The Internet of Things, or IoT for short, is the new way to establish and remain connected over the Internet. IoT connects people, objects and anything with a unique identifier over a network, transferring data seamlessly without human-to-human or human-to-computer interaction. Things, in IoT, refer to anything that can be given an IP address and is able to transfer information over a network. Organizations must find ways to license IoT in order to manage and monetize it.
Manufacturers must protect the software by licensing and through management technology in order to maintain the value of the product. As discussed in a new Gartner report, a 2013 study conducted by Microsoft found that upwards of $114 billion worth of software is either intentionally or accidentally counterfeited each year. The importance of software licensing for providers is to help customers stay in compliance and to prevent revenue loss through unsanctioned use of their devices. Other findings from Gartner’s report include: Smart devices enables manufacturers to use the technology to offer solutions with distinct, higher value to consumers and business partners Licensing and entitlement management is necessary to regulate proficiency and competency of device hardware and applications, and provides a chance to capitalize on the software.
Software licensing and management rights grant flexible pricing options and distribution models that complement customer experience in order to generate a continuous revenue stream past the point of sale From a marketing perspective, the Internet of Things will combine every aspect of our life, home, car, and phone so companies can more accurately target their audience. With the amount of information IoT will collect and make available to brands, marketers must make the stories they tell consistent across all platforms.
Once campaigns are executed, it will also be critical for brands and marketers to measure their success in order to report accurate results and make adjustments for future campaign strategies
Gartner makes some recommendations to help accommodate IoT into the business model: Increase device intelligence by supplementing software with the associated licensing Identify a wide-ranging management solution to support both online and offline licensing and entitlement life cycle in order to properly license the software and effectively protect IP Leverage the broader experience of commercial solutions to accomplish faster time to promote licensing and entitlement management.
How is your brand leveraging and capitalizing the Internet of Things? To see how IoT can impact marketing, schedule time to connect with a Merit Mile brand strategist today.