Wearables – Growing Enterprise Risk

Wearables - Growing Enterprise RiskMarket research firm Tractica predicts that the high levels of interest will drive worldwide shipments of wearable computing devices for enterprise and industrial from 2.3 million in 2015 to 66.4 million units by 2021 and could reach 75.4 billion by 2025. This means there will be a total of 171.9 million wearables in the wild by 2021.

The report at FierceMobileIT cites a large number of trials or deployments with a diverse set of wearables across a variety of industry sectors for the growth.  Tractica research director Aditya Kaul explained the prediction,

diverse set of wearablesIn the past year, the enterprise and industrial wearables market has moved into an implementation phase, with the focus shifting from public announcements to the hard work that needs to be done behind the scenes to get wearables rolled out at commercial scale.

Tractica noted a range of new IoT use cases are emerging for workplace wearables. The new uses are focused on application markets like; retail, manufacturing, healthcare, corporate wellness, warehousing and logistics, workplace authentication and security, and field services.Estiamted wearbable device shipments

The market research firm believes the primary wearable device categories will be; smartwatches, fitness trackers, body sensors, and smartglasses, There will also be other niche categories that will play a role for specialized use cases.

Internet of ThingsThe report does concede that in terms of unit volumes and revenue, enterprise and industrial wearables are still a very small part of the IoT overall market. Wearable’s share of the total market will grow over time, according to Tractica.

Wearables proliferation does not bode well for IoT or enterprise security. A recent survey of 440 IT pros by IT networking company Spiceworks found that enterprise wearables are most likely to be the cause of a data breach out of all Internet of Things devices connected to a workplace network.

IoT most likely to be source of a security threatAccording to FierceMobileIT, the survey found that 53% of IT pros believe wearables are the least secure of all IoT devices. Overall, 90% of those surveyed think IoT makes workplace security more difficult. Spiceworks also found that only one in three of those surveyed are preparing for the tidal wave of these devices.

IoT security threatThe number of companies allowing wearables on the network has jumped from 13% in 2014 to 24% in the current Spiceworks survey. That’s a significant jump, and especially worrisome for the two-thirds of organizations putting off a proper security protocol. 41% of those surveyed said that their organizations have a separate network for connected devices, 39% allow them on the corporate network and 11% don’t allow IoT in any capacity.

Enterprise IoT devices aren’t the only reason IT pros should worry, as Andrew Hay, CISO of DataGravity, told FierceMobileIT at the RSA conference this year. Workers are bringing consumer-grade IoT devices into enterprise environments, too. In other words, IT pros don’t have a choice at this point but to seriously consider security measures for IoT.

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I first covered IoT security holes in 2011. In 2014, I wrote about HP research which found on average 25 security flaws per device tested. If these stats are right, there will be almost 4.3 billion security flaws in the wild.

Some of the security flaws HP pinpointed in wearables during 2015 included:

  • Mobile interfaces lack two-factor authentication or the ability to lock out accounts after login failed attempts.
  • Watch communications to be easily intercepted.
    • Firmware is transmitted without encryption.
    • Half of the tested devices lacked the ability to add a screen lock, which could hinder access if lost or stolen.
    •40% were still vulnerable to the POODLE attack, allow the use of weak ciphers, or still used SSL v2. Transport encryption is critical because personal information is being moved to multiple locations in the cloud.
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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

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