M2M & Internet of Things Opportunities

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1 M2M & Internet of Things Opportunities

2 The Advent of The Internet of Things Mainframe Minicomputer Desktop PC Internet Mobile Internet (1M+ Units) (10M+ Units) (100M+ Units) (1B+ Units/Users) (3B+ Users) The Internet of Things and People (Tens of Billions Or More Units/Users) When Compared To Previous Cycles, The Internet Of Things Is Much Greater In Diversity Of Devices, Applications and Markets 2

3 The Internet of Things An IT Tsunami or / Platforms Process n-bit 64-Bit 32-Bit 16-Bit 8-Bit 4-Bit Non GUI-Bas sed Systems GUI-B Based Systems iver tion Becomes Dr Power Consumpt Content Driven Systems Real-Time Systems Control Systems Sensor / Actuator / ID Systems Chip / Logic Systems High Level Multiprocessor Servers / Mainframes Application Servers & Workstations Desktop / Laptop / Tablet PCs, ATM s & POS Systems Smart Phones / PDA / Hand-Held POS Test / Diagnostics Equipment, Network Switches / Routers Office Equipment, Medical Systems, Small Servers Telematics / Navigation Systems, Digital Cameras Set-Top Box / Audio / Video / Systems AMR / AMI Meters, Machine Controls, HVAC Office Equipment, Security Systems Residential Gateways, Routers & Hubs Auto Power-train / Braking / Safety Smart / Network Appliances Motion Control Meters & Advanced Sensors Smart Cards, Safety Systems Elevators, Auto Subsystems Industrial process Equip Smart Tags, RF-ID Simple Appliance & Machine Controls Intelligent Sensors, Industrial Monitors Hydraulics / Pneumatics Devices Industrial I/O Basic Appliance Controls Toys & Games Less Deterministi ic More Det terministic 3

4 Connectivity Enables New Business Models Networked Product Business Model Product-Driven Business Model Product Services Software System Integration Electronics Applications & Services Network Services Device Management & Services Platforms Systems Integration & Deployment Device Enablement New Network & Application Services Will Grow Significantly... If Tools For Device Enablement & Management Are Available This Is Not A Role Traditional Product OEMs Can Fulfill Products Device OEM 4

5 Factors Driving M2M Industry Growth Ubiquityit Service OEM Adoption Broader availability of wireless networks Availability of remote diagnostics and upgrades Improved quality and data rates Uptime device control and remote Network enhancements to support device health/maintenance smart devices Growing availability of cloud services & applications support Traditionally, connectivity has been bolted on to remote devices Technology capabilities and lower costs are driving wide range of OEMs to embed and integrate network-based capabilities Cost Security Carrier Endorsement Comms technology rapidly dropping in price volumes beginning to drive scale Cost and complexity of enablement still requires skilled system implementation activity but getting easier Highly secure requirements Better defined and improved security standards Newer generation of tools allowing for more device-centric offerings Carriers are increasingly focusing on M2M opportunity, with dedicated sales teams and appropriate compensation plans Data is providing very meaningful revenue and profit growth for Carriers Applications Regulatory ROI Consumer applications positively impacting B2B & related adoption (e.g. smartphone, tablets, etc.) Broad growth forecast for Asset Management, Security, Energy Management, Supply Chain & Logistics, and Customer Support Rapidly advancing policy initiatives in Public Safety, Utilities, Healthcare Growing adoption/interest in Buildings, Transportation, and Medical Empirical results from real-world programs are promising and expanding interest to new players Economics in general are becoming progressively more attractive 5

6 Architecture, Standards & Relationships Are Required For Robust Market Growth Complex Applications Connections COMPLEX Information Architecture Open Information Sharing & Data Fusion Smart Transport Consumer/Sensor Integration SIMPLE Connectivity Enablement For Device Mgmt COMPOUND Hybrid Network Standards Systems & Application Integration Platforms Vendor Ecosystems Device Services Compound Applications Product / Process Automation Simple Applications Smart Grid / Metering Integration Time Vending POS, ATM 6

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