Samsung Electronics has launched a new data monetization solution for IoT manufacturers via its Artik Cloud service.
“Samsung Artik Cloud Monetization for the Internet of Things” is a new service that promises to monetize the data shared by IoT devices and enable an IoT data economy. The service enables device manufacturers and service providers to tap into an open ecosystem and create service plans that generate revenue directly from the interactions of devices and services. It also enables new business models such as hardware as a service.
A primary challenge for IoT device manufacturers is that their operating model is shifting from selling hardware to selling hardware products connected to digital applications. The problem is they often have trouble recouping data costs associated with free applications and supporting an ecosystem of third-party devices, apps and services. Manufacturers have to either absorb the data costs of operating devices in the field, or factor in anticipated data costs to the retail price of devices.
“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,” said Dilip Sarangan, global research director of IoT and digital transformation at Frost & Sullivan.
According to Samsung, Artik Cloud Monetization addresses this problem by providing a complete brokering, metering and payments system. It gives device manufacturers an easy way to make their devices interoperable with third-party devices and applications, and monetize data useage. With the Artik Cloud developer portal, device manufacturers have the flexibility to define service plans that meet their business needs. Artik Cloud brokers and meters user interactions against the defined plan, and manages upgrades, payments and revenue share back to the device OEM.
Frost & Sullivan’s Sarangan, said this is “a huge value proposition, especially on the consumer side, which has an untapped potential, but also on the enterprise side.”
“Like the mobile phone industry, IoT will be driven by open systems, interoperability and support from innovative applications,” James Stansberry, senior vice president and global head of Artik at Samsung.