Presentation from www.iot-now.com webinar on the 19th of May 2016.
The Internet of Things (IoT) will transform your business by providing business insight, improving business process and connecting you to your customers. But how do you truly measure your IoT connectivity initiatives?
During this webinar, you will learn about:
Trends and key learnings in evaluating IoT initiatives
Understanding the goals, key metrics and ROI of a connected program
Quantifying the ROI for IoT initiatives using real-world customer results
How choosing the right SIM – built for machines, not people – can help deliver a better ROI
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SIERRA WIRELESS: Building the Internet of Things
2015 revenue: $608 million
1,100 employees worldwide
Customers in 130+ countries
2015 revenue: $608 million
15. 15
35.0%
20.7%
20.4%
23.9%
Sierra Wireless is building the IoT
Building the IoT with intelligent
wireless solutions
120 Million Devices Shipped
#1 in cellular devices
for the IoT
(1)
Source: ABI Research– June2015
Cellular Embedded Module
Revenue Market Share in 2014 (1)
Sierra
Wireless
Innovative open-
source embedded
platforms
Technology
leadership
Industry’s broadest
portfolio
20+ years of wireless
M2M experience
IoT specific
Connectivity
Complete device to
cloud offering
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Well positioned in key IoT segments
Automotive &
Transport
Energy &
Industrial
Enterprise
Residential &
Healthcare
• Automotive
• Fleet Mgt.
• Toll Collect
• User-based
Insurance
• Smart Meters
• Smart Grid
• Industrial
• Public
Infrastructure
• Sales &
Payment
• Distributed
Enterprise
• Mobile
Computing
• Home
Security
• Residential
Automation
• Patient
Monitoring
Strong global base of blue-chip customers
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Our IoT Learnings
Global operator independent IoT Services
delivered by the worldwide leader in cellular modules
1000+Customers
>2MSubscribers
180+Countries
Small & Medium Enterprises Large Enterprises & OEMS
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Our Customers IoT Goals
Mission Critical
Fixed location
EU-Wide
Difficult to service
Urban & Rural
Latin America
Access Control
Deep Indoors
EU-Wide
Maximizes potential
customers & minimizes
deployment costs
Maximizes market
potential & simplifies
management
Enables an SLA &
minimizes downtime
service costs
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Our Customers IoT Challenges
ROI, Complexity, Time-to-market, Scalability
Securing expected ROI from IoT projects
Transforming into a service driven business
Lack of focus on business value of data, customer experience
Underestimating technical complexity and risk
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Need to Focus on Measurable Objectives in ROI
Reducing:
• Service Costs
• Customer Down Time
• Mean time to Repair (MTTR)
Increasing:
• Service Revenue (MRR)
• New Customers
• Service Efficiency Gains (fewer truck rolls)
• Customer Satisfaction
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Need to Understand Your Real Connectivity Costs
• 30% of IoT OPEX is connectivity
• Hidden costs often underestimated and can double TCO
• Real cost per MB = network communication costs + Support Costs
• Downtime costs significantly impact service levels and revenue
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Network Communication Costs
Re-occurring Cost to Connect Devices
• Monthly access fee
– expensive if your deployment includes periods non-connectivity
• Optimizing Monthly Data plans
– Pay-per use – cost effectivewith low usage or fluctuating usage
– Pay per device for fixed amount of data
• Overage
– Additional charge if your usage fluctuates
• Roaming
– Devices on the move pay roaming when out of primary
coverage area
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IDC – Essential to Minimize Data Usage Costs
üSeamless network switching between high & low speed networks
üHigh usage & low devices usage on same data plan
üNo overage costs because of malfunctioning devices
üMid-cycle rate plan changes
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IOT Support Costs
• Tech Support Call cost
– Diagnose the problem
– Troubleshoot
• Service Visit Cost
– Cost to roll a truck to fix device
– Service Efficiency (truck rolls)
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Cost of IoT Downtime
• Downtime Cost
– Lost Revenue
– Poor Service Level
– SLA Compliance Penalty
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Nube: Transforming LPG supply
NubeChallenge
Sierra Wireless Device-Cloud Solution
devices platformconnectivity
AirPrime
Embedded
Modules
üFully Integrated
• Innovative start-upcompany
based in Mexico
• Focused on delivering bestin
class B-to-B-to-C services
• Start ofoperation in Mexico;
global expansion plan
• Gas levels
• Consumption
• Alerts
• Orders
Consumers
• No knowledge ofgas levels
• Constantly refueling gas tanks manually
Gas Companies
• No knowledge ofcustomer gas levels
• Ad hoc supply,ordering and delivery;
inefficientlogistics
• Payment Status
• History
• Analytics
üReady to deploy üGlobal Solution
Sierra
Wireless
Smart SIM
IoT
Acceleration
Platform
Customer Snapshot
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Coverage
Data quality
Flexibility
Simplicity
Nube’s Connectivity Challenges
IoT deployments require a consistent&
resilient data connection without
human intervention.
UNTIL NOW CONNECTIVITY SERVICES WEREN’T DESIGNED FOR IOT
TECHNICAL CHALLENGES
IoT deployments need the broadest
possible coverage to ensure machines
are always connected.
Customers connecting globalproducts
need a SIM and tools that simplify
logistics and operations.
OPERATIONAL CHALLENGES
IoT deployments have long lifespans.
Customers need the flexibility to update
providers and networks.
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TOO COMPLEX FOR IOT
Nube’s Connectivity Options
OPERATIONALSIMPLICITY EASY TO SCALEDIFFICULT TO MANAGE
TECHNICALCAPABILITY
LOCAL SIMS
• Geographically restricted
• Many MNO’s needed for coverage
• Very complex SIM logistics
• Poor support for OTAupdates (eUICC)
LACK FLEXIBILITY & COVERAGE
ROAMING SIM
• Coverage restricted to alliances
• Costs sky-rocket outside of footprint
• >1 MNO needed for coverage & cost
• Poor support for OTAupdates (eUICC)
Smart Multi-Operator SIM &
Dedicated IoT Core Networks
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Sierra Wireless Solution = Simplicity
Best Coverage
Best Quality
Most Flexibility
Multi-Operator Connectivity
Quality centric and resilient service
Carrier-agnostic subscription management
Simplicity of a Single SIM for Regional or Global IoT Deployments
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End-to-End Connectivity and Platform Services
• Bring your own SIM and/or Sierra.
• Open to any bearer: cellular, fixed,
satellite, LPWA
• All you need to connect your machine:
– Data collection
– Monitoring
– Billing
Connectivity
Management
Application
Enablement
360
Operations
Third party SIM
eUICC
SIM & Connectivity
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Real Cost per SIM
Real monthly project cost
Pricing Options ComparisonTable for PowerPoint
Number of SIMs
Project Timeline
Cost per MB
Number of Issues
Level 1,2 Support Cost
$1.00
4,020
$20 @100%
$1.00
1,327
$10 @100%
Roaming SIM
Sierra Wireless
Smart SIM
Typical Telematics Customer Connectivity ROI
Downtime/Compliance Penalty
Average Cost per Issue
$50 @1%
$30.50
$1.61
$50 @1%
$15.50
$1.10
Data Usage/SIM/Mth
Field service visit cost $200 @5% $200@2.5%
DeploymentSupportCosts
Real LT Project Cost $19,416,600 $13,293,738
TCO
201,000
1 MB
5 Years
$323,610 $221,562
Reduced by 2/3
by Smart SIM
Faster
resolution time
Lower cost per
issue
Lower total cost
of ownership
Visits cut in half
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Improve Your IoT ROI by
üFocusing on Measurable Objectives in ROI
üUnderstanding Your Real IoT Connectivity Costs
= network communication costs + Support Costs
üMinimizing Downtime Costs