In today's rapidly evolving technological landscape, the integration between the Internet of Things (IoT) and Cloud Computing has become a pivotal advancement, reshaping how businesses operate. This synergy combines the power of interconnected devices with the limitless capabilities of the cloud, ushering in a new era of efficiency, innovation, and competitiveness.
IoT Cloud Platform - The Dominant Sector
The integration of these two popular technologies (Cloud Computing & Internet of Things) has created a lucrative market worth $17.5 Billion in 2022, exhibiting a consistent CAGR of 14.6% (2023-2030). IoT Cloud Platform is the largest and most valuable segment of the IoT - Cloud Computing market, making up 68.3% of the total 2022 market share. This segment is expected to climb to a revenue of $51.3 Billion by the end of the 2030 fiscal year  and is expected to maintain its dominance throughout the upcoming forecast period. The demand for IoT cloud services for remote infrastructure maintenance and business network monitoring are some factors behind the unprecedented growth of this segment .
The fundamental goal of IoT is to build an ecosystem of connected devices that can detect, touch, interact, and communicate with one another. Its ultimate objective is to link everything and everyone in order to improve how we live and work. IoT gives organizations real-time information on daily operations, equipment performance, logistics, and supply chains. Cloud computing, as such, can assist IoT devices to function simultaneously despite physical distance and utilize the valuable data created by them. The integration of IoT and cloud computing, indisputably, can aid each other in achieving their fundamental goals, optimizing business ROI, and enhancing employees' productivity.
Unveil The Full Capability of Cloud-based IoT Platforms
To eliminate expensive spending on IT infrastructure, 50% of today's businesses are migrating their IoT-generated data to the cloud . Some notable cloud vendors heralding this digital race can be varied from private entities to public companies such as Google Cloud, AWS, or even hybrid. The most crucial benefit from Cloud-based IoT platforms is to achieve better security.
In case of any IT disasters, businesses' valuable data can be lost, and its recovery is not always possible. IoT cloud platforms, nevertheless, offer fast data recovery for all kinds of emergencies, from natural disasters to individual errors or power outages. According to Salesforce, 20% of cloud users recorded that their disaster recovery process was done in four hours or less, compared to 9% for no-cloud users. Moreover, 94% of business owners are satisfied with tangible improvements in security since implementing IoT Cloud platforms .
Despite most businesses being unaware of internal data theft, the truth is that a staggeringly high percentage of data thefts occur internally and are perpetrated by employees. When this is the case, a third-party monitor is indisputably essential in achieving a better-secured IT system. It is compulsory for Cloud-based IoT Platforms to strictly follow international IT regulations such as GAMP or ISO 9000-Series. For that reason, these platforms are highly integrated with constant monitoring, automated fraud detection, as well as audit procedures to ensure IT security for clients. Moreover, since a cloud provider's primary responsibility is to monitor security carefully, organizations can spend less time and effort on resolving intricate IT management. To bolster security, businesses themselves can employ several for better safeguarding Cloud-Based IoT software:
- Firstly, employing encryption protocols for data in transit and at rest is crucial. Utilizing technologies like HTTPS, FTPS, SSL, and TLS ensures end-to-end encryption, providing protection as data traverses networks and servers and when it is stored on disks or backup devices. Employing multiple layers of encryption further fortifies security, rendering confidential data in the event of a cyberattack.
- Secondly, establishing device identification within an IoT platform is essential. This action enables secure communication among devices by ensuring that it can be authenticated and identified when a device is online. For example, OAuth 2.0, a token-based authentication method, can be utilized by API developers to safeguard an IoT ecosystem, thereby protecting the integrity of data exchange between devices.
- Thirdly, hardware security plays a vital role in IoT ecosystems. Installing components like Trusted Platform Modules (TPM) and Trusted Execution Environment (TEE) near the CPU or device ensures functionalities such as disk encryption and password protection.
- Lastly, implementing a comprehensive access control plan through a robust user management system and policies is crucial. It helps prevent unauthorized access and allows for controlled access in confidential data cases. Administrators can control devices, defining accessibility levels and resource allocation for different employees.
More than that …
Besides the dominance of cloud-based IoT platforms, integrating cloud computing and IoT can leverage our daily technology applications beyond the ordinary. Virtual power plants or virtual logistics are some prominent examples of how this integration can further the way our day-to-day world functions.
Virtual Power Plant
The energy crisis has become a major concern for citizens and governments worldwide in recent years. Due to climate change and natural resource scarcity, Asian and Middle Eastern countries have endured massive electricity shortages. Compared to North America’s energy consumption per household, Indian citizens are only provided with 10 times less, resulting in constant power outages. The people of Brazil and China are also facing the same scenario, with 4-5 times less energy provided compared to North American citizens . A Virtual Power Plant (VPP) can leverage the integration of cloud computing and the Internet of Things (IoT) to revolutionize this global energy landscape. Through cloud computing, VPPs can aggregate and manage energy resources on a large scale, optimizing their usage for efficiency and sustainability. IoT devices play a crucial role by connecting various energy-producing and consuming assets to the cloud, enabling real-time monitoring and control. This interconnected web of devices ensures that energy resources are deployed intelligently, responding dynamically to grid demands and fluctuations. For businesses, this translates to enhanced energy management, cost savings, and improved sustainability. By participating in a VPP, enterprises can contribute excess energy to the grid during peak demand periods, turning energy production into a revenue stream.
Additionally, the integration of cloud and IoT technologies enables businesses to monitor and control their energy consumption more effectively, leading to a smaller environmental footprint. By 2030, VPPs are estimated to reduce peak demand in the United States by 60 gigawatts (GW). That number could grow to more than 200 GW by 2050. VPPs are also cost-effective for improving electricity affordability by reducing annual power sector expenditures by $17 billion in 2030 .
Virtual logistics has revolutionized cold chain management in recent decades. By leveraging IoT sensors and cloud-based platforms, businesses can monitor and control temperature-sensitive products throughout the supply chain. These sensors provide real-time data on temperature, humidity, and other vital parameters, ensuring that goods remain within specified conditions. In case of any deviations, immediate alerts can be sent, allowing for timely corrective actions. This seamless integration enhances the efficiency and reliability of cold chain logistics, which is crucial for industries like pharmaceuticals and perishable goods.
Exotic fruits or roasted coffee beans are notable examples of challenging export products for overseas cargo. After months of traveling overseas and days of lying on supermarket shelves, it is nearly impossible for these products to maintain their original taste and vibrant scent. Virtual logistics facilitates constant IoT monitoring where temperature or humidity are detected and transferred to the carriers. As a result, carriers could be notified to alter these factors at any time to retain products' freshness. Furthermore, this application is apt to determine packaging methods for space optimization and waste reduction by scanning each item's size, weight, and shape. By doing so, the IoT-Cloud emergence can significantly reduce the risk of spoilage or damage, safeguarding product quality and consumer safety. As such, the global virtual logistics market has generated a remarkable revenue of $315.82 Billion in 2022 .
As both fields continue to advance, seamless connectivity between IoT devices and the Cloud will become the norm, enabling real-time data processing and analysis on an unprecedented scale. Moreover, as the synergy between Cloud computing and IoT deepens, we can anticipate a proliferation of more innovative applications and services that enhance our daily lives, making the seamless interplay between physical and digital realms a cornerstone of tomorrow's technological landscape.