|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.
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
Jan. 31, 2015 05:15 PM EST Reads: 2,690
Entuity®, a provider of enterprise-class network management solutions, today announced that it solidifies its position as a market leader through global enterprise customer acquisitions and a refined channel strategy. In 2014, Entuity increased new license revenues in EMEA by over 75 percent, and LATAM by over 125 percent as customers embraced Entuity for its highly automated solution and unified architecture. Entuity’s refined channel strategy focuses on even deeper strategic alignment with ke...
Jan. 31, 2015 05:00 PM EST Reads: 726
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
Jan. 31, 2015 04:15 PM EST Reads: 2,955
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Jan. 31, 2015 03:00 PM EST Reads: 3,839
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.
Jan. 31, 2015 03:00 PM EST Reads: 3,586
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:45 PM EST Reads: 2,589
In this demo at 15th Cloud Expo, John Meza, Product Engineer at Esri, showed how Esri products hook into Hadoop cluster to allow you to do spatial analysis on the spatial data within your cluster, and he demonstrated rendering from a data center with ArcGIS Pro, a new product that has a brand new rendering engine.
Jan. 31, 2015 02:30 PM EST Reads: 1,816
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:30 PM EST Reads: 2,770
"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.
Jan. 31, 2015 02:30 PM EST Reads: 2,740
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jan. 31, 2015 02:15 PM EST Reads: 1,705
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 minin...
Jan. 31, 2015 02:00 PM EST Reads: 3,893
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Jan. 31, 2015 02:00 PM EST Reads: 2,863
Puppet Labs on Wednesday released the DevOps Salary Report, based on salary data gathered from Puppet Labs' industry-recognized State of DevOps Report. The data confirms that market demand for DevOps skills is growing, and that DevOps engineers are among the highest paid IT practitioners today. That's because IT organizations today are grappling with how to be more agile and responsive to the business, while maintaining the stability of their infrastructure. DevOps practices, such as continuous ...
Jan. 31, 2015 02:00 PM EST Reads: 1,512
CloudBees, Inc., has announced a $23.5 million financing round, led by longtime CloudBees investor Lightspeed Venture Partners. Existing investors Matrix Partners, Verizon Ventures and Blue Cloud Ventures also participated in the round. The latest funding announcement follows earlier rounds of $4 million, $10.5 million and $10.8 million, bringing the total investment in CloudBees to just under $50 million since the company’s inception in 2010. Previous venture investment rounds were led by Ma...
Jan. 31, 2015 02:00 PM EST Reads: 934
“We are strong believers in the DevOps movement and our staff has been doing DevOps for large enterprise environments for a number of years. The solution that we build is intended to allow DevOps teams to do security at the speed of DevOps," explained Justin Lundy, Founder & CTO of Evident.io, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:00 PM EST Reads: 2,301
The cloud is becoming the de-facto way for enterprises to leverage common infrastructure while innovating and one of the biggest obstacles facing public cloud computing is security. In his session at 15th Cloud Expo, Jeff Aliber, a global marketing executive at Verizon, discussed how the best place for web security is in the cloud. Benefits include: Functions as the first layer of defense Easy operation –CNAME change Implement an integrated solution Best architecture for addressing network-l...
Jan. 31, 2015 01:30 PM EST Reads: 2,324
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...
Jan. 31, 2015 01:15 PM EST Reads: 2,708
In this scenarios approach Joe Thykattil, Technology Architect & Sales at TimeWarner / Navisite, presented examples that will allow business-savvy professionals to make informed decisions based on a sound business model. This model covered the technology options in detail as well as a financial analysis. The TCO (Total Cost of Ownership) and ROI (Return on Investment) demonstrated how to start, develop and formulate a business case that will allow both small and large scale projects to achieve...
Jan. 31, 2015 01:00 PM EST Reads: 2,125
IBM has announced a new strategic technology services agreement with Anthem, Inc., a health benefits company in the U.S. IBM has been selected to provide operational services for Anthem's mainframe and data center server and storage infrastructure for the next five years. Among the benefits of the relationship, Anthem has the ability to leverage IBM Cloud solutions that will help increase the ease, availability and speed of adding infrastructure to support new business requirements.
Jan. 31, 2015 01:00 PM EST Reads: 1,571
Today, IT is not just a cost center. IT is an enabler and driver of business. With the emergence of the hybrid cloud paradigm, IT now has increasingly more capabilities to create new strategic opportunities for a business. Hybrid cloud allows an organization to utilize multi-tenant public clouds, dedicated private clouds, bare metal hosting, and the associated support and services for the right use cases through an on-demand, XaaS model. This model of IT creates tremendous opportunities for busi...
Jan. 31, 2015 01:00 PM EST Reads: 1,672