Vendors: Prepare For The Rise Of Machine To Machine (M2M) Opportunities

Michele Pelino [Posted by Michele Pelino]

During the past few months I have seen increased vendor and service provider excitement and focus on machine to machine (M2M) technology. Service providers, device manufacturers, application developers, system integrators, and other companies are creating partner ecosystems, establishing business models, and developing strategies to deploy M2M solutions. These M2M solutions connect physical objects to the Internet using sensors, transistors, and RFID tags to provide information on the life of products, assets, or even people. For example, the utilities industry can use computerized grids, thermostats and appliances to sense and communicate line failures or automatically turn off air-conditioners during peak load times in order to save money and fuel.

I expect increased momentum in the M2M arena as business pressures, regulatory initiatives, and technological forces align to drive enterprise interest in M2M solutions to the next level. For instance, many political agendas and regulatory activities are focused on energy and healthcare initiatives, and corporations are facing increased pressure to reduce costs, minimize energy use and present a socially responsible corporate image. These factors will expand the opportunities for a diverse array of M2M ecosystem participants to develop solutions and capture a share of the revenues in the expanding M2M market.

Do you agree with me? Are forces finally aligning to drive increased opportunities for vendors participating in the M2M market?


re: Vendors: Prepare For The Rise Of Machine To Machine (M2M) O

Many of the current market developments can be traced back to a change in mobile operator attitudes towards non-handset market opportunities. An example of this is the GSM Association's exploration of new market opportunities beyond M2M and into a broader category of Embedded Mobile devices, services and systems (see for historical context and strategy).Now, for example, there is growing industry momentum in favor of simpler and less expensive modules. The GSM-A and several operators are also in the process of developing guidelines that address embedded modules for applications in a range of different verticals (e.g. consumer electronics, health, transport, utilities etc.). The industry is also starting to consider what new kinds of business models will be necessary to deliver commercial success.To your final point, while there are more forces acting to drive this segment of the mobile industry, it will be interesting to see which companies and which segments of the industry will prevail.