IoT

Building New Business Models in the IoT

The IoT isn’t the future; it’s here. Constellation Research estimates that more than 80 billion sensors will be installed in devices by the …
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With the immense growth of the Internet of Things (IoT) or connected world, we have been introduced to devices that are no longer static or perpetual. In the past, buying hardware generally meant it would remain in an isolated environment with no continuous updates; and if an update was required, it was carried out by a technician.

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LicensingLive, the only event dedicated to software monetization strategies for ISVs and hardware manufacturers, is right around the corner. The theme of this year’s event is next-generation monetization strategies for embracing the NOW economy. One presentation I’m particularly looking forward to is by leading pricing and monetization expert Madhavan Ramanujam of Simon-Kucher & Partners.

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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.

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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.

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One of the highlights of the software industry calendar, Cloud World Forum, took place on June 24-25, 2015 at London’s Olympia Grand. The two day expo was aimed at helping C-level decision makers achieve business agility through cloud, analytics, mobility, and social technologies. With 300 speakers from across the IT community, there was something for enterprises of all sizes; SMEs and startups alike. Of course, we were front and center with our presentation, “Transforming Your Business in the Digital Economy”, which sparked some interesting conversations over at our booth.

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Twenty years ago, the idea of intelligent machines that could communicate with one another wirelessly might’ve seemed like something out of a dystopian sci-fi novel. I suppose all disruptive technologies do before their time. But there’s nothing far-fetched about the Internet of Things (IoT) and its web of interconnected, software-driven devices. Chances are it’s already a part of your everyday life.

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Every so often, an opportunity presents itself that changes the software monetization industry for the better.  Before the evolution of cloud, the move from on-premise hardware licensing methods to software licensing changed the way many ISV’s do business today.  Brace yourselves, because the Internet of Things is poised to flip the software monetization market yet again.

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