Accelerating Monetization of M2M/Connected Devices
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Accelerating Monetization of M2M/Connected Devices

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The M2M market is in a significant growth stage, with the opportunity concentrated in select use cases in enterprise verticals. Recent trends show innovation and growth drivers in M2M solutions,......

The M2M market is in a significant growth stage, with the opportunity concentrated in select use cases in enterprise verticals. Recent trends show innovation and growth drivers in M2M solutions, however, cost, network standards, and customer knowledge are still issues. In this presentation, Cartesian gives an overview of the monetization opportunities within the M2M ecosystem and reviews developments in the M2M market. It also identifies and analyses key enablers, inhibitors, value chain participants, use cases, and considerations for network operators and other emerging players.

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  • 1. www.cartesian.com Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or means (electronic, mechanical, photocopy, recording or otherwise) without the permission of The Management Network Group. Cartesian Perspectives Accelerating Monetization of M2M/Connected Devices February 2013
  • 2. 2Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. The M2M market is in a significant growth stage, with the opportunity concentrated in select use cases in enterprise verticals M2M Overview Source: Infonetics Research, ABI, Cartesian 60 85 120 170 240 339 50 69 95 131 180 248 110 154 215 300 420 587 0 100 200 300 400 500 600 700 2009 2010 2011 2012 2013 2014 WWM2MConnectedDevices(inMil.) Consumer Enterprise Connected M2M Devices, 2009-2014 (Worldwide, in M) CAGR 40% 38% 41% “4.2 billion consumer connected devices by 2020” — Machina, 2011 “10 or more mobile Internet devices will be used by each household” — Softbank Corp, 2010 “22 billion internet connected devices by 2020” — IMS Research, 2010 “50 billion connected devices by 2020” — Ericsson, 2010 “50 billion connected devices by 2025” — GSMA, 2010 “100 billion cellular devices will be connected by 2020; telecoms companies always underestimate the figure at 50 billion” — Gerhard Fettweis, Vodafone Chair Professor, May 2010 “100 billion connected devices in the world” — IBM, 2010 “One trillion Internet-connected devices” — IDC, 2010 But some believe it could be higher…
  • 3. 3Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Recent trends show innovation and growth drivers in M2M solutions, though cost, network standards and customer knowledge are still issues Recent Trends in M2M Key Drivers in M2M Source: Cartesian, ABI, GTB News Key Inhibitors in M2M Acceleration in operator partnerships • Increasing number of M2M operator alliances • Seven global MNOs partnering to offer global M2M services for MNCs via Jasper Wireless • MVNOs establishing partnerships with solution providers to address complex M2M niches Global M2M opportunities still in early stage • Total market is forecasted to grow at 40% CAGR (# of connections) over the next 3-5 years • Global adoption and solution scale is supported by improving global coverage, particularly in key logistics centers such as China and India ROI models being established • Falling module costs and M2M product maturation delivering improved ROI on solutions, accelerating adoption in many areas Open development initiatives • Verizon/Vodafone, AT&T, Orange, and Telefonica have all launched open development initiatives to enable/accelerate M2M solution development Regulation/investment promoting M2M • In-car emergency eCall in Europe (2014); Anti-theft vehicle tracking in Brazil (2011) • Smart metering legislation in US and Europe Module cost remains a challenge • With M2M modules ranging from $25 to $90, cost remains a major inhibitor to adoption, although increased scale and convergence on LTE may help in the mid-term Customer sophistication is still developing • Understanding of M2M and its ROI is still emerging among enterprise customers • Complexity limits customer ability to rapidly identify ROI opportunities Network and chipset compatibility • “Single SKU” difficult to achieve for M2M solution builders as difference between CDMA/GSM and spectrum bands require increased cost and complexity High-throughput apps still limited • Adoption of high-throughput use cases such as video surveillance is limited • Dynamic displays are beginning to see significant traction, though in limited use cases • Complex value chain – solutions require multiple players • Fragmented market with few dominant players and much confusion regarding player roles • Breadth complicates task of prioritizing and developing solutions Ecosystem complexity and solution/application breadth 1 2 3 1 2 3 4 5 4 5 M2M Drivers and Inhibitors
  • 4. 4Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Many players are involved in assembling and delivering M2M solutions to the market, making execution much more challenging than for basic mobile services M2M Value Chain Source: Cartesian M2M Value Chain and Illustrative Vendors •Consulting, design integration and deployment support services •Security solutions and consulting •Field testing •Chip-sets and modules that power M2M devices –Sensors –Actuators –Comms equipment •Manufacture and sell hardware with M2M connectivity; includes modules with chipsets, memory, OS and firmware •Integration with customer CRM, ERP, etc. •Account and device management portals •Business customer or individual consumer •Tower radios, network switches, etc. that support M2M services •Core network operations •Monitor and ping network to ensure devices are functioning as required •Back end provisioning and configuration •Rating and billing of M2M services •Application of business/ security role •Monitoring and back end analytics •Purchase M2M connectivity wholesale and re-sell •May provide cross border or hybrid cellular/ satellite service M2M Applications (Device + Software) M2M Service EnablementCore Network End User Software & Services Front End Device/ Endpoint M2M Air Interfaces M2M Deployment Support M2M Service Delivery Platform Network Operations & Connection Network Hardware MVNOs
  • 5. 5Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. MNOs have aggressively entered the M2M segment, mostly starting with their enterprise customers’ needs • Sprint has the smallest M2M customer base, likely a result of late global expansion US MNO M2M Offerings Sources: Berg Insight, Ovum, Carrier news rooms, Cartesian xx xx 13.1M (4Q11) 8.6M (4Q11)2.5-3.5M (4Q11) xx 100s of dedicated personnel Vertical-oriented directors manage top M2M accounts • 2 M2M-focused groups (business & consumer) • Partnership with Jasper Wireless provides allows for large-scale deployments & end- to-end solutions • Also works with VARs • Organization within enterprise group focused on M2M • nPhase provides management console and enables Verizon to offer end-to-end solutions • Streamlined, rapid device certification • Cloud-based management platform • Numerous partnerships for enablement & customer acquisition ~50 in Integrated Solutions Group # Connections Operator Key Capabilities/ Strategy Size of Org. • Shipping and logistics • Building automation • Consumer devices (Kindle) • Automotive (Nissan LEAF) • Health care • Digital signage • Automotive (OnStar) • Health care • Utilities • Asset tracking • Industrial • Government (Public safety) • Financial services • Entered resale agreement for M2M. cloud application dev. platform with Axeda in Jan. 2012 • Announced single-SIM offering for device manufacturers supported by Jasper Wireless in Feb. 2012 • Announced creation of three M2M development centers in fall 2010 • Announced partnership with Jasper Wireless in spring of 2009 • Purchased last 50% of nPhase (Jan. 2012) • Entered strategic partnership with Encore Networks to provide M2M solutions for cellular transport in Jan. 2012 • Partnership with Axeda provides VZW with important application development capabilities (March 2011) • Launched M2M Management Center based on the nPhase Platform in 2010 • Announced partnership with Vodafone to serve global customers in Feb. 2010 • Asset tracking • Fleet management • Security • Digital signage • Health care • Utilities • Announced partnerships with Chrysler in Automotive and Uplink in home security solutions • Announced partnership with Orange Business Services to extend M2M reach to 180 countries in Feb. 2012 • Sprint Command Center (Cloud-based device management platform) launched in 2011 • Launched M2M development center in Oct. 2010 Key Developments Vertical Focus
  • 6. 6Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. xxxxxx Each of the top 3 US operators has different approaches to end-to-end M2M delivery M2M Solution Comparison Consulting and technical sales Integration of M2M solution Device provisioning and installation Solution monitoring / reporting Application support Connectivity support Applications development Customer care Hardware customization and testing Billing and reporting Hardware manufacture Connectivity Carrier responsibility Mixed responsibility Partner responsibility Key * Sources: Ovum, Cartesian * The diagram represents Sprint’s retail M2M positioning Integration Connection Applications & HW Operator 2 Sprint shares responsibilities in key service areas like solution monitoring and customer care with its partners and hands off responsibilities for application development completely 2 AT&T and Verizon are more involved in application support and development than Sprint 3 3 Sprint places emphasis on the quality of its technical sales by leveraging internal capabilities 1 Verizon is solely responsible for provisioning and monitoring its M2M deployments through nPhase 4 4 4 2 1
  • 7. 7Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Globally, MNOs are partnering to offer end-to-end M2M capabilities that extend services beyond local markets Global MNO M2M Summary MNO Recent M2M Activity Vertical Focus Key Partners xx • In 2011, China Mobile announced 10 target verticals for its M2M strategy and has engaged customers in all of target verticals • Analysts expect China Mobile to shift focus from providing customized M2M solutions to a more standardized solution approach • Telematics • Energy/Utilities • Security • Partners with “local vendors in adjacent segments and channels” • Rated top global M2M operator by Analysis Mason for scale, strategy, and partnerships (Jan. 2012) • Announced an agreement with Boston Scientific to develop m-health m2m monitoring solutions (Mar. 2012) • Selected by BMW to supply M2M platform and data services for new cars (Mar. 2012) xx • Utilities • Automotive • Consumer Electronics • Digital Signage • Health care • Security • Sold M2M platform assets (Telenor Connexion) to Ericsson (Apr. 2012) • Telenor maintains M2M capabilities through four vertical- specific M2M units xx • Healthcare • Transportation • Energy/Utilities • Security • Agriculture • Orange business services partnered with Sprint to provide expanded end-to-end international access for Sprint business customers (Feb. 2012) • Qualcomm Life agreed to use Orange’s M2M connectivity in Europe for its 2Net platform, which enables remote monitoring of medical devices (Mar. 2012) xx • Manufacturing • Retail • Transport • Asset management • Utilities • Health care xx • Established a partner portal to bring together DT partners with providers of hardware, software and service, system integration, and end-to-end solutions • Invested in M2M centralized competence center in Germany to explore and develop M2M solutions • Industry analysts expect DT to invest in a standardized M2M platform soon • Transportation • Energy/Utilities • Security • Retail • Healthcare • Partnering to extend global M2M capabilities • Announced partnership with China Unicom to develop end-to-end vertical products and commercialize M2M Solutions (Oct. 2011) • Partnered with Turkish operator Avea for development of M2M business opportunities (Apr. 2012) xx • Security • Utilities • Digital Signage • Manufacturing • Transport Source: Ovum, company websites, Cartesian
  • 8. 8Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. xxxxxx Top global MNOs focus more on their area of expertise, the connectivity of M2M solutions Global M2M Solutions Consulting and technical sales Integration of M2M solution Device provisioning and installation Solution monitoring/reporting Application support Connectivity support Applications development Customer care Hardware customization and testing Billing and reporting Hardware manufacture Connectivity Carrier responsibility Mixed responsibility Partner responsibility Key Sources: Ovum, Cartesian * The diagram represents Sprint’s retail M2M positioning Integration Connection Applications & HW Operator Vodafone outsources application development and support to its partners while focusing more on “value-add” in connectivity 2 Orange builds on the strong consulting capabilities of its Orange Business Services unit 3 Telefonica plays a broader “end-to- end” role in the connectivity sub- segment 1 1 2 3
  • 9. 9Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. M2M enablers provide a broad range of services including data network access, M2M platform services and deployment support M2M Enablers Role DescriptionCompany Recent Activity Service Delivery Platform • M2M platform provider with a strong portfolio of MNO partnerships globally • Strategy is t partner with one major MNO in each global market. AT&T is Jasper’s major US partner • Recent MNO partnerships established with Etisalat and NTT Docomo (Feb. 2012) • One of many Telefonica technology partners for a centralized TV everywhere ecosystem called BlueVia (Dec. 2011) SD & Application Development Platform • Verizon Wireless/Qualcomm JV providing M2M platform services through Verizon Wireless in the US and Vodafone in Europe • Verizon bought out the remaining 50% of nPhase from Qualcomm (Jan. 2012) M2M Deployment Support • Feeney provides M2M transportation solutions, focusing on public transportation, fleet management, and public services (e.g. Law enforcement, EMS, Fire) • Entered an agreement with Amerinet to provide communications equipment (Feb. 2012) Application Development Platform • Axeda provides cloud-based platform services and software for managing M2M connected devices and implementing M2M applications • Signed exclusive agreement to provide AT&T with M2M application development platform (Jan. 2012) • Working with GlobalSoft to integrate M2M data with SAP CRM and ERP (Mar. 2012) M2M MVNO, Service Delivery & App Development Platforms • Wyless combines M2M wireless connectivity solutions (M2M MVNO) with M2M platform services • Partners include Spring, Telefonica, and T-Mobile • Partnered with DataLink Systems to provide M2M school bus tracking systems (Dec. 2011) • Launched Porthos 2.0, a new powerful M2M management platform (Oct. 2011) SD Platform & Managed Services • Kore primarily provides M2M network services through a centrally managed platform • Provides managed services and M2M solutions across a variety of industry verticals • Launched Quickstart Program for M2M application developers to accelerate development, testing, and deployment of M2M applications (Nov. 2011) Source: IDC, company websites, Cartesian M2M MVNO, Service Delivery & App Development Platforms • M2M MVNO with internal service delivery and application development platforms (end-to-end managed M2M services) • US MNO partners include Sprint and AT&T • Arkessa provides international cellular coverage while Globalstar provides satellite service • Announced a recent partnership with Transatel for managed M2M connectivity in Europe (Jun. 2012) • Recently partnered with MicroMed for remote monitoring of a cardiovascular device (May 2012)
  • 10. 10Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. M2M enablers fill key gaps working with emerging M2M players that larger platform players do not serve • In this rapidly evolving space, many significant opportunities come from new, smaller players M2M Enablers AT&T is acquiring customers through Jasper's global acquisition engine and GSM pitch to US players, VZW through their strong enterprise/wholesale channel and Sprint through its solution providers M2M Ecosystem Capabilities                                              Operator and Enterprise Platform Device Provisioning and Management Operator Billing/Reconciliation International Device Support Unified Platform and Reconciliation Across Borders Cross Border Operator Alliance IT Integration Service Delivery Platform Cloud Integration Services Application/Vertical Specific Solutions & Platforms Customer Acquisition Engine Global Pipeline Development US Pipeline Development Systems Integration / M2M Device and Solution Development End to End Solution Development Support Hardware Integration M2M Platform Integration                     Direct Support for New M2M Products                   Partners   = Strong Capabilities = Some Capabilities = Limited or no capabilities Source: Cartesian              
  • 11. 11Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Smart meters and M2M software application suites have been at the forefront of hardware and chipset manufacturers’ minds in the past few years Equipment Manufacturer Activities Network Hardware Manufacturers Chipset Manufacturers • Promoted software suite allowing for efficient management of M2M signaling traffic on GSM networks (Jul. 2011) • Acquired M2M technology platform from Telenor Connexion (Apr. 2011) • Launched M2M device connection platform (Feb. 2011) • Exhibited smart meter M2M solutions (deployed in the UK and an Android powered rear-view mirror for the automotive industry (Mar. 2012) • Vodafone and Alcatel-Lucent teamed up to develop smart metering in Germany (Dec. 2009) • Deutsche Bahn selected Cinterion for dynamic passenger information system (Apr. 2012) • Announced application development framework enabling application transitioning from 2G to 3G networks (Feb. 2012) • Exploring smart meter and micro-finance M2M applications in India (Jul. 2011) • Acquired global M2M division of Motorola (Mar. 2011) • Introduced single-stream Wi-Fi system for M2M smart home applications (Mar. 2012) • Launched Qualcomm Life to manage development of mHealth platforms (Dec. 11) Manufacturers partner to enhance the value of their M2M ecosystem and offer solutions to their existing customer base
  • 12. 12Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. While M&A activity in M2M has been sparse, M2M players continue to enter strategic partnerships to expand geographic reach and innovate across verticals M2M Acquisitions and Partnerships Details • Ericsson acquired Telenor Connexion, Telenor’s M2M platform (Aug. 2011) • Telenor intends to continue providing M2M services but without in-house, end-to-end platform capabilities • Telenor believes the pace of innovation in M2M requires them to move up the value chain by outsourcing platform services • Telefonica entered an M2M agreement with Turkish MNO Avea, covering the provision of global M2M solutions, international roaming agreements, and technology standards development (Apr. 2012) • The agreement includes joint development of novel M2M solutions in areas like transportation, smart cities, home automation, energy efficiency and mHealth • Sprint roaming agreement with Orange Business Services allows Sprint to provide global M2M data services to multinational customers (Feb. 2012) • Streamlines M2M customer experience by enabling global service through a single account • Qualcomm Life will use France Telecom Orange M2M connectivity for its 2Net platform, which enables remote monitoring of medical devices • Qualcomm intends to leverage Orange business services M2M platform which is evolving to connect devices and cloud-based monitoring systems for managing mHealth applications Category Platform Acquisition M2M Roaming Agreement General M2M Partnership mHealth M2M Partnership Source: Ovum, FierceWireless, Company websites, Press releases • In July 2012, seven operators across several global markets entered a partnership to improve global M2M capabilities and to standardize and streamline the M2M ecosystem in order to provide cost-effective global M2M services • Operators plan to cooperate to develop a global SIM and to offer a seamless global solution for MNC customers • A common, Jasper powered web interface will provide SIM management and performance monitoring capabilities • The partnership will also address roaming challenges, which have historically been a major barrier to global M2M services • Notably, the alliance excludes AT&T which will exclude M2M roaming capabilities in the U.S. Global M2M Alliance (Seamless Global M2M Solution for MNC Customers)
  • 13. 13Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. There are several enablers that will be required for M2M deployment, with some requiring tweaking for M2M suitability Network Enablers  = Yes = Potentially / some applications  Source: eDevice, Cartesian M2M Enabler Description • Enhanced authentication and security based on several protocols and encryption • Strong base level standard expected, but higher grades of security may be monetizable Security / Authentication  Monetizable? • Enables system to communicate with remote module without module identifying itself periodically  • Data centers that provide low cost storage capacity fully managed by operator personnel with security assurances Hosting/ Shared Storage  • System-wide visibility into module status for specific applications that are required to display on/off status persistently • Enables sensitive applications or higher priority users to get higher service levels or preferred access when congested QoS  • Enables capture of module’s locationLocation / LBS  • Enables secure transfer of sensitive, financial information Payment / Transaction  • Use of Short Message Service to alert other machines or humans of emergency situations that may arise SMS  • Allows the module to operate on other networks domestically and internationally International / Roaming  • Enables efficient distribution of high bandwidth content to multiple simultaneous users  • End to end IP architecture provides enhanced security and interoperability across wireline services All-IP, IMS Based Core • More intelligence at network edge (fast adapting links & efficient retransmission) enhances the ability to maintain a session • Visibility into device’s details, remote kill, password reset, etc. Device Management • Continuous packet connectivity to efficiently maintain sessions – avoids delays incurred for session set-up Always On • Creates a tunnel between device and server for secure communication and persistent connection VPN  M2M Enabler Description Monetizable? Static IP Addresses Presence Multicast Session Persistence = Core = Secondary
  • 14. 14Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Key Use Cases M2M taxi technologies combine use cases for transaction processing, digital display and location-based services M2M Use Case Illustrative M2M Use Case: Taxi Solutions • Regulation requiring cabs to adopt credit card payments in major cities such as New York City and Boston has driven adoption • Diversified offering could include tailored entertainment solutions for limousines, buses, and other livery vehicles • Existing network and solution providers could be flipped/replaced over time as solutions age • Requires hybrid pricing with always-on data connection during the day, but off-peak offer for cost-efficient download of display ads • Router: Utilizes cellular routing device with integrated cellular radio that could be installed across various classes of livery vehicles (i.e. buses, limousines, etc.) • Console: Uses mobile technology to streamline payment process and provide passenger information • Display: Provides advertising platform targeted to consumers in specific urban areas. Currently largely static, but could be used to collect information in the future Solution Description Opportunity Description 1. Transaction Processing: • Streamlined payments • Expanded payment options • Automatic receipt generation 2. Digital Display: • Passenger entertainment • Location-specific targeted advertising • Interactive information collection 3. Location-Based Services: • Fleet management • Passenger location information • Route tracking Vendors Solutions Partners • Credit/Debit Card Processing • Media & Ad Content • Interactive Passenger Maps • Credit/Debit Card Processing • Media & Ad Content • Location and Dispatching • Acquired Clear Channel Taxi Media in 2010 Source: Cartesian, Company websites
  • 15. 15Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Shipping is one of the more mature M2M use cases, and calls out the need for global operator partnerships, as well as a satellite strategy M2M Use Case Illustrative M2M Use Case: Global Shipping • Need for solutions that work across multiple markets and technologies (e.g. satellite/cellular) • Major challenges exist given CDMA vs. GPRS, spectrum band differences, international coverage gaps, and cost constraints • Acquisition of a well-positioned solutions provider could increase M2M capacity • Leverage GPS or satellite-based endpoints to communicate location or status of goods over a wide geographic range • Requires device provisioning and back-end analytics/alerts • Hardware components may require long battery life and low power usage, depending on use case Solution Description Operator Opportunity Key Use Cases 1. Global tracking capability: • Enable companies to track asset location and status globally • Permit build-once, work in all markets (single SKU) 2. Satellite-based tracking: • Remote area coverage (i.e. mining application) • For applications such as transoceanic container or mining asset tracking 3. North America cross-border: • Network partnerships with Canadian and Mexican providers • Offers both cellular and satellite • Integrated devices with both GSM and CDMA capabilities • Satellite-only provider (GLS) • Customized tracking solutions • Multiple network options • Versatile cellular-only provider • Established partnerships with international carriers Vendors Solutions Partners Source: Cartesian, Company websites
  • 16. 16Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Consumers also have use cases, although needs are often covered by alternative methods and technologies such as WiFi or Bluetooth combined with a smartphone M2M Use Case Illustrative M2M Use Case: Consumer Tracking Solutions • Substantial consumer adoption for pets at a lower price point (i.e. carrier subsidy could drive adoption) • GPS offers the best solution with most locations where tracking is required outdoors, but the satellite communication channel has a weak value proposition • Provide ability to send location, alerts, etc. in real time instead of passively storing it; enables command issuing and communication with vehicles • Track route/activity without need to remove fitness device • Pet: M2M could help easily locate and track pets when necessary, adding the benefit of network coverage of MNOs • Car/Driver: Geofencing allows users to draw zones around places and can be linked to alerts, immobilization, etc. Simple functions using location data also included • Fitness: Device attached to shoes or clothing (for runners) or bike (for cyclists) transmits data to server that tracks and analyzes fitness progress Solution Description Operator Opportunity Key Use Cases 1. Pet Tracking: • Ability to track pet locations • Help easily locate pets when necessary 2. Car/Driver Tracking: • Car location tracking • Geofencing (alerts, immobilization, etc.) • Monitor driving behavior of kids/other vehicle users 3. Fitness Tracking and Analytics: • Device attached to shoes/ clothing/bike transmits data to server for tracking/analysis Source: Cartesian, Running USA/Sporting Good Manufacturers Association, Company websites • Location Tracking • Activity Tracking (well-being, health, exercise) • Safety & Security • Family Monitoring • Diagnostics & Emissions • Market share via partnership • Fitness data from device • Online tracking tool Vendors Solutions Partners Acquired by Verizon, using various MNO networks and GPS systems
  • 17. 17Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. As this exciting industry space evolves, Cartesian will be working to address these key questions in serving our clients Key Questions M2M Market – Key Questions • Where are the key segments of emerging demand, and what capabilities will be required to meet these specific needs? • What is the enterprise ROI on M2M? What are the key gaps not being addressed effectively by current M2M providers? • Where are vertical solution sets required, and what are the keys to success in addressing specific vertical needs? • What set of common/horizontal capabilities will be necessary to enable a broad range of M2M solutions? What is the tradeoff between horizontal and vertical M2M strategies? • How can M2M solutions scale more effectively? Where can standardization occur? Where is it occurring right now? • Where and how does M2M solution pricing evolve? How does this vary between consumer and enterprise models? • Will content players be able to commoditize access? • What value-added capabilities can be monetized in enabling M2M? • Who is best suited in the value chain to capture lasting value? What role wins? Why? • What partnership models and/or ecosystems will prove most successful or best suited to particular enterprise/consumer needs?
  • 18. 18Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Representative Cartesian M2M Experience Cartesian has successfully conducted a variety of projects for vendors, enablers, and service providers in M2M • We have completed several dozen M2M engagements for clients serving the Americas, Europe and Asia M2M Experience Source: Cartesian • Customer needs analysis by vertical for a major MNO • Competitive and ecosystem analysis for a satellite service provider • Market research for a telematics service provider • Growth strategy and product roadmap for a telematics system vendor • Business model development and partnership strategy for a major MNO • M2M business case for a new division within a major MNO • Pricing strategy for a major MNO across multiple verticals • US M2M market sizing and forecasting for an MNO • Negotiation support for a device vendor seeking an M2M contract • M2M partner screening and selection for a new market entrant • Partner strategy for the wholesale unit of an MNO • Action plan develop- ment supporting new M2M unit for an MNO • Pricing, product and partner recommen- dations by target vertical for an MNO • International channel optimization for an M2M device vendor Go-to-Market Planning Partnership Development Financial Analysis and Business Modeling Opportunity Assessment and Strategy Development Market and Customer Analysis
  • 19. 19Confidential and Proprietary — Copyright © 2014 The Management Network Group, Inc. d/b/a Cartesian. All rights reserved. Descartes House 8 Gate Street London WC2A 3HP UK Two Financial Center 60 South Street, Suite 820 Boston, MA 02111 USA 8260 Greensboro Drive Suite A-30 McLean, VA 22102 USA 7300 College Blvd Suite 302 Overland Park, KS 66210 USA 400 Atrium Drive 1st Floor Somerset, NJ 08873 USA Contact Information Susan M. Simmons Chief Operating Officer susan.simmons@cartesian.com +1 617 999.1235 www.cartesian.com