Best Practices for Managing Open-Source Dependencies in IoT Software

Open-source software is the backbone of modern technology—and the Internet of Things (IoT) is no exception. From firmware to cloud integrations, connected devices often rely heavily on open-source components to accelerate development and reduce costs. But with this reliance comes a hidden cost: increased exposure to security vulnerabilities, licensing risks, and software supply chain complexity.

Effective software dependency management is no longer optional—especially in IoT. Manufacturers must adopt mature strategies for managing open-source dependencies across the entire product lifecycle to safeguard against emerging threats and comply with evolving regulations.

Why Open Source Dependency Management Matters in IoT

Managing open-source software dependencies in IoT software is uniquely challenging. Devices often run on constrained hardware, have limited update paths, and stay deployed in the field for years or even decades. When a security vulnerability is discovered in an open-source component, organizations may not have the tools or visibility to respond effectively.

Recent events, such as vulnerabilities in widely used libraries like Log4j, highlight the risk of unmanaged dependencies. For IoT, the impact is amplified—vulnerabilities can cascade across millions of embedded devices with no easy fix.

Regulatory bodies have taken note. The EU Cyber Resilience Act, CE RED Article 3.3, and the U.S. Cyber Trust Mark all include provisions for software transparency and secure-by-design principles. At the heart of compliance? Strong open-source dependency management.

Common Challenges in IoT Software Dependency Management

1. Limited Visibility – Legacy tooling often fails to identify open-source components buried deep within firmware or statically linked binaries.
   
   
2. Transitive Dependency Risks – Many vulnerabilities lie in indirect dependencies that are difficult to trace manually.
   
   
3. Supply Chain Complexity – Modern devices incorporate software from dozens of vendors, making end-to-end tracking a daunting task.
   
   
4. Compliance Gaps – Without a clear inventory, demonstrating regulatory compliance becomes nearly impossible.
   
   

Best Practices for Managing Open Source Dependencies in IoT

1. Generate Accurate SBOMs Across the Lifecycle

A complete and accurate Software Bill of Materials (SBOM) is the foundation for effective software dependency management. In IoT, dependencies may be hidden within firmware, statically linked binaries, or third-party code, making traditional SBOM tooling insufficient.

What to do:

• Adopt a toolchain that supports binary SCA and source code SCA. 
• Ensure your SBOMs include transitive dependencies, licensing info, and component versions. 
• Generate SBOMs at multiple SDLC stages—build, test, and release—to capture changes over time.

Actionable Step:
Integrate SBOM generation into your CI/CD pipeline using a tool like Finite State to produce SBOMs automatically with every new firmware build or software release.

2. Continuously Monitor for Security Vulnerabilities

Even after deployment, your device may become vulnerable if an open-source component it uses becomes newly exploitable. Without continuous monitoring, you’ll miss these exposures until it’s too late.

What to do:

• Configure automated vulnerability scanning using tools like Finite State and receive real-time alerts when components in your device stack are affected by new CVEs or zero-days.
• Use correlation tools that prioritize alerts based on relevance to your SBOM components.

3. Establish Policy-Driven Governance

Without policy enforcement, developers may unknowingly introduce insecure or non-compliant open-source components. A governance framework allows security teams to pre-approve trusted libraries and block risky ones.

What to do:

• Define policies around acceptable licenses, versioning, and risk thresholds (e.g., “No CVSS >7.0 allowed in production without exception handling”). 
• Integrate these into build pipelines and procurement processes.

Actionable Step:
Implement SBOM policy checks that can either break the build for violations or automatically open tickets for review — track exceptions in a centralized approval system.

4. Prioritize Based on Exploitability and Context

Thousands of CVEs are reported each year, but only a small subset represent active or easily exploitable threats. Contextual prioritization allows teams to focus on real-world risks instead of noise.

What to do:

• Adopt a risk-based scoring model that accounts for severity, exploitability, exposure, and business impact—use this to rank remediation tasks in your backlog.
• Use platforms that correlate SBOM vulnerabilities with exploit availability (e.g., known exploits, proof-of-concept code) and contextual relevance (e.g., internet-exposed components).

5. Unify and Normalize Third-Party SBOMs

Most IoT devices include third-party software or components. If each supplier uses a different SBOM format or level of detail, you lose end-to-end visibility.

What to do:

• Ingest SBOMs from suppliers, vendors, and internal teams into a unified platform. 
• Normalize formats (e.g., SPDX, CycloneDX), de-duplicate components, and reconcile inconsistencies.

Actionable Step:
Create an SBOM ingestion and normalization workflow that validates third-party submissions and integrates them into a master dependency view for each product line.

6. Integrate Remediation Into Development Workflows

Security recommendations are only useful if they’re acted on. Developers are more likely to fix issues quickly when remediation is embedded into tools they already use.

What to do:

• Enable automated pull requests (PRs) with recommended version updates. 
• Link vulnerabilities directly to source repositories and issue trackers. 
• Provide developer-facing insights on potential regressions or compatibility concerns.

How Finite State Supports Open Source Security in IoT

Finite State’s platform is purpose-built to manage software dependencies in complex, embedded environments. We provide deep binary analysis, source code SCA, and real-time vulnerability correlation—all integrated into your existing workflows.

With our solution, teams can:

• Automatically generate, ingest, and validate SBOMs
  
  
• Monitor vulnerabilities across the entire software lifecycle
  
  
• Prioritize remediation with contextual risk scoring
  
  
• Get assistance with achieving and maintaining compliance with global regulations
  
  
• Identify security issues at all stages of the development lifecycle, offering actionable recommendations for remediation
  
  

Whether you’re building medical devices, industrial controllers, or connected vehicles, Finite State helps you stay secure, compliant, and confident.

Final Thoughts

In an era where software supply chain attacks are on the rise, managing open-source dependencies is critical—especially for IoT software. By following these best practices and leveraging the right tools, organizations can reduce risk, accelerate time-to-market, and build trust with regulators and end users alike.

Ready to take control of your software dependencies? Contact Finite State for a demo.