Location Based M2M Opportunities

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17 Φεβ 2014 (πριν από 2 χρόνια και 9 μήνες)

138 εμφανίσεις

Location Based M2M Opportunities

Michael Grossi, Director

Altman Vilandrie & Co
.


Industrial Ethernet


Powerline


Broadband

Fixed (Wireline) Technologies


Cellular


GSM/GPRS/EDGE


CDMA/1xEV
-
DO


3G


Satellite


Wireless LAN


Bluetooth


ZigBee


Other 802.15.4 and related technologies

Wireless Technologies

M2M offers opportunities in many service sectors


Buildings/Facilities


Office Equipment


HVAC/Environmental

Systems


Access Controls


Consumer/Professional


White Goods/Appliances


Game Systems


Consumer Electronics


Energy


Meters


Distributed Generators


Electricity Grid


Pipelines


Industrial


Automation & Control

Equipment


Capital Equipment


Medical/Healthcare


Medical Devices


Retail


Scanners & Registers


Lighting & Refrigeration
Systems


Security/Public Safety


Homeland Security


Transportation


Vehicles


Airplanes


Transport Systems


IT & Networks


Enterprise: IT/Data

Center, Office


Public: Services,

E
-
Commerce, etc.

M2M and “The Internet of Things” describe the connection of machines and sensors
through any means to the Internet

The M2M market is highly fragmented in each component of the value chain


no single
market leader has been established

Hardware Enablement

Network Services

Managed

Services

End

Users

Chip Vendors

M2M Modules/
Devices

Aggregators/

Platform
Software

Comm

Services

Value
-
Added
Services /
Applications

24
32
50
83
124
167
209
260
11
16
23
34
47
66
19
27
39
56
78
102
134
11
15
21
28
38
13
19
27
38
53
69
92
12
17
25
81
119
182
267
365
473
615
14
59
2008
2009
2010
2011
2012
2013
2014
2015
Middle East & Africa
Asia-Pacific
Latin America
North America
Central Europe
Western Europe
Machine to Machine Market Opportunity

M2M devices are poised for rapid growth, exceeding 600 million devices by 2015 and
accounting for $24B in service revenues

Source: Strategy Analytics,
AV&Co

analysis

Worldwide M2M Devices

(Millions)

CAGR%

40%

40%

34%

40%

38%

42%

40%

Revenue
($B)

7.6

8.5

10.1

12.9

15.9

18.5

20.9

24.2

M2M



devices that
communicate data
wirelessly to other devices
for the purpose of
automating data collection
and monitoring of large
complex systems/networks

Utility

Meters

Mobile Internet Devices (MIDs)

Emerging MIDs and especially
netbooks

are gaining popularity worldwide, and will be a
key driver of traffic growth within 3 to 5 years

54
416
633.2
2007
2012
2015
Worldwide Mobile Internet Devices

(Millions)

CAGR%

36%

Sources: IDC, 2008, iSuppli, Display Search, 2009, AV&Co analysis

Worldwide Notebook/Netbook Shipments

(Millions)

124.7
149.6
177.9
202.4
230.6
20.6
32.0
39.0
46.3
51.7
145.3
181.6
216.9
248.7
282.3
14.2%
17.6%
18.0%
18.6%
18.3%
2008
2009
2010
2011
2012
Netbooks/UMPCs
Notebooks
Netbooks/UMPCs Share %
CAGR%

25.8%

18.1%

16.6%

MIDs cover a wide range of
devices:


Smartphones


UMPCs


Netbooks


Portable navigation devices


E
-
book readers


Portable media/MP3
players


Handheld gaming devices


MIDs have Internet access
via WLAN (
WiFi
) or WWAN
(3G or better)

6

Consumer Electronic Devices

There are a wide range of device categories, across the mobile, in
-
home and in
-
car
environments, that are wirelessly enabled or

will be soon

Widescreen

Personal

Media Player

Home

Network

Storage

NetBook
/

Tablets


Portability


Large Capacity
-

320GB


All forms of media playback


DVR capability


Sold online, big box and boutiques


Home media server for photos &
movies with network WLAN &
Internet connectivity


Storage expandable and robust


Sold 3
rd

party online and big box


Small full
-
functional computers


Network WWAN capable


Communication
-
focused


Integrated web
-
cam


Sold direct, 3
rd

party online


Niche device for reading


Network WWAN capable


Ancillary network
-
based features


Sold by 3
rd

party online and big box


Subscription model


Digital cameras with geo
-
tagging
capability and photo upload
capability over the air


Photo location integrate with
mapping software for creating and
sharing stories


Digital

Cameras

w/ GPS

Networked

Portable

Gaming

Smart

Phone

Smart Home

Devices

In
-
Vehicle

Multimedia


Portability & Wi
-
Fi


Thousands of game titles


Internet browsing and chat
capability


Sold online, big box


Ultra portability


WWAN & WLAN connectivity


Superior form factor for text input


Integration of portable media


Extensible OS for 3
rd

party apps


Sold via service provider


Home monitoring & security


Energy and climate control


IP
-
based devices for remote
viewing and recording


Sold direct from service providers
or online for DIY kits


Design specifically for in
-
car
entertainment


Wi
-
Fi and Bluetooth connectivity


Available from car manufacturers
and aftermarket vendors

Networked

Blu
-
Ray

DVD

Player, Roku &

SlingCatcher


High definition disc play


Internet integrates with home
media center


Streaming media capable


Push/pull of information & user
generated content

E
-
book
Reader

All four U.S. carriers have made significant investments in strategic relationships or
network improvements to capitalize on this emerging market


GE developed
Wi
-
MAX
-
based smart
meters that were available as of 2009


GE Healthcare signed an agreement with
Sprint for wireless networks, services, and
software at six Texas hospitals (April
2009)


AT&T signed an exclusive deal with
Jasper Wireless to facilitate
connection of consumer and M2M
devices to their network (May 2009)


KPN became Jasper’s preferred
European network operator and
exclusive operator in Belgium,
Germany, and the Netherlands. KPN
has also made an equity investment
in Jasper (Q1 2010)


AT&T announced a developer
connection kit to facilitate
deployment of new M2M devices on
their network (March 2010)


Sprint and M2M
DataSmart

have a
multi
-
year agreement to facilitate the
deployment of M2M devices on
Sprint’s network (September 2009)


Vodafone, Verizon, and
nPhase

announced a strategic alliance to
accelerate adoption of M2M
technologies (February 2010)


Verizon reported in Q1 2010 that 7.3%
of 101 million wireless connections are
M2M


Cadec

Global, provider of fleet
management solutions, began an M2M
partnership initiative with
Aeris

in February
2010


T
-
Mobile and Sierra Wireless agreed to
work together on product development,
marketing, sales, and deployment of
M2M solutions, starting in Germany
(September 2009)


Diverse rate plan needs of different M2M devices and
services means increased complexity on the part of
wireless carriers


Evolving network technologies (GSM vs. CDMA, LTE
vs.
WiMAX
) create complex choices for device
manufacturers

Supply Side Challenges


Operation/running cost was by far the highest
concern of adopters surveyed


Data integration/ interoperability, initial/ installation
cost, and development of new support structure
followed in importance, but were still considered
critical challenges

Demand Side Challenges

Sources: Wireless Week Magazine “A Web of Challenges, Connections: M2M,” 2/1/2010; Beecham 2008 M2M Adopter Survey

0
20
40
60
80
100
120
Privacy & Security Issues
Reliability of Technology
Choosing Right Partner/ Supplier
Regulation &/or Liability
Gaining Successful Adoption
Complexity/ Risk Assessment
Development of Support Structure
Initial Cost/ Installation
Data Integration/Interoperability
Operation Cost/Running
4%
8%
10%
14%
17%
17%
19%
21%
23%
24%
25%
26%
41%
0%
10%
20%
30%
40%
50%
Changing the M2M acronym
Eliminating channel conflict
Creating app. Developer
awareness and interest
Forming partnerships with
"machine" manufacturers (OEMs)
Establishing cooperation between
carriers
Overcoming market fragmentation
Reducing sales cycle time
Identifying business models
Forming partnerships between
operators and HDW vendors
Supporting open access network
policies
Reducing M2M industry value
chain complexity
Improving device certification
process
Educating the market
GPS tracking and security are the most likely uses of M2M communication for SMBs
based upon our survey


What are the most likely uses for M2M communications at your location? (select all that apply)


Do you have any ideas concerning M2M that you would like to see developed?

17%
17%
32%
34%
0%
10%
20%
30%
40%
Machine
control
Asset
management
Safety and
security
Tracking and
navigation
Most likely uses for M2M communications

Selected Comments from the
interviewees


“The current M2M applications would
provide the resources that we are looking
into at this time such as tracking fleet
vehicles”


“Implantable chip to allow tracking access
to sales reps. Make sure they work a full
day”


“Read tanks remotely”


“Not familiar with the applications. Am
taking a seminar on this right now”


“Able to incorporate with in store computer
systems. Such as Open Table or Hot
Schedules”


“Up
-

to
-

the minute information regarding
wine barrel system pressure after harvest
transmitted from remote location (i.e. form
California to France or vise versa)”


“Automation of commercial food production
equipment, room temperature control”

Source: AV&CO primary research survey, n=500

Location
-
based messaging and monitoring has many potential applications

Customer

Select Applications

Government


Natural disaster/crime/safety alerts


Crowd monitoring/management


Terrorist tracking and monitoring


Amber Alerts (improved response with tracking abducted child)


Monitoring of Check Points (e.g., borders, battleground check points)


Communication for military personnel family (e.g., birth announcements)

Commercial


Mobile device management


Monitoring foot traffic at major events


Customer notifications and communication


Healthcare applications (monitoring, emergency response locating, messaging)


Order completion


Weather/safety alerts

Education

(select vertical)


Weather Response: school closures


Student/ faculty notification of school class cancellation, room/ building changes


Communication of registrar and student finance deadline requirements


Tracking school buses/traveling teams


Crime/ safety alert

Parents


Family member location


Controls on Illicit text messages, emails, instant messages or voicemails received by children


Key features across all applications include two
-
way, location
-
specific communication and monitoring


Opt
-
in and Opt
-
out models are available and have significant impacts on specific applications

Types of MRM Solutions

Field Force Management


Business need: to manage the field
workforce in order to reduce business
costs and maximize ROI

Field Service Management


Business need: to manage the
delivery of products and services to
customers in order to maintain strong
customer service while keeping
business costs to a minimum

Field Asset Management


Business need: to manage fixed and
mobile assets in order to ensure
utilization is maximized and therefore
minimize costs

Mobile Resource Management (MRM)

MRM is a category of business solutions that enables companies to more effectively
manage mobile workers, mobile tasks and mobile assets

Industry Drivers

Attractive, hard dollar ROI


Benefits include reduced overtime, fuel
and labor costs due to increased
dispatch and scheduling efficiencies,
improved job completion rates, tighter
control over spare parts inventory, and
higher insurance policy discounts

Affordable entry points


The ability to monitor and track
employees and assets from IP
-
connected devices and the growth of
low
-
cost GPS
-
enabled mobile devices
has increased affordability and flexibility

Competitive advantage with
customers


MRM can positively impact a company’s
customer satisfaction and customer
retention metrics through more timely
and prepared technicians and increased
first call resolution rates

Key Purchase Criteria

Features and Functionality


GPS location, tracking, monitoring


GPS navigation and optimized
routing


Timecard recording and reporting


Work order management


Alerts and geo
-
fencing


Data collection and reports

Integration and Customization
Options


Simple configurations: back
-
office
integration not required


Configurations and integration:
MRM software is configured with
back
-
end systems


Complete customization: open
developer tools and APIs for
customized development

Cost Components


Mobile devices


Monthly carrier data subscription


MRM application software


Systems integration work

Strategic Implications in the M2M Ecosystem


Given the industry fragmentation


how will industry evolve?



Reliance on carriers and other third parties to provide network access


how
can carriers play a larger role?



Who is positioned to win in the space?



Contact Details

Michael Grossi, Director


Michael is a Director with Altman Vilandrie and Company and focuses on wireless and digital
media sectors. Prior to
AV&Co
, Michael was an SVP & GM with
Helio
, a highly innovative MVNO
in the U.S. While at
Helio
, Michael led all Strategy, Business/Corporate Development and was
GM of the Mobile Data Services team responsible for both the data P&L and product
development.


Prior to
AV&Co
, Michael was a Vice President with
Adventis
, a strategy consultancy, and a leader
in the wireless practice and has 10 years consulting experience. Michael has led many strategy
engagements for his clients spanning all facets of the wireless value chain including equipment
manufacturers, service providers and content providers.

Michael Grossi

Direct 617.753.7209

Mobile 617.480.9389

mgrossi@altvil.com

Altman Vilandrie & Co.

53 State Street

37
th

Floor

Boston, MA 02109

Telephone 617 753 7200

Fax 617 439 4290

www.altvil.com