M2M Now March 2014 Supplement

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CEO Guide to MWC 2014 Barcelona It’s time for M2M services 2.0 ▼

Better business models are needed, says Telit’s CEO

LATEST NEWS & VIDEOS AT www.m2mnow.biz P R O F I T

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The world’s leading advisors on M2M, Big Data and the Internet of Things

Meet us at Mobile World Congress (24-27 February 2014) The following members of the Machina Research team will be in Barcelona for this year’s Mobile World Congress:

Jim Morrish, Director Focus areas: Asia, M2M applica on so ware, access technologies, M2M & IoT pla orms, intelligent buildings

Andy Castonguay, Principal Analyst Focus areas: Americas, M2M/IoT devices & modules, wearables, connected healthcare

Emil Berthelsen, Principal Consultant Focus areas: big data, mobile enterprise applica on pla orms, M2M procurement

Emma Buckland, Principal Analyst Focus areas: M2M forecasts, consumer electronics, near-field communica ons (NFC)

Ma Ha on, Director Focus areas: Europe, operator M2M and IoT strategies, channels, industrial M2M, connected car, smart ci es

To arrange a mee ng contact us at mwc@machinaresearch.com

www.machinaresearch.com

SUPPLEMENT CONTENTS

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WELCOME – by the editor, Jeremy Cowan

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MOBILE WORLD CONGRESS 2014 NEWS

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TALKING HEADS Oozi Cats, founder and CEO of Telit, talks exclusively to us of his belief that M2M services need better business models.

In fact, he says it’s time for M2M Services 2.0

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BARCELONA PREVIEW Alun Lewis gives you a sneak preview of some of the M2M & IoT developments you can see at this year’s Mobile World Congress

TALKING HEADS

C8 Barcelona Preview

Welcome to Barcelona and the Congress The GSMA expects more than 72,000 attendees to join them at Mobile World Congress 2014, held at Fira Gran Via in Barcelona from February 24-27, 2014. And, based on past experience, I wouldn’t bet against it. Under the theme of ‘Creating What’s Next’, the 2014 event will highlight the most significant innovations and advances in mobile, providing a blueprint for the future,” according to Michael O’Hara, chief marketing officer, GSMA.

Conference Programme goes global The four-day conference programme will feature 10 keynote sessions including the signature Mobile World Live keynotes, news of which is shown on page C4. These keynotes will conclude the conference programming on selected days and will be streamed live across the venue and globally via the Mobile World Live portal.

The Exhibition covers M2M & IoT This year more than 1,700 companies will exhibit. As well as global mobile communications brands there will be companies with a proven interest in machine-to-machine (M2M) communications and the Internet of Things (IoT), companies like: Deutsche Telekom, Ford Motor Company, Huawei, MasterCard, NEC, Oracle, Telefónica, Visa, and Vodafone. www.mobileworldcongress.com/exhibition

The GSM Association The organisers, the GSMA, represent the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world’s mobile operators with more than 230 companies in the broader mobile ecosystem. The wider ecosystem includes handset and device makers, software developers, equipment manufacturers and internet service providers. In addition, the event brings together organisations from industries as diverse as financial services, healthcare, media, transport and utilities.

Jeremy Cowan, editor & publisher, M2M Now

Cover Sponsor: Telit Wireless Solutions enables machine-to-machine communications worldwide providing wireless module technology, M2M managed services and value added services, including connectivity. The company constantly works for technology leadership through six research & development centres across the globe. Telit offers an extensive portfolio of high quality cellular, short-range RF, and GNSS modules, available in over 80 countries. www.telit.com

M2M Now

CEO GUIDE SUPPLEMENT C3

MWC 2014 NEWS

PRODUCT NEWS RacoWireless unveils OMS 3.0 M2M device management platform

Facebook founder and CEO Mark Zuckerberg to give MWC 2014 keynote address

RacoWireless, a global machineto-machine (M2M) service provider, has unveiled the latest version of its Omega Management Suite™ (OMS), a platform that allows partners to control their connected solutions.

The GSMA has announced several new speakers in the keynote programme at the 2014 Mobile World Congress, including the founder and CEO of Facebook, Mark Zuckerberg. Other new developments for MWC 2014 including keynote speakers in the mPowered Industries programme.

The web-based OMS supports an array of connected applications including: Connected Car, Pointof-Sale, Healthcare, Digital Signage and many other M2M applications.

“Businesses are demanding new, responsive device management applications that provide the control they need to run their companies. Increasingly, we see the need for managers to have on-demand visibility to their connected devices,” said RacoWireless president, John Horn. “We have spent a lot of time meeting that need.”

Omega Management Suite 3.0 delivers new features aiming to provide enhanced control and to leverage the intelligence of managed solutions. These include: • Subscriber Insight: Subscriber Insight provides high-level intelligence that includes device details, usage records, historical details, billing history and trends.

It gives businesses the quantitative data they need to make better, more informed decisions to improve their solutions.

• Mobile Support: OMS reportedly enables users to have optimised visibility on mobile devices as well as fullfunctionality on computers without the need to download an app.

• Multi-Carrier Support: With access to a range of strategic global carriers, partners of RacoWireless are said to be able to scale their businesses and accelerate their time to market.

• Intuitive Reporting: Providing more flexibility with reporting functions, users will be greeted at login with an intuitive reporting dashboard. Also, using the Report Scheduler, partners can customise and automate the delivery of selected reports.

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“Mobile World Congress 2014 is set to be our biggest, most ambitious and most diverse event yet, offering new experiences for attendees across the growing mobile ecosystem,” said Michael O’Hara, chief marketing officer, GSMA. “Over four days, attendees will have the opportunity to see just how broadly mobile is impacting our everyday lives, how we work, live and play. We’re looking forward to seeing the mobile world gather in Barcelona.”

Facebook to deliver first 2014 Mobile World Live keynote Facebook’s Mark Zuckerberg will be headlining in the first of the week’s Mobile World Live keynote sessions on

Monday, February 24 at 18:00-18:45. In this session, Zuckerberg and renowned technology journalist and writer, David Kirkpatrick will explore the importance of extending the benefits of ubiquitous internet access to the unconnected world.

In addition to the live audience in the Conference Village in Fira Gran Via, the Mobile World Live keynotes will be streamed live across the venue and to hundreds of thousands of viewers globally via the Mobile World Live portal.

Among the other CEOs participating in the Mobile World Congress conference programme are: • Laetitia Gazel Anthoine, CEO and founder, Connecthings • Ahmad Abdulkarim Julfar, CEO, Etisalat Group • Stephen T. Odell, president of Europe, Middle East and Africa, Ford Motor Company • Susan Siegel, CEO, GE Ventures and healthymagination, and • Chua Sock Koong, Group CEO, SingTel.

For more information go to: www.mobileworldcongress.com/conference

BAFTA and Tony Award-winning British actor, writer, presenter and comedian James Corden will present the Global Mobile Awards at Mobile World Congress

mPowered Industries Keynotes Monday, February 24, 2014 The inaugural mPowered Industries programme will focus on mobile’s role in vertical industry sectors such as health, marketing and advertising, and media and travel. These sessions will showcase the mobile achievements of top brands worldwide and will explore how adjacent industries can use the power of mobile to grow their businesses.

The mPowered Industries keynote executives include:

• Ralph Rivera, director, Future Media, BBC • Nicola Mendelsohn, vicepresident, EMEA, Facebook • Surjit Chana, chief marketing officer for IBM Europe, IBM • Dr. Oliver Harrison, CEO and co-founder, Ithaca Health • Vikas Chawla, vice-president of Mobile and Digital Guest Services, Marriott International • David Sear, CEO, Weve

For more information on mPowered Industries go to: www.mobileworldcongress.com/mpowered-industries M2M Now

TALKING HEADS

It’s time for M2M services 2.0 Better business models are needed for M2M services.

That’s the view of Telit’s founder and CEO, Oozi Cats. We tracked him down to find out how these can be achieved.

Oozi Cats is founder and CEO of Telit

“A new breed of innovators are also coming to the game.”

Oozi Cats, Telit

Oozi Cats, Telit: Right now, there is such a proliferation of service offerings focused on the M2M marketplace -- it must be very confusing for new entrants trying to take advantage of, or become a part of the Internet of Things. As an industry, we have a lot of work to do. In order to drive growth, we must simplify the effort required by our customers.

To that end, Telit has been growing our services offerings through strategic acquisitions designed to provide a one-stop shop for our customers.

We started in 2012 by establishing the m2mAIR business unit to offer connectivity services in both Europe and the US. By offering managed connectivity on partner networks, with tight integration on the module, we are effectively eliminating multiple layers of complexity from both the development and operation of a customer’s M2M solution. This is particularly important to enable innovators whose ideas are bringing about a true revolution in how internet

M2M Now

technology impacts our work and our lives.

More recently, we acquired ILS Technology, a recognised global leader in cloud-based M2M application enablement and security. Now m2mAIR Cloud, powered by deviceWISE enables our customers to rapidly establish and deploy M2M applications with comprehensive data analytics on the device side, and in the cloud, and even integrate them into their existing enterprise IT applications – all with drag-and-drop simplicity.

The service makes M2M application development simple for non-technical, line-of-business personnel. It eliminates the need for countless engineers and months of work, and delivers rapid time-to-market and return on investment, as well as dramatically improved total cost of ownership.

Telit is the only M2M solution provider that is offering this kind of alignment in both products and services – and we fully expect our one-stop, one-shop strategy to be a game changer for the industry, driving new innovation and the future of the industrial Internet.

Some say that future M2M adopters will look nothing like those who need such services today? Do you agree with this and, if so, what type of users will adopt M2M in the future?

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Are machine-to-machine (M2M) services generally in good alignment with the new direction and role that M2M is expected to play as one of the key enablers of the Internet of Things (IoT)?

CEO GUIDE SUPPLEMENT C5

TALKING HEADS

In addition, I expect to see more and more entrepreneurs and inventors coming up with clever ways to leverage the data being generated by all these connected things in order to drive additional value from the same datasets. Imagine, for example, sharing data between your smart home, smart car and smart watch. The opportunities to deliver a better experience are nearly unlimited.

adjustment we are making here at Telit – and we expect to see the marketplace follow – is simplification across the entire process; from purchasing, to development, to operation, to expansion.

To do that successfully, though, many of the industry’s service providers will have to stop presenting themselves as experts who know it all, and start listening to their customers first.

After all, if we can’t understand our clients’ business models and what they’re hoping to achieve, we will be hopeless in meeting their expectations. ▼

OC: While I expect to see continued, even accelerated growth among the same type of adopters that are already using M2M technologies, I do agree that a new breed of innovators are also coming to the game. Traditional M2M adopters tend to focus first on efficiency and compliance, while these new players are looking to M2M technology as an enabler to brand new products and services which stand on their own and offer until-now unimagined benefits to both the business world and individual consumers.

Where are current business and service delivery models strong? And where do they need adjustment?

OC: Strong service delivery models are designed to support strong business models for the customer – and that requires tight integration across the value chain, as well as the flexibility to support this new class of innovators who are taking the market to a new dimension.

Unfortunately, today, many service models require a great deal of extra effort on the part of the customer. The primary

“I expect very significant, very long-term growth for the next 20 or 30 years, because we’re looking at intense, deep and material processes.”

Oozi Cats, Telit

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M2M Now

Where service models need to evolve, which organisations will be most successful in redefining these models, and why?

growth, we pride ourselves on our customer relationships and responsiveness to their needs. Anyone who can deliver that, I believe, is destined for success.

OC: Service models that deliver M2M applications in a vacuum are becoming a thing of the past. While M2M applications are always purpose-driven, in today’s competitive environment, they need to be completely integrated with existing business processes across the organisation in order to drive better decision-making in every aspect of the business: from purchasing, to marketing, to operations, to new product development.

Do you expect there to be a ‘tipping point’ for IoT business model redefinition? When might that come and what factors will determine its arrival?

To deliver on that promise, service providers will need tight integration in their own organisations. Telit is at the forefront of this shift – we’re actively integrating all the building blocks of an M2M solution within our own four walls and across the globe to take the burden off our customer and deliver a complete solution.

Most importantly, as I said before, organisations which put their customers in the driver’s seat are certainly most likely to succeed. We measure our strategy against customer input and customer results. From product development to strategic

OC: I think we’re looking at more of an evolution curve. I don’t think we should be looking for a quantum leap or inflection point. Instead, I expect very significant, very long-term growth for the next 20 or 30 years. That’s because we’re looking at intense, deep and material processes.

Receiving information from a device is just the beginning. As more devices are connected, we will need more and better algorithms, more robust and secure cloud services and deep integration into business processes. Achieving the full promise of the industrial internet will take years.

That said, I think the technology and its adoption is already at a point that it can and, in fact, is already outpacing the ability of some players to keep up. Industry consolidation, of which we have been a major part for the past few years, will continue, and I expect to see some of today’s major players disappear for lack of agility.

As for Telit, you can expect us to let our customer’s needs drive our corporate strategy. Doing so has led us to continued growth for more than 10 years now, and we have every reason to believe that will continue.

M2M Now

CEO GUIDE SUPPLEMENT C7

EVENT PREVIEW

Connected machines make way for connected things and people As the clock ticks relentlessly onwards, many in the M2M or IoT sector are already rehearsing their restaurant and taxi Spanish – or even Catalan – in preparation for the fast approaching 2014 Mobile World Congress frenzy in Barcelona. Alun Lewis dusts off his phrase book and looks at what we can expect to see.

The author is Alun Lewis, a freelance telecoms writer

As you’d expect from such a broad event, machine-to-machine and Internet of Things (M2M/IoT) issues are being addressed from a number of different angles by speakers, exhibitors and by the organisers themselves, the GSMA. They themselves are driving a holistic overview through their Connected City demonstration area. Here attendees are promised the “experience of a real-world urban

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environment with mobile-connected products and services where visitors can discover mobile innovations in health, automotive, education, smart cities, and digital commerce.

The GSMA is presenting the Connected City in conjunction with AT&T, Deutsche Telekom, KT Corp. and Vodafone, along with others including Accenture, Ericsson, General Motors, Huawei, Samsung and Synchronoss Technologies. “Mobile World Congress 2014 is set to be our biggest event yet and the world of connected devices and M2M will be a major part of it,” says Michael O’Hara, chief marketing officer, GSMA. “The Connected City, now in its second year and set to be another standout ▼

Superlatives soon get exhausted when describing this show’s growth in scope and scale over the years but, with an attendance expected to surpass last year’s 72,000 visitors, it’s long been an essential date in the industry’s calendar.

M2M Now

attraction, is a real-world urban environment with mobileconnected products and services that demonstrate how mobile technology is improving people’s daily lives across automotive, education, health, homes, retail and other applications.”

In terms of the hard metrics announced in advance by some of the analyst houses, the next few years are looking good.

IDATE’s recent M2M Market report predicted that the global M2M market volume would grow by an average of close to 30% annually between now and 2017 – corresponding to nearly half a billion deployed modules – while market revenues would climb by 13% a year, reaching US$40 billion.

While they identify three key verticals – automotive, consumer electronics and utilities – they also see Europe as being the biggest market in terms of revenues generated, even though China has already reached the number one spot in terms of installed cellular M2M modules at the end of 2013.

Balancing technology and infrastructure with business strategies will also be a focus for Stream Communications’ Nigel Chadwick – exhibiting at the show under the new M2M Group banner, representing an international marketing collaboration with other suppliers. “MWC 2014 will see a ramping up of selective partnering. This will mean a shift from a somewhat haphazard partnering of MNOs, MVNOs and service providers towards more strategic arrangements to enable more comprehensive geographic footprints, service diversity covering GPRS/3G and 4G, and more technically proficient service offerings based on best of breed platforms. To date, much of the hype has been around device management layers, data analytics and cloud storage, but we’ll see the largely ignored mobile network connectivity platform area gain major prominence over the next 12 months.”

White Space spectrum

As Mohsen Mohseninia, VP market development Europe at Aeris Communications, comments, “Operators have now moved beyond experimenting and are going to be looking in earnest at the show for the keys to profitability in 2014 in their M2M and IoT strategies. In particular, some mobile operator cost thresholds are too high to serve some of the emerging M2M opportunities out there and they’ll have to look at using a separate M2M/IoT optimised infrastructure – essentially a Platform-as-a-Service (PaaS) offering – which will offer the best returns on investment. On top of this, operators will also be looking to differentiate themselves through their Big Data options and applications. Overall, for 2014, they’ll additionally have to confront a downward trend in revenues per connected device as well as support an increasing variety of M2M solution charging models.”

Many of the tools and infrastructure needed to drive this innovation are already there. According to Tim Murdoch, head of digital services at innovation management specialists, Cambridge Consultants: “MWC 2014 is set to smash open the opportunity for ‘bottom of the pyramid’ models – democratising access to products and services as barriers to scale are removed. In developed economies, the widespread adoption of Bluetooth Low Energy devices is allowing both new start-ups and traditional operators to create a range of new services, particularly in connected health and wellbeing. In developing countries, we’re set to see PAYG service expansion from its successful adoption in mobile payments into education, health and agriculture.

We’re now, for example, seeing insurance services being tied to particular crops and geolocations via mobile, while

Market still growing

M2M Now

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As befits a still maturing sector, many of the players will be using the event to subtly reposition themselves. They will be taking account of recent changes and consolidation happening across the industry and the growing clarity now coming to both infrastructure and device issues and the supporting business models.

The fact that that service diversity is now also going to be able to take advantage of new so-called White Space spectrum is highlighted by MLL Telecom. As Ben Ward, network design engineer there explains, “Using White Space to provide extra bandwidth to wireless devices, often on an ad hoc basis, will help telecoms providers to bring about the much talked about IoT vision. If this unused spectrum is retained for White Space use, it will allow companies to innovate a variety of new M2M applications.”

CEO GUIDE SUPPLEMENT C9

C-LEVEL VIEW Connected City

“Some mobile operator cost thresholds are too high to serve some emerging M2M opportunities out there.”

Mohsen Mohseninia, Aeris Communications smartphone apps are reading a test checking to see whether a child has been immunised.”

Mohsen Mohseninia, Aeris Communications: Operators looking for keys to profitability

Macario Namie, Jasper Wireless: Advances include global SIMs

The potential role of the smartphone and supporting applications in an M2M/IoT world is also emphasised by Accenture Mobility’s managing director, Randy Nickell. He says, “A smartphone on its own is no longer enough for consumers; it’s a tool that’s necessary to interact with other devices and the world around them, so we’re going to see how businesses in every sector intend to rise to the innovation challenge.

Consumer technology Following on from what we saw at the CES 2014 show in Las Vegas at the start of the year (see www.m2mnow.biz), there’s going to be an increasing convergence of consumer technology with other more traditional industries. We’re going to be demonstrating a connected building solution ourselves, as well as some wearable pilots that we’ve been working on in both the healthcare and entertainment sectors with Google Glass.”

Jasper Wireless will be using MWC 2014 to demonstrate its Internet of Things (IoT) initiatives, including its work with AT&T underpinning the recently announced AT&T Drive, a mobile platform for developing LTE connected car services. Macario Namie, VP Marketing says, “We’ll also be announcing some partnership news and launching several cutting edge pieces of technology that will support advancements in areas including the connected car, global SIM and operator alliances.

Forming a core part of the GSMA’s agenda at this year’s show, we’re also giving a keynote presentation, where CEO Jahangir Mohammed will join a prestigious panel of global thought leaders on IoT.”

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Echoing the GSMA’s focus on explaining how M2M in its various forms is subtly and stealthily extending its reach into almost every aspect of our societies and personal lives, Telit will be using the event to highlight the breadth of its solutions from cellular into other popular short range protocols like ZigBee and Wireless M-Bus under the banner of One Stop – One Shop. As Joe Braga, head of marketing at Telit explains, “Whether you believe one analyst’s 50 billion or another’s 30 billion forecast of connected devices by 2020, the fact remains that it’s going to be a very healthy figure. The significance of these numbers however pales into insignificance when you consider the real game-changing power of the technologies – whether we care to admit this or not, our evolution as a society has already become completely dependent on the progress of M2M and its wealth-creating power.

What and where we need to be as a civilisation in 2020 is not achievable without it!”

Finally, as if in recognition of the role that MWC plays each year as our industry’s equivalent of an ultra-marathon Iron Man event with its own uniquely stressful conditions that challenge mind and body, the GSMA is partnering with wellness device supplier FitBit to offer attendees the chance to experience the effect of wearable technology. MWC attendees are being invited to experience first-hand personal data tracking and see the real impact that live personal data has on activity levels by making Mobile World Congress their own fitness challenge. During the event, each participant can monitor their activity, share their statistics and challenge their colleagues and Congress attendees all via their mobile device, with Fitbit Challenge participants having an opportunity to win daily prizes. It also sounds an opportunity for attendees to take back to the loved ones at home hard proof that Barcelona isn’t an idle picnic in the park with copious wine and tapas.

M2M Now

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