As the Internet of Things (IoT) continues to grow, the implications for business model innovation are huge. One of the major drivers in this connected landscape is the shift in end-user preferences: there is an increasing demand for flexible pricing models, ease of access to software upgrades, and a superior customer experience. As a result of the rise in connectivity, end users’ perception of value and what they are willing to pay for is changing drastically. Therefore, to take advantage of the IoT, independent software vendors and intelligent device manufacturers alike need to fundamentally rethink their orthodox attitudes towards value.