The expectation of IoT subscription revenue streams and why they may have failed
Things do not always turn out the way you expect – this was certainly the case when several vendors and tech investors pronounced that subscription revenue streams would become big moneymaker in the industry of the Internet of Things.
Fast forward to today, where we now know this is not the case. The promise of subscription predictions was overruled by the customer’s expectation of the free cloud services, which forced the vendors to rethink their value proposition.
The edge solution
As a result of this, new ways to compensate for the lack of subscription-based revenue have arisen. An example is “edge computing”, where data is stored directly on the device, such as a camera – which is much cheaper than if stored in the cloud. This could be via a peer-to-peer connection that ensures privacy while cutting out the cloud-hosting middleman and providing high-speed performance.