By Martin Bakal
The 2014 Gartner Hype Cycle for Emerging Technologies was released this month and the Internet of Things (IoT) took over the top spot in terms of the height of expectations. Not surprising many of its enabling technologies like “Wearable User Interfaces” and “Autonomous Vehicles” are in the same area. The issue IoT now faces is how long it will spend in the “Trough of Disillusionment” before coming out the other side and starting to meet expectations. The trough is where many technologies languish for a long time without becoming profitable. This can be for a variety of reasons from technical to business oriented but it essentially means consumers, people or enterprises, haven’t bought products based on the technology yet.
In the case of IoT, much of the hype comes from potential consumer devices, like wearables, but the products that have a better chance of bringing #IoT through the trough are the enterprise use cases, like building automation, because often times each use case is worth millions of dollars. The question is how can that revenue be realized as IoT value? One way is by updating business models to monetize software not just hardware. Randy Littleson explains this in a recent blog: How the Internet of Things (#IoT) Changes Business Models. Feel free also to read a recent Gartner report about how Licensing and Entitlement Management are keys to monetizing IoT.