Pachube acquired by Logmenin. What a Telco can do?

Monday, August 1st, 2011 by Antonello Gargiulo

Few months ago we talked about a company called Pachube that was investing on the next big thing, the Internet of Thing, also known like Web 3.0.

The news of 10 days ago is that Pachube has just been acquired by an other company, Logmein, leading provider of cloud based solutions. Logmein, born in 2003 in Boston, in a few years has reached 20 millions of users and 125 millions of connected devices. I used Logmein to manage my PCs in home LAN using their tunneling service through my ADSL modem that has only one public IP address.

What is happening in the IoT market and how can we comment this acquisition?

I’m enough sure that the pie of IoT will be huge and attractive (soon everything will be connected in internet) and there will be, like already happened in Web 1.0 and Web 2.0, new small, innovative and disruptive players and big players with expertise and capitals. I think that there will be different markets with different customers and different rules. Probably huge players like HP, IBM, SUN/Oracle, SAP,…will continue to work for big customers (public and private) and small and disruptive will open the 3.0 to everyone and to everything.

I’m sure that there will not be a unique strategy, but different markets, different players, different game rules and different strategies also for same companies that will make decisions to get in different markets.

So what a Telco could do?

Maybe for markets with big customers it could make sense to have joint ventures or strong partnerships with big players guaranteeing quality of connectivity and cloud computing capabilities. In this markets will continue to be valid 1.0 rules.






Instead for 3.0 markets (2.0 users, 2.0 developers and 3.0 things) a telco or other players should have a 3.0 approach if they to want to compete with players like Logmein (Pachube), Google (Android@Home) or BTicino (MyHome).

In my opinion the 1.0 approach for a 3.0 market will be absolutely a crash because the users will choose the openest and the most user friendly solutions. Google will continue to grow in the 3.0 market.


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