- M2M billing is partner-centric with multiple partners getting compensated for a single charging event. The perceived customer value of M2M differs by sector, such as delivery times for logistics customers. - Pricing for M2M can be configured for different scenarios. SFR competed successfully using a flexible charging system compared to other vendors. - The M2M market is projected to grow significantly with trillions of connected devices projected by 2020, representing billions in revenue.

1. Notes from Fergus
The Future of M2M Billing
•M2M is very partner centric: lot of revenue e.g. Sensorlogic – 6-7 partners getting
Catherine Lynch, Solution Marketing Director, SAP
compensated for a single charging event
28 September 2011
•Customer perceived value is different according to sector:
• logistics it might be delivery time for end customer (UPS KPI is # of trucks)
• Oil & gas: might be # of faults detected
•Pricing @Clynch09 for whatever scenario is being supported
can be configured
•SFR: competed vs Portal/ORCL – flexibility of charging system
•BYTEL : outsourced solution Extelia – low TCO & price vs Convergys, ORCL &
Comarch
•Numerix : vending machine – replenishment cycle
•OPCOM : telco – used for transportation, chipset in trucks satellite positioning
© 2011 SAP AG. All rights reserved. Strictly Confidential 1

2. M2M: A Definition
« Technologies that collect and transfer
information on the condition of physical assets or
people » *
* Forrester: « The M2M Market Is A Blossoming Opportunity » March 16 2010
© 2011 SAP AG. All rights reserved. Strictly Confidential 2

3. Trillions of connected devices by 2020
© 2011 SAP AG. All rights reserved. Strictly Confidential 3

4. M2M Worldwide Revenue Projections
35
30
25 Mobile Connectivity
EUR
20
Mobile Connectivity
€Bn 15 Revenue ROW
M2M Revenue WW
10 Cellular & Satellite
5
0
2010 2011 2012 2013 2014
Source: IDATE 2010 August 2010
© 2011 SAP AG. All rights reserved. Strictly Confidential 4

5. M2M: more than connected devices
An ecosystem
of machines
with
embedded
connectivity
© 2011 SAP AG. All rights reserved. Strictly Confidential 5

6. Pricing, Rating, Charging and Billing
Sensors Network Monetization
€$£¥
© 2011 SAP AG. All rights reserved. Strictly Confidential 6

7. M2M: business models & challenges
• Choose flexible platform with low ongoing cost of
Low cost ownership
• Scalable platform to scale for high volume
model • Low ARPU unit value
• Reduce operational costs
Massive • Support mix of recurring & usage based micro
payments
scale • High volume billing & high availability architecture
• Handle settlement & commission for complex value
Multi party chains
• Support retail & wholesale pricing models
value chain • Global support
• Analytics promote greater efficiency
© 2011 SAP AG. All rights reserved. Strictly Confidential 7

8. M2M: an extended ecosystem
© 2011 SAP AG. All rights reserved. Strictly Confidential 8

9. M2M : the issues facing service providers
•How to build in flexible support for pricing of recurring & usage based
fees to differentiate their services?
•Do current billing systems provide the required high levels of
automation across the full process spectrum?
•How can service providers build scale into this fragmented market (e.g.
dealing with roaming, reaching into new verticals)?
•What is the most effective architecture to support high volume, low
value communications?
• How to ensure complex partner settlement & prevent revenue
leakage?
© 2011 SAP AG. All rights reserved. Strictly Confidential 9

10. Run better M2M billing with SAP Next Generation Billing
•Supports flexible pricing for retail and wholesale models
• Recurring fee and usage based charges
• Pricing can be configured for multiple scenarios
•End to end support for the Consume to Cash business process
• Fully automated & integrated with the back office
•Low cost platform for high volume, low value transactions
• Low operating expenditure with low cost hardware
• Easy integration to multiple network partners & service providers
•Handles complexity in partner settlement
• Manage reseller settlements anywhere in the value chain in real-time
•Analytics provide deep insights to « sell greater efficiency »
• Analytics for real-time decision support
© 2011 SAP AG. All rights reserved. Strictly Confidential 10

11. Contact
Catherine.Lynch01@sap.com
Gurmeet.sachdeva@sap.com
Visit our web site: http://www1.sap.com/software/consume-to-cash.epx
Follow us : @sap_nextgenbill
Thank you!
© 2011 SAP AG. All rights reserved. Strictly Confidential 11

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