Small- and medium-sized businesses are increasingly turning to IoT devices to help improve efficiency, reduce costs and improve competitiveness and this means there are plenty of opportunities for resellers.
For many small- and medium-sized businesses (SMBs), times are tough with a moribund economy and strong competition from others meaning that many are seeking ways to improve their competitiveness and reduce costs, and increasing numbers are turning to IoT solutions to help achieve that.
“IoT solutions, from smart sensors and energy monitoring systems to connected security devices, are increasingly seen as practical enablers of automation and data-driven decision-making,” says Markus Rex, general manager – SYNAXON Services. “Falling hardware costs and simplified deployment models are lowering the entry barriers for SMBs.”
Keith Kakadia, CEO of Sociallyin, agrees that utilisation of IoT devices is increasing. “Simple tools, like sensors that track stock or cut down on energy use, make everyday tasks a lot easier,” he says.
Lawrence Dudley, co-founder and director of IoT and technology at Parallax, notes that connected devices are getting cheaper and easier to use as well as more application specific. “You can buy a GPS tracker for £40 or a fill level sensor for £30,” he says. “There’s just a lot of applications where adding a bit of task-specific technology makes people’s lives easier.
“We’re also seeing a spillover of smart home technology into commercial uses where prosumers are coming to work and seeing problems that they’ve already solved in their homes and applying that technology with some tweaks to solve business problems.”
Trends
While demand is growing, there are certain solutions that are driving the uptick. “The desire for greater efficiency and sustainability makes energy monitoring and predictive maintenance solutions appealing, and smart building systems are becoming a typical entry point into IoT,” says Markus.
“Security is important too. SMBs are increasingly recognising IoT as a way of enhancing security, with smart locks and door and window sensors, for example, and as a potential point of vulnerability on the network. They will be looking for IoT solutions that have built-in protection and managed security support.
“IoT solutions can also be used to enable more efficient and effective hybrid working. Offices typically now have hot desks and shared meeting rooms. Smart systems can be used to monitor occupancy and usage, and to control light and heating.
“The trend towards edge computing is also a factor; if organisations can process data closer to the data source – which will often be an IoT device – they can get faster results and take more decisive actions. This also helps to reduce latency and manage bandwidth, while meeting compliance and data protection rules.”
Keith adds that companies often use smart devices to make daily work easier. “Such as keeping better track of inventory or improving the customer experience with things like faster checkouts or smart kiosks that make shopping smoother,” he says.
Lawrence says another big trend is managing energy consumption. “Businesses are full of technology-enabled energy saving opportunities,” he adds.
“These opportunities are often low-hanging fruit, and with the cost of implementation coming down so much the return on investment happens very quickly.
“For example: a lot of offices have electric water heaters for kitchens and bathrooms. A small, simple piece of tech can switch those off at the weekend. It’s not necessarily sexy but it works and pays for itself while having the added side effect of being good for the environment.”
Connectivity
All IoT devices need to be connected to the network and that will typically be done with WiFi, notes Rachel Rothwell, regional director at Zyxel Networks. “More IoT data means more traffic and it’s important to use the latest and fastest technology where possible,” she adds. “Today, that means WiFi 7. Networks also need to be carefully designed, and, in most cases, it will be advisable to deploy multi-gig switches for added flexibility, and to make use of a remote managed service to optimise performance at all times.
“We are also seeing a higher uptake of 5G routers, and IoT is one of the driving factors for that. It’s especially useful where sensors are deployed outdoors or in remote locations.”
Security
As with any technology, security is a major concern. Lawrence says that choosing platforms with centralised management infrastructure can be beneficial. “Although security of IoT devices in general can be challenging,” he cautions.
“Most IoT hardware, once you’ve got hands-on with it, is easy enough to reset and reprogramme. That being said, you could say the same thing about how easy it is to unplug something from a socket and nobody’s putting padlocks on those.
“As always, it’s about risk mitigation. Would I accept the risk of someone hijacking a device that controls the hot water heater in my office if they really, really wanted to? Sure. But I might not take that risk with a nuclear reactor.”
Harry Mason, head of client services at Mason infotech, says there’s a problem currently with home-grade IoT devices being deployed for business uses, and with businesses not knowing they need to encrypt the traffic channels that their IoT data travels across. “Both of those things boil down to staff training,” he adds.
“A reseller of our services once failed at these basics and didn’t change the default password on the IoT device they deployed via us. This led to a threat actor finding it and used it as a vector for a DDoS, which caused us a lot of issues.”
Markus says resellers need to ensure their customers deploy IoT solutions that have appropriate security built in and follow best practices. “From an MSP perspective, the growth of IoT only adds to the appeal of remote security monitoring services,” he adds.
“Across the network, businesses should apply zero-trust principles and enforce secure, multi-factor authentication. Firmware updates must always be applied immediately, and employees should be trained to understand the risks with IoT.
“Ideally, IoT networks should be segmented from core systems, but that won’t always be possible. Where IoT devices are to be deployed extensively, monitoring for anomalies and logging behaviour is to be recommended.”
Rachel notes that whole networks need to be protected – every device and user in the workplace and working at home or remotely. “A good hardware-based firewall or unified security gateway – like one of our USG FLEX devices – should be deployed at the entry/exit point to the network,” she says. “We strongly advise SMBs to make use of an MSP partner that can monitor and manage their security remotely.”
Keith adds that security can feel overwhelming for smaller companies, which resellers need to be aware of. “The best resellers keep it simple and easy to manage, automatic updates, clear instructions and quick support,” he adds. “That way, businesses don’t need a big IT team to feel safe”
Standing out
With many resellers offering IoT devices, those that do need to make themselves stand out. “Resellers can make themselves stand out by focusing less on the technical details and more on the benefits,” says Keith. “Also, explaining how the device cuts costs, makes work faster, or creates a better experience for customers. That’s what matters most to small business owners.”
Harry says it comes down to service. “All IoT resellers fundamentally sell the same products, so the service-wrap is really important,” he says. “Other resellers have developed a niche in specific industries, but basically they need to be good at selling to their chosen market and keeping those customers sticky.”
Markus agrees that resellers with expertise in a particular industry or a specific IoT solution will have a distinct value proposition especially if they provide a complete solution that spans initial consultancy through to installation and support. “Making security and compliance central to the value proposition is another way to differentiate – here again though, you’ll need industry-specific knowledge,” he says.
“For most resellers, it will be about the service offering and providing simple, effective, implementation and monitoring. SYNAXON offers a range of managed services that partners can use to support IoT deployments, including managed security, backup and endpoint management.
“Providing flexible commercial options, such PAYG or subscription offerings, can also help resellers stand out, especially in the SMB market, as this will reduce up-front costs.
“Another approach would be to work with organisations that have complementary capabilities. An MSP, for example, could partner with a specialist IoT provider for retailers or manufacturing.”
Rachel says offering remote monitoring and management services is a big differentiator. “Whether they are offering a specialist IoT solution or providing IoT devices as part of a wider project, what every reseller needs is reliable, flexible, and affordable networking and protection to underpin the solution,” she says. “By offering a remote monitoring and management service that covers network performance and security, they can present a really compelling value proposition to SMB customers.”
Increasing demand
All commentators agreed that demand for IoT devices among SMBs is set to rise in the coming years. Leon Huang, CEO at RapidDirect, notes that the world market for IoT devices is expected to grow to $181.17 billion by 2030 and achieve a CAGR of 16.8% from 2025 to 2030. “This is because 5G connectivity development, the use of edge computing, and business demand for real-time data analysis are on the rise,” he says.
Harry notes that businesses never stop looking for automation or for more data sources. “The hardware is becoming cheaper, and there are platforms being purpose built to make them easy to use, like Power Automate,” he adds.
“If you work with the government or with larger corporates, you’ll likely get some pressure to show some effort in sustainability, so an IoT connected sensor would be the best way to display that you’re working on this goal. The desire to become greener for most businesses is sure to drive demand.”
Keith adds that a lot of SMBs are just trying IoT out currently. “But soon it will become part of their normal way of working,” he says. “Sectors like retail, logistics and services will likely grow the fastest since speed and customer experience are so important to them.”
Lawrence adds that demand for applications that save people time and reduce energy consumption will help to drive demand. “It will also be accelerated by those who understand specific applications where utilising the right device has a track record of delivering results,” he adds. “And held back by those buying products they don’t understand and becoming frustrated when they don’t solve the challenge they’ve got – making the advisory role of a channel resellers increasingly important.”
