Today Samsung Electronics announced the release of Samsung Artik Cloud Monetization of the Internet of Things, or IoT. The service enables device manufacturers and solution providers to collect revenue from the interactions between devices and services.
“Samsung Artik Cloud Monetization uniquely positions us to help device manufacturers find new ways to make money from IoT and enable more applications for their customers,” said James Stansberry, senior vice president and global head of Artik at Samsung Electronics. “This is part of our long-term strategy to facilitate the development of secure IoT products and services, promote wide-scale interoperability, and create a platform and business model for an entire IoT ecosystem to thrive. Like the mobile phone industry, IoT will be driven by open systems, interoperability and support from innovative applications.”
With the implementation of the platform, organizations have the opportunity to create new business models, such as hardware as a service. Device manufacturers encounter challenges when trying to secure profits from free applications and the surrounding ecosystem of third-party devices, a company spokesman said.
Under the present infrastructure, manufacturers are commonly charged with either absorbing costs of operating said devices or anticipating the fees associated with data costs in relation to the retail cost of services. Artik aims to resolve these issues.
“It gives device manufacturers an easy way to make their devices interoperable with third-party devices and applications, and monetize data usage,” a company spokesman said. “With the Samsung Artik Cloud developer portal, device manufacturers have the flexibility to define service plans that meet their business needs. Samsung Artik Cloud brokers and meters user interactions against the defined plan, and manages upgrades, payments and revenue share back to the device OEM.”
In order to navigate the thriving landscape, manufacturers need to forge a path to discern strategies that will collect and grow profit.
“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, IoT and digital transformation at Frost & Sullivan, a growth partnership company. “Samsung Artik Cloud Monetization is out front in addressing a crucial need in the market. It can help hardware developers monetize solutions without necessarily putting in all the effort themselves. This is a huge value proposition, especially on the consumer side, which has an untapped potential, but also on the enterprise side.”
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