Gartner offers four usage models for enterprises looking to employ IoT

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Gartner offers four usage models for enterprises to unlock IoT asset value: monitoring the status of the asset to improve utilization, charging for asset use on an incremental basis, using the asset to control the surroundings and providing additional information or services through the asset.

Hung LeHong, vice president and Gartner Fellow, cites the example of a vending machine company that might not initially see the opportunity of IoT by examining a hospital connecting patient-monitoring equipment to the network in order to cut costs on nurses' rounds.

"Any company operating remote devices has opportunities to use this same model. Remote assets that require manual rounds for the purposes of emptying or replenishment, such as recycling bins or vending machines, can benefit from the same approach the hospital took. The underlying commonality is the business case to reduce the costs from doing the rounds by connecting assets to monitor status," LeHong adds.

For IoT device makers, licensing and entitlement management technology is the key to monetize the embedded software IP running on connected intelligent devices.

"IoT transforms all hardware and appliance OEMs into software providers. Licensing and entitlement management technology provides the locking capabilities that enable manufacturers to protect and monetize the embedded software IP running on connected intelligent devices," says Laurie Wurster, research director at Gartner.

"Licensing and entitlement management also enables flexible pricing and packaging, enabling the manufacturer to bundle product features, capabilities and capacities, ensure payment, provide upgrade paths, as well as new revenue streams," Wurster notes.

For more:
- see Gartner's releases on IoT usage models and IoT device monetization

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