Essence Predicts IoT Integration & Revenue Models Biggest Challenges in 2017

Multiple Service Offerings & Big Data Sales May Increase Revenue Possibilities in Coming Year.

Essence, a leading provider of IoT, cloud-based connected living solutions, has analyzed activities in the Connected Home market in 2016 to determine the key trends for 2017.

Based on industry activities during 2016, it appears that no-fee and freemium models for home management platforms are proving to be unsustainable in the long term. Business models that have been going head to head for some time –consumer product and one-time fee v. service provider and recurring revenue, –will continue to do so in 2017. Service providers are also finding difficulty maintaining a recurring monthly revenue (RMR) approach. Monetizing across multiple service offerings and point solutions will create several times the value of RMR and significantly increase customer retention.

Consumer buying models have also shaken out, where purchasing plug-and-play point devices instead of complete systems has been the rule. IoT providers will need to focus more on universal integration, as well as security, following October’s cyberattacks using IoT networks.

The X-factor that will break out in 2017 would seem to be the ability of Service Providers to develop major revenue streams within the ongoing service model and the data analytics they will collect from consumer usage. They’ll be able to use the data themselves to offer predictive, preventative maintenance services or sell it to third parties for similar services, as well as other potential applications, like complementary unit sales, connected appliances and vehicles, and more. This may even replace traditional RMR model entirely.

Voice recognition and similar interactive technologies will become more prevalent across devices, increasing opportunities for security and healthcare monitoring vendors and service providers. This technology will bring customer engagement to an entirely new level for Service Providers, with users of all ages able to interact with their homes, independent of smart phones

Consumer communications will be across multiple devices, not just their phones. A simple button on the fridge that “calls” the car to tell the person to pick up milk on the way home isn’t as far off as we’d imagine.

Essence offers two complete IoT families of devices – Care@Home, technologies that focus on encouraging senior independence, with monitoring, two-way interactive personal emergency systems (PERS), and activity and fall detection. WeR@Home delivers complete home security, safety, and management, with Z-Wave+ and IFTTT compatibility.

Yaniv Amir, President of Essence USA, says:

“We’ve been ‘IoT’ before the industry existed in its current form. 2017 looks to bring an enormous amount of change and shake-up to the industry, and we look forward to continuing as a driving force during these turbulent times. It’s going to be a fun ride.”