Everyoneâs talking about the Internet of Things recently, but one topic I donât see addressed much is the difference between Service-Focused IoT and Device-Focused IoT. The concept of âThe Internet of Thingsâ has always been about vast, heterogeneous networks of small, limited-purpose devices. However, there is a growing need to further differentiate IoT into the two delivery models.
In my previous blog, I discussed how hardware manufacturers are able to leverage IoT and recurring revenue to further lock in customers, increase lifetime value, and raise exit barriers around their services. However, these examples all require the service provider to also be some sort of hardware manufacturer. Nest (the popular smart thermostat company) is fantastic, but you must buy a Nest-branded device in order to leverage Nest cloud services. Canary (a home security camera) is great, but you must buy Canary cameras and subscribe to Canary cloud services in order to fully take advantage. If the manufacturer goes down (or worse, out of business), the devices become useless.