Amazon is gearing up to disrupt another category in the same way it disrupted IT over the last decade*, but its real intent might be to create an entirely new category.
[ * In the world of IT, AWS’s consumption-based business model fueled a game-changing shift from businesses owning on-premise data centers (CapEx), to “renting” the outcomes they need, and using Amazon’s data centers accessed through public cloud (OpEx). Beyond the obvious financial advantages this model delivered to businesses, it also freed up IT teams to shift their focus from “break-fix” to DevOps” – finding new ways of using technology and data to drive business growth. ]
It’s easy enough to connect-the-dots between Amazon’s $1B acquisition of Ring last year, and their patent application for a drone-based surveillance service, and draw the conclusion that it’s all part of a big home security play. Surely a consumption-based model, in which people pay for security in the same way they do utilities, would lower a few barriers to entry and grow the home security category. It would also decrease the need for installed devices (buying or renting them, waiting for the guy to come out and install – between 8am and 4pm), and also eliminate the need to be locked into a service contract and pay a regular, flat monthly fee.
As cringe-worthy as the idea of marauding flocks of “eyes-in-the-sky” might be, a few minutes spent thinking about the potential business applications of this kind of service might make you want to move to a remote desert island. But the question of whether this scares you or inspires you comes down to who’s paying for the service (homeowners, business owners, corporations?), who “owns” the data, and what how they’re using or monetizing that data.
Why It’s Hot: In a world rapidly being reduced to 1’s and 0’s, consider how real-time video surveillance data (possibly with things like facial recognition being run through the cloud), comes together with all of the other data streams Amazon has been cultivating. What do your online purchases, streaming video choices, Alexa conversations, Whole Foods shopping lists and physical movements say about who you are, what you might want and how/where/when you can be reached? What might that mean for marketers?