Welcome!

@ThingsExpo Authors: Yeshim Deniz, Liz McMillan, Elizabeth White, Pat Romanski, William Schmarzo

Related Topics: @ThingsExpo, Java IoT, Mobile IoT, Linux Containers, @CloudExpo, @BigDataExpo

@ThingsExpo: Blog Post

The 'Internet of Things' Becomes Mainstream | @ThingsExpo [#IoT]

No mention of IoT targeted at the masses would be complete without the clichéd example of the communicating fridge

Internet of Things Becomes Mainstream, What Happens Now? | Part 2

How do you know when a technology has become mainstream? A good clue may be when politicians start talking about it on the campaign trail and with mainstream media. David Cameron, the UK prime minister, was the latest, indicating that the world was now on "fast-forward" with the Internet of Things (IoT) ushering in the new industrial revolution. No mention of IoT targeted at the masses would be complete without the clichéd example of the communicating fridge. While it is easy to get caught up in the hype and over-simplify, the complexity associated with making IoT mainstream will be unlike anything we have seen before it.

In the last Internet of things (IoT) blog, I suggested that in the emerging IoT world, humans will set policies and rules that define desired outcomes, while the execution of minute-by-minute decisions driven by those policies will increasingly be handled by automated agents. In turn those agents, as they evolve in sophistication and functionality, will drive new business models, new ways of generating revenue, and new strategies for pricing and charging.

Today, enterprises are discovering that one-trick billing is not suitable for a complex services world. We all know that a billing system needs to flexibly support, for example, recurring and non-recurring charges, volume discounts, short and long-term commitments, settlements, and (for enterprise billing) bill tracking and assignment across multiple departments and product lines.

Yet here we are today in a world increasingly being made more complicated by a proliferation of online services, by IoT and by a maze of evolving business relationships, and what do we find? Service providers are still being sold one-trick billing systems.

Perhaps there is some deep-rooted psychological need for some people to deny complexity. Over-simplifying, like politicians with their fridges, may be part of the popular culture, but in business, as in engineering, science and medicine, it is important to face up to complexity, understand what is really going on, and build our plans accordingly.

When Internet services emerged, some people predicted that everything was going to be paid for by advertising: a really simple business model. Then the online shopping cart came along and, without diminishing the importance of advertising much, vendors were able to trade online and offer services and products for money in a subscription form: another simple business model supported by one-trick billing systems. While subscription services have always been with us, the Internet enabled providers to offer many new services using the subscription model: software, music, movies, news.

And now we have IoT, and - even better - IoT with smart agents. We will see, naturally enough, that Internet merchant platform players insist that IoT devices and systems can be sold in shopping carts. Subscription billing system vendors will tell us IoT services are perfect for vanilla subscription billing. While others will come along with billing systems that are IoT-specific and assume some kind of a business model that is absolutely the best for IoT.

Yet in this increasingly complex environment, one-trick billing starts to look like a shaky idea. If you only have a merchant platform you can't handle subscriptions. If your billing system only supports subscriptions, forget selling service-related products through your own portal. If your billing system is designed just for IoT-style services, you could find yourself shut out from expanding into other lines of business. You will either have to constrain your business model, buy or license additional systems, or go to third parties for help.

For a new-start company, a one-trick billing system could appear to be a great way of getting into business, especially if it's available as a service with no long-term commitments. But as a company matures and expands its portfolio of services and products, it also expands its perspective on the marketplace. They experiment with more varied and more nuanced business models. They want to try interesting new approaches to pricing and billing to attract and retain customers. At this point, businesses find that they've outgrown their start-up one-trick billing systems. They find, as so many companies have discovered before them, that they cannot form their pricing and billing strategies around the needs and preferences of the market. Instead they must constrain their strategies to conform to the limitations and ways of working defined in their billing system. If you want to evolve your pricing and billing approach, you will have to buy a new system, either to replace or supplement the old system.

An earlier generation has seen this before; it's not a distinctive feature of the Internet. One traditional phone company, a giant, started with one billing system, as everyone does. They grew and refined their approach to the market and added new services. Their original billing system was a one-trick system, so they bought or built some new systems: systems specific to a particular product set; systems specific to a particular pricing strategy; systems to link all the other systems together... After a surprisingly short time, they found they had over a hundred distinct systems in their billing environment, strung together after a fashion, but with fragmented and highly duplicated data. Expensive and dysfunctional. Getting out of that kind of trap is not easy. The company sought help from another corporate giant and bought one more billing system, the system to end all other systems. Five years later they still had over one hundred plus one systems.

If they'd had a billing system able to support the agile needs of the business, they could have spent more time developing and selling services and less time band-aiding their systems environment. I have pointed out in several previous blogs that MetraNet users have a distinct advantage: the system can handle any business model, or any combination of business models, including business models that haven't been invented yet. By contrast, when you buy a one-trick billing system, you are also buying into the one-trick business model supported by that system.

More Stories By Esmeralda Swartz

Esmeralda Swartz is VP, Marketing Enterprise and Cloud, BUSS. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda was CMO of MetraTech, now part of Ericsson. At MetraTech, Esmeralda was responsible for go-to-market strategy and execution for enterprise and SaaS products, product management, business development and partner programs. Prior to MetraTech, Esmeralda was co-founder, Vice President of Marketing and Business Development at Lightwolf Technologies, a big data management startup. She was previously co-founder and Senior Vice President of Marketing and Business Development of Soapstone Networks, a developer of resource and service control software, now part of Extreme Networks.

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
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
SYS-CON Events announced today that Ryobi Systems will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ryobi Systems Co., Ltd., as an information service company, specialized in business support for local governments and medical industry. We are challenging to achive the precision farming with AI. For more information, visit http:...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...