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Aria Systems 2016 Predictions: Succeeding in the Enterprise and at the Monetization of Things

Virtualization and Cloud executives share their predictions for 2016.  Read them in this 8th Annual VMblog.com series exclusive.

Contributed by Andres Botero, Chief Marketing Officer of Aria Systems

Succeeding in the Enterprise and at the Monetization of Things

As we head into 2016, it's a great time to reflect on market developments of the year past and trends and predictions of what the future holds. Here are some thoughts based on what we are seeing in the marketplace.

1.  Global enterprise organizations will continue to embrace cloud providers as key partners in their operations. As more companies seek to meet the increasing demands of the market that looks for flexible, personalized products and services, when and where they are needed, they will expand their reliance on cloud startups.  The partnerships will bring greater agility and efficiency along with the financial leverage brought upon by operational expenditures.

2.  All revenue will become recurring revenue. This prediction may not be completely fulfilled in the next 12 months, but will be way on its way.  47% of U.S. businesses have already adopted or are considering adopting a recurring revenue model to respond rapidly to customer demands.  Monetizing the Internet of Things (IoT), estimated to be an $8.9 trillion market by 2020, will prove to be too irresistible to ignore and will accelerate adoption of usage-based and other recurring models and so...

3.  Usage will continue to be a key driver for IoT monetization aka the "Monetization of Things." But of even greater value will be the surprising role that usage models play in customer retention.  For customers to buy offerings on an active and repeating basis over time, you need to know them very well - well enough to anticipate their needs, maximize their satisfaction, and present them with cross-sell and upsell opportunities they love. All that knowledge comes from usage data. Understanding how customers consume products and services provides insights into their habits, behaviors and patterns that can't be seen otherwise. The vendors who succeed at leveraging data to get closer to their customers will win the IoT market and take their deserved slice of recurring revenue pie.

4.  Connected cars will require plans for integration from everything from home heating to restaurants, gas stations and parking lots. A recent TechCrunch article quoted our cofounder Brendan O'Brien: "Today's new connected cars are able to interact with the world around them and with other cloud-based systems using such Internet of Things (IoT) innovations as proximity sensors and predictive intelligence. Already some Mercedes-Benz 2015 models can link directly to Nest, the IoT-powered smart home system, to turn on a home's heater prior to arrival. Soon our cars may check us into hotels, notify contacts if we're running late, and even pay for gas and parking - all on their own and without intervention." Well said.

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About the Author

Andres Botero is the Chief Marketing Officer of Aria Systems, a leader in cloud-billing that helps enterprises monetize and grow recurring revenue at scale.

Published Thursday, December 31, 2015 3:20 PM by David Marshall
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