Companies are opening their wallets to support IoT deployments, despite concerns about security and a lack of return on investment and benefits – however pragmatism is the name of the game.

A 451 Research survey of nearly 1000 enterprise IT buyers worldwide shows 71% are currently pulling together data for their IoT initiatives, with 90% of enterprises saying they will increase IoT spend over the next 12 months.

Those who already have IoT initiatives underway say they expect their mean IoT-related spending to grow 33% over the next 12 months.

The Voice of the Enterprise: Internet of Things Organizational Dynamics survey shows strong demand for IoT deployments and usage around data and transactional intensive workload categories such as data analytics and security.

Among the IoT specific projects cited by 451 Research are data collection and analysis of financial, healthcare or industrial functions, the uptime/reliability of mission-critical line of business servers and applications, and monitoring the efficiency and costs related to a specific business operation or department such as a hospital emergency room.

A significant portion of IoT transitions are also occurring organically, 451 Research says, thanks to the embedding of intelligent sensors and predictive analytics capabilities in equipment such as semiconductors, motherboards, servers, applications, smartphones, switches and routers and devices such as cameras and HVAC systems.

Laura DiDo, 451 research director and lead author of the study, says the survey shows enterprises are using IoT for practical technology purposes that have an immediate and tangible impact on daily operational business efficiencies, economies of scale and increasing the revenue stream.

Data analytics is already playing an increasingly crucial role in delivering value to IoT ecosystems, with 69% of respondents using data from IoT endpoints such as security, to reduce risk.

Sixty-eight percent of respondents area already taking advantage of IoT data to optimise operations, such as performing preventative maintenance, while 42% use IoT data to develop new products or enhance existing offerings.

“When it comes to IoT adoption, pragmatism rules,” DiDo notes.

When it comes to impediments for IoT deployments, 50% of respondents cited security as their top concern, with 41% concerned about the lack of perceived ROI and benefits.