VNFs or even Oceanic's scuba diving algorithms are interesting subscription models.While I’m pretty averse to subscription services, I understand a subscription fee when the provider continues to provide and maintain a service - like if they’re running servers to keep my product operating, I get there can be a cost attached to that. But when the subscription is for just having them let me use a feature or tool already installed and functional on a product I purchased in whole, then I have a hard time with that.
The OEMs are distilling their secret sauce IP into a downloadable SW package that you effectively rent. Although their revenue is down as they are not selling networking boxes or watches, they don't have to worry about the cost of manufacture, installation, warranty/maintenance and disposal issues. They can focus on what they are good at which is the SW side of things.
Users get the choice of when they want to use it with a very short leadtime and no capital costs besides the initial generic 3rd party hardware.
It is good to see different models coming out to suit both manufacturers and users. Good models can work for both sides.
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