Click here to close now.

Welcome!

Big Data Journal Authors: Dana Gardner, Elizabeth White, Carmen Gonzalez, Liz McMillan, Pat Romanski

Related Topics: @ThingsExpo, Java, Wireless, Linux, Cloud Expo, Big Data Journal

@ThingsExpo: Blog Post

The 'Internet of Things' Becomes Mainstream | @ThingsExpo [#IoT]

No mention of IoT targeted at the masses would be complete without the clichéd example of the communicating fridge

Internet of Things Becomes Mainstream, What Happens Now? | Part 2

How do you know when a technology has become mainstream? A good clue may be when politicians start talking about it on the campaign trail and with mainstream media. David Cameron, the UK prime minister, was the latest, indicating that the world was now on "fast-forward" with the Internet of Things (IoT) ushering in the new industrial revolution. No mention of IoT targeted at the masses would be complete without the clichéd example of the communicating fridge. While it is easy to get caught up in the hype and over-simplify, the complexity associated with making IoT mainstream will be unlike anything we have seen before it.

In the last Internet of things (IoT) blog, I suggested that in the emerging IoT world, humans will set policies and rules that define desired outcomes, while the execution of minute-by-minute decisions driven by those policies will increasingly be handled by automated agents. In turn those agents, as they evolve in sophistication and functionality, will drive new business models, new ways of generating revenue, and new strategies for pricing and charging.

Today, enterprises are discovering that one-trick billing is not suitable for a complex services world. We all know that a billing system needs to flexibly support, for example, recurring and non-recurring charges, volume discounts, short and long-term commitments, settlements, and (for enterprise billing) bill tracking and assignment across multiple departments and product lines.

Yet here we are today in a world increasingly being made more complicated by a proliferation of online services, by IoT and by a maze of evolving business relationships, and what do we find? Service providers are still being sold one-trick billing systems.

Perhaps there is some deep-rooted psychological need for some people to deny complexity. Over-simplifying, like politicians with their fridges, may be part of the popular culture, but in business, as in engineering, science and medicine, it is important to face up to complexity, understand what is really going on, and build our plans accordingly.

When Internet services emerged, some people predicted that everything was going to be paid for by advertising: a really simple business model. Then the online shopping cart came along and, without diminishing the importance of advertising much, vendors were able to trade online and offer services and products for money in a subscription form: another simple business model supported by one-trick billing systems. While subscription services have always been with us, the Internet enabled providers to offer many new services using the subscription model: software, music, movies, news.

And now we have IoT, and - even better - IoT with smart agents. We will see, naturally enough, that Internet merchant platform players insist that IoT devices and systems can be sold in shopping carts. Subscription billing system vendors will tell us IoT services are perfect for vanilla subscription billing. While others will come along with billing systems that are IoT-specific and assume some kind of a business model that is absolutely the best for IoT.

Yet in this increasingly complex environment, one-trick billing starts to look like a shaky idea. If you only have a merchant platform you can't handle subscriptions. If your billing system only supports subscriptions, forget selling service-related products through your own portal. If your billing system is designed just for IoT-style services, you could find yourself shut out from expanding into other lines of business. You will either have to constrain your business model, buy or license additional systems, or go to third parties for help.

For a new-start company, a one-trick billing system could appear to be a great way of getting into business, especially if it's available as a service with no long-term commitments. But as a company matures and expands its portfolio of services and products, it also expands its perspective on the marketplace. They experiment with more varied and more nuanced business models. They want to try interesting new approaches to pricing and billing to attract and retain customers. At this point, businesses find that they've outgrown their start-up one-trick billing systems. They find, as so many companies have discovered before them, that they cannot form their pricing and billing strategies around the needs and preferences of the market. Instead they must constrain their strategies to conform to the limitations and ways of working defined in their billing system. If you want to evolve your pricing and billing approach, you will have to buy a new system, either to replace or supplement the old system.

An earlier generation has seen this before; it's not a distinctive feature of the Internet. One traditional phone company, a giant, started with one billing system, as everyone does. They grew and refined their approach to the market and added new services. Their original billing system was a one-trick system, so they bought or built some new systems: systems specific to a particular product set; systems specific to a particular pricing strategy; systems to link all the other systems together... After a surprisingly short time, they found they had over a hundred distinct systems in their billing environment, strung together after a fashion, but with fragmented and highly duplicated data. Expensive and dysfunctional. Getting out of that kind of trap is not easy. The company sought help from another corporate giant and bought one more billing system, the system to end all other systems. Five years later they still had over one hundred plus one systems.

If they'd had a billing system able to support the agile needs of the business, they could have spent more time developing and selling services and less time band-aiding their systems environment. I have pointed out in several previous blogs that MetraNet users have a distinct advantage: the system can handle any business model, or any combination of business models, including business models that haven't been invented yet. By contrast, when you buy a one-trick billing system, you are also buying into the one-trick business model supported by that system.

More Stories By Esmeralda Swartz

Esmeralda Swartz is CMO of MetraTech, now part of Ericsson. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda is responsible for go-to-market strategy and execution, product marketing, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of OSS software, now part of Extreme Networks (Nasdaq:EXTR). At Avici Systems (Nasdaq:AVCI), Esmeralda was Vice President of Marketing for the networking pioneer from startup through its successful IPO. Early in her career, she was a Director at IDC, where she led the network consulting practice and worked with startup and leading software and hardware companies, and Wall Street clients on product and market strategies. Esmeralda holds a Bachelor of Science with a concentration in Marketing and International Business from Northeastern University.

You can view her other blogs at www.metratech.com/blog.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@BigDataExpo Stories
Companies today struggle to manage the types and volume of data their customers and employees generate and use every day. With billions of requests daily, operational consistency can be elusive. In his session at Big Data Expo, Dave McCrory, CTO at Basho Technologies, will explore how a distributed systems solution, such as NoSQL, can give organizations the consistency and availability necessary to succeed with on-demand data, offering high availability at massive scale.
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - is now accepting submissions to demo smart cars on the Expo Floor. Smart car sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem.
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
FedRAMP is mandatory for government cloud deployments and businesses need to comply in order to provide services for federal engagements. In his session at 16th Cloud Expo, Abel Sussman, Director for Coalfire Public Sector practice, will review the Federal Risk and Authorization Management Program (FedRAMP) process and provide advice on overcoming common compliance obstacles.
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
Thanks to Docker, it becomes very easy to leverage containers to build, ship, and run any Linux application on any kind of infrastructure. Docker is particularly helpful for microservice architectures because their successful implementation relies on a fast, efficient deployment mechanism – which is precisely one of the features of Docker. Microservice architectures are therefore becoming more popular, and are increasingly seen as an interesting option even for smaller projects, instead of bein...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points...
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. Learn about IoT, Big Data and deployments processing massive data volumes from wearables, utilities and ot...
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
SYS-CON Media announced that IBM, which offers the world’s deepest portfolio of technologies and expertise that are transforming the future of work, has launched ad campaigns on SYS-CON’s numerous online magazines such as Cloud Computing Journal, Virtualization Journal, SOA World Magazine, and IoT Journal. IBM’s campaigns focus on vendors in the technology marketplace, the future of testing, Big Data and analytics, and mobile platforms.
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-cri...