|By Esmeralda Swartz||
|October 27, 2014 02:00 PM EDT||
The Internet of Things Is Not Just Another Subscription Service | Part 1
Companies that until recently had never heard of the Internet of things (IoT) are now excited to find that they've been IoT players all along. Businesses involved in home automation, security services, vehicle tracking and health monitoring to name a few have been around for a while. They all provide services that involve devices (now known as "things") that communicate with each other, with their owners, and sometimes with control centers. Increasingly that channel of communication is via the Internet. Therefore, they all see themselves as IoT service providers now, and rightly so. But they are also specialists in the actual services they provide, and the fact that we have an increasingly popular expression to describe the infrastructure they use does not diminish the need for that expertise. While IoT brings additional challenges and opportunities, it doesn't remove the need to retain business methods and strategies that remain appropriate for the specialist area, even in a rapidly changing world.
At the same time, companies that have built and sold business support systems for years - billing, order management and CRM - are kind of excited to find that they are also in the IoT business. Their systems can work even in this new world of IoT, and they are proud to publish the fact, inviting the world to participate in seminars, webinars, etc., highlighting this marvel. These billing vendors are being rather vocal and shouting loudly from the rooftops that the Internet of Things economy is happily meeting the world of subscriptions, so jump on board the bandwagon. We shouldn't be surprised. After all, a billing system that is optimized generically for subscription services can bill for recurring revenue services such as subscriptions in an IoT environment too, provided, of course, that the service provider accepts the premise that IoT is just another subscription service.
An Overly Simplistic View of the Internet of Things
There is a view that with IoT becoming a reality, it's rather simple. Politicians and commentators are fond of telling us that IoT means a new exciting future in which the fridge decides when to order more food. That example has stood the test of time: it has been with us since the closing years of the 20th century. In the movie The 6th Day, released in 2000, Arnold Schwarzenegger had a smart Internet-connected fridge (which might be the most memorable thing about that movie). Internet-connected fridges were sold in 2002, but without much success, and just last week a British politician regurgitated the cliché. Maybe he'd just seen the movie.
Many descriptions of mainstream IoT services tend to emphasize sensors and monitoring, with a degree of autonomous actions (alarms for example) to help people out, but mostly these services feed information into data centers for storage and analysis. This is where concepts such as home automation, energy management, health monitoring, security monitoring and vehicle tracking all started. But already we can see the emergence of smarter and more sophisticated systems, such as those with the ability to identify a need for medication, and trigger an Internet-connected implant to deliver a dose. Systems don't just notice an intruder and raise an alarm, they also can lock paths of exit and attempt facial recognition of intruders. IoT services can track vehicle movements, assess anomalous behavior and call for help when needed. All of this happens in near-real time. It isn't directly controlled by humans, although humans set the rules of behavior. It is not driven directly by data analysis, but data analysis contributes to creating the semi-persistent rules for appropriate actions.
What I am describing here are "agents": the devices and systems that make rules-driven decisions and enact transactions on behalf of the device's owner. Agent systems have been with us for a long time, even pre-Internet. The least-cost routing algorithms that telecom carriers and some large enterprises use for determining the routing of voice telephony calls are agents. The automated trading systems now commonly used to supplement humans in the stock market are also agents. The automatic assignment and configuration of network capacity and network functionality in emerging programs such as software-defined networks (SDN) and network functions virtualization (NFV) will, in effect, be conducted by agents working on behalf of carriers and infrastructure owners. Agents are becoming an essential part of the IoT nervous system, and any business that is aiming to make money from IoT needs to understand that.
Individuals and businesses will employ agents that interact with cloud orchestration systems to continually optimize the portfolio of services consumed by their human owners, based on owner-defined criteria of cost, functionality and performance. Some agents will be smart enough to subcontract some of the load to other, more specialized agents. The agents will be fed data by sensors and monitors, will receive analysis from aggregation centers to inform decisions, and will give instructions for action to other devices.
With agents in the system, we can see that the simple view of sensors monitoring and actuators performing chores, with a data center acting as broker, is just too simple. Agents will enable and manage complex processes, decision trees and relationships. Agents will bring to the wider world many of the management and control concepts that have been tried and tested within the walled gardens of factories, hospitals, power plants and data centers. Agents could even provide citizens with cross-checked and validated data about the world that will help them understand whether politicians are repeating authenticated facts or are just making them up.
Burgeoning sophistication can bring lots of benefits, provided we don't lose sight of what is really going on. But humans do like to over-simplify, even as the world naturally evolves into something more complicated.
Why One-Trick Billing Systems Don't Cut It with IoT
That brings us back to billing systems that need to monetize the IoT. There are lots of billing systems out there, and many of them are rather simple. These simple systems support only a narrow range of products or services, or they support only one type of pricing or charging model. These are one-trick billing systems, and they are good for one-trick service providers that don't plan to be anything else. Agents will certainly drive the generation of new and more nuanced business models as the concept of a service itself becomes more amorphous. IoT will inevitably bring a need for more, not less, sophistication and complexity, and we need systems, including billing systems, that can handle the complexity challenge.
I will share more thoughts on one-trick billing systems in my next blog, but in the meantime, read what more about the Internet of Things.
SYS-CON Events announced today that T-Mobile will exhibit at 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. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 26, 2017 11:00 AM EDT Reads: 2,183
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Mar. 26, 2017 10:45 AM EDT Reads: 608
SYS-CON Events announced today that Infranics will exhibit at 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. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Mar. 26, 2017 10:15 AM EDT Reads: 3,002
SYS-CON Events announced today that SD Times | BZ Media has been named “Media 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. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
Mar. 26, 2017 09:30 AM EDT Reads: 4,292
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze 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. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 26, 2017 09:15 AM EDT Reads: 1,953
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
Mar. 26, 2017 09:00 AM EDT Reads: 3,878
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
Mar. 26, 2017 08:15 AM EDT Reads: 2,992
SYS-CON Events announced today that HTBase will exhibit at 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. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 26, 2017 08:15 AM EDT Reads: 2,888
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 26, 2017 08:00 AM EDT Reads: 4,175
SYS-CON Events announced today that IoT Now has been named “Media 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. IoT Now explores the evolving opportunities and challenges facing CSPs, and it passes on some lessons learned from those who have taken the first steps in next-gen IoT services.
Mar. 26, 2017 03:30 AM EDT Reads: 3,880
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place 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. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
Mar. 26, 2017 01:45 AM EDT Reads: 3,771
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Mar. 26, 2017 12:30 AM EDT Reads: 1,953
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
Mar. 26, 2017 12:15 AM EDT Reads: 798
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 26, 2017 12:00 AM EDT Reads: 1,779
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Mar. 26, 2017 12:00 AM EDT Reads: 4,192
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
Mar. 25, 2017 08:45 PM EDT Reads: 6,079
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 25, 2017 08:45 PM EDT Reads: 2,851
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Mar. 25, 2017 06:15 PM EDT Reads: 2,609
SYS-CON Events announced today that Ocean9will exhibit at 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. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Mar. 25, 2017 05:15 PM EDT Reads: 2,013
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Mar. 25, 2017 01:15 PM EDT Reads: 2,090