Internet of Things (IoT): The Complete Guide To Benefits & Challenges of IOT In Business

Updated on 5 December 2023 6 min Read
Internet of Things

The Internet of Things (IoT) is the network of physical devices, vehicles, home appliances, and other items embedded with electronics, software, sensors, and connectivity that enables these objects to collect and exchange data.

The IoT has a significant impact on how we live and work. It changes the way we manage our cities and our environment and it also changes the way we do business.

How Is IoT Used?

Most consumers in developed countries might have come into contact with IoT devices by now. Most people have likely installed a utility meter, access to voice-activated speakers (Google Home, Amazon Echo), and wearables like fitness trackers which are becoming more popular as time goes on. 

Connectivity is increasingly valuable in today’s world and can provide real benefits, like better quality and more engaging experiences. To fulfil our increasing demand for smart devices, companies are investing heavily in developing their own AI technology.

Businesses use IoT devices not just to make money by selling them, but also to improve the features and quality of their products & services.

Some examples of the use of IoT technology: IoT technology helps Daimler’s vehicles maintain safe distances, on land and at sea. Ericsson monitors ship locations and cargo temperatures and it’s what Virgin Atlantic collects in-flight component data. Disney is using AI for attraction popularity and Johnny Walker for notifications about products.

Related: What Is The Connection Between IoT And DevOps?

Benefits Of IoT For Businesses

IoT can help businesses in many ways. It helps in the manufacturing process by reducing waste and increasing efficiency. It has contributed to the healthcare industry by providing more accurate diagnoses for patients.

The use of IoT technology also helps in improving smart cities where it can be used for traffic control, energy management, and public safety.

Here are some important benefits of IoT:

Use Of Rich Data

With the Internet of Things, companies have a way of gathering data about their products and customers to determine how their products are being used and what can be done to make improvements.

For instance, implementing IoT in vehicle tyres could be a first step to improving the overall quality of tyres and making cars safer, more durable, and less wasteful in terms of emissions.

IoT data can be used to gauge customer preferences for particular types of tyres and also if there are any faulty products. These don’t all have to be general, one could target a specific type of car and cater to drivers in those cars.

Improved Customer Communications

Data collected by IoT devices can be used to send automated communications or even trigger notifications on the customer’s device to improve their experience. For example, home automation equipment like intelligent lights could send notifications to their smartphones about when to turn off the lights in an empty room. 

And food items delivered from the store could send notifications about when they are going to expire. As an example; manufacturers of consumables, such as printer ink, can detect when their customers need replacements and dispatch them automatically before they run out.

If you are planning to make use of IoT technology or big data analytics, then you must consider cloud hosting or dedicated hosting Plans for High-Performance!

Stock & Resource Management

IoT device data provides a real-time overview of inventory and their use of resources. This helps them know where items are and what’s been shipped, damaged, or used. The analytics provided also lead to a more efficient business process enabling you to reduce the cost of ordering too much.

Increased Security

There are a ton of new gadgets that make it easier to monitor security at your business. One example is IoT-enabled access control and CCTV technology. It provides you with the peace of mind that you need for your business by making things smart. 

Today, it can track unusual behavior and notify your security company or the police automatically. At the same time, those responsible for security can watch CCTV footage remotely, in real time, over the internet.

IoT has a variety of different uses outside of just restricting entry to your building. Some companies like to use it for keeping track of attendance and punctuality, booking rooms/resources and even monitoring car parking. Being internet-based, AI RoboForm can also manage access control remotely across different websites.

Challenges Of IoT In Businesses

The Internet of Things is a concept that has been around for nearly two decades. The idea is to connect physical objects and the data they generate on the internet. IoT enables us to monitor our homes, our cars, and even our health.

The problem is that not everything connected to the internet can be secured with just a password. Once a device is compromised it can lead to a domino effect where all of your devices are at risk.

Many companies are purchasing IoT equipment and it’s important to find out how secure the device is. It has been reported that many manufacturers don’t allow for a password to be changed, which leaves them open to hacking. 

Security and IoT are two major concerns in the modern workplace. And, understandably, many people might not know how to handle this sensitive data. 

Upgrading Your Hosting Needs For IoT

IoT drives a lot of insights but to store and process IoT data, you’ll need significant hosting capacity.

A key step in big data analytics is figuring out what you need. Preferably, you’ll need the following:

  1. Increased data capacity to enable you to hold your growing data.
  2. Ensuring affordability along with scalability to handle the high demands.
  3. Improved processing capability and performance to analyze large quantities of data.
  4. Unlimited bandwidth for the consistent sending and receiving of data from devices.

Your IoT devices and other digital services must be on the cloud since it offers high availability. That way, if your servers crash, you won’t have to worry about downtime.

This can be done with the help of cloud hosting. One of its biggest advantages is that it is inexpensive and reliable for businesses using IoT. Technology is continuously creating new opportunities for small and medium businesses. Up to now, the investment has been a challenge but with cloud services, companies can rent the hardware, storage, and computing power they need without requiring large investments. 

Conclusion: Pros & Cons Of IoT For Your Business

IoT has developed quickly in recent years. This is because the cost of sensors has decreased while the number of applications has increased. IoT can be used in many industries like healthcare, manufacturing, energy, and transportation.

Have a look at the pros and cons of IoT for your business.


  • Enhanced customer experience
  • Improved efficiency
  • Increased productivity
  • Reduced costs


  • Security risks

Upgraded hosting platforms will ensure comprehensive security and help you in streamlining the IoT technology along with your business goals.

The Author

I am an experienced content writer with a passion for crafting engaging and informative pieces across various industries. With a keen eye for detail and a knack for storytelling, I honed my skills over the years to deliver high-quality content that resonates with audiences. My dedication to excellence and commitment to meeting deadlines make her a valuable asset to any project.