IoT as-a-Service in Industry Verticals: Will Vendors and Customers Benefit from This Shift in the IoT Ecosystem?

Subscribe To Read This Insight

By Abdullah Haider | 4Q 2021 | IN-6390

 

What "as-a-service" Means for IoT

NEWS


IoT-as-a-service means a company must be able to provide products across the entire IoT (Internet of Things) value chain as opposed to specializing in just a single point of the value chain. The “as-a-service” business proposition must synergize with the technology proposition so that the commercial enterprises who are customers of IoT-as-a-service stand to benefit. Firstly, the business proposition is that IoT customers face less CAPEX (capital expenditure), i.e., less up-front costs when investing in IT (information technology), and less costs in OT (operational technology) infrastructure. Examples of OT include sensors for detecting faults in factory machinery, as well as sensors for generators and turbines in the energy sector. Customers pay as they scale their operations, which translates into more OPEX (operating expenditure) as the business grows. Therefore, enterprise customers benefit from IoT-as-a-service since it converts fixed costs for IT and OT investments into variable costs. The technology proposition of “as-a-service” is that supplier…

You must be a subscriber to view this ABI Insight.
To find out more about subscribing contact a representative about purchasing options.

Services