MANY OPTIONS TO MONETIZE AND MANAGE IOE SERVICES

Dec 21
IoE Verticals

MANY OPTIONS TO MONETIZE AND MANAGE IOE SERVICES

The Internet of Everything (IoE) is becoming a hot topic for service providers and our recent TM Forum webinar on monetizing and managing IoE services provided quite a lively debate. IoE extends the Internet of Things (IoT) to include people, processes and the data that flows between them. Market verticals include everything from smart cities to connected cars and digital health. The webinar, hosted by Craig Bachmann, Senior Director of the Open Digital program, TM Forum, summarized the results from a recent survey and research report that we carried out on behalf of the Forum entitled The Roadmap of Options: Monetizing and Managing IoE services. The report was sponsored by Huawei, Intracom Telecom and Stream Technologies.

As the wide range of IoE applications continues to grow, communications service providers are seeing a whole new set of options opening up for them to deliver IoE related services and it’s a huge market. Market analysts Machina Research are predicting the total number of connected devices will reach 27 billion by 2025 and total IoT revenues will be around $3 Trillion! But monetizing and managing IoE services is going to be both crucial and challenging for communications service providers who will need to transform themselves into digital service providers while adopting new ways of delivering services.

The survey was conducted by emailing a questionnaire to selected Forum members and asking them a series of questions including what IoE services they were offering or planning to offer, what business and partnership challenges they faced and which emerging technologies they considered were most important.

The survey results were quite revealing and showed that most service provider respondents were targeting smart energy, digital health and connected vehicle right now, whereas connected home, manufacturing and smart city were strong contenders over the next two years. Manufacturing becomes even more significant in the next five years.

Various approaches for monetizing services were discussed which included billing and charging, security and platform as a service (PaaS) which is becoming a very attractive approach, especially for multi-sided platform models. Identifying the true value of IoE services was seen as key by several service providers interviewed for the research. We also looked at various types of charging models such as fixed fee, transactional and revenue sharing which could all be applied to IoE services.

IoE business challenges

When it came to the biggest business challenges, 50% of survey respondents indicated that process and operational changes came top of the list but changes to culture and mind-set also ranked highly. Security and privacy came third place at 36% but ranked first in the list of operational challenges in the survey. This also reflects the concerns which were recently highlighted last month when hackers managed to bring down a number of well-known web sites with distributed denial of service (DDoS) attacks launched from home security devices such as CCTV cameras and even baby monitors. Much more work needs to be done to improve IoE security at all levels.

Service providers also told us which emerging technologies were going to have the most impact on IoE services. These included 5G, network virtualization and low power networks. Big data and analytics ranked at number five and we are expecting analytics to be playing an increasing role in IoE service management in the near future particularly in customer experience management and security.

The report concludes with a brief look at various strategies for delivering IoE services derived from the research. You can view the webinar and download the report summary from the following links:-

Webinar: https://www.tmforum.org/events/managing-internet-everything-services-end-end/

Report summary: https://www.tmforum.org/resources/research-and-analysis/roadmap-options-monetizing-managing-ioe-services/

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