Investments continue apace in the Internet of Things (IoT), but how easy is it to make money from this phenomenon? This week saw Ericsson open an IoT Accelerator, which is a suite of software and services designed to help IoT companies connect with each other and monetize their solutions. Services such as this are part of an ecosystem designed to grow the IoT, but companies launching connected products need to think carefully about how they operate in the cloud. The obvious way is to simply sell hardware, such as connected thermostats and mobile door locks. The smarter way is to create recurring services that can use the hardware devices to keep customers paying a regular fee. Moving beyond hardware This strategy can create high-margin services, more predictable revenue streams, and better customer relationships because providers of recurring services can ‘touch’ customers more regularly than those that only hear from buyers where hardwar...
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