Java IoT Authors: Ruxit Blog, Yeshim Deniz, Liz McMillan, TJ Randall, Pat Romanski

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
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Cloud based infrastructure deployment is becoming more and more appealing to customers, from Fortune 500 companies to SMEs due to its pay-as-you-go model. Enterprise storage vendors are able to reach out to these customers by integrating in cloud based deployments; this needs adaptability and interoperability of the products confirming to cloud standards such as OpenStack, CloudStack, or Azure. As compared to off the shelf commodity storage, enterprise storages by its reliability, high-availabil...
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Donna Yasay, President of HomeGrid Forum, today discussed with a panel of technology peers how certification programs are at the forefront of interoperability, and the answer for vendors looking to keep up with today's growing industry for smart home innovation. "To ensure multi-vendor interoperability, accredited industry certification programs should be used for every product to provide credibility and quality assurance for retail and carrier based customers looking to add ever increasing num...
In the next forty months – just over three years – businesses will undergo extraordinary changes. The exponential growth of digitization and machine learning will see a step function change in how businesses create value, satisfy customers, and outperform their competition. In the next forty months companies will take the actions that will see them get to the next level of the game called Capitalism. Or they won’t – game over. The winners of today and tomorrow think differently, follow different...
“Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. CloudBerry Backup is a leading cross-platform cloud backup and disaster recovery solution integrated with major public cloud services, such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
SYS-CON Events announced today that SoftNet Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. SoftNet Solutions specializes in Enterprise Solutions for Hadoop and Big Data. It offers customers the most open, robust, and value-conscious portfolio of solutions, services, and tools for the shortest route to success with Big Data. The unique differentiator is the ability to architect and ...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
A completely new computing platform is on the horizon. They’re called Microservers by some, ARM Servers by others, and sometimes even ARM-based Servers. No matter what you call them, Microservers will have a huge impact on the data center and on server computing in general. Although few people are familiar with Microservers today, their impact will be felt very soon. This is a new category of computing platform that is available today and is predicted to have triple-digit growth rates for some ...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here