Mobile IoT Authors: Zakia Bouachraoui, William Schmarzo, Liz McMillan, Elizabeth White, Yeshim Deniz

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.


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.

IoT & Smart Cities Stories
The Founder of NostaLab and a member of the Google Health Advisory Board, John is a unique combination of strategic thinker, marketer and entrepreneur. His career was built on the "science of advertising" combining strategy, creativity and marketing for industry-leading results. Combined with his ability to communicate complicated scientific concepts in a way that consumers and scientists alike can appreciate, John is a sought-after speaker for conferences on the forefront of healthcare science,...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
DXWorldEXPO LLC announced today that Ed Featherston has been named the "Tech Chair" of "FinTechEXPO - New York Blockchain Event" of CloudEXPO's 10-Year Anniversary Event which will take place on November 12-13, 2018 in New York City. CloudEXPO | DXWorldEXPO New York will present keynotes, general sessions, and more than 20 blockchain sessions by leading FinTech experts.
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of ...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...