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range of business models that will include B2B and B2B2C models.

Machina Research Emil Berthelsen, Principal Consultant

M2M Now Jargon Buster ASP = Application Service Provider B2B = Business-to-Business B2B2C = Business-toBusiness-to-Consumer CSP = Communication Service Provider DWH = Data Warehouse IMSI = International Mobile Subscriber Identity IoT = Internet of Things M2M = Machine-toMachine


One area beyond connectivity where CSPs could assist customers is Big Data. Improving customer experiences, creating new business propositions, and developing upselling opportunities and strategies with data analytics are emerging opportunities where customers will certainly need support. Dan: Application enablement platforms and IMSI swapping will be two areas where developments will support a maturing M2M market. Application enablement platforms supporting e.g. rapid application, development and deployment will meet several of the emerging needs of enterprises, and IMSI swapping will allow for such products making use of high data traffic to be produced in one country (already bundled with connectivity), shipped to another and potentially connected in a third geographic region without for example being restricted to roaming network agreements as at present. Kfir: If CSPs continue to compete on connectivity price only, without going beyond into other enablement domains, they will not maximise the M2M opportunity, which will remain ASP-driven. CSPs need to differentiate their propositions with features such as integrated Device Management solutions (as those mentioned by Telit), or deeper application solutions for different verticals.

M2M Now October 2013

Take the example of Orange and the Sorin Group, launching a remote monitoring partnership in the medical field for the treatment of patients with cardiac diseases. Orange went up the value chain, providing Sorin with hosting and security solutions, as well as DWH (data warehouse) and analytics. We believe more CSPs can offer this – and more! – to their ASPs, for the benefit of the complete ecosystem. Emil: The Internet of Things (IoT) is emerging as a new wave of M2M. How will this development impact the maturing M2M market? Kfir: IoT will be a significant opportunity for CSPs. We know from Machina Research that the number of cellular connected devices will approach 2.5 billion in 2022, and that the number of short range connected devices will be close to three-quarters of all connected devices. At these levels of scale, CSPs, ASPs and enablers merely contemplating working together will not be an option. Nataly: Having the appropriate value chains and building the correct business models will become critical for the mature M2M market. Signs of a maturing M2M market are emerging. In time, M2M will move towards the M2M and IoT world, and managing scale and complexities will require enablement solutions. Growth will be a feature of this maturing market but no, market fragmentation will continue as, for example, pace of development is never uniform. The key here is to make sure that fragmentation does not impede growth.

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M2M Now Magazine October 2013 Edition  

The latest product, people & market news from the Machine to Machine sector. Includes expert industry opinions and interviews.

M2M Now Magazine October 2013 Edition  

The latest product, people & market news from the Machine to Machine sector. Includes expert industry opinions and interviews.