Billions and billions of connected devices will flow into the marketplace by 2014 according to ABI Research. These include everything from laptops and netbooks to e-readers, portable navigation devices, mobile media players, gaming devices and digital cameras. Anything that is electronic will likely have an IP address that will require some kind of activation and connectivity.

Not only will the devices continue to get smarter but so will the myriad of companies who develop and market them, such as OEMs, retailers and e-tailers as well as the traditional carriers and operators.

Since the launch of the Apple iPhone back in June 2007, the ecosystem to bring mobile devices to the market has changed dramatically. Traditional distribution models have evolved and connected devices will only accelerate this change – offering new choices, challenges and opportunities.

It is also fair to say that the value chain is presenting considerable schisms which many will argue have been paradigm shifts. We are seeing companies like Best Buy and other large retailers strategically re-position themselves throughout the entire chain. At the same time service providers and cable operators as well as OEMs, are implementing their own go-to-market strategies for connected devices, creating an array of channels for consumers.

So who will win?

In many ways, when new degrees of freedom arise in an ecosystem, the category innovates and thrives which ultimately benefits consumers, insofar the companies delivering connected devices take a close look at how they are going to differentiate their offerings.

Among the billions of connected devices, consumers will certainly have an abundance of choices, and will engage with brands they feel comfortable with. In addition to the actual device, the activation and order management process and experience will be huge differentiators.

Companies that focus on simple, seamless and quick activation/provisioning processes and deliver a positive customer experience will have a competitive edge.