Enterprise IoT Spending Climbs Despite Security and Onboarding Challenges

The Internet of Things (IoT) has long promised to transform business operations, yet many organisations report mixed results in real‑world deployments. Business technology journalist Antony Savvas reviews the latest evidence on why enterprises are still investing heavily in IoT despite ongoing hurdles.

Disappointed

A 2023 Eseye survey of 500 senior decision‑makers in the UK and US found that 77% of companies that launched an IoT initiative in the past year achieved only moderate success in meeting expectations and delivering tangible benefits. The findings suggest that while the potential remains, practical outcomes have been uneven.

Security

Security is the most frequently cited obstacle, with 39% of respondents naming it as their primary hurdle. Device onboarding and certification problems were identified by 35%, while multi‑country cellular connectivity challenges also surfaced.

The study further highlighted that cellular IoT deployments have yet to reach critical mass, with 88% of participants having deployed fewer than 10,000 devices. Despite these difficulties, 86% view IoT as a business priority and 49% plan additional projects within the next two to three years.

Budgets

While only 9% of organisations are earmarking budget increases for IoT, 44% intend to raise spending by 51%–100%. These projections signal robust demand for integrated solutions that combine consulting, hardware, software, security and ongoing management.

Eseye CEO Nick Earle notes that the acceleration of IoT adoption—fueled by the COVID‑19 pandemic—has shifted enterprises from experimentation to focused deployment, making the market more mature and predictable.

Market Consolidation

Consolidation may help address connectivity gaps. Wireless Logic’s recent acquisition of Italian IoT mobile operator Things Mobile exemplifies this trend, expanding its footprint across Europe and beyond.

Previously, Wireless Logic added Arkessa, New Line Mobile, Datamobile and Com4 to its portfolio, reinforcing its position as a leading provider of global IoT connectivity.

Footprint

Wireless Logic boasts more than 7 million active IoT SIM subscribers across 165 countries, partnering with over 750 global networks to deliver seamless connectivity. Backed by Montagu Private Equity, which manages over €8 billion in assets, the company is positioned for continued growth.

Big‑Tech Antitrust

Telecom operators have long argued for a level playing field, contending that regulatory regimes for service availability, pricing and competition do not extend to big‑tech giants such as Amazon, Google, Microsoft, Facebook and Apple. These companies have increasingly captured telecom market share with bandwidth‑heavy over‑the‑top content that relies on the networks built by telcos, while also accessing vast amounts of customer data.

Presidential Action

President Joe Biden has signalled a tougher stance on antitrust enforcement. The DOJ and FTC are expected to scrutinise big‑tech mergers more closely, including the FTC’s upcoming review of Amazon’s proposed $8.45 billion acquisition of MGM.

Lina Khan

Biden appointed attorney Lina Khan as FTC chair, citing her criticism of big‑tech practices. While Amazon and Facebook have requested her recusal from related cases, her leadership is anticipated to drive a more rigorous examination of market dominance.

Author: Antony Savvas, global freelance business technology journalist.