IoT-functionality can broaden the scope of distribution system automation in terms of functionality and communication. However, it also poses risks regarding resource consumption and security. This article presents a field approved IoT-enabled smart grid middleware, which allows for flexible deployment and management of applications within smart grid operation. In the first part of the work, the resource consumption of the middleware is analyzed and current memory bottlenecks are identified. The bottlenecks can be resolved by introducing a new entity that allows to dynamically load multiple applications within one JVM. The performance was experimentally tested and the results suggest that its application can significantly reduce the applications' memory footprint on the physical device. The second part of the study identifies and discusses potential security threats, with a focus on attacks stemming from malicious software applications within the framework. In order to prevent such attacks a proxy based prevention mechanism is developed and demonstrated
