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Tuesday, August 01, 2017

Samsung takes on the IoT service providers

By Nick Flaherty

Samsung has launched a service to allow developers to make money from its ARTIK IoT modules, directly challenging the IoT network service providers.

The ARTIK Cloud Monetization, a new service to monetize the data shared by IoT devices and applications and kick-start new business models, such as Hardware as a Service.

With the rising adoption of Internet of Things (IoT) devices, device manufacturers see their world shifting from a “Sell and Forget” operating model to a “Connect and Improve” model.

This shift creates new challenges for device manufacturers, including how to access the technical expertise required to quickly bring connected products to market (which is why the embedded blog is so important) as well as finding a scalable way to build an ecosystem of compatible third-party devices and apps and to provide security and data privacy.

As device manufacturers begin deploying more IoT devices for longer periods of time, Samsung points to the challenge of financial sustainability. Free apps can help drive initial adoption, but free apps come at a cost: IoT data exchanged through a cloud infrastructure isn’t free.

Today, most device manufacturers absorb these initial data costs, and some factor them into the up-front hardware price of the product. However, this model isn’t sustainable. Consumption patterns vary widely across users, and there’s a ceiling to how much markup you can add to a product without hurting sales.

This problem becomes even worse when IoT devices exchange data with third-party apps and services (via web APIs). While some of these third-party engagements will operate under custom-negotiated contracts, large-scale adoption will force device manufacturers to find models that allow them to recoup data costs and to monetize device use in a scalable and repeatable way.

ARTIK Cloud Monetization is an open data broker model that enables device manufacturers and service providers to tap into an open IoT ecosystem and create service plans that generate revenue directly from the interactions of devices and services.

This provides an easy way to make IoT devices interoperable with third-party devices and applications, and to monetize data use, as well as providings a complete brokering, metering, and payments system: It brokers and meters user interactions against the defined plan; shares revenue back with the device OEM; and initiates and manages upgrades and payments.
The programme supports devices that are natively connected to ARTIK Cloud as well as those connecting via a cloud connector (which means that any data provider can use the service) and keeps device manufacturers in control of the data they share, the thresholds on free and paid use, and the charges for the paid use.
One of the advantages for developers is that it s integrated into the ARTIK Cloud Developer Portal. This will allow device manufacturers to offer pricing tailored to different consumption patterns. For example, they can offer some end users a higher up-front fee with a more generous free-use tier, or they can charge a smaller up-front hardware fee with a higher ongoing usage charge. These models can be implemented for first-party or third-party apps in multiple vertical markets.

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