IoT Devices and Recurring Revenue
Forrester Research notes that much of the early excitement surrounding IoT, particularly in business, has focused on efficiency and cost savings. New diagnostics will help improve utilization and maintenance of a host of expensive business assets.
But in this age a focus only on cost savings is misplaced. The next stage of IoT will be about about creating possibilities – products will become catalysts for entirely new ecosystems of cloud-based services and markets. Among several other trends, when they look forward to 2015 Forrester predicts that:
- IoT customer success stories will thankfully displace the "billions of devices" hype. Enough already with the Carl Sagan–like references to billions and billions of devices — we'll finally see a focus on customer success stories about improved machine uptime, better customer experience, and new as-a-service business models.
- IoT software platforms will become the rage, displacing the hardware. Much of the early hype has been about cool new sensors, high-tech wearables, and new wireless technologies. In 2015, we'll see increased focus on the software and especially the cloud services to make all these sensors connect, upload data, and drive analytics that generate insights and enable business improvements.