Welcome!

Java Authors: Pat Romanski, Miguel Valdes Faura, Liz McMillan, Trevor Parsons, Elizabeth White

Related Topics: @ThingsExpo, Java, Linux, Virtualization, Cloud Expo, SDN Journal

@ThingsExpo: Blog Post

Internet of Things Is Not Another Subscription Service | @ThingsExpo [#IoT]

There is a view that with IoT becoming a reality, it’s rather simple

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.

More Stories By Esmeralda Swartz

Esmeralda Swartz is CMO of MetraTech, now part of Ericsson. She has spent 15 years as a marketing, product management, and business development technology executive bringing disruptive technologies and companies to market. Esmeralda is responsible for go-to-market strategy and execution, product marketing, 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 OSS software, now part of Extreme Networks (Nasdaq:EXTR). At Avici Systems (Nasdaq:AVCI), Esmeralda was Vice President of Marketing for the networking pioneer from startup through its successful IPO. Early in her career, she was a Director at IDC, where she led the network consulting practice and worked with startup and leading software and hardware companies, and Wall Street clients on product and market strategies. Esmeralda holds a Bachelor of Science with a concentration in Marketing and International Business from Northeastern University.

You can view her other blogs at www.metratech.com/blog.

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 Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
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.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and expertise to guard against those threats. But will that be enough? In the foreseeable future attacks w...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...