Thought Leaders in Internet of Things: Flavio Gomes, CEO of LogiSense (Part 3)

Sramana Mitra: My mind is running as I’m listening to you. You’re talking about a jet engine being consumed as an opex and not as a capex?

Flavio Gomes: That’s correct.

Sramana Mitra: Wow!

Flavio Gomes: That’s where the future is headed. Anything that is a depreciating asset is going to be shared.

Sramana Mitra: Can you give me a few more examples?

Flavio Gomes: Things like the car industry. Anything that’s underutilized. Cars are underutilized 95% of the time.

Sramana Mitra: Yes, they’re just sitting there.

Flavio Gomes: If you can efficiently deploy a vehicle that’s constantly operating but is a depreciating asset, everyone would subscribe to it. The insurance industry is another fantastic example. They’ve got sensors in cars where they’re now offering real-time insurance. It’s not just based on speed. There’s a whole bunch of different variables. It’s based on speed and congestion. There’re APIs to different services that reach out to traffic and climate conditions that are all factored into risk. If you drive that car really safely and efficiently, the theory is that you should have a smaller insurance bill.

Sramana Mitra: There are many other ways to cut that one, right? I have a fancy car. I work from home and run a virtual company that is global. I’m not commuting an hour and a half each way to San Francisco. My fancy car is sitting in the driveway most of the time and I pay for a certain amount of lease fee, which if it were really indeed usage-based, it should be costing me a lot less than it does cost me today.

Flavio Gomes: Absolutely. I’ve heard of other scenarios where some car manufacturers are now experimenting with subscriptions. Cadillac for example. There was a pilot project in New York City. This one, however, is somewhat usage and somewhat mileage-based, which is the beginnings of how this is all going to evolve.

They work out the simplistic model. They realize that they’re leaving some money off the table because some segments of the population can’t afford that flat rate. They got to bring it down and it starts getting spliced up into tiers. It starts getting more granular. You pay a rate but then you can switch to several different cars. We start to see more elements to that happening.

Another new trend, is a thing called the electronic Subscriber Identity Module (eSIM). The electronic SIM is embedded and manufactured on the device but the carrier or the network that owns that relationship can be switched very seamlessly. That makes things a lot more efficient in terms of being able to have greater agility around the deployment.

This segment is part 3 in the series : Thought Leaders in Internet of Things: Flavio Gomes, CEO of LogiSense
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