M2M innovations that will drive the market: Big Data, Cloud and LTE technologies impact?

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1 M2M innovations that will drive the market: Big Data, Cloud and LTE technologies impact? M2M + Industry Forum / 13 April 2013 Joachim Dressler Board Member - M2M Alliance e.v. VP EMEA Sales Sierra Wireless

2 M2M Alliance e.v. Association founded 2007 in Germany 70 international members (30% non German) Key members of the M2M industry including major network operators, hardware supplier and solution provider University network Benefit from networking and joining forces Organizers of the German M2M Summit, themed evenings Publishing the M2M ejournal Landing platform for foreign companies looking for business opportunities in DACH Benefit from joint participation at exhibitions Joint marketing activities Supported through Web, Xing, LinkedIn, Twitter, Facebook

3 M2M: The Opportunity Today, there are 5x more people on earth than connected machines By 2050, there will be 10x more connected machines than people on earth by 2020 by billion people and 1.4 billion M2M connected devices Global M2M market worth $100B M2M connected devices 12B+ using data totalling 700 exabytes M2M connected devices 100B+ M2M connectivity will impact all aspects of our daily lives

4 M2M: What is it for you? Mobile Consumer Automotive Transportation Energy Industrial & Infrastructure Security Networking Sales & Payment Field Services & Logistics Healthcare M2M is everywhere. It can connect everything to everything

5 M2M: Innovations Home Connectivity Industry 4.0 Car Entertainment Traffic Management Security Smart Home Video Streaming Fleet Management Well Being Facility Management Surveillance What is the innovation? Home Entertainment Health Monitoring ecall Tablets Logistics Process White Goods Management egovernment Insure as you Drive Blue Light Systems Industrial Monitoring Notebooks

6 M2M: Key Trends Enabling Growth Past (~2002) Today (2013) Future 2G only 2G, 3G (some 4G) Low Power 2G, 4G++ Ubiquitous networks $100+ per module <$30 per module <$10 per module Lower costs Standard monthly data plans No M2Mspecific tools Flexible data plans Self provisioning Pay-per-use, QOS, SLAs Open application tools, policy management New business models Easier implementation and management Increased scalability thousands of devices millions of devices billions of devices Enabling new M2M use cases and applications

7 COST M2M: Historically, Difficult to Implement Devices Vendor 1? Wireless Services Vendor 2 Backend Server Vendor 3 Developer A Machine OEM?? Developer B Security? ERP? Enterprise Applications? Developer C TIME

8 M2M: Innovations LTE Technologies enables solution Cloud needed to connect Big Data result of applications You wanted to know the killer app?

9 M2M: What is driving growth LTE Lower latency enables realtime > more data Higher bandwidth enables new applications > more data Cloud Connects heterogenous infrastructure > ease to connect Access from everywhere to everywhere > ease Combination for radio technologies > more data Big Data Request for higher data quality > more data New applications/connect points every day > more data Request to send data more frequent > more data Huge data volumes require efficient business intelligence

10 M2M: The Logic LTE is enabling an all IP network Latency and bandwith will significantly improve Easy to wire/wireless connect to endpoints via IP Resulting in more applications and contact points Huge improvements on efficiency and TCO Leading to the need for Cloud services to connect Generating billions of messages and exabite of data Need for big and efficient data storage systems Inevitable need for data mining and analystics

11 LTE

12 M2M: Traffic Models Monthly Usage Large M2M Market

13 M2M: Ready for LTE? Why will M2M migrate towards LTE in the future? Not jut because of Speed Latency Cost of the device 2G~$25, 2G/3G~$75, 2G/3G/LTE-$$$, 2G/LTE-$$, LTE only-$ It could be: Ultralow power, IP based LBS, others? Small factor Future proofing - 2G may not be around forever Cost of the service (much more on this later) Others??? Timing (not if but when?) When the additional TCO for LTE == future proof value Cost of a LTE device will fall faster than 2G or 3G devices The need to be future proof will rise over time It will not be soon maybe 2014? 2015? 2016?

14 Customer Cost per MB > 50X? > 100X M2M: Customer Cost per MB vs. Monthly Usage Signaling and Billing Overhead Large M2M Market ALU Study for UMTS Application sends 4MB/day, online 5 hrs/day, and goes dormant every 30 seconds 61% cost for signaling 37% cost to be online for 5 hrs 2% cost to send the data LTE 2G Where will LTE be? Highly Optimized 1-5 /MB Usage (MB/Month)

15 1-3 sec ~25-30 msg M2M: Advantages of LTE over 2G/3G Smaller Factors Higher spectral efficiency Header compression (ROHC) Addressing (IPv6) Larger Factors Packet Switched Network Equipment Flat network architecture Self Organizing Networks (SON) Load control MME load balancing Flexible Mobility Management Efficient Radio Resource Control (RRC) Connected long and short DRX cycles UMTS RRC More messages in shorter time at higher efficiency! LTE RRC 80 ms 7 messages 9.5 ms

16 M2M: 4G/LTE Emerging Applications Automotive Smart Home Digital Advertising Connected Health The Connected Car Infotainment Internet Access Smart Home Energy Management Alarm / Security Mobility Digital Signage Remote Updates and Maintenance Remote monitoring Patient education Diagnostics Tomorrow Video everywhere? All devices part of an all IP-network Plenty of new applications to be invented

17 Cloud

18 M2M: Cloud Connect it All Is a M2M Cloud different? Security is important Many unattented devices connected Embedded SIM might be a security token Mobile end points Multiple networks and technologies Multiple partners involved Lack of global M2M standard GSMA, ETSI, OneM2M, MQTT protocol, Eclipse,

19 M2M: Cloud M2M specific solutions available MarcanT, Materna, Sierra Wireless, Gemalto, Telit, Wyless, Deutsche Telekom, Vodafone, Telefonica, Device Insight... Offers differ by focus: Security management Hardware management Connectivity management Application management Combination of services Flexible business models available that take mobile into account

20 M2M: Cloud Platform Elements Source: Sierra Wireless

21 Big Data

22 M2M: Big Data Data records can easily be generated Consider how many data records are really required Creating data faster than one can handle it Exponential increase of data in line with deployments M2M can generate a lot of false/douplicate data Some are surprised by the amount of data? Enough memory available? Gathering data is one thing What are you going to do with it? Beside structured data, now unstructured data Timing to be considered to avoid congestion

23 M2M: Big Data Traffic Management RFID > LTE 3G > LTE Gigabyte Gigabyte LAN > LTE Congestion/traffic jam? Exident? Transmission timing? Gateway Endpoints Gateways Cloud M2M Platform ERP Frontend

24 M2M: Big Data - Analytics M2M specialized data centers available Materna, MarcanT, Intel, IBM, Oracle, CGI/Logica Structured data Analytics Source: Intel

25 Examples

26 M2M: End-to-End Solution Exist Billion M2M Devices Custom Web Application ERP M2M Big Data Hardware Integration Web APIs Asset Data Management Device Management Subscription Management Smart or Essential Connectivity M2M Cloud Accelerating M2M Application Development & Deployment

27 What can M2M do for you?

28 The M2M Alliance can help Networking to find solution partners Landing Platform to mainly DACH region Assist to find partners outside DACH Use the annual M2M Summit To inform yourself, promote solution, find partner We cover most building blocks of a M2M solution in our community

29 More questions? We know!

30 Contact Joachim (Jo) Dressler M2M Alliance e.v Mobile: Office

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