The IoT has started off fueled by crowdfunding, VC money and other sources that have to some extent built on a business model based on vertical integration. Vertical integration has a big advantage; you need to have a self-contained development to get things done quickly for proof of concept and demonstration.
Vertical integration is also a big driver of the current machine-to-machine, or M2M, communication market. This is the paradigm supporting the initial deployment of connecting things to services for management on an individual thing basis.
The downside of vertical integration is that it leads to silos, where the code developed for a system, the data collected, and even the user interfaces are all unique to the system and not reusable in other systems. Moreover, the vertical integration is often seen as a proprietary advantage and protected through patents and copyrights that are relatively weak because they apply to commonly known patterns and methods.
It’s not always this way, though. As an example, the Eclipse foundation is open source, allowing their M2M system to be used for vertical application development as well as integrated with IoT Toolkit data models and APIs to enable interoperability with other platforms.
The European Telecommunications Standardization Institute, or ETSI, also has an M2M gateway that is a combination of open source and paid license code. New features are enabled through Global Enablers or GEs that implement a particular function using an OSGi bundle consisting of Java code. The Smart Object API can be built into ETSI through a GE bundle, which will enable an ETSI M2M instance to interoperate with other IoT Toolkit instances. This is the power of the approach we’re taking for interoperability, which is obtained by adding a Smart Object API layer to the system.