I D C T E C H N O L O G Y S P O T L I G H T

Size: px

Start display at page:

Download "I D C T E C H N O L O G Y S P O T L I G H T"

Timothy McCarthy
6 years ago
Views:

I D C T E C H N O L O G Y S P O T L I G H T NB- I o T P r o vi d e s S o l u t i o n to Mobile Netw o r k Operators' IoT Needs April 2017 Adapted from Worldwide Internet of Things Installed Base by

1 I D C T E C H N O L O G Y S P O T L I G H T NB- I o T P r o vi d e s S o l u t i o n to Mobile Netw o r k Operators' IoT Needs April 2017 Adapted from Worldwide Internet of Things Installed Base by Connectivity Forecast, , IDC #US By Carrie MacGillvary and Adam Wright Brought to you by Tech Mahindra, Powered by IDC As the Internet of Things (IoT) market continues to experience strong momentum, mobile network operators are facing increased competition as a result of complex end-user requirements for scalability, security, network capacity, and network performance. There is an ongoing debate of what type of connectivity will win out in the long run. IDC expects that many connectivity access types (such as fixed, cellular, low-power wide area network [LPWAN], short-range wireless/wireless LAN, and satellite) will coexist. This paper examines narrowband IoT (NB-IoT) as a viable connectivity access option for the growing IoT market. It also looks at the role of Tech Mahindra's NB-IoT in this strategically important market. Introduction As the number of worldwide IoT deployments continues to grow, the need for reliable and robust connectivity to endpoints is becoming a focal point across geographies and vertical industries. IDC estimates there will be over 82 billion connected IoT devices by 2025 (see Worldwide Internet of Things Installed Base by Connectivity Forecast, , IDC #US ). However, it is becoming clear that mobile network operators need to investigate options that provide enterprises with answers to their increasing concern with security, network capacity and performance, and upfront/ongoing costs as they look to scale their IoT deployments. For business decision makers, it is a complex proposition to decide what type(s) of connectivity should be used to support an IoT deployment. Some considerations these mobile network operators and business decision makers need to understand are as follows: High bandwidth and low latency are increasingly critical to successful IoT deployments. As more endpoints become connected and highly distributed, managing and coordinating large volumes of data and real-time communication will bring about new challenges, particularly with regard to scalability. IoT sensors and devices will increasingly be dynamic in nature and require intelligent decision-making abilities in real time. Higher bandwidths and lower latencies will be critical to many IoT deployments, especially in areas such as vehicle-to-vehicle communications, medical devices, financial transactions, and energy management. Connectivity providers will need to innovate to successfully handle variable workloads across IoT networks in a scalable and reliable manner. Hybrid solutions are valid options. Hybrid networks are increasingly implemented whereby a cellular, wired, or satellite connection is used at the gateway and LPWAN (such as NB-IoT) or short-range wireless technologies are used to aggregate endpoint data streams. Hybrid solutions will find use in both consumer use cases (e.g., smart homes) and enterprise/industrial use cases (e.g., remote oil and gas refineries, smart city solutions). In this respect, LPWA networks and cellular networks will coexist. US

2 Edge compute momentum will require fast, secure, and reliable network connectivity. The topic of edge compute is garnering increased attention in the industry. With a myriad of devices at the edge of the network, there's been a push to develop edge computing capabilities for the data collected at the edge of the network. While data pertaining to critical IoT applications will be either processed at the edge or sent to the cloud over LTE-M/5G for fast, secure, reliable transport (in many instances), a need will remain for massive IoT application data to be sent to the cloud or enterprise datacenter. Per IDC's 2016 Global IoT Decision Maker Survey, 43% of organizations plan to process some or all of the data at the edge. However, 68.5% of organizations said they will send the data back to the enterprise rather than process all of the data at the edge (this includes organizations that will process some at the edge and transport some data to the enterprise). Long battery life in many IoT devices is a requirement. Unlike smartphone devices, which are swapped out approximately every two years, IoT devices will be installed and in service for a much longer time frame in some cases years. These devices, in many instances, will be in remote or hard-to-access locations and thus will rely on battery power. Several connectivity access types require significant power to connect. However, LPWAN technologies such as NB-IoT offer reduced battery strain and a compelling option for use cases that will have battery-operated devices deployed for a long period. Over the past couple of years, LPWAN technology has received considerable attention because of its lower device cost, coverage area, device battery life, and capacity density. NB-IoT is one of the LPWA network technologies that are available on the market today. The advantage that NB-IoT has over other technologies is that it operates over licensed spectrum and is a standardized 3GPP specification. It can be deployed within existing LTE spectrum or in unused, yet dedicated, LTE spectrum on a mobile network operator's network. NB-IoT can help mobile network operators bridge the gap between their traditional cellular capabilities provided by 3G and 4G/LTE networks and the upcoming 5G next-generation cellular network which isn't expected to be commercially available in select regions until 2019 or Current LTE networks are naturally designed to support mobile broadband requirements rather than mass IoT connectivity, which in many cases requires ubiquitous coverage, low power consumption, and better signal strength. NB-IoT provides the IoT purpose-built network that serves the specific needs of IoT deployments and is a perfect supplement to LTE, meeting the abovementioned mass IoT connectivity and, at the same time, offering efficient use of spectrum. Definitions To help readers understand the discussion in this Technology Spotlight, IDC provides definitions of some of the main technology terms referenced throughout the document. Internet of Things (IoT): A network of uniquely identified endpoints that autonomously connect bidirectionally using IP connectivity Low-power wide area network (LPWAN): A networking technology type that is designed for IoT endpoints that operate on batteries for extended periods without maintenance (e.g., 10+ years) and premised on periodic communications intervals with limited data transmission requirements (Within this category, there are two types of LPWAN technologies: 3GPP LPWA standards (NB-IoT, LTE-MTC, EC-GSM-IoT) designed to operate in licensed spectrum and proprietary radio technologies operating in unlicensed spectrum, such as those provided by LoRa, Sigfox, and 6LoPWAN.) Narrowband IoT (NB-IoT): A 3GPP ratified standard that leverages licensed spectrum for IoT connectivity and can operate on existing LTE spectrum or in unused LTE spectrum bands (The NB-IoT standard was finalized in June 2016.) IDC

Opportunities for NB-IoT NB-IoT provides several key benefits to mobile network operators and enterprise/government organizations looking to deploy an IoT solution.

g., gas, water, electricity) Smart cities (e.g., parking, lighting, garbage collection) Asset tracking (e.g., fleet management, equipment monitoring, pet tracking) Agriculture (e.g., agricultural

3 Opportunities for NB-IoT NB-IoT provides several key benefits to mobile network operators and enterprise/government organizations looking to deploy an IoT solution. These benefits include the following: Improved indoor coverage Support for many connected devices Low latency Low device cost Low power (i.e., battery) consumption Several use cases will benefit from NB-IoT as the primary connectivity type, including: Smart metering (e.g., gas, water, electricity) Smart cities (e.g., parking, lighting, garbage collection) Asset tracking (e.g., fleet management, equipment monitoring, pet tracking) Agriculture (e.g., agricultural planting, livestock tracking, soil environment monitoring) In all these use cases, the need for coverage over a vast geographic area, long device life cycles, and mostly intermittent communications lend themselves well to using NB-IoT as the primary connectivity method. As depicted in Figure 1, NB-IoT is better suited for massive IoT application deployments than for business-critical applications. FIGURE 1 A Comparison of Massive IoT Applications and Critical IoT Applications Massive lot Critical lot Smart Cities Industrial lot Commercial lot Transportation & Parking Remote Healthcare Automatic Driving & Traffic Safety Factory Automation Agriculture HVAC Sensors Environment Energy Monitoring Manufacturing(Sensors) Inventory Management Hi-Definition Surveillance Public Safety & Emergency Response Energy (Grid Control) AR / VR Huge Scaling, Low Duty Cycle, Very Latency Tolerant, Loss Tolerant Moderate Scaling, Variable Duty Cycle Very Latency Sensitive, Loss Intolerant Source: Tech Mahindra, IDC 3

4 Considering Tech Mahindra: NB-IoT Services and Support Tech Mahindra is a global company that provides technology solutions and services, outsourcing, and technology platforms for companies looking to transform. With its strong background as a systems integrator in the telecommunications market, Tech Mahindra helps mobile network operators build managed IoT networks and enterprises build IoT solutions across verticals. The company boasts expertise in 3GPP radio access technology, managed network services, and IoT solutions and can apply that expertise to NB-IoT technology adoption specifically. Some of the offerings that Tech Mahindra provides for NB-IoT projects are as follows: Testing NB-IoT device and base to verify compliance Scaling of packet core networks to support machine-type communication (MTC) use cases Developing lightweight packet core solutions optimized for IoT traffic profiles Providing over-the-top (OTT) IoT services In addition, Tech Mahindra can help meet the needs of its customers mobile network operators and enterprises alike with its ability to integrate with IoT platforms as well as business and analytics solutions on the market. Challenges While NB-IoT provides a lot of opportunity to the IoT market as more deployments take place, it's important to understand some of the technology-related concerns that Tech Mahindra and other vendors face in the context of the large connectivity landscape. Challenges include: Upfront and ongoing costs. As the number of connected devices continues to grow, monthly service fees will increasingly become a burden for enterprises and government organizations making large deployments. To achieve success in the NB-IoT segment of the market, mobile network operators must develop multiple models for billing to help support the connectivity needs for the specific customer or use case. Network upgrade costs. For mobile network operators, upgrading to NB-IoT is not without cost. Mobile network operators will be required to invest significantly in hardware and software technology to support the rollout of NB-IoT. With the promise of 5G deploying in 2019/2020, there may be some concern about the longer-term viability of NB-IoT after 5G becomes commercially available. Geographic coverage. NB-IoT provides excellent network coverage within a set geographic area (i.e., a municipality, enterprise campus), but it's not intended to provide ubiquitous coverage over a whole region or country. NB-IoT will serve many use cases well, such as smart city, asset tracking, and agricultural deployments, but it may not be ideal for other use cases such as connected car or nationwide freight transportation. Competing connectivity technologies. Connectivity is the common denominator in the IoT connecting endpoints. However, the landscape of connectivity includes many different access technologies, including wired/fixed, cellular (i.e., 3G, 4G/LTE), short-range wireless, and wireless LAN and satellite as well as other LPWAN technologies such as LoRa and Sigfox. In many cases, the connectivity required is a factor of the use case. There is opportunity for all the abovementioned connectivity types to coexist in the IoT market IDC

5 Conclusion NB-IoT is positioned to be an important network technology over the coming years as IoT deployments continue in earnest especially in use cases such as smart metering, smart cities, asset tracking, and agriculture. While there is competition across connectivity access types, these networks can coexist, especially as deployments look to hybrid approaches to optimize connectivity for the use case. IDC believes that the IoT market will continue to grow, and to the extent that Tech Mahindra can address the challenges described in this paper, the company has a significant opportunity for success. A B O U T T H I S P U B L I C A T I ON This publication was produced by IDC Custom Solutions. The opinion, analysis, and research results presented herein are drawn from more detailed research and analysis independently conducted and published by IDC, unless specific vendor sponsorship is noted. IDC Custom Solutions makes IDC content available in a wide range of formats for distribution by various companies. A license to distribute IDC content does not imply endorsement of or opinion about the licensee. C O P Y R I G H T A N D R E S T R I C T I O N S Any IDC information or reference to IDC that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For permission requests, contact the IDC Custom Solutions information line at or gms@idc.com. Translation and/or localization of this document require an additional license from IDC. For more information on IDC, visit For more information on IDC Custom Solutions, visit Global Headquarters: 5 Speen Street Framingham, MA USA P F IDC 5

Wireless SD-WAN: A Critical Element of Industrial Internet of Things

I D C V E N D O R S P O T L I G H T Wireless SD-WAN: A Critical Element of Industrial Internet of Things By Rajesh Ghai, Research Director, Telecom Network Infrastructure, IDC; and Bill Rojas, Research