Welcome!

@DXWorldExpo Authors: Zakia Bouachraoui, Liz McMillan, Pat Romanski, Elizabeth White, Carmen Gonzalez

Related Topics: @ThingsExpo, Java IoT, Mobile IoT

@ThingsExpo: Blog Feed Post

IoT: Device-Focused or Service-Focused? By @AriaSystemsInc | @ThingsExpo [#IoT]

There is a growing need to further differentiate IoT into the two delivery models

Everyone’s talking about the Internet of Things recently, but one topic I don’t see addressed much is the difference between Service-Focused IoT and Device-Focused IoT. The concept of “The Internet of Things” has always been about vast, heterogeneous networks of small, limited-purpose devices. However, there is a growing need to further differentiate IoT into the two delivery models.

In my previous blog, I discussed how hardware manufacturers are able to leverage IoT and recurring revenue to further lock in customers, increase lifetime value, and raise exit barriers around their services. However, these examples all require the service provider to also be some sort of hardware manufacturer. Nest (the popular smart thermostat company) is fantastic, but you must buy a Nest-branded device in order to leverage Nest cloud services. Canary (a home security camera) is great, but you must buy Canary cameras and subscribe to Canary cloud services in order to fully take advantage. If the manufacturer goes down (or worse, out of business), the devices become useless.

The other delivery model is service-focused. Netflix, Pandora, Facebook, and other companies are service-focused beneficiaries to the growing IoT revolution. These companies don’t require the purchase of a separate piece of hardware like Canary or Nest. Rather, they leverage IoT to make themselves ubiquitous in their customers’ lives. I counted recently: I have 14 Netflix-capable devices in my home (and if I used Facebook I’d have 8 Facebook-capable devices as well). That kind of convenience can never be beat by a company that forces a hardware purchase in order to use their service.

IoT1

That being said, it would be silly to accuse Nest and Canary of doing things incorrectly. What good is a home security system without cameras? How can Nest function without a Nest-branded thermostat on the wall? These initial Device-Focused companies are building out the first wave of IoT: The proprietary, incompatible phase. Recall the 60 different types of cell phone chargers in the early 90s, before the world (minus Apple) standardized on Micro-USB. As these device-focused companies continue to build out both IoT infrastructure and IoT acceptance, the service-focused IoT companies will continue spreading their influence. Eventually there will be a tipping point, probably one industry at a time. Home automation hardware manufacturers will decide on a common standard, so Philips light bulbs and Nest thermostats may eventually be controlled by a single app, just like how Samsung and Nokia phones are charged by the same cord.

These service-focused IoT-driven companies are the entities which will help drive those standards. Already I know people who make car purchasing decisions based on Pandora support, or who refuse to buy a set-top entertainment device without Youtube or Netflix. Personally, I’m still annoyed that my Playstation doesn’t have Pandora support after 18 months on the market. Those services will become the first wave of standards that eventually drive an overhaul of the device-focused portion of the industry. A smart refrigerator that gives me weather and news on a GE-branded service over which I have no control is neat. A smart refrigerator that runs Android, plays Netflix, streams Pandora, and can be used as a control panel for home automation and home security would be so much better.

Today’s Internet of Things commentary tend to focus on the devices, rather than the services. I believe that the IoT-driven service market will continue to grow rapidly, in conjunction with the growth of IoT-driven device manufacturers. Leveraging new technology for recurring revenue in both the service and device market is what Aria is all about, and the future of IoT looks bright for us.

Dan McAloon

The post IoT: Device-Focused, or Service-Focused? appeared first on Recurring Revenue Blog | Aria Systems.

Read the original blog entry...

More Stories By Aria Blog

The Aria blog is the place for news, commentary and discussion on monetization, agile billing and IoT. We cover a variety of topics including forces of market disruption, the Monetization of IoT, billing best practices, trending news and what monetization will look like in the future. Our hope is that you’ll become better informed, be entertained and in turn share your thinking, ideas and comments.

DXWorldEXPO Digital Transformation Stories
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DSR is a supplier of project management, consultancy services and IT solutions that increase effectiveness of a company's operations in the production sector. The company combines in-depth knowledge of international companies with expert knowledge utilising IT tools that support manufacturing and distribution processes. DSR ensures optimization and integration of internal processes which is necessary for companies to grow rapidly. The rapid growth is possible thanks, to specialized services an...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Cloud-Native thinking and Serverless Computing are now the norm in financial services, manufacturing, telco, healthcare, transportation, energy, media, entertainment, retail and other consumer industries, as well as the public sector. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that pro...