The Internet of Things (IoT) has evolved significantly since its inception, transforming the way businesses operate and interact with technology. IoT refers to the network of physical objects embedded with sensors, software, and connectivity that enable them to collect and exchange data. While early discussions focused on household appliances and consumer devices, today IoT encompasses advanced applications in industries such as healthcare, aged care, manufacturing, and professional services. With over 30 billion connected devices globally in 2025, IoT is no longer a futuristic concept—it is a cornerstone of modern business operations.
This article revisits an earlier look at IoT (much has changed since 2014!) the challenges and opportunities posed by IoT, explores the critical role of security and micro-segmentation in safeguarding infrastructure, and provides actionable insights for businesses looking to modernise their IT environments.
The Expanding Role of IoT in Business
IoT has moved beyond simple connectivity to enable sophisticated applications across industries:
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Healthcare and Aged Care: IoT devices like wearable health monitors, smart pill dispensers, movement sensors, fridge temperature alerts and connected patient beds improve patient care by providing real-time data to caregivers.
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Professional Services: Smart office systems optimise energy usage, automate workflows, and enhance workplace productivity.
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Manufacturing: IoT-enabled sensors monitor equipment performance, predict maintenance needs, reduce downtime and improve employee safety outcomes.
The sheer volume of data generated by these devices has created unprecedented opportunities for businesses to gain insights, streamline operations, and deliver personalised services. However, this growth also presents challenges that require immediate attention.
Challenges in Scaling IT Infrastructure for IoT
IoT adoption places significant demands on IT infrastructure. Businesses must address several key challenges:
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Data Management: With billions of devices generating vast amounts of data daily, organisations need scalable cloud solutions capable of storing and analysing this information efficiently. Legacy systems often fail to meet these needs.
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Real-Time Processing: IoT applications require instant data processing to enable timely decision-making—whether it's alerting healthcare staff about a patient’s deteriorating condition or adjusting manufacturing equipment settings automatically.
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Security Concerns: The interconnected nature of IoT devices increases vulnerabilities across networks. A single compromised device can expose sensitive data or disrupt operations across an entire organisation.
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Privacy Issues: As IoT devices collect personal or operational data, businesses must ensure compliance with privacy regulations like Australia's Privacy Act 1988 or GDPR in Europe.
Modernising IT Infrastructure for IoT Success
To fully leverage the IoT opportunity while addressing its challenges, businesses must modernise their IT infrastructure in the following ways:
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Adopt Cloud-Native Architectures
Cloud computing remains the backbone of IoT scalability. By migrating legacy systems to cloud-native architectures, businesses gain access to flexible computing resources that can scale up or down based on demand. Hybrid cloud solutions are particularly useful for organisations balancing on-premises control with cloud scalability. -
Implement Edge Computing
Edge computing processes data closer to its source—on the device or local network—reducing latency and bandwidth usage while enhancing real-time decision-making capabilities. This is especially critical for industries like healthcare where delays can impact patient outcomes. -
Enhance Security with Micro-Segmentation
Micro-segmentation is an advanced security strategy that divides networks into smaller segments, isolating devices or applications from one another to limit the spread of cyberattacks. For example, if a smart thermostat is compromised in an aged care facility, micro-segmentation ensures that attackers cannot access patient records stored elsewhere on the network. -
Invest in AI-Powered Analytics
Artificial intelligence (AI) tools can analyse large datasets generated by IoT devices to identify patterns, predict outcomes, and automate responses—empowering businesses with actionable insights at scale. -
Prioritise Interoperability
As IoT ecosystems grow more complex, ensuring compatibility between devices from different manufacturers becomes essential for seamless operations.
Securing IoT Ecosystems: The Role of Micro-Segmentation
Security remains the most pressing concern for IoT adoption in 2025. Traditional perimeter-based security models are insufficient for protecting interconnected networks with billions of endpoints. Micro-segmentation offers a robust solution by creating isolated zones within a network where communication is tightly controlled based on predefined policies.
Key benefits include:
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Reduced Attack Surface: By limiting device communication pathways, micro-segmentation minimizes exposure to potential threats.
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Enhanced Compliance: Isolated zones help ensure sensitive data remains protected in accordance with regulatory requirements.
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Improved Incident Response: In case of a breach, segmentation prevents lateral movement across the network—containing threats quickly.
Businesses implementing micro-segmentation should pair it with strong authentication protocols like multi-factor authentication (MFA) and regular vulnerability assessments.
Actionable Steps for Adaptive Managers and Business Owners
For managers in non-IT sectors looking to prepare their organisations for IoT adoption there are a number if easily actionable steps that can be taken:
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Small Businesses: Focus on cloud migration and invest in affordable edge computing solutions to enable real-time data processing without extensive infrastructure costs.
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Medium Enterprises: Implement micro-segmentation alongside AI-powered analytics tools to enhance security while gaining actionable insights from IoT data.
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Large Organisations: Develop comprehensive IoT strategies that include hybrid cloud architectures, advanced security frameworks (e.g., Zero Trust), and interoperability standards.
Conclusion
IoT is reshaping industries at a rapid rate enabling smarter systems and delivering unprecedented insights—but it also demands modernised IT infrastructure capable of handling complexities securely and efficiently. By adopting strategies like cloud-native architectures, edge computing, micro-segmentation, and AI analytics, businesses can unlock the full potential of IoT while safeguarding their operations against evolving threats.
