“If you look at the insights market, how people are using things is a bigger market than advertising,” said Stefan Ferber, vice president of Bosch Software Innovations, speaking on the developing trend around connected things. In his live interview with theCUBE at IBM’s annual InterConnect conference, Ferber explained that in the future, each product will be associated with a service. The purpose may be to improve maintenance and efficiency, but also to make things easier to use, understanding how people are using products, and gaining insight from that activity.

If you ask Ferber, The Internet of Things comes with its own business model. “For customers who used to build products,” this is a new model, Ferber said, noting that “traditional companies have their problems with that.” Bosch has an elastic subscription based model and needs to grow with their customers. As Ferber pointed out, there is risk-sharing included in the pricing model.

Commenting on the role of open source, Ferber thinks it plays an important role, saying “we believe in an open platform. We want to have some ways of steering the development of this platform, you want to know what’s going on” in terms of security and privacy, he added.  As far as privacy is concerned, he said, “We want to make this very transparent. We think that trust is a very important ingredient in the Internet of Things. We allow each customer to decide which data they want to share with us and which they’d don’t.”

Watch the full interview below, and be sure to check out SiliconANGLE and theCUBE’s coverage of IBM InterConnect.

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