What are some successful examples of companies that have transitioned to a subscription model?

The potential challenges in applying the subscription model to utilities could include the need for significant infrastructure changes, the difficulty in predicting usage and setting pricing, and the potential resistance from customers who are used to traditional billing methods. Additionally, regulatory constraints might pose a challenge in some regions. It's also important to consider the financial implications, as the transition to a subscription model might initially lead to a drop in revenue before steady growth is achieved, as was the case with Adobe when they transitioned to cloud-based subscription software services.

The subscription model aligns with the concept of the Internet of Things (IoT) by focusing on the service-level agreement that sits behind the product. In the IoT, devices are interconnected and can share data, which can be used to provide personalized services to the customers. These services can be offered on a subscription basis, providing continuous value to the customers and steady revenue to the companies. This model is being used in various sectors including healthcare, government, utilities, and more.