What is Verizon Thinking: $3.4 billion spent in IOT the Past Two Months. Ouch!
About three years ago, #Verizon shocked the world when it announced it was acquiring #Hughestelematics for $612 million. Many speculated it was to bolster their OEM telematics practice. Some speculated it was to block competing carriers from partnering with Hughes. But at the end of the day, when the dust had settled, #NetworkFleet had emerged as Verizon’s branded go-to offering for small to medium fleets. Early on, as Verizon’s sales teams positioned Network Fleet as their lead solution, many Verizon telematics partners became upset at Verizon for having entered the competitive world of Software-as-a-Service ( #SaaS ) solutions. Network Fleet positioned Verizon to gain traction and capture software recurring revenues normally reserved for those participating “up the stack”. But as time wore on, many realized Network Fleet customers were smaller fleet operators, and while Verizon improved its position in Fleet Management, it wasn’t a formidable competitor to solutions like #Omnitracs, #Fleetmatics or #PeopleNet targeting large scale fleets. And in time, the uproar died down and things went back to business as usual for Verizon and the rest of the ecosystem…until a little over a month ago.