Outcome-based pricing in IoT: a high-risk, high-return bet

This report is available to those subscribed to the IoT & Enterprise module.
In an interview at MWC Americas 2018, Head of IoT at Vodafone Americas, Ludovico Fassati, claimed that the company’s US strategy must include outcome-based pricing (OBP) for IoT customers. While not widely reported, there was further detail at Vodafone’s recent Industry Analyst Event. OBP differs from traditional pricing: instead of charging by traffic/volume or number of devices, it sets pricing for enterprise clients based on achieving jointly determined outcomes. This drives service providers to deliver on results but also encourages sharing of the investment burden between enterprises and service providers. Operators adopting OBP are placing a high-risk, high-return bet, signalling their ambition to compete as solutions providers among the likes of IBM, HPE and Accenture.
Related research
Connectivity trends in robotics: 5G and cellular IoT are only just emerging
From a telecoms perspective, robotics was recognised early on as a key future use case during the planning and rollout of 5G around seven years ago. With 5G-Advanced now commercially deployed in early-adopter countries, it is timely to evaluate 5G’s real-world impact on robotics. We also explore how complementary technologies such as edge computing, IoT and eSIM are shaping the connectivity landscape.
The next five years of IoT: revenue opportunities and recommendations for growth
The global IoT market will reach $2 trillion in revenues by 2030, but what are the drivers shaping revenue growth and the recommendations for IoT companies looking to capitalise on the opportunity ahead?
IoT revenue forecast to 2030: charting growth by region, vertical and product
With the global IoT market set to reach $2 trillion in revenues by 2030, understanding the projections by region and forecasts for particular use cases is crucial.
Authors
How to access this report
Annual subscription: Subscribe to our research modules for comprehensive access to more than 200 reports per year.
Enquire about subscriptionContact our research team
Get in touch with us to find out more about our research topics and analysis.
Contact our research teamMedia
To cite our research, please see our citation policy in our Terms of Use, or contact our Media team for more information.
Learn moreRelated research
Connectivity trends in robotics: 5G and cellular IoT are only just emerging
From a telecoms perspective, robotics was recognised early on as a key future use case during the planning and rollout of 5G around seven years ago. With 5G-Advanced now commercially deployed in early-adopter countries, it is timely to evaluate 5G’s real-world impact on robotics. We also explore how complementary technologies such as edge computing, IoT and eSIM are shaping the connectivity landscape.
The next five years of IoT: revenue opportunities and recommendations for growth
The global IoT market will reach $2 trillion in revenues by 2030, but what are the drivers shaping revenue growth and the recommendations for IoT companies looking to capitalise on the opportunity ahead?
IoT revenue forecast to 2030: charting growth by region, vertical and product
With the global IoT market set to reach $2 trillion in revenues by 2030, understanding the projections by region and forecasts for particular use cases is crucial.
- 200 reports a year
- 50 million data points
- Over 350 metrics