Jean-Pierre Muzard Business Development Manager, Global Service Provider Team. October 2012

Transcription

1 Jean-Pierre Muzard Business Development Manager, Global Service Provider Team October 2012

2 Internet of things, Machine To Machine Terminology Opportunity & Market Drivers Use Cases Business Models End-2-End Architecture Eco-system Partners

3 M2M IoT Communication M2H The Internet of Things term is well-understood and widely adopted by several industries This is new types of devices connected using IP technologies to private and public IP networks Devices are sensors, actuators, tags, cars, engines, radars, video cameras, not just highly constrained objects A variety of link layers: low power and not so low power (IEEE , Wifi, 3G/4G, whitespaces, satellite, GPS, ) Technologies Robotics, Environmental sensors, Vehicle Telematics, RFID, IP light bulbs, LBS, LOC sensors Apps Apps The Machine-to-Machine term is widely used mostly in the Service Provider environment Machine-to-Machine (M2M) is the automatic communication between devices without human intervention. M2M uses 2G, 3G, 4G, LTE connectivity, but also wired connectivity Some of the most common M2M applications are telemetry (e.g. utility meters), telematics (e.g. car navigation systems), sales and payment (e.g. vending machines), and fleet management (e.g. cargo tracking).

4 Internet of things, Machine To Machine Terminology Opportunity & Market drivers Use Cases Business Models End-2-End Architecture Eco-system Partners

5 By 2020: 50 billion connected IP devices Cisco Visual Networking Index, 2011 By 2014: Managed mobile M2M services market will be $20B. ABI Research, 2010 By 2015: M2M traffic will grow by 258%. Cisco Visual Networking Index, 2011

6 Social Networking of M2M Vertical M2M CY 2012 Source: Ericsson

7 Evolution of IP and Mobile Networks Cloud Services Million PC / Laptop Billion IP Device Office & Home Trillion IoTs IP End Points The Evolution of IP Networks Social Networking of M2M Trillion Wireless M2M End Points Connected Network Society Billion Mobile Voice, Internet, SMS The Evolution of Mobile Networks Million Voice

8 Market Category Insurance (Telematics) M2M Solution Examples GPS, wireless modules Building or Home Management Smart Appliances Industrial Monitoring and Automation Fleet Management (Telematics) Industrial Asset Monitoring Vehicle Asset Monitoring Public Safety and Security Environmental Asset Monitoring

9 Market Category M2M Solution Examples Oil and Gas Solutions Equipment Monitoring Healthcare and Life Sciences Remote Diagnostics Transportation (Telematics) Vehicle Management Retail Sector Point-of Sale, Vending

10 Connections (billion) Utility Security Automotive and transport Healthcare Government, retail and financial services M2M device connections by segment, worldwide, [Source: Analysys Mason, 2012]

11 Chipset Big players dominate market High cost of chipsets Scale gains Cost will be driven down by 30% Module Device High cost High Power Consumption Proprietary Operators certification Lack of standardization Cost will be driven down by 50% Smaller Size Plug and play Standardization More devices Use of web interface Network 60% M2M service are based on GSM/CDMA network, 40% on 3G. 70% M2M service are running on 3G, 20% on 4G ( LTE). The rest 10% on WiMAX/CDMA, GSM. Lower network cost Higher bandwidth usage Platform Less than 10% M2M applications were developed by platform. 70% of the M2M services come from developers that developed their services on the M2M platform. Application 55% revenue comes from smart grid and vehicle Telematics. Highly concentrated in utility and vehicle markets. More than 60% revenue comes from asset and people tracking, logistic management/healthcare diagnostics/ consumer touch security applications. Convergence of M2M platform and cloud computing. Convergence of M2M platform and cloud computing.

12 Implication: The M2M market is at an intermediate stage

13 Internet of things, Machine To Machine Terminology Opportunity & Market Drivers Use Cases Business Models End-2-End Architecture Eco-system Partners

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15 Segment Telematics Vertical Automotive X Business Government Consumer Utilitie s Finance Energy Healthcare Retail Logistics Manufacturing Public/ Society Track and Trace X X X X Remote Sensor/Monitoring X X X X X X X X X X Smart Metering & Grid X X POS/Payment X X Security X X X X X X X X X X Connectivity X X X X X X X X X X 80% of M2M Requirements are Horizontal Capabilities (common across all verticals)! Consumer Electronic

16 Internet of things, Machine To Machine Terminology Opportunity Use Cases Business Models End-2-End Architecture Eco-system Partners

17 The value chain is very complex M2M Chipset Vendors M2M Module Vendors Device Vendors Infra Vendors Application Developer M2M SDP Platforms M2M Service Distributors Vertical specific/ System integrators

18 Emerging Markets Developed Markets 2004 & before * NTT DoCoMo * Telenor Connexion * Vodafone platform * KPN platform * KDDI APAC Early Adopters * AT&T Platform * Softbank * nphase (Verizon Wireless) * SKT * Sprint NextTel & DataSmart & Aeris * KT * Telstra * China Mobile * StarHub * China Unicom APAC Fast Followers * China Telecom * CSL * Maxis Launch M2M * Globe * Celcom (Malaysia) * Reliance Source: Frost & Sullivan

19 M2M Chipset Vendors M2M Module Vendors M2M Device Vendors M2M Application Developer M2M Connection Providers M2M Service Providers M2M Service Distributors Vertical Industries & Enterprises Consumers Model 1: Device Driven Model Telco: AT&T Kindle Amazon Amazon Consumers Number of Connections (end of CY2010) = 7-8 million from AT&T and Sprint YoY Growth: > 250% Telco: Sprint Model 2: Consortium Model Operator Driven Model Verizon QUALCOMM Various Partners NPHASE Verizon Business & Consumers Verizon Number of Connections (end of CY2010) = 8 million from Verizon YoY Growth: 16%

20 M2M Chipset Vendors M2M Module Vendors M2M Device Vendors M2M Application Developer M2M Connection Providers M2M Service Providers M2M Service Distributors Vertical Industries & Enterprises Consumers Model 3: Platform Model Telstra (usually through partnerships) M2M Platform Jasper Wireless Telstra Vertical Industry & Enterprise Business& Consumers Number of Connections (end of CY2010) = 9.3 million from AT&T YoY Growth: 50% Model 4: Operator Driven Model Various Partners ( Verizon Wireless, China Mobile, SKT, NTT Docomo ) Verizon Wireless, China Mobile / SKT/ DoCoMo Business & Consumers Number of Connections (end of CY2010) = 2.1 million from NTT DoCoMo YoY Growth: 45%

21 1. Device Driven Model 3. Platform Driven Model 4. Operator Driven Model CAPEX Telco OPEX Go To Market Speed ROI Scalability Investment M2M Application Provider ROI Go To Market Speed Flexibility (Change Connection Providers) Scalability Favorable Neutral Unfavorable Source: Frost & Sullivan

22 Internet of things, Machine To Machine Terminology Opportunity & Market Drivers Use Cases Business Models End-2-End Architecture Eco-system Partners

23 Asset (Sensor) & M2M GW Networks Intelligent M2M Network Services Systems Integrator Carrier SP M2M Cloud Services Network- Aware VAS Business Applications Applications mhealth/ Fleet Management / Industrial Automation Business Services SAP/ Oracle Application Service Maintenance Mgr DevTools & Open API Admin Service Connectivity Service Device Mgmt Big Data Mgmt Integration Service Security Service Remote Service Personalization Manager Data Mgmt Service Asset Mgmt Identity Mgmt Billing Service Network Intelligence Transport Optimization HTTP RESTful SOAP XML XMPP One API Network, subscriber and Services Abstraction and Orchestration Layer EPC EPC EPC / BNG Data Analytics Real-Time Subscriber Mgmt Policy Manager 2G/3G Modem Sensor # 1 2G/3G Modem Sensor # 2 2G/3G Modem Sensor # n 3G/4G/WiFi GPS M2M GW Apps Orchestration Layer 3G/4G/Wireline M2M GW

24 Compact Hardened Services-Rich Industry s Most Compact Hardened M2M Gateway with Dual SIM Built for challenging environment shock/vibe, humidity, splash water, temperature, dust IOS-Based ISR Compatible, Secure native SMS Gateway with GPS Support Mobile IP and IPv6 Ready Increased revenue with new business models Cisco ISR 819 Greater efficiency with remote realtime monitoring with existing management Flexible operations with ease of installation/deployment and lower TCO

25 Internet of things, Machine To Machine Terminology Opportunity & Market Drivers Use Cases Business Models End-2-End Architecture Eco-system Partners

26 Manage Data Plan (raise / lower bandwidth) SIM management (enable / disable) Report on data usage Powerful Rule Engines (Automated control of Assets) Firmware Over The Air (Upgrade firmware, push content to Assets) Business Intelligence and Reporting

27 + Adjust Rate Plans Activate / Deactivate SIMs Select higher-data Rate Plan before Asset receives a firmware upgrade Deactivate SIMs when Assets are being seasonally warehoused Track month-to-date Usage Lower reporting frequency of all Assets before Bandwidth Exceeded Send single or bulk SMS Send SMS to wake up Assets and have them report data / download updates

28 SP(s) are key Partners for Cisco and will play a big role in the M2M market But it is not just a traditional Service Provider play! Both an Enterprise (e.g. Utility, Cars, ) and SP play Will stimulate the rise of new types of Service Providers Strong potential for Over-the-Top players Crucial Enterprise, Public Administrations, Government role Cisco End to End Infrastructure for IoT/M2M leverage Service Provider mobile and fixed network and cloud infrastructures, it is the foundation for delivering network aware business mission critical application. To develop and deliver M2M services Service Provider need to build partnership with M2M platform vendor, application developer, system integrator and enterprises.

29 ABIresearch Maximizing Mobile Operator Opportunities in M2M: CISCO_M2M_Operator_Opportunity.pdf&pos=1&strqueryid=2&websessionid=DJMvPuefgiNniOw-Ym3FBqP Machine-to-Machine and Cloud Services: Monetize Next-Generation Communication M2M

30 Thank you!