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Nearly half of enterprises are set to deploy Internet of Things (IoT) by the end of 2016, according to findings from 451 Research, an enterprise IT research institute.

Early adopters, according to the findings, are focusing on business process changes intended to successfully utilise expected shifts in technology. Communication protocols, security, data management and others aspects remain a concern, but headway in developing proper business processes for exploiting IoT are a reassuring sign.

“The Internet of Things is evolving from hyperbole to reality with ‘lighthouse’ real-world production deployments proving demonstrable return on investment,” says Christian Renaud, Research Director at 451 Research. “These will pave the way for a larger number of fast-follower production deployments in 2016 and 2017 as well as the first winnowing of startups with products or services that failed to reach commercial viability before running out of operating capital.”

Concerns regarding the security of IoT will remain a major issue for early adopters, according to Renaud. Together with stagnant business practices they will hamper adoption. On the other hand, he predicts falling prices of IoT components will drive adoption rates higher. Improved security practices should further solidify demand.

Presently, some 15 percent of large enterprises have already deployed some IoT applications, according to 415 Research, with another 31 percent planning to do so in the coming year.

“While IoT has reached an all-time high of hype and hyperbole, there are a growing number of production deployments – ranging from industrial automation and enterprise to fleet and automotive applications to the wild world of the consumer market,” says Renaud.