Samsung Electronics has launched a new service, which it claims will enable IoT device manufacturers and service providers to monetize IoT data.
Dubbed Artik Cloud Monetization for Internet of Things, this open data exchange platform has been launched as part of the company’s strategy to grow the data economy. Supposedly, it offers a monetization model that allows manufacturers to create service plans that generate revenue directly from the interactions of devices and services.
Samsung says that in launching this service it is addressing the problem of how the hardware manufactures tap into the new revenue streams and business models, such as the so-called hardware as a service, that have been opened up by IoT.
IoT shifts business models
As IoT shifts a manufacturer’s operating model from selling hardware to selling hardware products connected to digital applications, the company suggests that manufacturers have trouble recouping the data costs associated with free applications, and supporting an ecosystem of third-party devices, apps and services.
At present, manufacturers either absorb the data costs of operating devices in the field, or factor in anticipated data costs to the retail price of devices, Samsung asserts. Allegedly, Artik Cloud Monetization addresses this problem by providing a complete brokering, metering and payments system – effectively an online IoT marketplace where device manufacturers can interact with third parties to ensure their products are interoperable. They can also work together to formulate service plans to meet their business needs.
Samsung opens door to monetization
Commenting on the benefits of the service, Dilip Sarangan, global research director, IoT & digital transformation at Frost & Sullivan, said “The problem with IoT is that many hardware companies are selling products without a clear view on sustainable business models. There’s a lot of pressure now to monetize data.”
Sarangan added that Artik Cloud “can help hardware developers monetize solutions without necessarily putting in all the effort themselves. This is a huge value proposition, especially on the consumer side, which has an untapped potential, but also on the enterprise side.”
One company already on board with the service is French industrial manufacturer, Legrand. Speaking of the company’s involvement with Samsung, Pete Horton, vice president of market development at Legrand commented that “The new data broker model helps Legrand focus on our core competency of building market leading devices, while also allowing us to benefit from Samsung’s open ecosystem of third-party apps and services. It’s the missing piece to the IoT puzzle.”
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