29 September 2014
Leveling the Monetization Playing Field on the Internet of Things
By Jack M. Germain
“The Internet of Things is expected to be a US$7 trillion market in six years. However, many small to medium-sized IT firms that do not have the capital to acquire the Nests of the world are left to wonder how they can benefit from this lucrative trend,” writes E-Commerce Times, and speaks with Artyom Astafurov of DataArt, about IoT monetizing approaches that would work for SMBs.
“A line of understanding separates traditional e-commerce from the Internet of Things, cautioned Artyom Astafurov, chief innovation officer and senior vice president at DataArt. One is not the same as the other.
"IoT involves gathering data and tracking maintenance on equipment rather than providing a platform for marketing and sales," he told LinuxInsider. IoT data is used for predicting repairs and such."
The Internet of Things is complex. When companies build an IoT solution, they have to deal with many technologies at the same time. That means they have to reuse a lot of open source technologies. Many of these things were designed to lower the entry barrier into this industry, Astafurov pointed out.
"One of the must-do things for small companies venturing into monetizing IoT data is to use the open source tools already available," he said.
Another must-do approach is not to pay a large IT staff. Instead, leverage platforms like Amazon or Rackspace, as well as Platform as a Service (PaaS) solutions.
"Employ your IoT cloud stack to help reduce the operational costs. Storing these things in the cloud helps to make them more manageable," suggested Astafurov. Smaller companies should avoid spending time on plumbing and figuring out the messaging and managing of the IoT. They can reuse open source platforms and spend time on product innovations.