Internet of things generates rash of software vendors

Bee swarm - Wikimedia CommonsA report said that vendors that make “things” are becoming software vendors too in the shape of licensing and entitlement management (LEM).

But, according to Laurie Wurster, a research director at Gartner, failure to put a LEM system in place will mean a 20 percent drop in revenues.

Wurster said that vendors of “things” aren’t thinking out of the box and haven’t yet realised the revenue opportunities of licensing software.

She said: “By monetising the software on their devices, these vendors will be able to increase and drive recurring revenue streams, creating billions of dollars of addition value. With an estimated 25 plus billion ‘things’ in the marketplace, if manufacturers are able to collect an average of $5 from each of these installed units, that translates to additional revenue estimated at $130 billion.”

She said that software controlled configuration gives vendors more flexibility to develop niches for different countries without needing to make separate product stock keeping units.

But Gartner thinks the overwhelming majority of device manufacturers don’t have commercial LEM systems.