Service providers in the Internet of Things (IoT) space could collectively generate as much as US$1.3 trillion over the next 10 years by employing more complex charging models, according to new research published this week.
The prediction came from IoT specialist consultancy Machina Research, whose forecasts show that a sizeable – and growing – proportion of the revenue associated with IoT requires more sophisticated monetisation.
The diversity of IoT applications means that multi-sided, sponsored and ad-funded business models, usage-based billing for non-traditional services, multi-tenancy billing, real-time adjustable pricing, and many other mechanisms will all play a part in the future of the industry, the analyst firm said in a paper published this week in partnership with billing software provider Redknee.
"In many ways the beauty of the IoT is the way in which it permits and encourages new emerging business models," said Machina Research CEO Matt Hatton.
"To be successful in IoT everyone will need to understand how to monetise this new massive opportunity," he added.
The platforms service providers use in the IoT space must be scalable, open, real-time, flexible, transparent and secure, agile, and built with the diverse requirements of the IoT in mind, Machina Research said.
