Embedded technology is everywhere, finding its way into wearables, biotech and healthcare, autonomous vehicles, and the connected home. To see the IoT in action, one should look no further than the nearest smartphone or tablet. These intelligent devices are packed full of sensors that gather data on their internal and external state, informing of certain features and functionality.
For instance, one sensor might monitor the health of the battery in real time while another adjusts the screen’s brightness to the amount of ambient light. This level of self-awareness in a device not only enhances the user experience, it also provides valuable usage insight for software and device manufacturers wanting to hone their offering, says Jamie Longmuir, regional director, software monetisation, Gemalto
Due to the rapid rollout of high speed networks and low cost sensors, research firm IDC expects the IoT to be comprised of an estimated 28.1 billion devices by 2020. We are already aware that the software embedded in intelligent devices, as well as the data shared between those devices, is becoming an increasingly valuable commodity. However, while technologists across the board are seeing the inherent benefits in developing innovative new products and services for the IoT, relatively little is known about the actual money-making aspect. Along with the need to protect intellectual property (IP) against hackers – a particular concern in cloud-connected environments – software monetisation is the biggest challenge facing players in the IoT space.
The key is in the data
IoT devices are capable of delivering unprecedented levels of insight to manufacturers. Data generated by small, low-cost sensors that live inside the hardware inform them about which features customers are actively using and which are less popular, so they know where to invest their R&D efforts.
Sensor data is also incredibly valuable in helping manufacturers optimise the “health” of their devices. Predictive maintenance, as it is known, allows them to anticipate and proactively deal with technical issues before they become a hindrance, keeping maintenance costs low and improving the user experience. Moreover, it enables them to tap into new markets by offering a wide range of consumption-based pricing models, such as pre-pay and post-pay, to suit every budget and user requirement. In this way, if a hospital is unable to afford the £2 million price tag of a state-of-the-art 3 Tesla MRI machine, it might choose to lease it on a pay-per-use basis. This is a win-win for all concerned, as the manufacturer is guaranteed a recurring cash flow that allows for better budgeting, and the customer is happy that they’re getting the best value for money.
Streamlining the back office
If a device or software manufacturer is looking to become a successful player in the IoT, a good place to start is the back office. Automating their license delivery and enforcement methods enables manufacturers to manage multiple disparate licenses on a single, unified platform. In turn, remote management allows them to enable certain hardware features and generic software upgrades in the field, ensuring that only paying customers are enjoying the upgraded features and no one is getting a free lunch.
Additionally, predictive maintenance makes it easy for manufacturers to keep an eye on the health of their devices and know the optimal time to carry out maintenance. Whether that involves replacing a worn-out filter or bulb, or something more complex, anticipating technical issues before they arise can save time and money, and actually extend the life of their equipment. What’s more, if they’re looking for a way to cut down on support calls, a self-service web portal allows customers to purchase or renew subscriptions, without the need for human intervention.
Covering the security bases
Software monetisation is about more than just maximising revenue; it is also about protecting manufacturers’ most valuable assets from IP theft – a threat that costs businesses worldwide hundreds of billions of pounds each year. The moment software is out in the open for others to use, it is susceptible to theft and piracy. While legal teams can protect patents and trademarks, filing the right paperwork will not protect devices or software from the threat of tampering, reverse engineering and licensing infringement.
Using advanced encryption techniques, software monetisation tools fortify software code, keeping hackers and freeloaders at bay. This ensures that manufacturers’ IP and trade secrets do not fall into the wrong hands and protects their competitive advantage. As the saying goes, prevention is better than a cure.
Just as early prospectors wouldn’t show up to a gold rush without the proper mining equipment, software and device manufacturers must equip their businesses with a proper software monetisation solution that’s capable of extracting the gold in the IoT. Those who do, will have the ability to meet the changing needs of the market, ensuring profitability now and in the future.
The author of this blog Jamie Longmuir, regional director, software monetisation, Gemalto
