Presentation on theme: "Location Based M2M Opportunities"— Presentation transcript:
1Location Based M2M Opportunities Michael Grossi, DirectorAltman Vilandrie & Co.
2M2M and “The Internet of Things” describe the connection of machines and sensors through any means to the InternetIndustrial EthernetPowerlineBroadbandFixed (Wireline) TechnologiesCellularGSM/GPRS/EDGECDMA/1xEV-DO3GSatelliteWireless LANBluetoothZigBeeOther and related technologiesWireless TechnologiesM2M offers opportunities in many service sectorsBuildings/FacilitiesOffice EquipmentHVAC/Environmental SystemsAccess ControlsConsumer/ProfessionalWhite Goods/AppliancesGame SystemsConsumer ElectronicsEnergyMetersDistributed GeneratorsElectricity GridPipelinesIndustrialAutomation & Control EquipmentCapital EquipmentMedical/HealthcareMedical DevicesRetailScanners & RegistersLighting & Refrigeration SystemsSecurity/Public SafetyHomeland SecurityTransportationVehiclesAirplanesTransport SystemsIT & NetworksEnterprise: IT/Data Center, OfficePublic: Services, E-Commerce, etc.
3Value-Added Services / Applications The M2M market is highly fragmented in each component of the value chain – no single market leader has been establishedHardware EnablementNetwork ServicesManaged ServicesChip VendorsM2M Modules/ DevicesAggregators/Platform SoftwareComm ServicesValue-Added Services / ApplicationsEndUsers
4Machine to Machine Market Opportunity Worldwide M2M Devices (Millions) M2M devices are poised for rapid growth, exceeding 600 million devices by 2015 and accounting for $24B in service revenuesWorldwide M2M Devices (Millions)CAGR%M2M – devices that communicate data wirelessly to other devices for the purpose of automating data collection and monitoring of large complex systems/networks40%40%42%38%40%40%Utility Meters34%Revenue ($B)7.68.510.112.915.918.520.924.2Source: Strategy Analytics, AV&Co analysis
5Mobile Internet Devices (MIDs) Emerging MIDs and especially netbooks are gaining popularity worldwide, and will be a key driver of traffic growth within 3 to 5 yearsWorldwide Mobile Internet Devices (Millions)Worldwide Notebook/Netbook Shipments (Millions)MIDs cover a wide range of devices:SmartphonesUMPCsNetbooksPortable navigation devicesE-book readersPortable media/MP3 playersHandheld gaming devicesMIDs have Internet access via WLAN (WiFi) or WWAN (3G or better)CAGR%CAGR%18.1%36%25.8%16.6%Sources: IDC, 2008, iSuppli, Display Search, 2009, AV&Co analysis
6Consumer Electronic Devices There are a wide range of device categories, across the mobile, in-home and in-car environments, that are wirelessly enabled or will be soonPortabilityLarge Capacity - 320GBAll forms of media playbackDVR capabilitySold online, big box and boutiquesPortability & Wi-FiThousands of game titlesInternet browsing and chat capabilitySold online, big boxNetworkedPortableGamingWidescreen Personal Media PlayerUltra portabilityWWAN & WLAN connectivitySuperior form factor for text inputIntegration of portable mediaExtensible OS for 3rd party appsSold via service providerHome media server for photos & movies with network WLAN & Internet connectivityStorage expandable and robustSold 3rd party online and big boxHome Network StorageSmart PhoneSmall full-functional computersNetwork WWAN capableCommunication-focusedIntegrated web-camSold direct, 3rd party onlineDesign specifically for in-car entertainmentWi-Fi and Bluetooth connectivityAvailable from car manufacturers and aftermarket vendorsNetBook/TabletsIn-VehicleMultimediaHome monitoring & securityEnergy and climate controlIP-based devices for remote viewing and recordingSold direct from service providers or online for DIY kitsNiche device for readingNetwork WWAN capableAncillary network-based featuresSold by 3rd party online and big boxSubscription modelE-book ReaderSmart HomeDevicesHigh definition disc playInternet integrates with home media centerStreaming media capablePush/pull of information & user generated contentDigital cameras with geo-tagging capability and photo upload capability over the airPhoto location integrate with mapping software for creating and sharing storiesNetworkedBlu-Ray DVDPlayer, Roku & SlingCatcherDigital Camerasw/ GPS6
7All four U.S. carriers have made significant investments in strategic relationships or network improvements to capitalize on this emerging marketAT&T signed an exclusive deal with Jasper Wireless to facilitate connection of consumer and M2M devices to their network (May 2009)KPN became Jasper’s preferred European network operator and exclusive operator in Belgium, Germany, and the Netherlands. KPN has also made an equity investment in Jasper (Q1 2010)AT&T announced a developer connection kit to facilitate deployment of new M2M devices on their network (March 2010)T-Mobile and Sierra Wireless agreed to work together on product development, marketing, sales, and deployment of M2M solutions, starting in Germany (September 2009)Cadec Global, provider of fleet management solutions, began an M2M partnership initiative with Aeris in February 2010GE developed Wi-MAX-based smart meters that were available as of 2009GE Healthcare signed an agreement with Sprint for wireless networks, services, and software at six Texas hospitals (April 2009)Vodafone, Verizon, and nPhase announced a strategic alliance to accelerate adoption of M2M technologies (February 2010)Verizon reported in Q that 7.3% of 101 million wireless connections are M2MSprint and M2M DataSmart have a multi-year agreement to facilitate the deployment of M2M devices on Sprint’s network (September 2009)
8Supply Side Challenges Demand Side Challenges Diverse rate plan needs of different M2M devices and services means increased complexity on the part of wireless carriersEvolving network technologies (GSM vs. CDMA, LTE vs. WiMAX) create complex choices for device manufacturersSupply Side ChallengesOperation/running cost was by far the highest concern of adopters surveyedData integration/ interoperability, initial/ installation cost, and development of new support structure followed in importance, but were still considered critical challengesDemand Side ChallengesSources: Wireless Week Magazine “A Web of Challenges, Connections: M2M,” 2/1/2010; Beecham 2008 M2M Adopter Survey
9Most likely uses for M2M communications GPS tracking and security are the most likely uses of M2M communication for SMBs based upon our surveyWhat are the most likely uses for M2M communications at your location? (select all that apply)Do you have any ideas concerning M2M that you would like to see developed?Most likely uses for M2M communicationsSelected Comments from the interviewees“The current M2M applications would provide the resources that we are looking into at this time such as tracking fleet vehicles”“Implantable chip to allow tracking access to sales reps. Make sure they work a full day”“Read tanks remotely”“Not familiar with the applications. Am taking a seminar on this right now”“Able to incorporate with in store computer systems. Such as Open Table or Hot Schedules”“Up - to - the minute information regarding wine barrel system pressure after harvest transmitted from remote location (i.e. form California to France or vise versa)”“Automation of commercial food production equipment, room temperature control”Source: AV&CO primary research survey, n=500
10Customer Select Applications Location-based messaging and monitoring has many potential applicationsKey features across all applications include two-way, location-specific communication and monitoringOpt-in and Opt-out models are available and have significant impacts on specific applicationsCustomerSelect ApplicationsGovernmentNatural disaster/crime/safety alertsCrowd monitoring/managementTerrorist tracking and monitoringAmber Alerts (improved response with tracking abducted child)Monitoring of Check Points (e.g., borders, battleground check points)Communication for military personnel family (e.g., birth announcements)CommercialMobile device managementMonitoring foot traffic at major eventsCustomer notifications and communicationHealthcare applications (monitoring, emergency response locating, messaging)Order completionWeather/safety alertsEducation(select vertical)Weather Response: school closuresStudent/ faculty notification of school class cancellation, room/ building changesCommunication of registrar and student finance deadline requirementsTracking school buses/traveling teamsCrime/ safety alertParentsFamily member locationControls on Illicit text messages, s, instant messages or voic s received by children
11Mobile Resource Management (MRM) MRM is a category of business solutions that enables companies to more effectively manage mobile workers, mobile tasks and mobile assetsTypes of MRM SolutionsIndustry DriversKey Purchase CriteriaField Force ManagementBusiness need: to manage the field workforce in order to reduce business costs and maximize ROIField Service ManagementBusiness need: to manage the delivery of products and services to customers in order to maintain strong customer service while keeping business costs to a minimumField Asset ManagementBusiness need: to manage fixed and mobile assets in order to ensure utilization is maximized and therefore minimize costsAttractive, hard dollar ROIBenefits include reduced overtime, fuel and labor costs due to increased dispatch and scheduling efficiencies, improved job completion rates, tighter control over spare parts inventory, and higher insurance policy discountsAffordable entry pointsThe ability to monitor and track employees and assets from IP-connected devices and the growth of low-cost GPS-enabled mobile devices has increased affordability and flexibilityCompetitive advantage with customersMRM can positively impact a company’s customer satisfaction and customer retention metrics through more timely and prepared technicians and increased first call resolution ratesFeatures and FunctionalityGPS location, tracking, monitoringGPS navigation and optimized routingTimecard recording and reportingWork order managementAlerts and geo-fencingData collection and reportsIntegration and Customization OptionsSimple configurations: back-office integration not requiredConfigurations and integration: MRM software is configured with back-end systemsComplete customization: open developer tools and APIs for customized developmentCost ComponentsMobile devicesMonthly carrier data subscriptionMRM application softwareSystems integration work
12Strategic Implications in the M2M Ecosystem Given the industry fragmentation – how will industry evolve?Reliance on carriers and other third parties to provide network access – how can carriers play a larger role?Who is positioned to win in the space?
13Michael Grossi, Director Contact DetailsMichael GrossiDirectMobileAltman Vilandrie & Co.53 State Street37th FloorBoston, MA 02109TelephoneFaxMichael Grossi, DirectorMichael is a Director with Altman Vilandrie and Company and focuses on wireless and digital media sectors. Prior to AV&Co, Michael was an SVP & GM with Helio, a highly innovative MVNO in the U.S. While at Helio, Michael led all Strategy, Business/Corporate Development and was GM of the Mobile Data Services team responsible for both the data P&L and product development.Prior to AV&Co, Michael was a Vice President with Adventis, a strategy consultancy, and a leader in the wireless practice and has 10 years consulting experience. Michael has led many strategy engagements for his clients spanning all facets of the wireless value chain including equipment manufacturers, service providers and content providers.