Welcome!

@ThingsExpo Authors: Carmen Gonzalez, Yeshim Deniz, Liz McMillan, William Schmarzo, Rene Buest

Related Topics: @CloudExpo, Java IoT, Microservices Expo, @BigDataExpo, SDN Journal, @ThingsExpo

@CloudExpo: Article

Aria Systems: Recurring Revenue Market Disruptions to Continue in 2014

More companies are adopting recurring revenue models because of their flexibility and convenience for customers

The trend of companies adopting recurring revenue surged in 2013, with brand names ranging from Adobe and Amazon to Target and Toyota using new billing and pricing models to grow sales and deepen customer loyalty. This surge will continue this year as more companies adopt recurring revenue models because of their flexibility and convenience for customers. Today, recurring revenue expert Aria Systems issued a projection on the industries poised for further disruption via recurring revenue in 2014 and beyond.

"Businesses large and small, across many sectors, are adopting the flexibility of recurring revenue," said Tom Dibble, president and CEO, Aria Systems. "It's not a fad anymore; it's the new way to do business."

"From ordering produce from local farmers to leasing appliances and cars, the way we connect with products and services will be transformed by new pricing and billing models," added Dibble. "This will present unlimited market opportunities for those businesses, large and small, across virtually every industry. Innovations in recurring revenue management are making this possible for businesses and paving the way for continued disruption across all market sectors."

According to Incyte Group, nearly half (47%) of U.S. businesses have adopted or are weighing adoption of recurring revenue models. This will force new innovations that could include:

  • Food producers bypassing grocery stores to sell directly to consumers on a subscription basis, a model pioneered by AmazonFresh and Goodeggs.com. With the fast-growing enthusiasm for locally-grown farm products as part of the "locavore" movement, many growers within 100 miles of their customers could adopt recurring revenue to cover the cost of delivery for fresh, organic foods directly to hungry consumers. And look for the arrival of new services for the "couch potato" sports fans, such as food and beverage deliveries, on a subscription basis during baseball and football seasons.
  • From kitchen appliances to at-home thermostats to automobiles, and anything else connecting to the Internet, expect to see consumers paying as they go for those services and appliances as the "Internet of Things"
  • Automakers are expected to follow the lead of Toyota Europe in offering subscriptions for features like GPS and "infotainment," or the streaming of preselected programming and playlists. Other car makers are close to adopting subscription services to cover the cost of providing detailed information about internal car operations to new car buyers.
  • More states following the lead of the North Carolina State Lottery and 12 other states in launching a subscription service for the sale of lottery tickets.
  • More commercial airlines following the lead of United Airlines, which now charges $349 annually for an Economy Plus Subscription plan, entitling subscribers to free checked luggage and membership at United Club facilities at airline terminals, as well as other perks.
  • Pharmaceutical companies selling allergy medicines directly to consumers on a monthly basis, with the dosage amount varying by season or severity of symptoms.
  • The cloud will assume an even more pivotal role in the area of recurring revenue as new service brokers emerge to help companies monetize services ranging from providing movies to music to obtaining credit scores.
  • These brokers and other businesses will cause pressure to standardize a dizzying array of pricing methods (451 Group estimates that on Amazon Services alone there are 5,000 different price points for a virtual machine with operating system) and SLA and usage variations. The result? The cloud and the IaaS (Infrastructure as a Service) option will become more accessible and even more strategic.

Dibble noted that forward-thinking enterprises that are using recurring revenue models over the past 12 months included such important innovators as World Wrestling Entertainment (WWE), Issuu and StitchFix.

Indeed, he said one of the biggest "takedowns" so far this year came when WWE announced that it was offering a $10 monthly subscription for viewing its live events on mobile devices.

"Recurring revenue management opens the door to innovation like never before for companies to expand and compete," added Dibble. "The changes that recurring revenue brings will effect a permanent, significant impact on the way business is conducted and how our lives are lived well into 2014 and beyond."

More Stories By Elizabeth White

News Desk compiles and publishes breaking news stories, press releases and latest news articles as they happen.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I 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 the...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of patie...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...