The internet of… services?

Despite all the fuzz behind the dumb devices getting chips and sensors to become smarter gadgets, or the Internet of Things, the Internet of Everything, and so on, the consumer market hasn’t really picked up as predicted in several market trends and reports.

In this interview, Sokwoo Rhee, associate director of the Cyber-Physical Systems Program at the National Institute of Standards and Technology, suggests that the value for consumers might be in the services supplied with the whole solution and not just in the devices alone.

Answering about IoT market growth, Sokwoo Rhee replies: “A lot of people think that IoT is all about sensors and chips and radios, and a lot of manufacturers think that it means they are going to sell more chips. But that’s probably a very small piece of the whole IoT value. The real value comes from establishment of services on top of the connectivity; that’s where the value is going to be. The manufacturers in the industry will have to think about how they can transform themselves to [adopt] a completely different business model.”

Source: The Internet of Things: Why Success Lies in Services