoT adopters comprise creating strong user authentications (43 percent), tracking and managing each IoT device (38 percent) and securing endpoints for every IoT device (38 percent).

The skills gap for IoT solutions is compounded by convolution of solutions. Approximately half (47 percent) states there are not adequate accessible skilled workers and one in four (38 percent) IoT adopters quote complexity/technical challenges to using IoT as an obstacle to promote their IoT adoption. Existing IoT complexities and absence of resources stop IoT decision-makers from more IoT adoption, and 20 percent quote complexity/technical challenges as a major challenge.

Microsoft surveyed above 3,000 IoT decision makers in enterprise organizations to provide the business with a holistic, market-level view of the IoT ecosystem, including adoption rates, connected technology trends, challenges and benefits of IoT.