What the Internet of Things means for cloud providers

Perhaps the simplest definition of the Internet of Things (IoT) is the coordination of multiple devices. Really, it is much more than that though. Techopedia summarises its benefits nicely:

"If we had computers that knew everything there was to know about things - using data they gathered without any help from us - we would be able to track and count everything, and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best."

And while that's completely true, the complexity and scale of data generated by the Internet of Things poses numerous threats for cloud service providers (CSPs).

Firstly, it's bound to disrupt customers' new found confidence in cloud security. Only recently have users started really trusting cloud service providers with their data. Every action we make generates data – if devices are monitoring us and our homes 24 hours a day, the amount of data collected is enormous. Legislation will need to evolve at a rapid pace in order to keep up with data protection on such a large scale. Coupled with recent surveillance scandals, the idea of such huge volumes of personal data being gathered and stored by third party providers is not going to sit comfortably with everyone.

Ignoring for a second the cultural, legislative and security implications likely to arise; from a technical standpoint, compatibility is going to be hugely challenging. IoT depends on the free exchange of data between non-standardised systems to be effective, but most legacy systems aren't built for internet connectivity, which can make integration difficult.

Developers have the ability now to connect these devices to achieve levels of interaction and functionality that were never possible in the past. To overcome compatibility issues, organisations need to start designing products with these issues in mind to reduce limitations from the offset.

In terms of privacy, transparency is going to be the key to long-term success. Providers need to account for the increased volumes of data they'll be responsible for and communicate openly with customers about how that data is going to be used, and more importantly, who has access to it. Privacy policies need to be explicit, and should make it easy for customers to control exactly how much data they are happy to share, rather than having to navigate complicated privacy settings to protect themselves.

The Internet of Things is unavoidable. As with any new shift in technology, there is bound to be teething problems but they are far from impossible to overcome. CSPs simply need to adjust to the changes in customer demands and earn their trust in this arena. The proof really will be in the pudding – if providers are transparent with privacy and adapt quickly to their new responsibilities they'll build trust quickly. If they fail to look after their customers' data, their brand will undoubtedly face the consequences.