Outline• Digi – Device Cloud Platform and overall winner in the M2M Platform Battle• Eurotech – joint winner of the best enterprise deployment in the M2M Platform Battle• FedEx SenseAware - joint winner of the best enterprise deployment in the M2M Platform Battle• Kore – winner of the best service provider platform in the M2M Platform Battle• Analyst, Ron Gherman, Frost and Sullivan• Analyst, James Brehm, Compass Intelligence• AT&T – Simplifying M2M
Digi Snapshot• $200M+ Provider of M2M Solutions (NASDAQ: DGII)• 660 Employees Worldwide• 240 Engineers / R&D across the globe• Global Leader in Cellular Router & Gateways• Named to Forbes “Best 200 Small Companies” - 2009• Named to Fortune’s "Americas 100 Fastest Growing Small Public Companies“ – 2009• Global Organization• US HQ in Minnesota
Business Process Integration Customer Energy Service Management Consulting Managed Services Warranty Solution Design Management Inventory Implementation Management Technology Selection M2M Applications Repair & Maintenance Logistics & Performance Service Monitoring Most M2M solutions today have to integrate into an existing businessenvironment to have value – this is the barrier and revenue opportunity
Example of their embedded units using Zigbee, Cellular and good old Ethernet
Pre-integrated into a range of enterprise applications
It isn’t just cellular, most industrial M2M applications are fixed. Cellularapplies where things are moving, e.g. transportation, but we’re starting to see it encroach into remote fixed applications.
The network is ‘in the noise’ compared to all the broader solution requirements
Digi gave a very clear business case on how they were able to stop collectionagents pocketing cash, collecting cash only when necessary and repairing down stations faster.
Digi International – M2M Products & Services M2M Detail Products/Services Consulting Services Why and how to implement M2M solutions that impact business operations. Requirements Analysis Business process analysis to determine ROI and total cost of ownership. End-to-End Solutions Design of unique M2M solutions to meet specific requirements and Design operating environments. Wireless Design Services Design and development of custom cellular, RF, Wi-Fi, satellite devices for M2M. Network Connectivity Networking devices and solutions to connect, monitor, and control Devices local or remote physical assets. (Network, Cellular, Satellite, etc.) Cloud Device Management Cloud-based Internet platform to manage data, remote devices & & Data Storage (iDigi) connect enterprise applications to remote devices. Web/Mobile Applications, Development of web & mobile based remote monitoring apps, Hosting & Managed integration services, device & carrier managed services. Services
The (Formerly) Missing PieceEveryware CloudM2M Integration PlatformM2M EvolutionBattle of the PlatformsOctober 4, 2012
Everyware Cloud Model Components Rules Engine MQTT SQL MQTT MQTT MQTT MQTT CollectMQTT is a lightweight protocol designed specifically for machine to machine communications, where the data transmittaltypically happens in bursts, potentially at random times and intervals, and the data itself is relatively small.MQTT is a publish/subscribe (pub/sub) protocol, which is perfect for M2M. Data producers (sensors, thermostats, bloodpressure cuffs, control valves) all create data. The data (at the bottom of our slide here) gets collected in the gateway device.Data consumers, far away from the data producers (like people in control rooms and operations centers, as well as enterpriseapplications like billing, inventory management and security systems) need that data.
Mounted DevicesUse Case: Reverse Vending MachineApplication:Reverse vending machine vendor needed a rugged, reliablecommunications gateway to exchange data from remote sites in harshenvironments to operations and maintenance centers.Adding the Everyware Cloud to the solution allowed the IT team toeliminate plans to expand data center equipment, power and space tomanage and process increased data traffic.Data streams enable new functions, such as one-to-one advertising.Product: Key Success Factors: Short time to market for hardware vs. RYO Custom Rugged Gateway EDC, offering real time data collection Rugged hardware to reduce maintenance costs Using their platform the software could be updated in real-time when new bottles were being claimed, as well as new revenue opportunities in advertising.
SenseAware and Priority Alert: A powerful combination for near-real time monitoring and intervention + SenseAware was announced at the conference, as small unit rented monthly (about $70 per month unlimited use) that detects temperature, humidity, 20 location, light level, and pressure.
What is SenseAware?SenseAware: an Information service with two vital components + A feature-rich Web Based Application The sensing devices: where information to feed the application streams are received, from inside packages, viewed, analyzed, and pallets, trailers, and audited warehouses 21
SenseAware: Features and benefits Key Features Benefits to customers• Current location: Know where your shipments are in SenseAware equips your company to: near real-time • Monitor location and condition of the• Route and Time-based Geofence: Create a geofence shipments in near real-time along the route a shipment should follow. Set up alerts • Enhance security, care, custody and and be notified if the shipment deviates from this control to unparalleled levels expected route. (Applies to ground shipments only) • Reduce loss and damage of the• Accurate temperature — Verify the temperature of shipments in-motion or in inventory sensitive shipping environments, and receive • Analyze trends, sense and proactively immediate notification if they go out of a specified respond to problems more effectively range. • Extend service levels with customers• Exposure to light — Receive a notification when the and partners sensor is exposed to light alerting you that the package • Innovate the definition of quality has been opened. assurance• Relative humidity — Observe moisture levels inside your shipments.• Barometric pressure — Detect changes in the atmospheric pressure that your products are exposed to. October 23, 2012 22
What is FedEx Priority AlertTM?• Specifically designed for industries that require a high degree of visibility and delivery compliance for their shipments: • Healthcare • Aerospace • Electronics and industrial machinery • Financial• Contract-only, fee-based service that combines: • 24/7 personal support from a dedicated global service specialist • Advanced shipment monitoring, proactive notification and package recovery• Shipments receive priority boarding on FedEx aircraft and priority clearance handling where available
What is FedEx Priority Alert PlusTM?Includes all features of FedEx Priority AlertTM plusadditional options, including: • Dry-ice replenishment • Gel-pack exchange • Cold storageNote: Additional options available for FedEx Express® shipments at select in-transit locations through On Demand Care. For details on On Demand Care,please refer to the Service Guide.
Priority Alert: Benefits to the customersGlobal reach Dedicated support• Service available internationally in more • An assigned global service specialist is than 70 countries around the globe responsible for your FedEx Priority AlertTM shipment activity, providing added• Intra-country service available in U.S., assurance for your most critical shipments: United Arab Emirates, Mexico, Switzerland, India and Canada • Proactively monitors status of your package and freight shipmentsConvenience • Notifies you of any shipment risks or delays • Executes customized recovery procedures• FedEx Priority AlertTM assistance available 24/7/365 at 1.800.257.0085 Peace of mind• Multiple billing options: • Priority boarding and priority clearance • Shipper handling • Recipient • Proactive monitoring, notifications and • Third party shipment remediation to resolve issues and help ensure on-time delivery Great example of how to package a compete solution.
Global M2M Deployment Challenges andOpportunities Chuck Horne Vice President of Products KORE aggregates operators networks into a global integrated service for enterprises – manage away the headache of dealing with multiple telcos
KORE at a Glance Over 1.3 Million M2M Devices Shipped About KORE • The World’s Largest Pure- play M2M Global Network Provider • The Leading M2M Platform Provider Featuring PRiSMPro • 24/7/365 Support Organization • Single Source for Multiple Technologies • Fastest Path to Market for Network Services • 700 Customers Across Multiple Industries • The Experts in M2M Device Certification • 600+ Devices Certified 2003 2004 2005 2006 2007 2008 2009 2010 2011 Example text KORE OEM partnersKORE – The Leader in Global M2M Connectivity
KORE’s Custom-built, Scalable M2M Services Network Multiple, Redundant Connections into 8 Top Carriers Worldwide, and CountingKORE – The Leader in Global M2M Connectivity
Deployment Challenges for M2MApplications • Ease of doing business – technical and business management • (Platform) tools for scalability • Technology choices • Coverage • Pricing over lifecycle • Management of multiple SIMs across multiple in-country carriers • Multi-national growth o Multiple SIMs with unpredictable roaming rates and restrictions o Regulatory requirementsKORE – The Leader in Global M2M Connectivity
Deployment Challenges for M2MApplications SCENARIOS M2M Solution • US GSM Services • US CDMA Services Due to Application Coverage Issues • Canadian GSM for Permanent Roaming Platform • Brazilian GSM Due to Regulatory Requirements A B C D E F H I • GSM Connectivity Throughout Europe Network • Connectivity in Singapore, US LEO US CAN BR EU AP AU CDM Satellit Thailand and Korea GSM GSM GSM GSM GSM GSM A e • Need a Low Cost Connectivity Device SKUs Option in Australia US Global • Require Satellite Connectivity GSM DEVICES CDM Satellit A e for Remote Devices Out of Range of CellularKORE – The Leader in Global M2MConnectivity
Key Considerations for a Global M2MDeployment • Regulatory framework – what are the costs of compliance? • Platform availability and feature set – does it meet your business requirements? • Integration into back-office systems – what APIs or other machine interfaces exist? • Controlling costs – how much control over roaming zones and roaming rates do you get from your provider? • Reporting Data – what is the latency? Accuracy? • Technical Support – to what degree is the partner prepared to support your M2M business model?KORE – The Leader in Global M2M Connectivity
Cellular M2M Communications - Market Forecasts Source: Frost & SullivanDirect M2M connections on cellular networks in North America to approach 75-80 million in 2018. These figures do not include laptops, netbooks, notebooks and tablets, which would be in excess of 50 million. I think this is a solid analysis of the opportunity, not hype based.
Cellular M2M Communications – State of the Industry Source: Frost & SullivanBusiness cases in M2M focused on efficiency, not doing thing differently, as in the Digi business case.
James BrehmSenior Strategist and Technology Evangelist210.firstname.lastname@example.org James summed up the current situation very well.
Why deploy M2M?Market or Revenue Growth Cost Reduction
“Soon, there will be more than one trillion connected devices…”IBM TV Commercial“…there will be 50 Billion connected devices by 2020.”Hans Vestberg, CEO of Ericsson“In this model, there is literally no limit on the number of connections that can be part ofthe mobile grid: cars, appliances, buildings, roads, sensors, medical monitors andsomeday even inventories on supermarket shelves. All of these have the potential tobecome inherently intelligent — perpetually connected nodes on the mobile web.” IvanSeidenberg, CEO of Verizon“When you look at the numbers between M2M and social networking companies,LinkedIn counts as its market every professional on the planet; that’s 1 billion people.Facebook is a little bit more ambitious, it counts as a potential customer over 2 billioninternet users and counting. But if you look at M2M, we have a market which consists ofover 7 trillion machines…” Dale Calder, Founder of Axeda“Once you embed it [wireless M2M application] in a business process, for example,customers are probably not going to rip you [out] when your annual contract is up.”Sprint Nextel Corp Some of the numbers quoted are just silly
Hype or Reality? High Growth Medium Growth Low Growth Declining Market Above 14 percent 7-14 percent Less than 7 percentM2M Landlines Netbook and Tablet Smartbook Computing Feature Phones Contextual Smartphones ComputingTechnology Crest of Depression of Educated Product Trigger Inflated Expectations Decision- Maturity Expectations making This is the key point M2M has yet to find its position in the world – how effectively can it expand into other segments beyond transportation?
Vehicle Telematicsis the largestsegment in theM2M market.Just 4% ofconsumer vehiclesand less than 20%of fleets currentlyconnected, themarket potential isenormous! Slightly different analysis than Frost and Sullivan, but James is a strong proponent of the untapped transportation opportunity. On the connected car I remain more circumspect, as our handheld devices are more relevant.
6.83% Automotive, Transportation and Distribution 7.39% Smart Grid9.09% Security1.00% mHealth 57.24% RMAC14.15% Transaction Terminals 4.31% MVNO / TSP
• ARPU’s range from $1 to $20• One of the goals of service providers who have to invest in spectrum should be in efficiently utilizing the spectrum• It’s about the cost per KHz of spectrum• Compass is wondering if AMPU is not a better measure of successMost EU operators have moved to AMPU (Average Margin Per User) for their consumer business.
The money is in the solution – hence why Verizon bought Hughes Telematics
Reasons to use Location Based Services for asset tracking – Lost goods – Fewer future thefts – Improved efficiencies – Shorter time to market – Safety – Convenience – Green – Fuel savings – Staffing – Fleet management – Brand protection – More
Focusing on Transportation and Logistics• Roads and Vehicles: 4M miles of roads, 254M vehicles, 11.8M heavy trucks and busses• Rail: 140,000 miles of railroad tracks and 1.4M rail cars• Air: 5,200 airports including 5 of the 25 largest in terms of air freight and 13 of the top 25 in terms of passenger traffic• Pipeline: 1.7M miles of gas and oil pipelines• Waterways: 25,000 miles of navigable waterways• Shipping Containers: 14.8M TEUs globally. (At any time, over 1/4 could be in the United States or inbound to the United States.)Transportation and Logistics has much market expansion – after seeing the SenseAware module from FedEx I think James is right
Simplifying M2M 5 Ways Decrease the Cost and Complexity of Deploying M2M SolutionsOctober 3, 2012David KalbAT&TDirector of M2M Business DevelopmentI included this as I thought AT&T presented a good understanding of the M2M space the their role in simplifying / industrializing the current “hand-crafted” industry. But it will continue to require solution selling.
M2M: Unlimited Opportunity / Immense Complexity “There are more machines than there are people in the world. Someday they’ll all be connected to the internet.” International Telecommunications Union “Internet of Things” Report - 2005 “Today we have an M2M Supply Chain Mess” Yankee Group
M2M Success faces numerous challenges How can we How can I optimize the What regulatoryWhat’s the best payload? certifications do maximize batteryway to configure I need? What if life? & activate something isn’t devices? working? Can I have a rugged device How do I protect that is also my data? lightweight? Can I finance the hardware? Can I integrate into our legacy and ERP How do I manage What about systems? support? international coverage? Can I get an How will we affordable How will I ship / track How do I manage wireless plan? handle billing? hardware? my devices over the air?
Evolution of Wireless M2M Solution Tomorrow Today • New revenue Yesterday • Revenue growth; streams • Cost reduction; customer • Business reactive satisfaction Intelligence for • Increased automated self- • Low data usage, healing’ processes limited functions functionality & data, proactive • Fully integrated • Local or national processes global solutions focus • Multi-country 53
Simplifying M2M 5 ways decrease the Cost and complexity of deploying M2M solutions1. Cloud Based M2M Services2. M2M Service Delivery Platform3. M2M Application Platforms4. Global M2M Service Offerings5. Vertical M2M Solutions 55
1. Cloud Based M2M SolutionsImprove Productivity• Real time collaboration across employees, partners, customers Demand to mobilize and• Requirements for applications to work virtualize assets, across devices applications and activitiesReduce Cost• Low storage and server utilization in non-peak periods• Desire to pivot from Capex to OpexRemove Complexity• Simplification due to limited IT staff down • Off-premise • Device Agnostic market • On-demand • Tiered Support• End-to-end ownership vs. multi-vendor • Easy to Use • Manage “Big service integrations Data”
2. M2M Service Delivery PlatformWhy Important?• Pre-built Service Delivery platform specialized for m2m Capabilities• Features added based on customer demands in agile development • Service Provisioning• Turnkey Business Management, Operations, Support • Subscription Mgmt • Billing • Service Geography • Business Models • SIM Management • Channel Management • Customer Support • Cost Management • Diagnostics • Fraud Management • Analytics • Order Management • Inventory Management
4. Global M2M Service OfferingsChallenges of a global M2M deployment:• Assembling and managing the best solution partners (hardware, software, systems)• Integrating a global product, including hardware, software, network• Deploying and managing solution in multiple regions• Real-time management of network performance globally• Cost controls and alarms for data usage by roaming devices• Provisioning in real time• Tracking and managing multi-protocol or multi-frequency SIMs• Technical support
One SIM With Global Roaming Coverage• Single global encrypted GSM SIM• Unified billing and a single rate plan for digital data services• Global diagnostics and device monitoring• Lowest-cost data routing with roaming permissions controls• Usage alarms• Powerful reporting tools