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Gartner Says Internet of Things Is Creating New Software Vendors

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The Internet of Things (IoT) is turning many manufacturers of “things” into first-time software vendors that need licensing and entitlement management (LEM) solutions, according to Gartner, Inc. By shifting product value from device hardware to the software running on the device and applying an appropriate licensing strategy, manufacturing product strategists can maximize revenue potential.

“The IoT is creating a new type of software vendor for whom LEM is vital to protect, differentiate and monetize their offerings,” said Laurie Wurster, research director at Gartner. “We expect that by 2020, a failure to put in place a LEM system will result in a 20 percent drop in potential revenue generated from software for device manufacturers connecting to the IoT.”

The issue is that many makers of “things” still apply a traditional “box” mentality to products and do not consider the extra revenue opportunities of licensing-controlled embedded software and applications. Most of these companies are first-time software providers, mainly device manufacturers and OEMs that can now monetize their software as well as the devices via the IoT. For these companies, the IoT represents a significant market opportunity.

“By monetizing the software on their devices, these vendors will be able to increase and drive recurring revenue streams, creating billions of dollars of additional value, said Ms. Wurster. “For example, with an estimated 25-plus billion ‘things’ in the marketplace, and if manufacturers are able to collect an average of $5 for software from each of these installed units, that translates to additional revenue estimated at $130 billion.”

For the foreseeable future, the IoT will drive business transformation for many device manufacturers, enabling them to use software on the device to differentiate product and solution offerings. Like vendors in the traditional software industry, device manufacturers need to protect and monetize the intellectual property (IP) contained in applications. They can do this by adopting LEM systems that control access to the Internet-connected device, its functions and its features. LEM also enables flexible pricing and packaging, allowing manufacturers to bundle product features, capabilities and capacities, ensure payment, provide verified upgrade paths and create new revenue streams.

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“By controlling product functionality and the features and capacities of Internet-connected devices via flexible licensing, device manufacturers will be better able to compete in current and new markets. They will also be able to come to market quicker with new products, new feature combinations and product enhancements,” said Ms. Wurster. “Moreover, software-controlled configuration gives manufacturers more flexibility to regionalize their offerings and develop niche solutions for specific markets without having to manufacture separate product stock keeping units (SKUs). Overall, this reduces the number of SKUs produced, lowering overall manufacturing costs while enhancing manufacturers’ ability to customize and regionalize products.”

Gartner research indicates that the vast majority of device manufacturers do not have, or have yet to implement, commercial LEM systems to monetize the IoT. This is because, historically, they had little or no software IP to protect. Initially, they will look to build LEM capabilities in-house as they already have a technical and engineering background that developed the hardware, and they often believe that these internal resources can also build an efficient LEM system.

“For some, recognizing the need for a LEM solution is a viable first step. However, manufacturers are starting to question the wisdom of diverting high-value resources to developing and maintaining LEM systems,” said Ms. Wurster. “As the need to scale and react quickly to changing market conditions increases, manufacturers may eventually start to buy packaged solutions. Providers of commercial products continue to broaden their set of capabilities and invest in support for new licensing models. This makes these solutions an attractive alternative for device manufacturers that do not want to build and maintain in-house LEM software.”

More detailed analysis is available in the report “Market Trends: Move Beyond Homegrown Licensing and Entitlement as the IoT Creates New Revenue for Software,” “Competitive Landscape: License and Entitlement Management for ‘Things’ in the Internet of Things” and “Emerging Technology Analysis: Software Licensing and Entitlement Management Is the Key to Monetizing the Internet of Things.” These reports are part of the Gartner Special Report “The Internet of Things Enables Digital Business,” a research collection focused on how the Internet of Things will create new opportunities and challenges for enterprises.

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E-Business

HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria

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Human Rights Writers Association of Nigeria (HURIWA) has opposed a bill seeking to compel major global social media companies to establish physical offices in Nigeria.

HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria

The rights advocacy group urged the National Assembly to discard the proposed legislation, warning that it could become a tool for censorship and undermine citizens’ constitutional right to freedom of expression, despite being presented as a measure to strengthen Nigeria’s digital economy and improve corporate accountability.

The position was contained in a presentation submitted yesterday by Emmanuel Onwubiko, national coordinator, HURIWA, to the chairman of the Senate Committee on ICT and Cyber Security.

The bill, sponsored by Senator Ned Munir Nwoko, has already passed second reading in the Senate and is before the committee for further legislative consideration.

HURIWA said it carefully reviewed the proposed legislation and concluded that compelling global technology companies to establish offices in Nigeria was unnecessary and potentially counterproductive.

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The organisation argued that while the firms generate substantial revenue from Nigeria’s vast digital market, they already engage Nigerians through existing structures, including paying eligible content creators, working with local technology professionals and participating in legal proceedings whenever required.

According to the group, appointing local representatives where necessary would adequately address concerns about engagement with regulators and users without forcing the companies to maintain physical offices.

It also dismissed claims that mandatory country offices would significantly improve consumer complaint resolution, technology transfer or employment generation.

HURIWA maintained that the platforms already have effective feedback mechanisms for resolving users’ complaints and routinely appear before Nigerian courts through their representatives whenever litigation arises.

The group, however, said its greatest concern was the potential for the proposed law to be used as an instrument for restricting freedom of expression.

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It argued that establishing local offices could expose global social media companies to pressure from government authorities to remove online content considered critical of those in power.

According to the rights group, the presence of social media companies in Nigeria could become an avenue for authorities to pressure them into abandoning internationally recognised digital rights standards in favour of politically motivated content moderation.

It recalled previous attempts to regulate social media in Nigeria that generated widespread concerns over possible restrictions on free speech, stressing that any legislation affecting the digital space must contain clear safeguards against abuse.

The organisation warned that the proposed law should never become “a backdoor mechanism for government surveillance, arbitrary content removal or political censorship.

 

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Nigeria Leads Africa in Online Gambling Regulation – GCI

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Nigeria has emerged as one of Africa’s most regulated online gambling markets, even as illegal operators continue to dominate the continent, according to a new report by Gaming Compliance International (GCI).

Nigeria Leads Africa in Online Gambling Regulation - GCI

The report, the first comprehensive assessment of online gambling across all 54 African countries, showed that Africa’s online gambling Gross Gaming Revenue (GGR) reached $23 billion in 2025.

However, only $5.2 billion (23 per cent) was generated by licensed operators, while $17.8 billion (77 per cent) remained in the unregulated market.

In West Africa, total online gambling revenue rose to $4.8 billion in 2025 from $4.3 billion in 2024. Of the 2025 figure, regulated operators accounted for $1.5 billion (31 per cent), while $3.3 billion (69 per cent) flowed to unlicensed platforms, highlighting the region’s persistent enforcement challenges.

Nigeria stood out as the region’s strongest performer, recording the lowest unregulated market share at 56 per cent, compared with the West African average of 69 per cent and the African average of 77 per cent.

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The study also found that online gambling participation across Africa increased from 198 million people (13 per cent of the population) in 2024 to 215 million (14 per cent) in 2025.

Despite this growth, GCI estimated that illegal operators deprived African governments of about $3.55 billion in tax revenue in 2025. The number of unlicensed gambling platforms targeting African consumers also rose to 4,129, up from 3,644 in 2024.

Commenting on the findings, Matt Holt, chief executive officer, GCI, said the report provides regulators with the first continent-wide benchmark for strengthening oversight and consumer protection.

Ismail Vali, president, GCI, urged governments to develop competitive and well-regulated markets that encourage consumers to patronise licensed operators, boost public revenue and attract greater investment.

Online gambling in Nigeria is regulated by the Nation Lottery Regulatory Commission.

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Kaspersky Warns Mobile‑data Buyers about Scammers Posing as Telecoms Operators

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At the height of the Northern Hemisphere tourist season, demand for communications and mobile Internet services rises sharply. Kaspersky’s security experts have uncovered scams that target anyone purchasing mobile connections or SIM cards worldwide.

Fraudsters create counterfeit websites that look like the portals of major regional and international telecom providers to trick users into revealing their phone numbers, personal details or banking information.

Kaspersky is sharing several examples of these fake login pages that mimic legitimate telecom operator sites and giving recommendations on how not to be deceived.

In the first case, scammers exploit the brand name of an international telecommunications company operating services in Asia, Africa and Europe. Fake authentication pages encourage users to put in their phone number and credentials.

While the first example shows the different design, the second scam site closely mimics the original log in page, making it hard for users to tell the difference and spot a fake. Entering authentication or payment data on fraudulent web sites may result in money or data loss and become a reason for more frequent spam and fraudulent calls.

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Another example is a scam page which poses as another international communications company, working in North Africa, the Middle East and Southeast Asia. In this scheme scammers encourage users to top up their mobile data/Internet plans by entering their personal information and bank cards details.

Kaspersky experts have also identified a scam when cyber criminals suggest users enter their personal data to check and pay a bill inquiry. Such scam schemes are usually aimed at gaining victims’ personal data for further fraud or account hacking and stealing money.

“Because of the active use of AI, scammers can now create fake pages with ever increasing accuracy and speed, targeting the most popular user interest areas. We constantly see scams revolving around sports events, music concerts, seasonal sales and holidays. Unfortunately, the telecoms industry is no exception.

To keep your data and money safe, be vigilant when purchasing mobile or Internet plans online. Using an eSIM – purchased through an official app – is one way to avoid fake telecom sites, as it eliminates the need to enter personal details on questionable web pages.

If you’re unsure about a site’s legitimacy, search for the brand name directly in a search engine and enable a security solution that blocks phishing links for you,” comments Tatyana Kulikova, cybersecurity expert at Kaspersky.

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