Cloud Computing and IoT: Are They a Perfect Match for Your Business?

For years, cloud computing has become indispensable for supporting business development and growth. At the same time, disruptive technologies like the IoT (Internet of Things) have created the opportunity for organizations to completely redefine how they manage their operations, introducing an unparalleled level of automation and efficiency.

The intersection of these components creates unlimited scalability and processing power for modern organizations, allowing them to leverage real-time data analysis while providing the resources necessary to improve their products and services and make smarter business decisions.

However, like any digital transformation initiative, both cloud computing environments and IoT integrations require careful planning and execution to ensure they provide the expected results for the organization.

Synergies Between Cloud and IoT

Although cloud computing and IoT have both made strides in their development and improvement over time, their synergy has disrupted industries in nearly every sector over the years. Because of their natural ability to complement and enhance their individual benefits and features, cloud-enabled IoT solutions are becoming a high priority for many businesses.

For IoT to function optimally, it requires a highly scalable and powerful infrastructure to support a larger network of connected devices and sensors. The cloud creates the perfect environment to provide this support, allowing for scalable computing power, limitless storage capacity, and advanced networking capabilities that can handle the large volume of data typical in IoT integrations.

Some of the features that cloud computing unlocks for IoT include:

• Accommodating much more extensive networks of IoT devices.
• Facilitating the use of powerful analytics tools and AI-driven technologies that unlock powerful data insights.
• Providing a unified view of all IoT operations
• Eliminating the need for expensive on-premise infrastructure development

What are the Primary Business Benefits of Using a Cloud-Based IoT Solution?

While many organizations are quick to jump on the next most-talked-about business solution, companies need to consider if a cloud-based solution is right for them. That being said, there are certain advantages associated with adopting these technologies that are important to consider:

Improved Operational Efficiency

Having full visibility over business operations is a struggle that many organizations have to deal with. However, investing in a cloud-based IoT solution allows businesses to establish real-time visibility into their interconnected IoT devices spread across their entire infrastructure. 

This allows themes to quickly identify critical bottlenecks in production and create more streamlined processes while maintaining a unified view of their business.

Better Data-Driven Decision Making

IoT devices gather and transmit a large amount of data, which can be useful for a variety of use cases. 

Using a cloud-based analytics platform, companies can create a seamless storage and real-time analysis solution for their IoT platforms that helps transform the raw data collected into a strategic asset that drives more business success.

Better Customer Experiences

Today’s businesses are expected to help create memorable, personalized experiences for all their customers. 

Cloud-based IoT solutions, especially those used in retail industries, can collect useful data like customer preferences, purchasing history, or shopping patterns when in-store to create more targeted marketing campaigns and continue to improve products and services to help increase customer loyalty.

New Revenue Streams

When combined with cloud computing technology, IoT solutions can open up the possibility of increasing new revenue streams for the business. 

For example, organizations can create service platforms or offer subscription-based models with usage-based pricing when building turnkey IoT platforms or monetizing current data collection models.

Potential Challenges and Considerations

Although organizations can explore many beneficial use cases when integrating IoT solutions into cloud-based platforms, certain challenges must be considered before deciding if it’s the right move for the business.

Security Risks

The more an organization expands its digital footprint, the more it increases its risk exposure to emerging cyber threats. IoT devices create a new entry point into business networks and could potentially be the source of data breaches if not properly encrypted and secured. This is especially true when integrating solutions across different cloud environments.

Integration Complexities

Not all IoT devices use the same communication protocols or data formats. This can create difficulties when trying to integrate solutions into the cloud and may not provide the scalability you’re hoping for. 

Data Storage and Processing

Because of the amount of data IoT solutions collect, not all cloud solutions may be right for the business. If your organization is already well-established in a particular cloud environment, bringing in your IoT solution could mean completely reconfiguring workflows or cloud storage architectures to facilitate your needs.

Cost Management

Although cloud computing often creates several cost advantages over traditional on-premise infrastructure development, IoT integrations into the cloud can have significant associated costs. Because of the amount of bandwidth and storage required to facilitate many IoT solutions, businesses may have challenges finding a cost-effective cloud solution for all areas of their business.

Choosing the Right Cloud-Based IoT Solution

If you’re considering using a cloud-based IoT solution, there are key elements you should research to ensure you’re making the right decision for your business:

• Choose an Infrastructure Option – Consider your infrastructure needs when using a cloud environment. Decide whether you want your IoT solution completely managed within the cloud or whether you’re willing to create a hybrid cloud computing approach, managing certain elements on-premises.
  
• Look for Scalability – As your IoT network scales, you’ll want to ensure the cloud environment you choose can support your business needs long-term.
  
• Prioritize Security – It’s important to place importance on the security of your cloud-based IoT solution. Look for platforms that offer end-to-end encryption methods, multi-factor authentication, robust access controls, and a good reputation for enforcing strict security standards for their clients.
  
• Confirm Integration Capabilities – Since all cloud solutions are different, you’ll want to make sure the ones you choose integrate well with your IoT solution. Make sure the platform can support the type of devices and sensors deployed for your organization and that they’ll be compatible with other future investments you’re planning to make.

Harness the Power of IoT and Cloud Technology for Your Business

The ability to bring IoT into a cloud environment can bring a number of benefits to an organization looking to optimize and scale its operations. While certain challenges need to be navigated when exploring this option, organizations can create a more efficient and productive environment for their business by taking the time to research and plan carefully their cloud-based IoT integrations.