Creating AI-Based Service Revenue Models

IoT architectures remain heterogeneous despite standards like SMARC® and COM Express®. This complicates integration and increases costs. Middleware abstracts the complexities of hardware, operating systems, and protocols, reducing development time.

  • Clea is a comprehensive software suite for building IoT solutions that harness field data Source: SECO
    Clea is a comprehensive software suite for building IoT solutions that harness field data Source: SECO
  • Using AI to reduce warranty costs and drive revenue from CNC operation. Source: SECO
    Using AI to reduce warranty costs and drive revenue from CNC operation. Source: SECO

IoT is advancing to a phase where OEMs create value through servitization, turning data from IoT devices into service-based revenue models like predictive maintenance and process optimization. In industries, AI and ML are integrated into operations, leveraging edge capabilities. 

Developers of Product-as-a-Service (PaaS) face challenges with speed to market and cost reduction. Middleware like SECO’s Clea plays a key role in simplifying IoT platform integration, letting developers focus on building applications and monetizing data.

Middleware Solution

Clea integrates data orchestration with middleware, enabling AI model deployment at scale. Built on Kubernetes, it is cloud-agnostic and simplifies device management through secure OTA updates. Clea also integrates with Google Cloud Services, enabling fast AI application development through the Clea App Framework.

The Clea suite comprises four core components:

  • Clea Portal: A customizable front-end that supports service monetization with a billing framework for reselling applications via subscription models. It manages device access, data visualization, reporting, and user permissions.
  • Clea Edgehog: A device-agnostic platform for managing IoT devices and fleets. It supports OTA updates, monitoring, geolocation, and file transfer.
  • Clea Astarte: A comprehensive IoT middleware that handles communication between devices and the cloud, offering tools for data orchestration and advanced use cases like data reduction. It includes SDKs that enable easy integration with edge devices, even microcontroller-based systems.
  • Clea OS: Built on the open source Yocto Project, it offers a flexible and customizable platform that can be tailored to meet the specific needs of various hardware architectures and applications.


SECO is expanding its use of Google Cloud Marketplace for Astarte, enabling rapid software deployment without manual configuration. Edgehog and Portal will soon be available, providing flexibility for developers.

Smart Factory Applications

The industrial sector, one of the earliest adopters of IoT technology, is now leading in AI adoption. AI in smart factories monitors machine data, detects anomalies, and predicts failures, enabling predictive maintenance and avoiding costly downtime. OEMs collect data from their equipment to offer value-added services like remote assistance and predictive maintenance to their customers.

For example, SECO collaborated with a CNC hardware manufacturer to integrate smart sensors on one of their machines and connect them to Clea Edgehog. Using this infrastructure, SECO implemented an AI solution for remote monitoring, OTA updates, and predictive maintenance. This allowed the manufacturer to offer an annual maintenance contract to end users, creating a new revenue stream. Benefits included improved customer satisfaction, a 40% reduction in spare part delivery times, and a 10% reduction in spare part costs. Production quality also improved, with a 30% reduction in scrap.

Leveraging the Power of IIoT

IoT devices, combined with AI, transform data streams into actionable insights that drive operational efficiency and productivity. With platforms like Clea, developers can bypass the complexity of integrating IoT infrastructure and focus on value creation. In the context of a smart factory, these insights can lead to predictive maintenance, optimized processes, and increased shareholder value.

Simplifying Development

Clea’s components streamline the development of IoT-based services, especially AIbased applications. Middleware abstracts the underlying complexity of IoT systems, including hardware, protocols, and operating systems, allowing developers to focus on building solutions that deliver tangible business value.

Clea integrates seamlessly with cloud platforms and offers developers the ability to deploy and manage applications easily. By reducing the need for specialized knowledge of various IoT architectures, Clea minimizes development time and costs, speeding up the path to market for AI-driven services. SECO’s strategy includes making Clea components available on Google Cloud Marketplace, empowering developers to quickly deploy solutions at scale.

Expanding Impact with Google Cloud Marketplaces

Google Cloud Marketplace serves as a vital distribution channel for SECO’s IoT middleware components. Developers can deploy Astarte, Edgehog, and Portal quickly, bypassing manual configuration, and leveraging the reliability and scalability of Google’s cloud infrastructure. SECO’s strategic approach focuses on making all Clea components available on Google Cloud Marketplace, ensuring developers can use them according to their specific IoT deployment needs, whether collectively or individually.

By simplifying the software distribution process, Google Cloud Marketplace allows developers to efficiently manage complex IoT applications and focus on building innovative, AI-based services. This strategy aligns with SECO’s goal of supporting developers as they build value-added services, enabling them to monetize their IoT installations and optimize operational efficiency.

AI and IIoT: A Competitive Advantage

As AI integrates with IIoT, companies improve operational efficiency, reduce downtime, and enhance product offerings. Predictive maintenance is one example of how AI can optimize operations, cut costs and generate new revenue streams through service models.

Clea helps OEMs capitalize on IoT data. Its data orchestration, device management, and AI deployment capabilities allow developers to create customized applications that deliver business benefits. The flexibility of Clea’s cloud-agnostic design ensures smooth integration with existing infrastructure.

Driving Value

SECO’s Clea platform is designed to help businesses unlock the full potential of AI and IoT, enabling them to transition to service-based revenue models. By abstracting the complexities of IoT architectures and providing tools for rapid AI deployment, Clea reduces the time and cost required to bring innovative products and services to market. SECO’s ongoing investment in the Google Cloud Marketplace further supports developers by providing easy access to Clea’s modular components, facilitating the creation of scalable, AI-driven applications that meet the specific needs of industrial IoT deployments.

In summary, AI and IIoT offer substantial opportunities for manufacturers to enhance operations, generate new revenue streams, and create value for both customers and shareholders. Clea, with its robust middleware and cloud integration, serves as a powerful tool for developers looking to build AI-based applications and services. SECO’s strategic vision positions it as a leader in enabling businesses to harness the power of AI and IoT to drive future growth.

Author: Francesco Vaiani, Software Product Manager at SECO