Report. M2M management software: supplier and product review. Patrick Kelly, Steve Hilton and Dean Ramsay

Transcription

1 . Report M2M management software: supplier and product review August 2012 Patrick Kelly, Steve Hilton and Dean Ramsay

2 M2M management software: supplier and product review i Contents 1 Executive summary 1 2 Recommendations Recommendations for communications service providers (CSPs) Recommendations for vendors 3 3 Market drivers and inhibitors Market drivers Market inhibitors 4 4 Market definition 5 5 CSP deployment plans Findings from the M2M scorecard for communications service providers: CSPs plans for the future 9 6 Suppliers of M2M solutions Axeda Bosch Software Innovations Comarch Convergys Hewlett-Packard (HP) JDS Uniphase (JDSU) Novatel Wireless Sensinode Sierra Wireless Tektronix Other suppliers 21 About the authors 25 About Analysys Mason 26 Research from Analysys Mason 27 Consulting from Analysys Mason 28 List of figures Figure 1.1: M2M management revenue, worldwide, Figure 3.1: M2M device connections by sector, worldwide, Figure 5.1: Status of CSPs OSS/BSS environment to enable M2M services... 7 Figure 5.2: Resources that CSPs have used to make changes to their M2M service delivery platform... 8 Figure 6.1: Supplier capabilities in each of the five management segments Figure 6.2: Axeda s M2M products Figure 6.3: SWOT analysis of Axeda Figure 6.4: Bosch Software Innovations M2M products Figure 6.5: SWOT analysis of Bosch Software Innovations Analysys Mason Limited 2012 Contents

3 M2M management software: supplier and product review ii Figure 6.6: SWOT analysis of Comarch Figure 6.7: SWOT analysis of Convergys Figure 6.8: HP CMS s M2M products Figure 6.9: SWOT analysis of HP CMS Figure 6.10: JDS Uniphase s M2M products Figure 6.11: SWOT analysis of JDS Uniphase Figure 6.12: SWOT analysis of Novatel Wireless Figure 6.13: Sensinode s M2M products Figure 6.14: SWOT analysis of Sensinode Figure 6.15: Sierra Wireless s M2M products Figure 6.16: Tiers in Sierra Wireless s M2M portal Figure 6.17: SWOT analysis of Sierra Wireless Figure 6.18: SWOT analysis of Tektronix Figure 6.19: SWOT analysis of Jasper Wireless Analysys Mason Limited 2012 Contents

4 Revenue (USD million) M2M management software: supplier and product review 1 1 Executive summary Analysys Mason forecasts that the total worldwide machine-to-machine (M2M) management market will grow from USD397 million in 2011 to USD1.1 billion in 2016 at 23% CAGR (see Figure 1.1). Figure 1.1: M2M management revenue, worldwide, [Source: Analysys Mason, 2012] The number of M2M device connections worldwide is expected to grow from 100 million in 2011 to 2.1 billion by CSPs are well positioned to exploit the opportunities for providing M2M solutions to industry sectors such as automotive and transport, energy and utilities, security and surveillance, public safety, financial services, retail, healthcare, and warehousing and distribution. Commercial off-the-shelf software to manage the M2M value chain is not as mature as other operational systems that support fixed or mobile telecoms services. Therefore, M2M management products still require some degree of customisation and integration with other software components. CSPs should be sceptical of marketing claims and should be prepared to spend a high percentage of their budget for integration of software between reputable niche suppliers that have commercial M2M products deployed in more than one industry sector. The M2M market is immature and it should come as no surprise that the M2M management systems in the market have yet to develop fully functional features and that the threshold for scalability has not been tested in real-world deployments. We interviewed established independent telecoms software and niche M2M suppliers and evaluated their solutions according to the following five criteria. 1 See Analysys Mason s M2M device connections, revenue and ARPU: worldwide forecast Analysys Mason Limited : Executive summary

5 M2M management software: supplier and product review 2 Authentication and security. Managed connectivity. Device data aggregation and analysis. Device management. Rating and pricing. We concluded that all of the suppliers that we evaluated cannot satisfy all five of the management requirements required to effectively support the M2M value chain. Some independent software vendors (ISVs) have broad product portfolios and strong M2M domain knowledge to quickly adapt to evolving business requirements. Niche suppliers will appeal to CSPs that want to target specific sectors such as transportation and security or want to supplement particular pieces of their existing systems management software. Other incumbent ISVs that have a dominant position and strong capabilities in the revenue management and assurance market are still developing a go-to-market strategy for M2M so these suppliers will have gaps in their product portfolios. We do not expect that all established telecoms software suppliers will enter the M2M market until demand is stronger. Most suppliers are generating less than USD15 million in licensed software and product-related integration services for M2M software management. Analysys Mason Limited 2012

6 M2M management software: supplier and product review 9 6 Suppliers of M2M solutions We have identified 19 M2M software suppliers in Table 6.1. We believe these companies are worth consideration by CSPs. Selection of these suppliers is based on market penetration by region, domain expertise and application segment. We have identified capabilities of each M2M software supplier based on our detailed vendor survey and analysis of CSP use cases. We have not included all suppliers that have M2M solutions. In future reports we will expand our coverage of the supplier market and provide use case studies of CSP deployments and the strategic suppliers in each of the five M2M domain segments. The surveying and briefing process that we conducted in researching this report produced a detailed picture of the capabilities of vendors that are active in the M2M market. The following table shows our assessment of the vendors according to the five key capabilities of their M2M products. A tick shows that the vendor is actively targeting this space or currently has a relevant product/service, a cross means they do not. N/d indicates that we have no data or did not receive a response from the supplier in this area. Analysys Mason Limited : Suppliers of M2M solutions

7 M2M management software: supplier and product review 10 Figure 6.1: Supplier capabilities in each of the five management segments [Source: Analysys Mason, 2012] Company Authentication Managed Device data Device Rating and and security connectivity aggregation management pricing and analysis Alcatel-Lucent N/d Axeda Bosch Software Innovations Cisco Systems N/d Comarch Convergys Cycle 30 Ericsson N/d Hewlett- N/d Packard (HP) Huawei N/d Jasper Wireless JDSU Novatel NSN nphase Sensinode Sierra Wireless Tektronix Telenor Objects Key: = yes; = no; N/d = no data (no response). Analysys Mason Limited : Suppliers of M2M solutions

8 M2M management software: supplier and product review Bosch Software Innovations Bosch Software Innovations is a leading supplier of business rules management systems and offers software and systems solutions for the financial services and telecoms industries and is capitalising upon the Bosch Group s experience and contacts in the industry. Figure 6.4: Bosch Software Innovations M2M products [Source: Analysys Mason, 2012] Product Control and Communication Unit (CCU) Infrastructure Management Services (IMS) Visual Rules Suite Business process management (BPM) inubit Suite Description A multi-connectivity appliance that integrates edge devices through a variety of protocols and adapters. To manage and administer distributed devices, including a distributed ESB: for integrating distributed devices, identity management, event management and software provisioning. A comprehensive, visual rules management tool for decision making and event processing. Includes visual modelling, simulation, execution and monitoring of processes. Bosch Software Innovations is generally positioned upstream in the M2M value chain, focusing on functionally rich M2M business applications for example, in the areas of mobility, energy, connected buildings, healthcare, automotive, retail and logistics, security, industry and manufacturing. The company typically provides lowerlevel mobile communication services in partnership with mobile CSPs. Bosch Software Innovations focuses on Asia Pacific, Europe and the USA. In addition to software products for M2M applications, it has an established consulting and implementation services group. The company is increasing staff numbers by 35% per year. The company s approach to data management is inherently decentralised. Devices submit data by means of events containing the data. Applications in the back-end can process these events in arbitrary ways. Data analysis is done via graphically modelled and highly adaptable rules, for example to filter and aggregate sensor events. For centralised storage and analytics of event data, Bosch Software Innovations integrates its solution with specialised solutions from providers such as the following. Jaspersoft reporting for Apache Hadoop, Couchbase, MongoDB and Neo4J. GridGain Systems real-time big data processing and analytics. Exasol and Xtract. Analysys Mason Limited : Suppliers of M2M solutions

9 M2M management software: supplier and product review 13 Figure 6.5: SWOT analysis of Bosch Software Innovations [Source: Analysys Mason, 2012] Strengths Weaknesses Bosch Software Innovations is capitalising upon the commercial power of the Bosch Group while investing in product innovation and robust security measures. Its M2M architecture was conceived with a focus on scalability. Bosch Software Innovations does not provide a billing or rating component to the system. Bosch is not well known in the telecoms market. The company has relationships with almost every major vehicle manufacturer that is considering providing M2M functionality. It offers solutions to the white goods, healthcare and energy sectors. Revenue growth year on year was 35% from 2010 to The company employs 400 people and is increasing staff numbers. Opportunities Threats Bosch Software Innovations is well positioned in industry sectors such as utility and automotive that have early stage M2M deployments. It also has deployments in the healthcare and white goods sectors. The company will benefit from the support of the larger organisation. The M2M market may not develop as rapidly as expected. Regulatory issues and uncertain business models could stall demand for investments. Larger, more traditional telecoms systems management vendors might develop a morecomplete solution compared to Bosch Software Innovations solution. Analysys Mason Limited : Suppliers of M2M solutions

10 4 M2M management software: supplier and product review 25 About the authors Patrick Kelly (Research Director) is the Research Director for Analysys Mason s Telecoms Software research stream, which focuses on identifying the rapidly growing segments in the telecoms software market and providing forecast and market share data by region and service type. He has produced research on policy management, cloud computing, LTE and mobile backhaul, IP next-generation service assurance, and customer experience management. Patrick is a frequent speaker at industry and user group conferences. He holds a BSc from the University of Vermont, and an MBA from Plymouth College. Steve Hilton (Principal Analyst) is the lead analyst for Analysys Mason s Enterprise and SME Strategies research programmes. His primary areas of specialisation, which focus on large and small enterprises, include fixed and mobile communications services, M2M, cloud services, and sales channels. Steve has 18 years experience in technology and communications marketing. Prior to joining Analysys Mason, he managed the Enterprise and SMB team at Yankee Group. He has also held senior positions at Lucent Technologies, TDS and Cambridge Strategic Management Group (CSMG). Steve is a frequent speaker at industry and client fora, and publishes monthly articles in several respected trade journals for the enterprise and channel partner community. He holds a degree in economics from the University of Chicago and a Master s degree in marketing from Northwestern University s Kellogg School of Management. Dean Ramsay (Analyst) is a member of Analysys Mason s Telecoms Software research team, consolidating output across the seven telecoms software research programmes. He has 12 years experience in the telecoms industry, working in operations and service delivery with major Tier 1 and more niche Tier 2 carriers, focusing on order management, revenue management and service delivery systems. Dean joined Analysys Mason in 2011 following two years working as an analyst in the mobile sector. Dean holds a BA in English from Anglia Ruskin University. 4 Published by Analysys Mason Limited Bush House North West Wing Aldwych London WC2B 4PJ UK Tel: +44 (0) Fax: +44 (0) [email protected] Registered in England No Analysys Mason Limited 2012 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher. Figures and projections contained in this report are based on publicly available information only and are produced by the Research Division of Analysys Mason Limited independently of any client-specific work within Analysys Mason Limited. The opinions expressed are those of the stated authors only. Analysys Mason Limited recognises that many terms appearing in this report are proprietary; all such trademarks are acknowledged and every effort has been made to indicate them by the normal UK publishing practice of capitalisation. However, the presence of a term, in whatever form, does not affect its legal status as a trademark. Analysys Mason Limited maintains that all reasonable care and skill have been used in the compilation of this publication. However, Analysys Mason Limited shall not be under any liability for loss or damage (including consequential loss) whatsoever or howsoever arising as a result of the use of this publication by the customer, his servants, agents or any third party. Analysys Mason Limited 2012 About the authors

11 M2M management software: supplier and product review 26 About Analysys Mason Knowing what s going on is one thing. Understanding how to take advantage of events is quite another. Our ability to understand the complex workings of telecoms, media and technology (TMT) industries and draw practical conclusions, based on the specialist knowledge of our people, is what sets Analysys Mason apart. We deliver our key services via two channels: consulting and research. Consulting Our focus is exclusively on TMT. We support multi-billion dollar investments, advise clients on regulatory matters, provide spectrum valuation and auction support, and advise on operational performance, business planning and strategy. We have developed rigorous methodologies that deliver tangible results for clients around the world. For more information, please visit Research We analyse, track and forecast the different services accessed by consumers and enterprises, as well as the software, infrastructure and technology delivering those services. Research clients benefit from regular and timely intelligence in addition to direct access to our team of expert analysts. Our dedicated Custom Research team undertakes specialised and bespoke projects for clients. For more information, please visit Analysys Mason Limited 2012 About Analysys Mason