The Internet of Things (IoT) is upon us, and businesses – especially those in the technology space – are beginning to take advantage of the benefits offered by this massive interconnectivity.

What Is IoT?

As a business owner, you’re likely aware that Internet of Things is the new wave of technology in which physical objects are designed with wireless capabilities that allow users to control them through a mobile app or through a computer. Some examples include the emergence of home security systems that allow users to program their security alarms from a mobile device and “smart technology,” such as the ability of a thermostat to automatically adjust to a specific temperature based on the most-used temperature setting in a home or office.

As more businesses continue to enter this market, there will come a need for the most efficient way to monetize this new technology. Since even the most mundane IoT devices can produce massive amounts of data, the traditional flat-fee subscription billing isn’t going to cut it.

What is Required of an IoT Billing System?

• Must be able to process granular data records at scale and aggregate them for billing purposes.
• Require the flexibility to check for permissions, limits, entitlements, and overages, plus parameters like device activation, device communications, device payloads, etc.
• Need to support complex, usage-consumption-based monetization capability typically seen from mobile phone operators (carry-forward-unused-minutes to next billing cycle) or tolltag models (prepay-and-deplete-on-usage).

One additional consideration, even organizations that continue to opt for a flat monthly fee monetization approach need billing systems that are capable of processing and aggregating data for analysis purposes.

The $6 Trillion Market

According to a Business Insider report, there will be 34 billion devices connected to the internet by 2020 (up from 10 billion in 2015) with nearly $6 trillion in spending on IoT solutions over the next 5 years. This industry is completely transforming markets that have already seen massive growth in recent years and the right billing system will allow you to quickly and easily create your own monetization and pricing models to take advantage of it.