Internet of Things: Towards “Hardware as a Service”
We are in the midst of another technological revolution. Some call it the Internet of Things. Others have termed it the Internet of Everything, ubiquitous/pervasive/embedded computing, the Industrial Internet, or Machine-to-Machine communication (M2M). In their book The Silent Intelligence, Daniels Kellmereit and Obodovksi – who prefer the term M2M – provide a useful overview of the technology’s history and trends, the M2M technology ecosystem and examples of its application in the market of today and tomorrow. I found the title of their book particularly apt because most of the development of the IoT has indeed occurred outside of mainstream visibility of the broader public. In fact, even in 2014, a year after their book was published, a survey found that 87% of consumers hadn’t heard of the IoT.
Of course, the IoT is nothing new: the first internet-connected toaster was unveiled at a conference in 1989 and many people have devices connected to their smartphone via the internet. But is the IoT real? Is it not just another example of an overhyped technology that has reached its peak and will descend down into the (disappointing) valley of realistic expectations sooner rather than later? I would argue that the IoT is real and quite significant, but not in the way we traditionally conceive of it. Kellmereit and Obodovksi argue that the IoT’s biggest benefit is “that it gives us a unique opportunity to talk to the analogue world around us […] in a digital way…” This is a conception of the IoT as being primarily about things. I would posit that what we should be paying closer attention to what could be called “hardware as a service”
Companies are miniaturizing RFID sensors and antennas and embedding them in everything from t-shirts to milk cartons to thermostats. The cost of many IoT sensors has fallen enormously and near-ubiquitous cellular connectivity in some parts of the world has reduced the size of challenge on the hardware side. Developing a set of standards and achieving interoperability across producers, industries and devices remains an important area of work, but the truly interesting side of IoT is not achieve connectivity per se, but how connected devices can be harnessed to provide a service or experience to their users.
Take Uber for example. Instead of thinking of the future of their service as connected (and, at some point, self-driving) cars, you think of it as transportation as a service. Most of us could not care less how the technology works as long as we get from it what we want. While we must be cognizant of data privacy and security concerns and create an opt-in system, predictive analytics tied to cell phone and location whereabouts can making getting around in urban areas easy and seamless. The truly valuable part of the IoT, I believe, is the data gleaned from the billions of interconnected devices and not the temperature sensing sneakers or the smart fridges themselves. Therefore, the question we should be asking is how does the combination of smarts, sensors and connectivity enhance people’s lives?
Another example is Nest, Alphabet’s smart thermostat and smoke alarm. Sure, some people find it cool to have one of these in their home, but they still function mainly as isolated devices, rather than as components of a larger service. IoT companies of the future should strive to offer a comprehensive and integrated service, e.g. “home security”, and then consumers can pay to have the necessary sensors installed to get the service they want. As M2M technology becomes more ubiquitous, we should shift our focus from nifty gadgets like the failed Google Glass to consumer and societal needs and think more holistically about how to leverage hardware to develop and provide genuine service solutions.
I agree with the trajectory of IoT in exmachinatech’s post. A promising business model for IoT companies is not to create a single fancy hardware, but an aggregated platform that interoperate with as many devices as possible and provide customized services according to consumers' needs. An inevitable question followed is how to avoid the monopoly of a tech giant and expose the customers to a variety of selections with the same quality of service. Also, users should be able to switch from one service provider to another without any information leak whenever they feel a need. For example, for residents who install a home security network with a few sensors to improve their home security, once they moves out, their data must be erased from the server or protected in the cloud with a special access key. Meanwhile, the new tenant must be guaranteed with an absolute cutoff from the security network. For those wishing to change the security company, their documented information is valuable in terms of tracking their behaviors. Whether the large amount of information should be transferred to the next service provider completely still remains a question. And if so, should the personal information be conveyed with a cost? More data ownership and data value issues should be resolved before the introduction of IoT into the market.


















