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Enterprises adopt IoT solutions for two primary reasons. First, they want to lower their companies’ operating and capital costs. These types of IoT solutions including factory automation, remote asset monitoring, fleet management, and smart metering help enterprises improve their bottom lines by focusing on all sorts of cost reduction.

Second, enterprises want to add IoT to the products they sell to their customers. This allows enterprises to bundle new connectivity-based services with their core products, thereby increasing revenue and differentiating their offerings. Examples of these types of IoT solutions include in-vehicle infotainment, connected welding equipment, connected commercial-grade power tools, and many more.

But in order for enterprises to make money from new connectivity-based services, they need a way to capture data from and bill their customers for these new services. It doesn’t sound difficult; however, the devil is in the IoT details.

For example, an enterprise might have the systems to bill a customer for a new connectivity-based service if the price of the service is a simple, recurring monthly charge. But what if the price of the service is more complex. For example, how would an enterprise charge its customers for a service based on

  • the types and number of times a new connectivity-based application is used
  • whether the product is kept inside or taken out of a geofenced area
  • whether the product’s performance over the last quarter met a contracted SLA for power consumption

Enterprises’ legacy monetization solutions are generally incapable of handling such complex scenarios.

Let’s take a look at enterprises’ requirements for fully featured IoT monetization solutions.

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