Top Advantages and Disadvantages of IoT You Need to Know

Aug 17th, 2022

Top Advantages and Disadvantages of IoT You Need to Know

Most of the IoT development services have brought radical change and a new paradigm for industrial and residential areas. The Internet of Things(IoT) concept facilitates communication between devices and the cloud, as well as between the devices themselves. This IoT ecosystem involves web-enabled smart devices utilizing embedded systems, such as sensors, processors, and communication hardware, to collect, send, and act on the data that is acquired from the environment. It means that even everyday devices like, vacuum cleaners and computers share the sensor data collected by connecting to an IoT gateway. This data is transferred to the cloud for analysis. Hence, these devices communicate with other related devices and function as per the information they received from one another.

In this article, we are going to dig deep into the noteworthy advantages and some challenges of IoT technology for modern enterprises. But, before moving ahead, let’s understand the way IoT works to take businesses to a new level. 

How Does IoT Work? 

The IoT-based system collects real-time data and exchanges it between devices and an existing business system. An IoT network is comprised of three aspects-

  •  Smart Devices: Any device such as a security camera, TV, or fitness tool with computing capabilities can collect data from user inputs and the external environment. These devices share the collected data over the internet to and from using an IoT application.
  • IoT Application: A feature-rich application acts as a bridge between connected devices and servers. A customized IoT app stores and shares the data while assisting enterprises to analyze the data and make meaningful decisions.
  • Graphical User Interface: IoT devices can be handled with a graphical user interface. Common instances are mobile applications or websites which can register and control smart devices. 

Advantages of Internet of Things(IoT)

Improved Data Collection

After implementation and configuration, IoT-powered devices collect information and exchange the same with other devices or the system. IoT devices collect data of all types ranging from sensory and status information such as heart rate or temperature to unstructured data in the form of images and audio. This data is constantly updated which helps entrepreneurs in making the right decisions.

Also Read : How IoT Accelerates Digital Transformation for Enterprises

Easy Data Accessibility

Anyone can store, access, and share the data in real time using IoT applications. Connected IoT devices allow users to access data and information from anywhere at any time. If you can instantly access data, you will stay updated about events or processes. Data accessibility can enable employees to conveniently interact remotely without remaining physically present. Hence, employees can manage work from home or remote places. 

Enhanced Decision-Making

The data-driven approach of IoT facilitates better decision-making. The more the information is, the easier it is to make the right decision. This feature is most beneficial for industrial sectors as all the workforce can know what’s going on in operations quickly. The accumulation of data helps to make smarter decisions for complex issues. 

Efficient Resource Management 

IoT technology facilitates automation which makes the task easier to complete. Multiple levels of automation exist in IoT allowing users to focus more on crucial tasks. Once you understand the function of each IoT-based component, it is easier to utilize resources efficiently for productive results. 

As automation is precise, it results in uniformity in tasks, control in daily tasks, and quality output. With automation, there will be no human intervention that reduces the errors. As IoT-based devices can communicate with each other, it leads to faster and timely delivery of final products/services while maintaining transparency in the entire process.

Enhanced Safety

IoT technology is based on complex algorithms as set by companies. The data collected through IoT remains protected against hacking by adding various features. These features can safeguard the corporate data and hackers cannot acquire any personal or financial information such as credit card information. 

IoT systems can sense danger and notify users in advance to take protective measures. For instance, IoT can detect a car accident on the road and instantly makes an emergency call. Devices like home security cameras, internet-connected fire alarms, and smart carbon monoxide detectors function on the same concept.

Disadvantages of Internet of Things(IoT)

High Complexity

IoT is a diversified network connecting with various devices. Hence, designing, developing, maintaining, and facilitating a large IoT system can be complex. Although IoT can manage tasks with ease, any bug in software or hardware can have serious repercussions. In fact, power failure or connectivity issues can cause a lot of inconveniences. If an IoT device stops working suddenly, it will affect the entire workflow. 

More Dependency

IoT is a network of electronic devices connected to the internet, hence, users need a continuous power supply and internet connectivity for proper functioning. Such high dependency on the IoT network at times creates troubles. For instance, if a Wi-Fi network doesn’t work properly, it may bring down thermostats, fire alarms, and other critical equipment. Hence, enterprises need to plan for possible outages that can affect their business operations. 


The issue of compatibility in tagging and monitoring may arise when devices from separate manufacturers with different functionality are interconnected. Each IoT device from a different manufacturer requires a specific configuration and hardware compatibility that makes the deployment difficult. As a result, both IoT solution development time and costs increase. However, this drawback may lessen if manufacturers can agree to the same standards and you select the right IoT solution provider. 

Simply put, all these disadvantages can be handled effectively by consulting a reputed IoT development company. It not only helps enterprises and users to overcome the drawbacks but also brings desirable results over the period. 


The Internet of Things (IoT) approach has truly shifted the way humans interact with the physical and external environment. Like every other technology, IoT also has its share of pros and cons. However, its advantages have an upper hand over disadvantages. It can be expected in the future that IoT will be in industrial sectors and households. 

Solution Analysts is a leading IoT software development company assisting enterprises to leverage the benefits of IoT technology while overcoming its shortcomings. We offer customized IoT development services that offer a competitive edge to modern enterprises.

CTA - Benefits of IOT SolutionsCTA - Benefits of IOT Solutions



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