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.