M2M Solutions. Jose Rabello M2M Solution Sales Manager LATAM Gemalto Telecom Forum 2013
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1 M2M Solutions Jose Rabello M2M Solution Sales Manager LATAM Gemalto Telecom Forum 2013
2 Does M2M look complex? 2
3 Moving from classic to connected machine system NEW INFORMATION = + New business model New revenue streams REAL TIME COMMUNICATION Better User Experience Service Provider benefits Automate processes Reduce cost of operation and maintenance New revenue streams End user benefits Make your life easier Align with end users need Enhance user experience 3
4 Regulation will make the market big Smart Metering is getting momentum in some regions 4
5 And market can be even bigger DIAGNOSTICS ASSISTANCE REGULATIONS E-Call / HeERO ERA Glonass PREMIUM SERVICES & INFOTAINMENT INSURANCE TELEMATICS Info traffic Auto app store Pay As You Drive Pay How You Drive 5
6 Exploding numbers in the coming years Security Short term - automotive and fleet management Aftermarket Telematics Payment Metering Medium term utilitites: 2015: 300 million connections 2020: 2.1 billion connections Remote Maintenance and Control OEM Telematics WLL/ RouterGateway Industrial Computing Health Care Environmental Monitoring 6
7 Growing M2M opportunities by enabling the partners across the value chain GEMALTO Enable device to communicate Enable monitoring of device & subs mngt Enable building / development and deployment of applications Sensor Meter + on-board app Wireless Module SIM / MIM END TO END SECURITY Connectivity Backend Servers collecting data Analyze data Web & Mobile service Final user Device maker Component providers Connectivity provider (wireless/fix) M2M service provider System integrator Application Provider + 3 rd parties Application dev 7
8 M2M value chain is about 3 main elements Asset Device Hardware Perspective APPLICATION Applications/Services Perspective End-user application and associated monitoring features Device management application (device health, firmware updates) APPLICATIONS LAYER Module UICC (SIM/USIM) NETWORK LAYER Application(s) to monitor & maintain connection Application(s) to establish connectivity (lifecycle provisioning) DEVICES CONNECTIVITY Source: Beecham report Dec2011 8
9 DEVICES CONNECTIVITY APPLICATION What s at Stake to enable new business models? >> LIFE CYCLE MANAGEMENT Handle application life cycle Handle Connectivity life cycle Handle devices life cycle Best End-user experience Fast time to market Low Total cost of ownership Flexible business model Activation / Deactivation / Regulations Billing and fraud monitoring Domestic and international ARPU, monetization of M2M subscription Network quality of services Manufacturing / logistics / Distribution Maintenance / Replacement Monitoring and diagnostics 9
10 DEVICES CONNECTIVITY APPLCATION LIFE CYCLE MANAGEMENT Gemalto foundations to grow M2M opportunity Handle application life cycle Handle Connectivity life cycle Cloud based Delivery Service platform Subscription Management services Handle devices life cycle MIM Audit / Monitoring / Quality of Services Device management SIM Tool Kit applications (IMEI tracking) Identification of the user &/or machine 10
11 DEVICES CONNECTIVITY APPLCATIO N Handle application life cycle Handle Connectivity life cycle Handle devices life cycle Devices, address M2M market needs FROM SIM TO MIM TO MIM SERVICES 11
12 MIM From Classic SIM to dedicated MIM RELIABILITY ROBUSTNESS Addressing M2M market needs: Quality & Reliability & Robustness Compliancy to industry standard Automotive/telematics/metering Longer life span and extended guaranties Miniaturization Anti-theft from to Increase card longevity Auto manuf. had issues with connectors Optimize yield and production efficiency 1% yield caused by manual insertion of SIM A dedicated component, designed and reinforced to meet industry needs A dedicated Operating system to improve software resistance An additional form factor (MFF): SMD package (VFN8/DFN8/SON8) 12
13 MIM U-MIM Quad M2M Plug 85 M2M Plug 105 Full M2M Quad Full Auto Quad Drivers Temperature resistance range M2M qualification (JEDEC) extended Life mechanism Enhanced silicon Miniaturization M2M consumer electronics GSM standard -35 / / / +105 As an option Fit any equipment M2M industrial Fit any equipment Extended endurance M2M industrial Industrial grade Extended endurance M2M industrial Auto grade Extended endurance Automotive std -40 / +105 Burn-in Data retention 10y / 25 C 10y / 85 C 10y / 85 C 10y / 85 C 17y / 80 C MIM Services Automotive req compliancy Monitor and diagnostic MIM and module >> Monitor your SLA / Reduce cost of failure AEC Q100 (TS ) 13
14 FAILURE RATE Reliability Across a Lifetime EARLY FAILURE CONSTANT FAILURE WEAR OUT FAILURE DECREASING FAILURE RATE CONSTANT FAILURE RATE INCREASING FAILURE RATE OBSERVED FAILURE RATE USE CASE ELEVATORS WITH WRONG IMPL. Inappropriate MIM Usage Incorrect DEVICE Significant brand corrosion for Network Operator implementation Service failure METERS IN HARSH ENVIRONMENTS Unpredictable / Extreme Operating Environments Remote Deployments Unpredictable 80 to 200 signal if availability Wear Alerts for unexpected needed behavior Usage Alerts / Campaigns field support is CARS WITH LONG LIFE SPANS Long usage cycles (17 years) 300 to 1500 Huge legal / brand to repercussion recall a for car, failures significant brand corrosion Long life cycle mechanism for car Wear Alerts to preempt replacement manufacturer TIME 14 14
15 MIM Services Platform - Extend your M2M offer A direct & granted access for your M2M customers M2M Portal Marketing MNO Care Customer MNO Care MNO M2M Customer 1 Backend M2M Customer 2 Backend M2M Cusomer n Backend Portal and Web Services API 15
16 Features (1/2) MIM AUDIT >Counters on file writes and memory wear >Campaigns to retrieve counters > Alerts to prempt device end of life ANTI-FRAUD >Call & SMS barring >Device detection and Lock > Device Change notification and reports DIAGNOSTICS >Alerts to retrieve key information >Location & Signal quality monitoring >Remote AT command execution SERVICES FRAMEWORK >Deploy your own business logic on the MIM >Easy to use XML based service development language >Ready to use bricks for Device, Location & Security 16
17 Features (2/2) ADMINISTRATION >User Portal >Delegate and manage access privileges for your customers REPORTING >Fleet intelligence for market analysis WEB SERVICES >Web APIs for all platform features 17 17
18 MIM Services architecture MIM Services MIM M2M Module DM-Detect-NG LinqUs OTA 5.2 Campaign Manager IMEI Tracking Applet Audit Service Monitor/Diagnostic Service FDN Update - RFM Service Graphic Reporting RCA LPM Audit Applet Card OS Audit API M2M Servive Engine Applet Nb of restarts Network Monitoring Location Module Diagnostic Key Provisionning 18
19 MIM Services Platform Take away Easy and Simple to differentiate and secure your M2M offer Portal and Web Services API Anticipating failure and minimize downtime Preventing fraud and alert on abnormal usage Improve the diagnostic capacity Leveraging the use of a secured thin standardized client: the MIM. Secure and differentiate your M2M services deployment 19
20 DEVICES CONNECTIVITY APPLCATIO N Handle application life cycle Handle Connectivity life cycle Handle devices life cycle Removing barriers of flexibility, cost and efficiency FLEXIBLE PERSONALIZATION SERVICES 20
21 Challenges while deploying connectivity M2M ARPU 2 / month 2 to 3 years for ROI 1 SIM, 1 tariff, 30 countries >> Permanent roaming Data traffic > 10 MB a month Data roaming issues Need to go for a local subscription ISSUE: COST M2M equipment and connectivity services Low traffic Need best coverage Industrial ecall Metering GLOBAL SUBSCRIPTION 80% 2G Huge data traffic Need best tariff Consumer elec Video surv. Connected cars LOCAL SUBSCRIPTION 20% 3G Key learning from the field MNOs Internet access Comply to Regulations Consumer elec Connected cars LOCAL SUBSCRIPTION 20% 3G 21
22 Market is structuring itself to address global connectivity challenges 1 2 Manage connectivity for M2M players A dedicated infrastructure, SIM and contract management, billing, monitor data consumption Admin portal for M2M players Offer a global coverage and extend geographical footprint Internal large MNOs sharing infra External building specific agreements + Telia Jasper Alliance Answering to market demand Extend WW footprint from local to global Providing same SLA on the global footprint Network coverage, quality of service Commit on data tariffs across the alliance Still deployment issues are highlighted by industrials 22
23 From to From Classic SIM to dedicated MIM Industry drivers Driving new needs Automotive OEM >> robustness and BOM After market >> miniaturization and BOM Track and trace >> robustness and fraud (vehicles), miniaturization (shipment) Metering >> fraud, robustness, and BOM Health >> miniaturization, fraud Personalization services Flexibility in subscription management Reduce integration and logistic costs Enhance M2M device deployment efficiency 23
24 SM- DP SM- SR Gemalto, an expertise in Subscription Management COST EFFICIENCY FLEXIBILTY Strong position on M2M market a dedicated organization, an access to market 15 years expertise in M2M technologies 1 st demonstration of full profile download over IP Feb 2012 Live pilots running in 2012 Strong involvement in automotive industry Standard, GSMA, chairmanship SIMAlliance Full flavor of solutions An active role towards the eco-system Secure framework Simple Subscription download over SMS Full MNO profile download over HTTP Standard: GSMA / ETSI / SIM Alliance GSMA: PoC, demonstrators Profile Manager Secure Transport Secure Transport Business models cross industries Profile Manager 24
25 Bootstrap profile Bootstrap profile CAN MNO Bootstrap profile GER MNO 1 st activation 2 1 SM SM euicc is activated in Germany euicc receives a GER MNO profile euicc is activated in Canada euicc receives a CAN MNO profile SM euicc is issued with a bootstrap profile from US MNO and integrated in some device euicc is embedded in a device with bootstrap (provisioning) subscription Device / Connectivity is activated in some country Local MNO partner subscription is downloaded in the euicc This use case is also possible by downloading the right subscription delta in the Single Shared profile using SMS 25
26 Subscription Management CLASSIC Closed Markets Open Markets Subscription Manager CLASSIC Subscription Manager ADVANCED Profile Update Full Profile Delta profile / parameters (eg IMSI, KI, PIN, PUK...) download over SMS Offer an approach to add/remove MNO credentials on the card. Two Deployments Shared Profile Dedicated Profile Includes Subscription Management CLASSIC Full Profile download Isolation of MNO Subscriptions to ensure confidentiality Swap, download and delete over HTTP Alternative over SMS 26 26
27 DEVICES CONNECTIVITY APPLCATIO N Handle application life cycle Handle Connectivity life cycle Handle devices life cycle Cloud-based Service Delivery Platform FOCUSING ON VALUING YOUR SERVICES 27
28 M2M Applications Drive the Market Enable users and systems to interact with connected machines, devices, sensors quickly and easily Asset management Vehicle telematics Package tracking Smart Energy Intelligent buildings control Health monitoring Machine diagnostics. CONFIDENTIAL 28
29 Who Is Building M2M Applications? Enterprises System Integrators Original Equipment Manufacturers Industry Solution Providers CONFIDENTIAL 29
30 Device SDP M2M Application SensorLogic-Service Delivery Platform Device & Network Management Through an Abstract Device Layer Business Logic & Event Services Based on Complex Event Processing Application Services APIs for Core M2M building blocks A Cloud Service for a scalable architecture CONFIDENTIAL 30
31 Device & Network Management (1/2) DEVICE COMMUNICATION Open device communication Protocol translation Data normalization Data storage Normalized Device Data Services Protocol Translator Library SMS TCP UDP 31
32 Device & Network Management (2/2) MANAGE DEVICES Add, Update, Delete devices Remotely configure device parameters APN, Reporting Server, Reporting Frequency Module Specific Parameters in Roadmap MANAGE SIM s Activate, deactivate SIMs Assign rate plans Normalize cross-carrier interfaces (ROADMAP) Other Connectivity Platforms 32
33 Event & Application Services Configurable business rules Data and event correlation Alerts and Notifications GPS and cell ID based location Geocoding & Geofencing services Open, standard application support Web services API s Users, roles, group management Secure authentication Data warehouse & reports 33
34 Cloud Based Service Delivery Architecture Asset Communication Device DEVICE AGENT (in roadmap) PROPRIETARY DEVICE PROTOCOL INDUSTRY STANDARDS (Continua, DEX..) Network SensorLogic Application (Web /Mobile Apps, Business Systems) PRE- INTEGRATED with MNO systems LEVERAGE Gemalto s know-how on SIM provisioning APPLICATION SERVICES EVENT PROCESSING NETWORK & DEVICE MANAGEMENT VENDING MANAGEMENT FLEET MANAGEMENT COLD-CHAIN SHIPMENT TRACKING MOBILE HEALTH CRM/ERP/SCM INTEGRATION CONFIDENTIAL 34
35 Deliver More Apps, Faster Attract more developers to their sales channel Enable more sophisticated applications Accelerate time to market Accelerate time to volume More M2M contracts sooner Start Deploy Deliver M2M apps in 6 months instead of 18! Accelerates time-to-market & time-to-revenue CONFIDENTIAL
36 Capture More of M2M Revenue (ARPU) Operator Only Collects Data Services Revenue Enables Added Revenues per Connection from Enabling Services M2M Application Provider M2M Application Provider M2M Application Enablement & Device Management Services New Operator Revenue Opportunity Operator Data Services Hardware Today Current Operator Revenue Operator Data Services Hardware Tomorrow CONFIDENTIAL 36
37 Thank you APPLICATION DEPLOYMENT MIM CONSULTING SERVICES SECURITY WIRELESS MODULES DIAGNOSTIC AND MONITORING PERSONALISATION SERVICES
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