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Software Glitches: A New Problem in IoT Devices

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

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Software Glitches: A New Problem in IoT Devices

© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Connected devices open up possibilities for many industries, and provide a great

opportunity to be monetized through subscription billing. However, there are a few issues

that brands will need to sort out before they can truly take advantage of the budding

Internet of Things market.

Security is the main fear where the IoT is concerned, but there are other issues as well.

For instance, what happens when all of these newly digitized and connected devices

experience errors that prevent them from performing optimally?

Unexpected glitches

While it's difficult for a traditional key to malfunction, a glitch in a digital locking

mechanism could prevent owners from entering their homes. When multiple objects in a

home function through their connection to the cloud, going offline can cause serious

issues.

A recent article from The New York Times highlighted an issue with Nest thermostats,

where the devices went offline unexpectedly and caused the temperatures in some

homes to drop dramatically. Matt Rogers, co-founder and vice president of engineering at

Nest, told the Times the bug arrived in a December software update and started to affect

customers early in the new year.

3 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Errors and glitches negatively affect smart homes.

4 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

Other IoT businesses have faced similar issues. Wink, a hub that connects multiple

devices, encountered a service interruption that impacted multiple devices, Fox News

reported. For some customers, everything connected to the hub went offline, which

meant smart locks and lights could not be accessed remotely. The issue affected roughly

one-quarter of all Wink customers.

Overcoming IoT obstacles

On the other hand, when smart homes function optimally, they can help you save time,

energy and money, and look cool while doing it. For example, in the future, your smart

irrigation system can work with your smart thermostat to automatically water the plants

when it reaches a specific temperature outside. The benefits of connected devices

outweigh the downfalls, but the key for companies is to focus on improving their devices

over time and to implement great service and engagement to keep

customer satisfaction high.

In one regard, IoT device-makers have a leg up on other industries because they have

access to so much data about how customers use their products. This enables them to

more effectively target new customers and use marketing techniques to retain current

subscribers. This information also gives device-makers insight into how customers use

the product. This information is crucial because it allows brands to continue to improve

on their product.

5 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

One major benefit of using a subscription billing platform is gaining access to even more

robust customer data, such as the average customer lifetime value of subscribers.

Another advantage that comes from harnessing subscriber data is the ability to send out

promotions and upsells to specific customers based on their preferences. Being able to

create new promotions and send them out quickly can have great customer service

advantages.

More devices are being connected each day. The best way for companies to maximize

their potential is to implement the right subscription billing partner.

6 © 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.

About the Author: Bryta Schulz

Bryta joined Vindicia in 2013 and serves as Senior Vice

President of Marketing. She is responsible for building brand

awareness, creating go-to-market strategy and promotion, and

driving growth. With over a decade of executive level marketing,

product management and PR experience, Bryta has led

marketing teams in enterprise technology and SaaS companies.

Her experience includes heading product marketing at GoGrid,

PGP, RSA and Symantec and business development and

product management positions at Xcert, Thales, and

Persistence Software. Bryta holds a MA in Translation from the

Johannes Gutenberg University Mainz and an MBA from the

University of Reutlingen.

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© 2015 Vindicia, Inc. All rights reserved. Vindicia Confidential.