Informa Long Tail Wireless Spotlight: WiFi for M2M


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This spotlight is part of a series of concise reviews examining opportunities in long-tail wireless.

Long-tail wireless is Informa Telecoms & Media’s term for wireless technologies used for vertical-market applications.

The research focuses on identifying logical adjacencies and new revenue streams for general-purpose and industry-specific technologies.

In this spotlight, Informa explores the use of Wi-Fi for M2M, discussing how communication service providers and vendors might profit.

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Informa Long Tail Wireless Spotlight: WiFi for M2M

  1. 1. Wi-Fi Click to edit Master title for M2M styleLong-tail Wireless SpotlightCamille Mendler Master subtitle style Click to editPrincipal Analystcamille.mendler@informa.comMay 2012 10 January, 2011
  2. 2. Informa Telecoms & Media: Who are we?• We are part of Informa plc, a $1.9 billion UK corporation Bringing Knowledge to Life• Informa delivers intelligence to decision makers in the world’s largest industries• At ITM, our 65 analysts deliver validated insights with in-region research and quantitative tools We see telecom innovationas a growth catalyst in many industries. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 2 © All rights reserved
  3. 3. We advise on go-to-market strategiesBusiness models and partnersConnected Verticals• Industries where telecom innovationcan transform: • Operational efficiency • Revenue growth • Business model• Innovation can come from: • Technology • Processes • ApplicationsNine out of 10 CSPs and builders oftelecom infrastructure believe avertical market focus can grow theirtop-line. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 3 ©Confidential
  4. 4. Informa’s Long-tail Wireless Spotlights Long-tail wireless Rationale Spotlight • Defined as wireless • Identifying and • Provides a short technologies able to validating market review of support vertical- adjacencies. market applications. opportunities. • Creating new revenue • Includes general- streams. • Highlights: purpose and industry- • Key issues specific technologies. • Diversifying CSP and • Stakeholders vendor go-to-market. • Beneficiaries Source: Informa Telecoms & Media Siloed thinking is often the biggest challenge in long-tail wireless. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 4 © All rights reserved
  5. 5. The opportunity: Wi-Fi for M2MInforma viewpoint on Wi-Fi for M2M: Wi-Fi for M2M: Existing applications Agribusiness Vending machines• Complements cellular M2M.• Expands addressable range of objects.• Supports “carrier-grade” Wi-Fi Lighting control Health monitoring proposition.• Bridges gap between private and public networks.CSPs want 5% or more of their Warehousing Public safetyrevenues to be M2M-related by 2015*– but it won’t happen via cellularalone.*Informa-SAP M2M Communications Survey, February 2012 Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 5 ©All rights reserved
  6. 6. Ecosystem: Wi-Fi for M2M Enterprise take-upVendor consolidation • Outdoor Wi-Fi is in:• Ericsson buys BelAir - 82% of utilities• Alvarion buys Wavion - 58% of oil and gas• Laird buys Summit Data firms - 43% of rail firms (according to Informa surveys). • M2M is a key ICT investment priorityChip/module advances (remote monitoring,•The Redpine Signals field-data backhaul).WiseConnect module doesn’tneed a Wi-Fi accesspoint to connect to asmartphone or tablet Vertical-market pursuits• Ultra-low-power Wi-Fi • SingTel makes US$22 million investment in Ruckus Wireless (February 2012). Market demand, technology and vendor capabilities are increasingly aligned. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 6 ©All rights reserved
  7. 7. Money flows: Wi-Fi for M2M What’s sold? Wireless vendor CSP Enterprise Professional services (one-time fee) Equipment (upfront capex, deferred capex, pay as you grow) Managed services (monthly fee, shared risk reward) Build, operate, manage M2M managed service Self-manage Wi-Fi Wi-Fi network and with access to carrier- network and M2M M2M apps grade Wi-Fi, cellular, with apps seamless hand-offs Build, operate, manage Wi-Fi and M2M apps Source: Informa Telecoms & MediaWi-Fi for M2M offers an extension of managed services and a richer M2M service. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 7 ©All rights reserved
  8. 8. Competitors: Wi-Fi for M2MType Name Frequency Selected supportersCarrier-grade Wi-Fi Wi-Fi 802.11n 2.4GHz, 5GHz Altai, Belair, Cisco, Ruckus Wireless, WavionIndustrial-process WirelessHART 2.4GHz ISM ABB, Emerson, Siemenscontrol ISA100.11a 2.4GHz ISM Honeywell, YokogawaHome automation ZigBee 868MHz, 915MHz, Itron, Landis+Gyr, Schneider Electric, BT, 2.4GHz ISM Telecom Italia, Telefonica Z-Wave 868MHz, 908MHz, Sigma Design/Zensys, NTT DoCoMo 921MhzM2M specific, low Wavenis 433 MHz, 868MHz, Coronis, Elster, Orange Business Servicespower (Wave2M) 915MHz Weightless 400MHz-900MHz Neul NetworksLow power 6LoWPAN 315MHz, 433MHz, Google, Texas Instruments 868MHz, 915MHz Source: Informa Telecoms & Media Despite having many competitors, Wi-Fi is well known and widely deployed in diverse industries – for both indoor and outdoor usage. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 8 ©All rights reserved
  9. 9. Project examples: Wi-Fi for M2MVendor Customer Industry M2M application Wi-FiAlcatel-Lucent Groupe RATP (France) Urban rail Driverless-train real-time 802.11a with 5GHz for video control, digital train-to-ground signage communicationsAruba Milford Regional Health care Telemetry from HIPAA-compliant 802.11nNetworks Medical Center (US) intravenous-infusion pumpsBelair London Hydro (UK) Utilities Advanced metering 802.11a/b access nodesNetworks infrastructure with 5GHz backhaul linksRuckus ADI Logistics Warehousing Inventory management 802.11nWireless /logisticsWavion City of Tlalnepantla Public safety Traffic-video surveillance 802.11n with 5GHz(Alvarion) (Mexico) backhaul linksXirrus New College Swindon Education Multifunction device 802.11n (UK) management Source: Informa Telecoms & Media Wi-Fi is already widely deployed to support M2M and connected objects. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 9 ©All rights reserved
  10. 10. Addressable market: Wi-Fi for M2M Private enterprise Wi-Fi Public Wi-Fi locations locations (mil.) (mil.) 2015 645.9 2015 6.2 2014 570.9 2014 5.1 2013 491.9 2013 3.8 2012 415.7 2012 2.4 2011 345.1 2011 1.4 0 200 400 600 800 0 2 4 6 8 M2M object examples M2M object examples • Outdoor: Wells, pipelines, plants, CCTV • Outdoor: Traffic lights, meters, CCTV • Indoor: Containers, building systems • Indoor: Vending, ticket machines, lights Source: Informa Telecoms & Media Wi-Fi for M2M can connect a variety of objects, often crossing private and public Wi-Fi locations. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 10 ©All rights reserved
  11. 11. Conclusions• Peaceful coexistence is dawning for Wi-Fi, 3G and 4G – Wireless vendors and CSPs can profit from deploying Wi-Fi assets that people and objects can use.• Carrier-grade Wi-Fi can become a premium M2M option – End users can pay for automatic switching to best available M2M connectivity option.• Wi-Fi technology continues to improve – Low-power variants and simplified architecture options boost physical reach.• Wi-Fi offload applies to all types of data, including M2M – M2M traffic demands remain poorly understood, but CSPs must be prepared. Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 11 ©All rights reserved
  12. 12. Further reading• Blue-collar UC: A new frontier for collaboration, May 2012• Wi-Fi reloaded: The M2M opportunity, March 2012• M2M Communications: Turn potential into profit, March 2012• Informa-Lloyd’s List Connected Ship survey, August 2011 Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012 12 ©All rights reserved
  13. 13. For more information, contact:Camille MendlerE-mail: camille.mendler@informa.comTwitter: @cmendlerPhone: +44 (0)7766 131528