IoT will enable more as-a-Service models than ever before

Some of the as-a-Service models suggested in here are a bit far fetched but the fundamental concept is sound. IoT will enable many new as-a-Service models in more industries than ever. We already see concepts for PAYG (Pay As You Go) in the auto insurance industry, although widespread adoption still hasn’t happened. Similar PAYG model is likely to happen in the health insurance industry as personal health data becomes more accurate, thorough and accessible.

The PAYG model will definitely create the option to not have any CAPEX for solution providers, by recovering it as part of the subscription instead. This is something that hardware companies in the IoT space might consider. By offering a service along with their own hardware, the offering can be made attractive to more customers. Hardware costs can then be recovered over time resulting in better revenue as economy of scale comes into play again.

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