Monetizing the Internet of Things

How would you like if your refrigerator could tell you if it needed to be restocked? Better still, if it could inform your preferred vendor to restock it automatically?

What if your video surveillance system could automatically inform you each day that it was functioning properly? Better still, in case of any technical breakdown, what if the service provider could directly fix the issue without need for your intervention? Well, sounds like science fiction? Not anymore. Welcome to the Internet of Things!

The term “Internet of Things” was initially used by Kevin Ashton in 1999. To quote from his article “If we had computers that knew everything there was to know about things – using data they gathered without any help from us – we would be able to track and count everything, and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling, and whether they were fresh or past their best”. The Internet of Things (IoT) is a computing concept that describes a future where everyday physical objects will be connected to the Internet and will be able to identify themselves to other devices.

In essence, it is the integration of the physical and virtual world. IoT is significant, as when a physical object is represented in the virtual world it can be connected to other virtually represented objects and data. This means that the object can now be monitored and managed based on preset parameters.

The benefits of this ability to monitor and manage objects by accessing their virtual avatars are staggering. For example, in a video surveillance system, if we could get information that a camera has been tampered with, corrective action can be initiated. On a much advanced level, using sensors, we would be able to monitor streets for water logging and automatically guide motorist to alternate routes.

IoT has been made possible by the confluence of several technologies at several points in the information chain. At the “Things” level, use of sensors like RFID, pressure etc. enables devices to send information about their status in digital format. IP v6 provides for unique addresses for billions of devices. Ubiquitous Internet, wired or wireless helps transfer this information to computers located on the Internet facilitated by Cloud Computing. Data analytics applications using Big Data can then use this data to either present insights or even directly trigger actions as per predefined processes.

However, one of the critical success factors for the IoT to work is that it needs to be commercially viable. A business model where customers can pay for services delivered by services providers. Unless service providers find a way to earn revenue out of IoT services, they will not be quickly implemented. For example, unless refrigerator companies build a supplier ecosystem, where customers can select vendors to restock their refrigerators, getting data from a refrigerator into the IoT has few benefits. However companies around the world are devising ways to monetize the IoT. At the recently held Consumer Electronics Show (CES) in Las Vegas, a large number of white good companies demonstrated their IoT capabilities.

In India too, companies are leveraging IoT. One such company is Zicom SaaS, a pioneering Security as a Service provider. Using open technologies like mobile internet, inbuilt notification abilities of Digital Video Recorders (DVRs), they offer a subscription service to customers. As part of this service, Zicom SaaS monitors and manages their video surveillance system for technical issues, proactively. Over thousand housing societies have embraced the technology proving that the IoT works.

If you think that the Internet has changed your life, think again. The IoT is about to change it all over again!

(Full disclosure: Zicom SaaS is a client of Confidis. Confidis has assisted in developing the business model and technical platform for delivering its video surveillance services)

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