--- title: Moving towards a software defined IoT business model description: 'Fig 1: The journey to a software-defined business model The opportunity to capitalise on the internet of things is significant for many companies, but that doesn’t mean that it is a straightforward journey to success. Companies need to analyse their current business practices and evaluate where benefits can be gained – and for some this […]' url: https://canonical.com/blog/moving-towards-a-software-defined-iot-business-model?format=md --- 1. [Blog](https://canonical.com/blog) 2. Article --- [Sarah Dickinson](https://canonical.com/blog/author/sarahfd "More about Sarah Dickinson") 29 August 2018 # Moving towards a software defined IoT business model [App Stores](https://canonical.com/blog/tag/app-stores) [Internet of things](https://canonical.com/blog/tag/internet-of-things) [IoT](https://canonical.com/blog/tag/iot) [Snaps](https://canonical.com/blog/tag/snaps) [Ubuntu Core](https://canonical.com/blog/tag/ubuntu-core) --- Share the article *Fig 1: The journey to a software-defined business model* The opportunity to capitalise on the internet of things is significant for many companies, but that doesn’t mean that it is a straightforward journey to success. Companies need to analyse their current business practices and evaluate where benefits can be gained – and for some this could be changing their business model in its entirety. Device manufacturers are a prime example of this. With hardware commoditisation forcing their margins downwards and low-cost competitors applying increasing pressure, manufacturers need to build a sustainable business that brings in continuous revenue beyond the initial device sale. By devising a software-led strategy,  device manufacturers can transition to new business models underpinned by IoT app stores and ecosystems of 3rd party ISVs (independent software vendors). Download this whitepaper to explore this journey in more detail including – * The drivers for device manufacturers to re-evaluate their existing business models from security to customer retention * The opportunities opened to them by adopting an IoT led, software-defined business model to achieve ongoing revenue and different ways this can be achieved to suit their business * The steps required to move them through this transition and examples of businesses who have successfully achieved this already First Name: Last Name: Work email: Company Name: Job Title: Phone Number: I agree to receive information about Canonical’s products and services. In submitting this form, I confirm that I have read and agree to [Canonical’s Privacy Notice](https://canonical.com/legal/data-privacy/contact) and [Privacy Policy](https://canonical.com/legal/data-privacy). Download ## Sign up for our newsletter Get the latest Canonical news and updates in your inbox. Work email: \*I agree to receive information about Canonical's products and services. By submitting this form, I confirm that I have read and agree to [Canonical's Privacy Policy](https://canonical.com/legal/dataprivacy). Sign up ## Share on --- ## Related posts [### So you need to add microcontrollers to your fleet: now what?](https://canonical.com/blog/microcontrollers-ubuntu-core-golioth) Your Ubuntu Core fleet is running beautifully. OTA updates roll out in minutes. Every device is strictly confined, cryptographically attested, and carrying a 10 to 15 year long... [Jonathan Beri](https://canonical.com/blog/author/jmberi) 18 June 2026 [### A look into Ubuntu Core 26: Building a local AI inference appliance in a virtual machine](https://canonical.com/blog/ubuntu-core-26-ai-box) Welcome to this blog series which explores innovative uses of Ubuntu Core. Throughout this series, Canonical’s Engineers will show what you can build with this Core 26 release,... [Gabriel Aguiar Noury](https://canonical.com/blog/author/g-aguiar-noury) 16 June 2026 [### A look into Ubuntu Core 26: Deploying AI models on Renesas RZ/V series for production](https://canonical.com/blog/ubuntu-core-26-ai-renesas) Welcome to this blog series which explores innovative uses of Ubuntu Core. Throughout this series, Canonical’s Engineers will show what you can build with our releases,... [Gabriel Aguiar Noury](https://canonical.com/blog/author/g-aguiar-noury) 4 June 2026 [### A look into Ubuntu Core 26: Cloud-powered edge computing with AWS IoT Greengrass and Azure IoT Edge](https://canonical.com/blog/ubuntu-core-26-cloud-integration) Welcome to this blog series which explores innovative uses of Ubuntu Core. Throughout this series, Canonical’s Engineers will show what you can build with this Core 26 release,... [Gabriel Aguiar Noury](https://canonical.com/blog/author/g-aguiar-noury) 20 May 2026