Will IoT-as-a-Service Models Gain Critical Mass in 2020?

IoT as a service may be a trend in 2020 that you can’t ignore.

Before we dive into door sensors or Roombas-as-a-Service, let’s pause and look at the as-a-service market in general. The as-a-service market isn’t new. And, for many who use as-a-service models, there are ample cost and efficiency benefits. 

When a product is sold as a service, the model allows customers to use only those resources they need at the time. As a result, as a service models are great for scenarios with variable demand: where there are sudden spikes in customer need. As-a-service models also enable customers to rapidly set up and tear down resources and to pay as they go rather than incur major capital costs up-front. 

The as-a-service model has driven growth. A recent IDC report indicated that the worldwide cloud (SaaS) services market grew 27.4% year over year in 2018 with revenues totaling nearly $183 billion; a growth rate that’s more than 4.5 times that of the IT industry overall.

“Software as a Service (SaaS) continued to be the most highly deployed cloud segment, representing a commanding 62.4% of the total cloud market revenues, ” said Frank Della Rosa, research director, Software as a Service at IDC.

But if we replace applications, virtual services and cloud solutions with physical Internet of Things (IoT) devices? As edge computing, 5G and connected systems continue to grow in our market, is there a place for IoT as a Service?

The Market is Ready to Help You Manage Your Connected Devices

The short answer is yes, there will definitely be a market to help you control, manage and deliver connected devices-as-a-service. But it will depend on your goal. IoT as a-service is already in the wild and being adopted by a number of organizations. 

Here are some real-world examples:

• Connected microgrids. With the proliferation of natural disasters—from floods to wildfires— many organizations have gone beyond traditional generators as sources of power in times of emergencies and are exploring microgrids. A microgrid is a self-sufficient energy system that serves a discrete geographic area, such as a college campus, hospital complex or neighborhood. New microgrid technologies completely manage the grid for you too. One microgrid company offers a solution for California resiliency challenges with a reliable, clean, utility-grade backup power solution for large commercial and industrial facilities facing extended outages. The company connects the microgrid and manages it by identifying problems, suggesting maintenance and monitoring the performance of the unit. Integrated machine learning and data analytics forecast problems and power spikes. When it comes to power solutions like these, it’s critical to stay up and running. This IoT as a service solution goes from reactive to proactive as it leverages data feeds and insights to keep power grids up and running.