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You Sold Your First 1,000 Devices? Now What?

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This slideshow was presented by Syed Zaeem Hosain (“Z”), CTO, Aeris at MobileCON, CTIA 2015.

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You Sold Your First 1,000 Devices? Now What?

  1. 1. You Sold Your First 1,000 Devices? Now What? September 09, 2015 MobileCON, CTIA 2015 Syed Zaeem Hosain (“Z”), CTO, Aeris Communications, Inc. Syed.Hosain@aeris.net | @aerisCTO
  2. 2. 2© 2015 Aeris Communications, Inc. All Rights Reserved. §  Who is Aeris §  The “Growth Stall” §  IoT Products Life-Cycle §  A Look Into The Future Topics
  3. 3. 3© 2015 Aeris Communications, Inc. All Rights Reserved. About Aeris Overview Company: •  M2M / IoT services •  HQ in Silicon Valley, CA •  Services since mid-1990’s Our Customers: •  Enterprises deploying M2M •  Connectivity to / from Devices •  Analytics à  business actions Solutions •  Optimized M2M / IoT platform •  Connectivity to Application enablement •  Neo™ –  Rapid M2M deployment The Numbers: •  Global M2M / IoT services, CDMA, GSM, and LTE •  99.995% infrastructure reliability •  350 Million+ messages per day
  4. 4. 4© 2015 Aeris Communications, Inc. All Rights Reserved. §  Multi-technology services for M2M / IoT Aeris Markets & Services Global solution Markets •  Healthcare •  Telematics •  Consumer Auto •  Monitoring & Control •  Point of Sale •  Utilities Platform •  Application enablement •  Connectivity enablement •  Provisioning / Activation •  Real-time information •  Alerts & alarms •  Billing & reporting •  Acct-level NOC support •  Device/IP session control •  Data & voice connectivity Cellular •  Global services •  500+ carriers •  2G / 3G CDMA & GSM •  4G LTE
  5. 5. 5© 2015 Aeris Communications, Inc. All Rights Reserved. The Aeris IoT Platform Full solution stack for M2M and IoT applications
  6. 6. 6© 2015 Aeris Communications, Inc. All Rights Reserved. §  Many companies “stall” after deploying X units … –  “X”: hundreds to a few thousand devices … –  … occasionally, tens of thousands of devices §  Why? … outcome is not totally surprising –  Initial systems & processes reaching capacity –  Cost of operation is higher than expected –  Smaller companies & startups are resource-constrained –  Learning from mistakes taking time & effort to resolve –  Generating end-user bills & invoices at scale isn’t easy §  Key Issue –  Planning for growth was secondary to getting product launched! The “Growth Stall” “We will cross that bridge when we get to it”
  7. 7. 7© 2015 Aeris Communications, Inc. All Rights Reserved. IoT Products Life Cycle Choices for successful applications EOL •  Plan up-front •  Remove units •  Re-use #’s Operate •  Manage units •  Bill customers •  Update app Scale •  Manufacture •  Provision •  Test (on-air) Develop •  Buy vs. Build •  Certification •  Select network à Successful applications plan for entire life-cycle
  8. 8. 8© 2015 Aeris Communications, Inc. All Rights Reserved. Development / Deployment Planning for scale is key to growth BillAnalyzeOperateInstallMakeDesign à Successful applications plan for growth … … as early as possible!
  9. 9. 9© 2015 Aeris Communications, Inc. All Rights Reserved. Designing the IoT Application What are the design factors that need to be considered?
  10. 10. 10© 2015 Aeris Communications, Inc. All Rights Reserved. Design Factors to Consider Details could be critical to product success •  Does the device need to work for long periods? •  How large a battery might it need? Rechargeable?Power •  What sensors are available for the measured data? •  Is the cost of the sensor(s) sufficiently low?Sensors •  Where is the data being sent from? Home? Outside? •  Is the technology / transport appropriate for the use-cases?Connectivity •  Do the product components require special miniaturization? •  What impact does this have on design and manufacturing?Size •  Is the device protected from being compromised? •  Is the application purpose life-threatening if compromised?Security •  Where is the data being sent and to whom? •  Who has access to the data (device, transport, destination)?Privacy •  Is the data transient or stored for later access and analysis? •  What data analytics support is needed?Analytics •  What features are needed for deployment? •  Can the software and features be updated later / remotely?Features
  11. 11. 11© 2015 Aeris Communications, Inc. All Rights Reserved. STAND-ALONE Certified communications equipment EMBEDDED MODEM Pre-certified carrier cards MODULE Pre-certified radio modules CHIPSET Cellular radios and components TIME TO MARKET Cellular Hardware Design Time to Market and Level of Integration depends on choice of radio
  12. 12. 12© 2015 Aeris Communications, Inc. All Rights Reserved. Making the Devices What are the manufacturing factors that need to be considered
  13. 13. 13© 2015 Aeris Communications, Inc. All Rights Reserved. Manufacturing Factors to Consider Details could be critical to scaling growth • Can the manufacturer assist with design issues? • Do they have engineering skills to assist on “designing for manufacturability”?Good Partners • Does size reduction drive component costs too high? • Are there multiple sources for the components?Component Cost • Does the production process require new technology? • Does the new technology impact the yield too much?Technology • Will the design require special manufacturing equipment? • Does the device form-factor require unusual “touch”?Form-Factors • If product is successful, can the manufacturer scale production rapidly? • Will production scaling needs impact quality?Scaling • Are there materials in the device that require complex supply chains? • What impact does this have on production times and cost?Materials • Does the manufacturing process yield good product quality? • Is the manufacturer able to enhance the yield over time?Yield • Can test failures be reworked with sufficient quality? • Will field failures be easily repairable by the manufacturer?Rework • Are there any unique test requirements for the device? • Will the testing catch real-world use case faults?Testing
  14. 14. 14© 2015 Aeris Communications, Inc. All Rights Reserved. Installs Are Challenging OEM installations generally easier – controlled at factory Installation outsourcing services are available •  If not installed by the end-user Requires documentation and training •  Mistakes by installers are tough to debug Post-installation end-to-end testing is key •  KISS … “push test button” à “green light” à done! Beware inaccessible devices •  Leads to high cost of replacement and repair
  15. 15. 15© 2015 Aeris Communications, Inc. All Rights Reserved. Managing Operational Reliability & Scale OEM installations generally easier – controlled at factory Redundancy required for growth •  For connectivity, and application data servers Devices in the field may retry excessively •  Accurate timed transmissions can overwhelm servers 24 / 7 system uptime is essential •  Devices may expect timely responses Automation is key to scaling growth •  Manually provisioning large volumes not possible
  16. 16. 16© 2015 Aeris Communications, Inc. All Rights Reserved. PARTNER Outsource: off-the-shelf solutions and/or design services BUY Incorporate pre-certified embedded components BUILD Design from the ground up Buy vs. Build … Data & Systems Find the right partners when resource constrained
  17. 17. 17© 2015 Aeris Communications, Inc. All Rights Reserved. Receiving & Analyzing the Data Big Data analytics and services for scaling Rapid analysis of data often required •  Near real-time analysis and actions may be essential Actions are end-purposes of applications •  Filtering / processing data at servers common today Transport & processing costs may become high •  Filter / process “at the edge” – with configurable devices Data analytics for alerts and actions •  Careful of automated responses – provide oversight
  18. 18. 18© 2015 Aeris Communications, Inc. All Rights Reserved. Billing End-Users Key to generate and scale revenue Timely invoicing critical for funding growth •  Common growth stall issue for many companies Scaling units in billing systems is critical •  Existing systems may not be adequate for M2M / IoT Automation of billing functions is key •  Service providers can provide sufficient information Outsourcing billing services available •  Enables companies to manage growth
  19. 19. 19© 2015 Aeris Communications, Inc. All Rights Reserved. §  2010: IBM (describing their Rational software design) –  “A World with 1 Trillion Connected Devices” by 2015 §  2011: Ericsson CEO Hans Vestberg –  “50 Billion Connected Devices” by 2020 §  2013: ABI Research report –  “30 Billion” by 2020 §  2013: Morgan Stanley report –  “75 Billion Devices Connected … IoT” by 2020 §  2014: Intel infographic –  “31 billion devices connected to Internet” by 2020 §  2014: ABI Research report –  “41 billion active wireless connected devices” by 2020 The Predictions Are Staggering Numbers over the years remains high Source: Intel
  20. 20. 20© 2015 Aeris Communications, Inc. All Rights Reserved. Impact of One of the Predictions Data growth leading to storage and processing concerns Cellular M2M / IoT data increasing •  M2M devices average: 2 MBytes / month •  USA: 15 M devices (8% of all M2M): 30 TBytes / month With 50 Billion IoT devices by 2020 •  Number of cellular devices (at 5%): 2.5 Billion •  Total data (at 4 MBytes / month) : 10,000,000 TBytes / month Even with more conservative estimates •  Transmissions & data haystacks are enormous •  à greater emphasis on “processing at the edge”
  21. 21. 21© 2015 Aeris Communications, Inc. All Rights Reserved. §  Faster pace than cellphones … > 4X in five years Total Cellular M2M Connections World-wide growth in number of units Source: Harbor Research, 2013
  22. 22. 22© 2015 Aeris Communications, Inc. All Rights Reserved. Cellular M2M Device & Traffic Growth Device Type Mobile Devices, 2013-2018 CAGR Mobile Data Traffic, 2013-2018 CAGR Smartphone 18% 63% Tablet 41% 87% Laptop 13% 30% M2M Module 43% 113% Source: Cisco VNI Mobile 2014
  23. 23. 23© 2015 Aeris Communications, Inc. All Rights Reserved. Summary Exciting times ahead Avoiding the “Growth Stall” is possible •  Plan before systems get max’ed – tougher when busy Automate everything •  Processes, systems, support … “no hands” approach M2M and IoT is the next Big Thing •  Even conservative projections are enormous Global industry and market •  Applications are quite similar everywhere
  24. 24. Thank you! Syed.Hosain@aeris.net §  +1 (408) 557-1905, twitter: @AerisCTO, blog: www.aeris.com/blog

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