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How to Monetize the Internet of Things

The Internet of Things market is beginning on its path to maturation, with Gartner reporting 4.9 billion connected devices in 2015. By 2020, IDC predicts the IoT market will reach over $7 billion in revenue. The economic potential of IoT is drawing significant attention across telecommunications and other sectors, but many companies are unsure how to capitalize on this growing market to IoT monetization.

IoT Device Needs

The first step in monetization the Internet of Things revolves around understanding IoT device needs. Manufacturers not only need to consider the functionality of the device but also how it enhances its functions through connectivity. Companion apps, device pairing and third-party integration are methods that current IoT devices use. Monitoring and security are two other key areas essential to widespread success of IoT devices, especially as more devices make their way into the workplace and introduce additional vulnerability points into the network.

OMA Lightweight Standards

Standardization is the key to a thriving IoT marketplace and the Open Mobile Alliance lightweight standards provide a strong foundation for these devices. The OMA standards facilitate IoT monetization for mobile carriers by supporting new low power, low data rate and long range network technology.

Several key areas addressed by OMA include device management, gateway management, firmware update support, lightweight M2M protocols, device classification, converged personal network services and an open connection management API. This set of standards focuses on simplicity and M2M features to make it easier for companies to manufacture secure, interoperable devices. Devices using this standard can connect to mobile data sources as well as machine to machine, allowing manufacturers to leverage easy interconnectivity for expanded feature sets and better end user benefits. On the security front, the device management helps cut down on unauthorized usage and Datagram Transport Layer Security addresses many IoT security concerns.

The IoT market provides a valuable opportunity for telecommunications companies wanting to expand their product offerings and offer value-added services. Understanding the needs of IoT devices and utilizing standard protocols helps mobile carriers position themselves for the rapid expansion of IoT development predicted to take place over the next five years.

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