Benefits and Challenges to the Enterprises when you Integrate IoT and Cloud Computing

Companies of all sizes are implementing today’s biggest disruptive technologies in business – the Internet of Things (IoT) and cloud computing services. Enhanced tools combine the advantages of both into new levels of intelligence that are proving to be a game-changer in almost every industry.

Organizations are attracted to IoT cloud-based services that streamline the ability to collect data from disparate devices, combine that data into a single source of information, and analyze it to reveal business insights. 

Both IoT and cloud computing services will play significant roles in digital transformation for all types of organizations. Here’s how the integration of these two powerful tools is changing the business world today — and tomorrow.

What Are the Benefits of Cloud Computing with IoT?

The benefits of integrating cloud-computing services with IoT include…

What Are the Challenges of Cloud Computing to IoT?


IoT devices can access cloud-computing services remotely from any place on the planet with a network or Internet connection. This means IoT devices no longer have to depend on on-premise infrastructure. Additionally, cloud services offer data storage and management, technical resources, and connectivity features that improve functionality and stability.


Scaling on-site infrastructure requires expensive hardware, as well as the time and resources to set it up. The cloud provides better flexibility for scaling because of its pay-for-what-you-use pricing structure. That helps when companies want to add space, devices, applications, and other cloud-based infrastructure quickly and easily. 


Cloud computing services offer security tools that are centrally managed. That frees up time and resources to keep up with ever-evolving threats to networks and data. Cloud vendors also commonly ensure regular updates to their platforms, firmware, and applications to eliminate known vulnerabilities.


Once siloed in different departments or locations, IoT cloud-based services make data and analytics available to everyone. Additionally, cloud computing is designed to work with different infrastructures, devices, and applications, which can prevent conflicts that require on-site personnel to resolve. 

What Are the Challenges of Integrating Cloud Computing to IoT?

Integrating cloud computing and the IoT is not without its challenges, however. These include…


IoT devices collect a lot of data, and that data must be transmitted to the cloud for storage, processing, and analysis. Latency is the delay following instructions for data transfer, which can vary. If that data is needed immediately for an application to function correctly, any delay can cause significant issues. 

Data management

The value of IoT devices lies in the data they provide, and that data needs to be managed appropriately. Data management and security services should be a primary concern. Additionally, companies should clarify the ownership of data stored on cloud infrastructure to make sure it reflects their best interests.


Any disruption can potentially cause issues, so it’s vital to understand what precautions cloud service vendors take to prevent them. While minor disruptions may not affect certain applications, others may cause significant problems. 

Applications of IoT Cloud

Companies are already embracing the possibilities of IoT cloud services. The IoT market alone was valued at $1.1 trillion in 2020 and is expected to grow to $6 trillion by 2026 at a compound annual growth rate (CAGR) of more than 32%, according to Mordor Intelligence. Additionally, Gartner forecasts end-user spending on cloud services to reach nearly $482 billion by the end of 2022. 

As cloud computing has improved its ability to reduce latency, improve connectivity, and reduce costs, demand is expected to surge even more across multiple industries. Companies are implementing the IoT cloud to analyze big data related to consumer behavior, patterns, and trends, as well as asset performance and maintenance. That’s helping companies meet the complex business needs effectively across different industry verticals, including…

Applications of IoT Cloud
  1. Healthcare
  2. Manufacturing
  3. Construction
  4. Utilities
  5. Retail
  6. Oil & gas
  7. Smart cities and homes

To Sum Up

It’s fair to say that the IoT cloud holds the potential to reshape the way companies collect, analyze, and use data. Continued innovation in this field will provide forward-looking organizations with new opportunities to expand revenue streams, improve productivity, and obtain competitive advantages. 

If you’d like to learn more about how the IoT cloud can help your company, contact the IoT experts at InApp. We can help.

Frequently Asked Questions

What is the importance of the IoT cloud?

The IoT cloud offers important benefits that include…

  • More flexibility than systems built on a specific hardware infrastructure
  • Ability to incorporate the best technologies available through distributed systems
  • Systems and applications that can withstand more change
  • Management for looser or less centralized sets of resources
  • Lower cost of maintenance and support
  • Improved versatility and scalability.

What kinds of cloud infrastructure are used in the Internet of Things?

The IoT can integrate with three types of cloud infrastructure: private cloud, public cloud, and hybrid cloud. Each one offers different advantages for security, control, and management, depending on an organization’s needs.