The primary challenge facing Internet of Things developers is security, according to Evans Data’s recently released Internet Of Things Development survey, and developers are identifying that threat as existing primarily in the Cloud and implementing tactics to combat it there.
Software developers must ensure that basic security hygiene needs are being identified and dealt with to help the IT Security teams make progress securing the Internet.
Source: Software Development Below the Security Poverty Line | SecurityWeek.Com
Device manufacturers tend to look at IoT as purely a volume business, more devices equals more money. An interesting interview with Sokwoo Rhee who is associate director of the Cyber-Physical Systems Program at the National Institute of Standards and Technology (NIST) who discusses that services layered on top of the devices is where the real opportunity lies.
IBM is talking about how cars will become a mini data centre and they’re not really using hyperbole here. A car is already a rolling technology powerhouse if you factor in the 10’s of microcontrollers and the powerful infotainment system. Compared to server processing power of 5 to 7 years ago, it’s not far off. Given the safety and privacy concerns with cars and the growing connectivity to the Internet, it’s a prime IoT market that needs security attention.
Researchers at Talos have found Vulnerabilities in Trane thermostats heat up IoT safety concerns (SC Magazine). A firmware update is available, kudos to Trane for dealing with this in a timely manner.
I’ve said before that IoT is a reality because millions of devices are already being 
connected to each other locally and globally. In industrial systems this was already a reality in the machine to machine (M2M) vision that many in that market speak of. M2M has been happening for years and although it slots in nicely with the IoT vision, it’s important to realize it’s evolving rather than starting in these markets. Brad Gilbert has a good discussion in his article in M2M Connectivity.
However, it’s not merely connectivity, it’s using the gathered data from having “eyes” in all parts of the operation. Improving efficiencies and reducing costs drives much of the IoT growth we are seeing and it’s already happening in industrial systems such as smart meters, industrial controllers in factories and in monitoring devices in the petrochemical industry, to name a few.
IoT is already happening and the growth is real. What differentiates the winners are the companies that understand the future requirements such as security and connectivity to enterprise systems (e.g. aggregation, authentication).
The biggest bogeyman in security is the advanced persistent threat (APT) – well funded, smart and motivated. Kaspersky’s predictions for 2016 claims that APTs will go deeper and undercover – less traceable and harder to detect.
To be clear, the threat will remain but the move is to memory or fileless non-persistent malware. By repurposing existing malware attackers can appear less advanced than in the past to increase stealth.
It’s a concern from the IoT perspective because critical infrastructure is a target from cyber terrorism and a big part of M2M and IoT. APTs becoming more sophisticated by appearing less so is a daunting concept.
To follow up a post about the the IoT bubble, we have McKinsey warning companies that IoT is even bigger than the hype! Personally, I think the hype is real but probably misguided as I said in my previous post. McKinsey is claiming a $3.9 trillion (with a T!) market by 2025.
While I don’t disagree with the individual points that Niall D’Oherty makes in Bursting The Internet Of Things Bubble (Forbes). 
I don’t think he’s actually talking about the critical piece of IoT. Many folks from the enterprise IT side of things look at IoT as solely an IT /Big Data/ Cloud problem. In terms of the hype bubble in that market, I agree, it’s likely more hype that substance right now.
Regardless of the IT perspective on IoT, embedded devices are growing in number and they are being connected together more and more. With or without IoT we are creating an Internet of devices that is and will grow exponentially. In fact, most of the opportunity, from my point of view, is with the device manufacturers who create competitive products with security, connectivity, power consumption and functionality to differentiate themselves.
Although not purely an IoT play, one can see the application of weather data in all its forms being important for IoT
IBM is purchasing The Weather Company’s product business:
