MSSP’s strategy to monetize from IoT & 5G

MSSP – Introduction

An MSSP (managed security service provider) offers cost savings by allowing an organization to outsource its security functions. MSSP provides an organization with some amount of network security management which includes UTM, threat protection, URL filtering Virus/ Spam blocking, firewalls, and virtual private network (VPN) management. Apart from Perimeter level security handling few MSSPs are handling endpoint system level. An ISP provider leverages his business into security services by trust, Positive references from existing customers and reputation which help to group and scaler their MSSP business. Most of the MSSPs providing security services as an Add-on to the existing customers (MPLS, ILL or network services). Providing Security service as singular service is difficult or they won’t prefer until unless those customers are concern about security and modern threats.

ISP should transform to IoT Network Provider

The Internet of things (IoT) is the inter-networking of physical devices, vehicles (also referred to as “connected devices” and “smart devices”), buildings, and other items—embedded with electronics, software, sensors, actuators, and network connectivity that enable these objects to collect and exchange data. The MSSPs are evaluating the business on IOT services, as the Gartner forecasts for new devices by 2020 ranging from 20 billion to more than 200 billion. Each IOT devices creates new information to be communicated, aggregated, analyzed and acted upon which is another impact in physical and digital world. The IoT creates an entwined mesh of systems and devices, which hugely complicates issues of information security, so there is a chance for hacking or attacks. The devices may create malicious mail traffic over the network path if a IOT enabled device is hacked. A recent survey showed that 69% of respondents were concerned that a connected appliance could result in data breach of sensitive information. These issues are a significant challenge to the consumer adoption of IoT offerings. So MSSPs can take the advantage of monitoring and incident handling experience to adopt IOT services as an add -on.

5G provider will marry IoT Provider

5G is in a similar spot to where the Internet of Things (IoT) was until recently, where, “when all’s said and done, there has been more said than done.”  The 5G network will give more space on IOT to contact the devices quickly and able to manage with best speed network. 5G—at a fundamental technological level—is vastly more complex and yet undefined.

Technology Road Map

Gartner forecasts the growth of IOT services in next 5 years and its corresponding business in monitoring, incident handling etc. Also, 5G, the next-generation cellular standard, is currently advancing at an intense step in R&D centers around the globe.  For the first time in cellular technology development, 5G will be focused not only on handsets, but on other wireless devices as well.

As per “BCG Perspectives” the B2B market for the Internet of Things (IoT) is taking off. A huge number of companies like software, hardware and internet providers are competing for position and market share. With so much action in the IoT space, one question should be at the top of every IoT provider’s list of concerns: Where are the growth opportunities? From 2015 through 2020, all layers of the technology stack are expected to have achieved a compound annual growth rate of at least 20%, but certain layers have much higher growth potential than others.

As per PWC, the IoT helps businesses achieve the goal of ‘intelligence now’ – giving them insights and analysis into parts of their physical operations that just wasn’t measurable in the past. That data is transformed into insights, delivered when and where it’s needed to make and implement better strategic and operational decisions – and in many cases, to gain competitive advantage.

Lack of Standards Limits Revenue Potential IoT solutions deliver the most value when they are connected to a web of interlinked services. For instance, a smart home solution can deliver significant value only when it integrates the electrical, safety and surveillance systems. However, our research indicates that only 13% of organizations offer IoT solutions that integrate with third-party products and services (see our report “The Internet of Things: Are Organizations Ready for a Multi-Trillion Dollar Prize?”, 2014)6 . This prevents companies from tapping into a larger ecosystem of products and services, and significantly limits revenue enhancement opportunities. Unless standards are agreed upon – spanning industries, vendors and products – the potential of the IoT will remain under-exploited. Successful Monetization Demands Significant Investments in Acquiring New Capabilities, Often without Clear Returns.

Most product-centric organizations need to make significant investments in acquiring new functional capabilities, before they can sell IoT-based services. For instance, organizations need to augment their product management capabilities with the skills needed to develop and market services. Moreover, since connectivity reduces the time lag between the occurrence of an event and the time taken for information to reach the support center, customers are also likely to expect faster response times. As such, specialized customer support teams need to be set up to respond rapidly to customer queries in real-time. Acquiring and building these additional capabilities entail significant effort.

Throughout the mobile network evolution from 2G, 3G to 4G, the most commonly noticeable and understandable characteristics is fast (speed). The expectation of people in 5G is most faster than the current network. So ISPs and product vendor highly focusing on 5G. India might have missed the catch up of 3G/ 4G with the rest of the technologically advanced markets in the world, however, it is planning to adopt 5G technology alongside other developed markets, given its focus on programs like Digital India.