I recently published an article on sandhill.com about the adoption of emerging business models for IoT-connected devices. The article looks at how IoT connectivity has led to increased risk for hardware manufacturers, namely IP theft, piracy, misuse, and reverse engineering, and how software monetization solutions can help overcome these risks.
The age of the Internet of Things (IoT) has dawned and we are heading toward a future filled with software-driven intelligent devices. To give you an idea of the magnitude of this transformation, IDC is predicting that there will be 30 billion units installed worldwide by the year 2020. Because every device in the IoT is connected, a whole new breed of tech company is emerging, forcing many traditional companies to innovate and go to market differently.
It’s been said before, but the software landscape really is changing. According to IDC and other leading analysts, over the last couple of years, a sizeable proportion of app spend went on SaaS applications. It’s also worth noting that more than 30% was spent on replacing traditional on-premise applications with SaaS offerings, year on year.
As part of my family’s annual exercise, I’ve spent the last couple of weekends doing some spring cleaning. As I remove loads and loads of accumulated junk at home, I cannot but wish I had stayed lean and had to manage less. This is a sentiment I’m sure most IT managers echo when they look at their portfolio. Cloud and subscription however, are changing that. Let us examine the effects of going to cloud licensing in the context of spring cleaning: staying lean, nimble and flexible.
The subscription economy has arrived and is here to stay. One of the key components of a subscription pricing model is the ability to charge against usage or essentially a pay as you go model. In the last couple of years, there has been a clear rise in the roll out of consumption based pricing models among ISV’s and SaaS providers. However, the interesting emerging trend is the adoption by OEMs, medical devices and classical hardware manufacturers who want to monetize on the software to gain a competitive advantage.