The advancement of the Internet of Things (IoT) will trigger the emergence of new software vendors. According to Gartner, this tends to occur because companies need solutions and licensing rights management (LEM, which stands for Licensing and Entitlement Management) that enables secure, differentiate and monetize offers oriented concept.
“To move the value of the device hardware product for the software that operates on the device, and applying an appropriate licensing strategy, products manufacturing planners can maximize the potential of revenue values,” he says consultancy.
The institute estimates that by 2020, fail to hire a LEM system results in a 20% drop in revenue potential generated by software to device manufacturers connected to the IoT.
Gartner notes that many manufacturers still use a traditional mindset to their products, and do not consider the additional revenue opportunities systems and embedded applications controlled by licensing.
“Most of these companies are new suppliers software, particularly device manufacturers and original equipment, which can now monetize their software through the IoT, “he said.
The Consutoria points out that, to monetize the systems on their devices, providers may increase and propel revenue streams, creating billions of dollars in additional value.
It is estimated that there are over 25 billion “things” connected around the world. Thus, if manufacturers could collect an average of $ 5 per software each unit installed, it would generate additional revenue estimated at $ 130 billion.
In the near future, the IoT will lead business transformation for several manufacturers, allowing use of the software on the device to differentiate products and solution offerings. As suppliers of the traditional software industry, device manufacturers need to protect and monetize intellectual property contained in the application.
When control product functionality, features and capabilities of Internet-connected devices through flexible licensing, manufacturers can better compete in new and existing markets. In addition, the software controlled configuration provides more flexibility for manufacturers regionalize their offerings and develop niche solutions for specific markets without making stock-keeping units separate product.
Gartner research indicates that most device manufacturers not have licensing systems and commercial rights management to monetize the IoT. “This is because, historically, they had lot of intellectual property of software to protect. According to the consultancy, initially they will try to build LEM capabilities internally, since they already have the technical background and engineering who developed the hardware, “he explains.
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