Cisco study finds an IoT data paradox
As the popularity and importance of the internet of things (IoT) continues to grow, a paradox of how these devices are used and what data is being collected is also taking shape. In essence, people like what IoT does, but they don’t trust companies with all the data that sensors and connected devices collect.
Enterprise Cloud News (Banking Technology’s sister publication) reports that these and other observations are contained in a new study that Cisco is publishing entitled “IoT Value/Trust Paradox”. The report is based on questions sent to 3,000 US and Canadian consumers in October.
The results, published today (12 December), find that consumers like the types of services that IoT devices offer. However, there is a lack of trust that consumers of IoT technology have with the companies, and sometimes the government agencies, that receive the data that sensors and connected devices collect as part of that process.
Spending on IoT technology, including the hardware, software, security and services that make the whole ecosystem work, is only expected to increase over the next several years. In a recent report, IDC found that spending on IoT is expected to top $772 billion in 2018 and grow at an annual rate of over 14% over the next four years.
At the same time, Cisco is also looking to delve deeper into the IoT market as the company looks to move away from networking gear and into other areas that include more software and network automation designed to support these new technologies.
Recently, Cisco announced a new financing program for cities that want to invest in “smart” technologies, as well as IoT.
IoT technology remains relatively new and that’s causing some of the mistrust between consumers and the companies investing in IoT projects.
Since consumers have little control over what data is collected by larger-scale IoT projects, as opposed to more personal ones such as fitness trackers, trust is eroding. About 52% of respondents reported that they “have either a low level of trust or no trust at all that their data is secure,” according to the report.
At the same time, only 14% of those questioned believe companies do a good job of informing them what data is being collected and how it is used.
Still, consumers see value and convenience in IoT technology and 42% believe that these devices are so integrated in their lives that they can’t disconnect even when they believe their personal data is not being secured.
To help counter this, Cisco is offering three pieces of advice:
- IoT companies and government agencies that use the technology need to develop clear, concise policies about what data is collected and how it’s used;
- Tech firms should take granular control of the data they collect and use a management platform that clearly spells out who gets access to the data and why;
- Finally, companies should create accountability not only within their own firms, but throughout the supply chain to make sure security and data collections policies are uniform.