Featured Article from Software Monetization

The Internet of Things (IoT) is set to herald in the next age of technology and computing, bringing with it all sorts of advantages and benefits as more devices connect in a myriad of ways. The IoT also poses significant challenges as networks evolve and change out of necessity, in order to handle the influx of traffic.

Networking isn’t the only challenge posed by the IoT though. The emergence of more connected devices poses a risk to hardware companies, particularly in the areas of piracy, theft, misuse and reverse engineering. Gemalto, a company that helps customers transition to the IoT by offering hardware and software licensing and protection solutions, recently discussed the importance of software monetization solutions in the age of the IoT.

The IoT is pushing companies away from traditional business models and these include legacy hardware and software licensing solutions. Technology companies are moving toward subscription and pay-per-use models as the IT world shifts to an application- and services-centric model, enabling them to tap into new markets. And hardware companies are at a bit of a crossroads as they struggle to remain competitive and relevant in a changing technology sector.

“In today’s software-driven reality, code is the key to differentiating hardware solutions,” wrote Omkar Munipalle, former director, cloud strategy and business development, for Gemalto's Software Monetization business unit. Omkar’s article on Gemalto’s (News - Alert) LicensingLive! Blog also states, “Hardware manufacturers find themselves at a critical juncture: either they get with the times and transform into a forward-thinking software business, or continue down their current path and face possible obsolescence.”

Software monetization solutions can go a long way toward helping hardware vendors transition to the age of the IoT and services- and subscription-based pricing models. They protect hardware manufacturers’ precious intellectual property while also offering extreme flexibility for packaging and pricing offerings, a necessity as the IoT becomes the standard.