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IoT’s Adolescence: Five Predictions for 2017 | @ThingsExpo #AI #IoT #M2M #ML

If you’re developing IoT infrastructure or platforms, it’s time to get real, regarding building great partnerships

The IoT continued its toddler-like growth and stumbles in 2016. Here are five trends to look for in 2017 as the IoT enters its adolescence and how to benefit from them.

1. Ecosystems begin to determine winners and losers
Previously these were nice in-the-future concerns; now they will really count. Filling out a whole product value proposition through partnerships has repeatedly proven its importance across B2B and enterprise software sectors. In the IoT, they will be even more critical.

As an example, the Industrial Internet Consortium (IIC) is driving the definition of platforms and test beds and should show results in 2017. In the meantime, expect some IoT companies to fail when they can't gain traction.

If you're developing IoT infrastructure or platforms, it's time to get real, regarding building great partnerships, developer programs, tools, incentives and joint marketing programs. Without them, your platform may appear like an empty shopping mall.

If you're a device manufacturer or application developer, it's time to place your platform bets so you can focus your resources. If you're implementing IoT-based systems, you've been through this before. Welcome to the next round of the industry's favorite game, "choose your platform." Make sure you also evaluate vendors based on their financial health, business models and customer service - not just technology. Learn more in Monetizing IoT: Show me the Money in the section "Ecosystems as the driver of value."

2. Vendors get serious about experimenting with business models and monetization
This was a big theme at Gemalto's recent LicensingLive conference and was further driven home by solution partners like Aria Systems. Tech won't sell if it's not packaged so that buyers want to buy. Look for innovation in business models and pricing, including subscription models, pay per use, recurring revenue, subsidization or replacement of hardware device revenues with service revenues, monetizing customer data and even pay-per-API call models. If you're marketing whole solutions, be sure to avoid the "partial solution trap" as described in my article, The Internet of Things: Challenges and Opportunities.

3. Big Data gets "cloudier" (pun intended)
No doubt there will be a lot more data with billions of new connected devices. Not just text and numbers but also images, video and voice can all add significant monetization opportunities to different participants in the value chain. More devices mean more data, more potential uses and more cooks in the kitchen. This is a complex cluster of issues: do not expect a resolution of ownership, privacy or value in 2017.

Instead, approach this by building a clear vision of what you want and don't want with respect to data rights as you enter these discussions. And try to anticipate the genuine needs of your partners. Device manufacturers will likely have a going-in desire to own data produced by their devices; and apps developers, the data they handle; others may be okay with aggregated info. Buyers should make sure they understand what's happening with their potentially sensitive data. We have already started to see partnerships and deals stall out over intense discussion on data ownership and rights.

4. You'll need to prove your security, with privacy not far behind
2017 IoT systems are going to need to up their game. No one is going to stand for hacked doorlocks, video cameras or Mirai botnet/DDoS attacks via connected devices much longer. Similar events will come with very high price tags. So far, the IoT has dodged any major incidents with large losses suffered directly by end users.

We could see growth flatten if a major hack of thousands of end users occurs in 2017, especially if hardware devices are ruined or people get hurt. At that point, users will need to receive greater guarantees of security, privacy and integrity. This risk needs to be mitigated if the industry wants to avoid an "IoT winter."

Vendors will need to invest more in security development and testing before deployment and offer assurances, possibly including insurance. Installers and integrators will need to ensure ecosystem integrity, and buyers will look for these guarantees. Just one flaw could be very expensive: Gartner believes that by 2018 20 percent of smart buildings will suffer digital vandalism through their HVAC, thermostats and even smart toilets.

5. Voice-powered, AI virtual assistants drive a next round of platform wars
Voice will become increasingly important to control IoT systems and computing infrastructure. Google Assistant, Apple Siri, Amazon Alexa, Microsoft Cortana and Samsung's Viv Labs acquisition underscore the importance of these new AI-assisted voice interfaces. They'll be used across multiple devices like phones, PCs, tablets, cars, home appliances and other machinery. By 2020, Gartner believes smart agents will facilitate 40 percent of mobile interactions. This is the beginning of a new round of platform battles that you need to recognize, internalize and prepare for.

This article was originally published on SandHill.com. Republished with permission.

Click here for the original article.

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All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.

With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo@ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.

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Track 2. Enterprise Cloud | Digital Transformation
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Financial Technology - or FinTech - Is Now Part of the @CloudExpo Program!

Accordingly, attendees at the upcoming 20th Cloud Expo @ThingsExpo June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA will find fresh new content in a new track called FinTech, which will incorporate machine learning, artificial intelligence, deep learning, and blockchain into one track.

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More than US$20 billion in venture capital is being invested in FinTech this year. @CloudExpo is pleased to bring you the latest FinTech developments as an integral part of our program, starting at the 20th International Cloud Expo June 6-8, 2017 in New York City and October 31 - November 2, 2017 in Silicon Valley.

@CloudExpo is accepting submissions for this new track, so please visit www.CloudComputingExpo.com for the latest information.

Speaking Opportunities

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More Stories By Chris Kocher

With over 30 years in Silicon Valley, Chris has extensive strategic and hands-on operating experience helping high-tech companies increase their revenues and company valuations. He works with companies to innovate with new business and product strategies in disruptive markets.

Chris is a founder and managing director of Grey Heron, a venture acceleration consulting company. He has worked with investors, CEOs and executive teams on accelerating growth and revenues at over 100 innovative companies ranging from startups to mature Global 500 companies such as Apple, Cisco, HP, Oracle and Visa.

Prior to Grey Heron, Chris was a VP/GM at Symantec with complete P&L responsibility for a business unit where he doubled revenues. Earlier in his career, he spent 10 years at HP in management roles at several divisions where he helped pioneer HP’s first laser printer, its initial personal computers and early independent software vendor (ISV) programs.

Much of his work has focused on helping companies with breakthrough technologies and platforms translate them into compelling value propositions to achieve rapid adoption in evolving markets including: IoT, SAAS, cloud, big data, analytics, on-line video, digital media, ecommerce and adtech.

Chris earned his MBA from Columbia University in marketing and international business and his undergraduate degree at Princeton.

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