Machina Research アドバイザリサービスのご 案 内

Machina Research アドバイザリサービスのご 案 内 1.Machina Research アドバイザリサービスの 概 要 Machina ResearchはM2M IoT (モノのインターネット) モバイルブロードバンド 市 場 に 関 する 戦 略 的 アドバイス を 世 界 の 主 要 企 業 に 提 供 しています Machina Researchはアドバイザリサービス( 年 間 サービス)を 中 心 に 情 報 を 提 供 し 顧 客 をサポートします 主 な 提 供 情 報 は 下 記 の 通 りです 予 測 データベース 随 時 アップデートされているM2Mと 世 界 の54ヶ 国 におけるモバイルブロードバン ドの 動 向 に 関 する 予 測 データ 戦 略 レポート 複 数 のセクターにおけるM2Mの 動 向 を 特 集 した4つのレポート セクターレポート 自 動 車 や 医 療 など 13のセクターを 定 性 的 定 量 的 に 分 析 調 査 したレポートを 毎 年 出 版 リサーチノート 世 界 のM2M 市 場 における 主 要 課 題 を 調 査 しています 月 3 冊 発 行 のブリーフレポー ト 戦 略 セッション オンサイトのプレゼンテーション アナリストへの 質 問 Machina Researchのアナリストチームへ 直 接 質 問 できます 過 去 の 発 行 レポート - アドバイザリサービスご 契 約 者 は 過 去 に 発 行 された 全 レポートを 閲 覧 すること ができます アドバイザリサービスに 加 え Machina Researchではカスタム 調 査 も 頻 繁 に 行 っています 1

1.1 予 測 データベース Machina Researchの 予 測 データベースは 図 1-1にある 通 り 13のセクターにわたるM2Mとモバイルブロードバ ンド 市 場 に 関 する 広 範 な 予 測 を 提 供 しています Machina Research のアドバイザリサービスの 購 読 者 は 全 13セクターに 関 する 予 測 データの 全 てにアクセス できます 関 連 レポートはほぼ 全 てのセクターをカバーしています セクターレポートの 出 版 前 でも アドバイザ リサービスのご 契 約 者 には 全 ての 予 測 データをご 利 用 いただけます 図 1-1 Machina Researchの13のセクター 各 セクターにおける 複 数 のアプリケーショングループについて 世 界 201ヶ 国 6 地 域 10 年 間 の 市 場 予 測 が 提 供 されます 図 1-2にある 通 り 8つのアプリケーションに 分 かれ 更 にその 各 アプリケーション 毎 に 複 数 の 下 位 アプリケーションを 分 析 しています 例 を 挙 げますと 医 療 セクターの 場 合 Assisted Living の 予 測 は5 種 の 異 なるアプリケーションをカバーしています また ユーティリティセクターを 例 に 挙 げると ここでは スマ ートメータ 電 気 自 動 車 充 電 輸 送 & 流 通 管 理 計 3 種 のアプリケーショングループについて 各 々のデータ が 含 まれています 図 1-2 医 療 セクターにおけるアプリケーション 現 在 Machina Researchの 予 測 データベースは 数 百 のアプリケーションの 分 析 を 基 に61 種 のアプリケーション グループを 対 象 としています 予 測 データベースには 数 百 万 ものデータポイントを 含 んでいます 2

各 アプリケーショングループについては 多 様 な 機 器 接 続 そして 技 術 毎 (2G 3G 4G 短 距 離 MAN 固 定 WAN 衛 星 )のトラフィックに 関 する 予 測 を 提 供 しています また モバイルトラフィックの 総 収 益 も 予 測 してい ます セルラートラフィックは 技 術 毎 ではブレークダウンされていません Machina Researchの 予 測 は 全 世 代 の 技 術 のセルラートラフィックを 単 純 に 合 計 しています 予 測 データベースはウェブインターフェース 経 由 でExcelフォーマットで 提 供 されます 13のセクターと61のアプ リケーショングループの 詳 しい 定 義 と 予 測 メトリクスの 定 義 については データリソースまでお 問 い 合 わせくださ い Figure 1 1: Forecast Database dashboard 1.2 レポートとリサーチノート 1.2.1 レポート Machina Researchのサービスは 3タイプのレポートに 分 かれています 戦 略 レポート: M2M 市 場 に 限 定 した 戦 略 レポートです 2014 年 は6 冊 の 戦 略 レポートを 出 版 予 定 です 今 後 出 版 されるレポートには 下 記 トピックがカバーされる 予 定 です ウェアラブル SLAとM2Mサービスメトリクス M2Mのセキュリティとプライバシー M2M 用 途 分 析 の 複 雑 性 M2M 向 け 市 場 への 販 路 CSPベンチマーキングのアップデート 3

セクターレポート: セクターレポートは 13の 各 セクターについて M2M 通 信 の 新 たな 可 能 性 を 定 性 的 および 定 量 的 に 分 析 しています このレポートには 成 長 促 進 要 因 と 阻 害 要 因 の 分 析 セクター 毎 の 各 アプリケーショングループに 関 する 詳 細 な 分 析 などが 含 まれています 2014 年 は 全 13のセクターレポートをアップデートする 予 定 です 世 界 の 予 測 レポート (Global Forecast Report) : 予 測 データベース 内 のデータを 用 いて 主 要 成 長 用 途 収 益 機 会 アドレス 可 能 な 市 場 全 体 の 詳 細 な 分 析 など 世 界 の 接 続 機 器 の 全 体 市 場 を 解 説 しています 1.2.2 リサーチノート リサーチノートは 特 定 の 課 題 企 業 あるいはアプリケーションを 詳 細 に 取 り 上 げている 比 較 的 短 い ( 通 常 1500-2500 文 字 )レポートです また 最 新 の 重 要 な 出 来 事 についてコメントしています 1.3 過 去 レポートライブラリ 過 去 に 発 行 されたMachina Researchのレポートは ご 購 読 期 間 中 は 全 て 閲 覧 可 能 です 1.4 戦 略 セッション 顧 客 とMachina Researchのアナリストが 直 接 ディスカッションすることができます 戦 略 セッションは 契 約 中 の サービスの 範 囲 内 もしくは 密 接 に 関 連 した 内 容 で 顧 客 の 希 望 テーマについて 顧 客 企 業 内 でプレゼンテーショ ンを 行 います 1.5 アナリストへの 質 問 顧 客 はM2Mに 関 するレポート 等 の 内 容 や 関 連 トピックについて 直 接 アナリストへ 問 い 合 わせすることもできま す レポート 内 容 についての 説 明 や 関 連 する 内 容 の 最 新 情 報 M2Mやモバイルブロードバンドに 関 する 様 々 な 問 題 についてアナリストとしての 意 見 を 聞 きたい 時 などにご 利 用 いただけます アナリストへの 質 問 サービス は 時 間 無 制 限 ですが 一 回 の 質 問 に 対 しては 最 長 1 時 間 の 時 間 制 限 を 設 けています 質 問 内 容 によっては カスタム 調 査 が 適 切 な 場 合 もありますが その 場 合 には 随 時 ご 相 談 させていただきます 1.6 カスタム 調 査 とコンサルティング Machina Researchのアナリストは 市 場 規 模 競 合 のベンチマーキング 市 場 参 入 戦 略 や 販 売 支 援 マーケティ ング/ 販 促 白 書 適 正 評 価 などのテーマについて 顧 客 のニーズに 合 わせたコンサルティングサービスとカス タム 調 査 を 提 供 しています 年 間 サービスの 購 読 者 には 割 引 が 適 用 されます 4

2. 予 測 データベースの 内 容 Table 2 1: Machina Research sector definitions and application groups Sector Definition Application groups Agriculture & Applications and services related to various forms of Environmental monitoring; fishing (including environment primary industry (excluding mining and quarrying). Includes crop and livestock management and fishing. fish farming, coastal fishing and deep sea fishing); land agriculture; and new energy sources. Automotive Construction Consumer electronics Emergency services & national security Healthcare Intelligent buildings Manufacturing and supply chain Retail & leisure PCs, tablets & handset data Smart cities & transportation Applications and services using a vehicle platform or after market device providing connected services used by the driver or provider of third party services. It excluded supply chain applications which are considered elsewhere. It excludes the use of handsets, laptops or other devices within cars to access the same services. Covers all types of applications related to building (and infrastructure) construction, including work undertaken by major construction firms and sole traders All types of M2M connected consumer electronics, so excluding PCs, tablets and mobile handsets. Home network infrastructure is included in Intelligent Buildings. Consumer healthcare devices are included in Healthcare. Personal devices carried by emergency services personnel. Does not include connected vehicles (included in Automotive) or field healthcare (included in Healthcare). Also National defence applications. All applications related to healthcare, including consumer health monitoring for the worried well, through to clinical environments and clinical remote monitoring of postdiagnosis patients. All aspects of building automation and monitoring, including HVAC, central controllers, control panels, power management and alarm systems. Deals with all aspects of the manufacturing supply chain from the extraction of coal, gas, oil and minerals, through transportation and manufacturing of all products to warehousing and sale through vending machines. Sale through traditional retail is covered in the retail & leisure category. Covers use of connected devices in a retail context, including shop floor equipment for both staff and customers, and a range of sector specific applications (ranging from waitress order taking devices to slot machines, and including ATMs). Includes mobile data services for the three types of personal communications devices used for packetswitched data access, i.e. handset, PC/laptop and tablet. It includes other mobile broadband connections such as PC back up and WWAN/WiFi home hubs. This category is excluded from this report as it is not pure M2M. Connections to public transport systems (vehicles and management/information devices), all aspects of traffic management (including congestion tolls and car parking), and connectivity to other street equipment such as CCTV and digital signs. Vehicle platform; security & tracking (e.g. stolen vehicle recovery); emergency assistance (e.g. ecall); vehicle recovery/ roadside assistance; entertainment and internet access; navigation; voice (where provided via an OEM concierge service); insurance (in the form of pay as you drive insurance); lease, rental, HP and share car management; and manufacturer data (i.e. vehicle diagnostics). Equipment monitoring (inventory management and usage monitoring); on site visualisation (or architect, and other, plans); and site monitoring (alarms and CCTV). Audio visual displays; audio visual sources; household information devices; network equipment; personal multimedia; tracking applications; white goods; and other. Defence; emergency services; and homeland security. Assisted living; clinical remote monitoring; clinical trials; connected medical environments; first responder connectivity; telemedicine; worried well personal monitoring; and worried well remote monitoring. Building automations; micro generation; and security. Extraction; manufacturing/processing; transport & distribution; vending machines; and warehousing/storage. Access control; consumer applications; goods monitoring and payment; and sector specific applications. Handset; PC/laptop; Tablet Digital billboards; environment and public safety (which mostly comprises CCTV); public transport; and traffic management. 5

Sector Definition Application groups Smart enterprise The use of connected office equipment (e.g. faxes, Office equipment; and specialist equipment. management photocopiers etc.) which are not specific to any particular vertical. Utilities Use of connectivity to manage utility (gas, electric & water) distribution networks and end points. Most Electric vehicle charging; smart metering; and transport & distribution management prominent application is smart metering. (i.e. monitoring the utility distribution network). Table 2 2: Definitions for metrics used in Machina Research Forecast Database Metric Revenue Revenue (Device & Installation) Revenue (Device & Installation: Device) Revenue (Device & Installation: Device: Module) Revenue (Device & Installation: Device: Non Module) Revenue (Device & Installation: Installation) Revenue (Service) Revenue (Service: Wrap) Revenue (Service: Service Enablement Platform) Revenue (Service: Connectivity) Revenue (Service: Connectivity: Connectivity Support Platform) Revenue (Service: Connectivity: Mobile network traffic) Revenue (Service: Connectivity: Non Mobile network traffic) Connected devices Revenue generating units (RGUs) MNO addressable revenue MNO Addressable Revenue (Device & Installation) MNO Addressable Revenue (Service) MNO Expected revenue MNO Expected Revenue (Device & Installation) MNO Expected Revenue (Service) Traffic Definition Income from the sale of devices or services. Includes device costs where connectivity is integral, module costs where devices can optionally have connectivity enabled, monthly subscription, connectivity and traffic fees. The upfront component of Revenue accounted for by purchase of device and installation costs. The Device component of Revenue (Device & Installation) The communications module element of device costs. Actual cost where a standalone module is used, notional where communications elements of a device are integrated The non module element of total device cost The Installation component of Total Revenue (Device & Installation) The total of ongoing revenue components, including usage and subscription fees. The proportion of Total Revenue (Service) fees that corresponds to the actual application 'wrapped' around a connection. (Potentially) connectivity technology agnostic horizontal M2M platform components. Revenue corresponding to mobile connectivity. Mobile network specific horizontal platform components. The revenue accruing from the carriage of cellular traffic and is therefore guaranteed for MNOs. The revenue accruing from the carriage of cellular traffic such as satellite and certain municipal wireless networks. (to be introduced during 2013) M2M connected devices are defined by Machina Research as connections to remote sensing, monitoring and actuating devices, together with associated aggregation devices. Distinct from connected devices, this is the number of paying customers associated with the M2M connections. A subset of total revenue that is addressable by a mobile network operator. Device & Installation components of MNO addressable revenue Service components of MNO addressable revenue A subset of addressable revenue that Machina Research expects the MNO to achieve. Device & Installation components of MNO expected revenue Service components of MNO expected revenue The amount of network traffic created per annum by the associated revenue generating units. 6

Machina Research forecasts connections and traffic by technology. The following table provides a definition of each of the technologies that we forecast. Table 2 3: Technology definitions used in Machina Research Forecast Database and reports Technology Definition Notes 2G Second Generation This includes GSM (and extensions GPRS and EDGE) and mobile connectivity. CDMA. 3G Third Generation Comprises W-CDMA, CDMA 1x EVDO and a few other mobile connectivity. similar technologies. 4G Fourth Generation This comprises LTE (3GPP Long Term Evolution) and mobile connectivity. WiMAX (802.16e and 802.16m). There is some controversy about the definition of 4G today. Machina Research recognises that technically LTE and WiMAX technologies may not meet the ETSI definition of 4G, but for our purposes they are considered to be so. MAN Metropolitan Area Comprises a range of medium-range technologies including Network powerline and community WiFi. Satellite Two way connectivity between a ground based device and a satellite Short range Any local area network connection including WiFi, Zigbee and Ethernet. Wide area fixed Any fixed line connection including PSTN, ISDN, Cable, DSL and fibre. Typically used only for niche applications and/or in remote parts of the world. These connections are considered to also have a wide area connection (either fixed or wireless) associated with them. In Machina Research s reports there is no traffic registered under short-range. The traffic is measured only under the associated wide-area network technology as appropriate. The vast majority will be DSL or cable but may include dedicated E1/T1 connections and similar. The following table provides a definition of the metrics that appear in our Low Power Wide Area forecasts. Table 2 4: Definitions for metrics used in Machina Research LPWA Forecast Database Metric RGUs LPWA: Suitable RGUs LPWA: Adaptable RGUs LPWA: Unsuitable RGUs Connections LPWA: Suitable connections LPWA: Adaptable connections LPWA: Unsuitable connections LPWA: Unlocked market potential: Accelerated adoption (connections) Definition Distinct from connected devices, this is the number of paying customers associated with the M2M connections. This RGUs figure is drawn from our core forecasts, and represents our forecast for RGUs in the absence of significant deployment of LPWA technologies. Core forecast RGUs that are suitable for connection by LPWA technologies Core forecast RGUs that can potentially be adapted so that they are suitable for connection by LPWA technologies Core forecast RGUs that are not suitable for connection by LPWA technologies M2M connected devices are defined by Machina Research as connections to remote sensing, monitoring and actuating devices, together with associated aggregation devices. This Connections figure is drawn from our core forecasts, and represents our forecast for Connections in the absence of significant deployment of LPWA technologies. Core forecast connections that are suitable for connection by LPWA technologies Core forecast connections that can potentially be adapted so that they are suitable for connection by LPWA technologies Core forecast connections that are not suitable for connection by LPWA technologies Additional connections that LPWA technologies might potentially unlock due to acceleration of the adoption of M2M solutions. 7

Metric LPWA: Unlocked market potential: Additional devices (connections) LPWA: Unlocked market potential (connections) LPWA: Total opportunity (connections) LPWA: Non directly substitutive potential (connections) LPWA: Suitable connections (gross additions) LPWA: Adaptable connections (gross additions) Definition Additional connections that LPWA technologies might potentially unlock due to the addition of additional devices per M2M solution. The sum of: LPWA: Unlocked market potential: Accelerated adoption (connections) and LPWA: Unlocked market potential: Additional devices (connections) The sum of: LPWA: Suitable connections LPWA: Adaptable connections LPWA: Unlocked market potential (connections) The difference between: LPWA: Total opportunity (connections) LPWA: Suitable connections Therefore, the sum of: LPWA: Adaptable connections LPWA: Unlocked market potential (connections) Gross additions corresponding to core forecast connections that are suitable for connection by LPWA technologies (see above). These figures represent sales opportunities per year and are more useful for business modelling purposes than are corresponding total installed base figures. Gross additions corresponding to core forecast connections that are adaptable for connection by LPWA technologies (see above). These figures represent sales opportunities per year and are more useful for business modelling purposes than are corresponding total installed base figures. 3 Strategy Reports Table 3 4: Strategy Reports published to end May 2014 Date Title Abstract May 14 Sales, partnership and This Strategy Report starts from the perspective of the buyer of an M2M solution and channels strategies in examines where they should optimally be looking at buying that solution. It also M2M examines what various players in the M2M value chain should do to optimise their approach to channels and targeting vertical sectors. Machina Research s starting hypothesis is that the characteristics of each M2M application (and the entity procuring it) will be a key determinant of which vendor might be selected. We examine the key characteristics of the application that might determine such a choice, including location, technical requirements, scale of deployment etc. This allows us to define a broad market segmentation for all of M2M, along with a view on which organisations might be able to support which of the categories of application. We then turn to the types of organisations that might sell M2M solutions, including Communications Service Providers, specialist M2M Service Providers, Module Vendors and Systems Integrators. The report then turns the tables a little to look at things from the perspective of the solutions vendor, to see what they should do about maximising their revenue opportunity given the diversity of requirements identified in previous sections. 8

Jan 14 Competitive Dynamics in the M2M Platform Space Dec 13 Global M2M Modules Report: Advancing LTE migration heralds massive change in global M2M modules market Oct 13 Apr 13 Creating value from data analytics in M2M the Big Data opportunity Machine to Machine (M2M) Communications Service Provider Benchmarking 2013 This report examines the emergence of M2M/IoT Application Platforms and the impact that these will have on the established M2M platforms environment. The report starts by charting the development of the current day M2M platforms environment, before identifying the emergence of M2M/IoT Application Platforms and describing the key success factors of such platforms. A significant proportion of the report is dedicated to an analysis of the competitive dynamics within the M2M/IoT Application Platform space, and the consequential impact on more traditional M2M platform types. The report provides invaluable analysis for enterprises seeking to gain an improved understanding and awareness of platforms within M2M and IoT, and platforms and other service providers looking to identify opportunity areas to develop and improve product and service offerings. Companies mentioned in the report include Amdocs, Axeda, Bosch Software Innovations, Cumulocity, Deutsche Telekom, Ericsson (with their DCP platform), Eurotech, Jasper Wireless, Oracle, PTC, Telefonica, Thingworx, Vodafone, and Xively. Specifically, we contrast the current leading edge approach to M2M application development (as exemplified by Axeda) with the new and emerging M2M/IoT Application Platform led approach that will enable a wider Internet of Things environment (as exemplified by ThingWorx and Bosch Software Innovation). The report Global M2M Modules Report: Advancing LTE migration heralds massive change in global M2M modules market is focused on the rapidly evolving market dynamics related to WWAN M2M modules and the future market opportunity within the M2M modules industry. As the primary radio access point for a significant portion of the wirelessly connected M2M market, WWAN modules represent a crucial component in the overall M2M supply chain and their costs and technical capabilities comprise fundamental elements of M2M solution and product design. The report is based on detailed and extensive discussions with key relevant stakeholders, supplemented by Machina Research s extensive understanding of the changing dynamics of the industry. Leveraging Machina Research s comprehensive forecast database, this report also outlines the growth of shipments for M2M WWAN modules across global regions as well as top industry verticals and associated applications. This report examines several key drivers of M2M module design, pricing and expected shipment volumes for a ten year forecast period. In particular, the report provides detail and analysis of the changing network technology landscape in top global markets that is transforming the demand for LTE modules and, as a result, altering the balance of global module pricing and design. The report also examines how the increasing availability of LTE modules and improved price points will fundamentally alter the decision making process of companies looking to integrate M2M modules and connectivity into their products and services portfolio as well as into their own business operations and processes. There has been a lot of buzz about Big Data in recent years and it is important to understand the true impact. This extensive Strategy Report examines the topic of Big Data and its impact on machine to machine (M2M) communications. It is based on detailed and exhaustive discussions with key relevant stakeholders, supplemented by Machina Research s extensive understanding of the changing dynamics of the industry. The report starts by examining what we mean by the term Big Data, identifying the right ways to define and measure it, including a look at our own measure of Data Significance Factor. It then goes on to look at the impact that Big Data will have on M2M, and vice versa, in terms of creating new data sources and justifying new investments in sensor networks. The final two sections focus on the future, looking at the challenges faced in Big Data and how these can be overcome, as well as how Big Data, M2M and the Internet of Things will evolve and merge. The report provides invaluable analysis for enterprises seeking to gain an improved understanding and awareness of Big Data, and service providers looking to identify opportunity areas to develop and improve data processing services for their customers (e.g. IT infrastructure improvements and cloud services). Machina Research s M2M Communications Service Provider Benchmarking Report 2013 provides an independent analysis of the M2M capabilities of nine CSPs: AT&T, Deutsche Telekom, Orange, Telefonica, Telekom Austria Group M2M, Telenor, TeliaSonera, Verizon Wireless and Vodafone. The purpose of this report is to give Machina Research s view on the likely long term success of each of these major M2M CSPs as well as to assess best practice in M2M and determine major trends in the industry. The report examines each operator based on six criteria, the 6 'P's: Pedigree, Platform, Place, Partnerships, Process and People. 9

Jan 12 Machine to Machine (M2M) Communications Service Provider Benchmarking 2012 Machina Research s M2M Communications Service Provider Benchmarking Report 2012 provides an independent analysis of the M2M capabilities of seven CSPs: AT&T, Deutsche Telekom, Orange, Telefonica, Telenor, Verizon Wireless and Vodafone. The purpose of this report is to give Machina Research s view on the likely long term success of each of these major M2M CSPs. 4. リサーチノート Table 4 5: Research Notes published to end April 2014 Date Title The issue Apr 14 China s Smart City Since the inclusion of Smart City as a focus area in the Twelfth Five Year Plan (FYP) initiatives pick up pace and will have a global impact for National Economy, the number of cities in the PRC to embrace Smart City has rocketed. As of September, 2013, 311 cities have proposed or started Smart City projects, covering cities of all size across the whole country, affecting 52.6% of the population of 1.4 billion. The total investment for the period 2011 2015 on Smart Cities will be more than 1.6 trillion yuan (USD260bn). This Research Note examines these Smart City investments and the likely impact on the China (PRC). Apr 14 Apr 14 Mar 14 Why NoSQL databases are needed for the Internet of Things Next generation low cost modules poised to disrupt the M2M market Dutch regulator is first to approve SIM liberalisation: what are the implications for M2M? Mar 14 US automobile M2M market heats up with new partnership alignment Mar 14 ibeacon opens new and attractive markets with close proximity technologies Big Data in the Internet of Things is snowballing. The amount of data is ever increasing and becoming more and more varied. The impact on traditional relational database management systems (RDBMS) will be significant. Databases need to adopt and meet these new IoT requirements with greater data processing agility, multiple analytical tools including real time analytics, and aligned and consistent views of the data. This Research Note examines what database capabilities will be required to address data managed in the Internet of Things, and how NoSQL systems like MongoDB, Cassandra and HBase are meeting this challenge. With a complex and fragmented array of M2M modules in the market, price continues to be a top concern of enterprises looking to deploy new M2M solutions. To address the growing demand of M2M connectivity with more efficient, low cost LTE modules, a 3GPP workgroup is developing standards for a new category of M2M devices that will rival the price levels of current GSM modules. In parallel, low power wide area network providers are also in the process of establishing their market presence in key global markets in order to achieve the scale they need to hit their predicted volumes and price levels. Over the last few months Machina Research has had a number of discussions with various M2M related organisations about the potential for SIM liberalization (i.e. allowing organisations other than mobile operators, and specifically enterprise customers themselves, to issue SIMs). In March 2014 the Dutch Ministry of Economic Affairs was the first to announce that it was moving in this direction. There are a number of advantages and disadvantages to such a model, and seemingly substantial implications for the structure of the mobile market. The aim of this Research Note is to examine the associated issues and provide our views on this contentious area. With multiple announcements from top mobile operators and auto manufacturers in Q1 2014, the competitive landscape of the US connected car sector is evolving rapidly. With the launch of the MNO s Drive Platform and Drive Studio, AT&T is targeting automotive OEMs with a modular services platform as well as a dedicated studio in Atlanta, in which to develop and test new connected vehicles and components. AT&T also further expanded its available development tools with the launch M2x, an API collection designed to further aid the application developer community create and test M2M specific applications. Applications with location based services (LBS) remain a significant market opportunity area in M2M and the emerging Internet of Things. LBS technologies enable devices to identify their locations, and with this information, create opportunities to design innovative marketing, advertising and customer loyalty services. This is only the tip of the iceberg with the latest developments in location (close proximity) technologies. This Research Note examines how ibeacon from Apple, using Bluetooth Low Energy (BLE) Technology opens a richer, securer and more accurate LBS option, allowing the delivery of richer applications, and potentially enhancing the role of the smartphone in M2M / IoT infrastructures. 10

Feb 14 Feb 14 Telefonica M2M Partner Programme creates the right framework for addressing diverse channels Wyless acquires Aspider M2M and makes bigger play for Europe (and the world) Feb 14 M2M Leaderboard: Sprint/Softbank deal, alliance developments, and increasing expectations for M2M in China causes reshuffle in top 10 Jan 14 ThingWorx develops a model to generate sustainable revenues with PTC Jan 14 GSMA publishes specifications for OTA provisioning of M2M SIMs Dec 13 Wide Area M2M Connectivity Technologies: Low Power options likely to disrupt the market Dec 13 Medium range M2M connectivity technologies are likely to remain niche Dec 13 Short Range M2M connectivity technologies: fragmentation will characterize the market Dec 13 M2M CSP Benchmarking: Tele2 M2M Global Solutions Dec 13 To succeed in M2M, smaller MNOs must play to their strengths In February 2014 Telefonica launches its M2M Global Channel Partner Programme with its aims of transparency, straightforwardness, and partner development. This Research Note examines the details of the announcement and provides Machina Research s view on its fitness for purpose as a CSP partner programme. In February 2014 Wyless announced that it was acquiring Dutch M2M service provider Aspider M2M. This move strengthens Wyless s European capabilities, and alongside its recent acquisition of Brazil s TM Data it demonstrates global ambitions. At the same time Wyless also announced that it was also appointing M2M stalwart Gilli Coston as Chief Strategy Officer. This Research Note examines these moves and provides Machina Research s views on the likely impact. This Research Note provides an update to our Machina Research s M2M Leaderboard that ranks MNOs by expected revenue from M2M. For this edition, we consider expected revenue in 2022, instead of 2020 as in previous iterations. We have also improved the robustness of our analysis by expanding its scope to 49 CSPs, up from 36. Finally, our ranking table now presents the top 30 CSPs by expected revenue in 2022, up from 20 before. Providers of M2M/IoT Application Platforms deliver two major benefits to enterprises: an efficient approach to application development for the growing market of connected things and a more flexible and lower entry cost for enterprises to integrate applications with third party applications and systems. These benefits emerge as significant drivers in M2M and IoT markets but looking behind the scenes, how will these service providers generate sustainable revenues from the solutions? This Research Note explores the role of M2M/IoT Application Platforms in emerging M2M and IoT markets, and assesses how the acquisition of ThingWorx by Parametric Technology Corporation (PTC) for USD112 million may in fact answer the question of how sustainable revenues will be generated by such platform providers in this market. During 2013 a number of pre standard solutions emerged from various SIM vendors for handling remote OTA provisioning/localization/imsi swapping. In December 2013 the GSM Association published its own specifications. This Research Note examines the announcement and the likely impact on the M2M world. The requirements for M2M connectivity vary with the application but are often very different from the voice and data applications for which most telecom services are designed. New low power wide area LPWA technologies promise to revolutionise the business case for M2M but how do they compare for specific applications The requirements for M2M connectivity vary with the application but are often very different from the voice and data applications for which most telecom services are designed. Historically, there have been a number of applications, such as process control, which have used medium range or field area communications and these are being connected to the wide area to become M2M applications, while new applications are leading to the development of new medium range technologies. Application developers need to identify the technologies best suited to their application. Obtaining adequate in building coverage for M2M applications is challenging devices may be in basements or behind metal covers or there may be solid walls dividing the property. A number of solutions have been proposed using wireless and powerline communications or a combination of both, but which should application designers be incorporating into their solutions? In November 2013, Tele2 announced its intentions to pursue the M2M market more aggressively via its dedicated Tele2 M2M Global Solutions business unit. Every year Machina Research publishes its M2M CSP Benchmarking report analyzing the strategy of various major global operators with respect to machine to machine communications (M2M). This Research Note complements that report (which examines nine other CSPs) by looking at the position of Tele2 in the M2M market. M2M, or at least cellular M2M, is often perceived to be dominated by the larger mobile operator groups such as AT&T, Deutsche Telekom, Telefonica or Vodafone. However, there is a very real opportunity for smaller MNOs if they can select the appropriate strategy. At Machina Research we regularly provide advice to smaller MNOs looking to carve out a niche in M2M. This Research Note provides a summary of the key issues for success. 11

Dec 13 The market for M2M apps stores just became more competitive Nov 13 Device Cloud Networks (DCN) offers a unique option for smaller MNOs to exploit the M2M opportunity Sep 13 M2M Leaderboard: Vodafone extends its lead, AT&T and Deutsche Telekom continue their battle for second place Sep 13 AT&T focuses on M2M/IoT to expand its innovation Foundry initiative Sep 13 Vodafone sells Verizon Wireless stake and maybe opens door for AT&T tieup: the implications for M2M Sep 13 Overcoming the permanent roaming challenge for M2M: Vodafone deal with Datora shows one solution, while AT&T keeps its options open Sep 13 In active M2M industry M&A season, US based solution provider RACO Wireless provides global expansion strategy template with acquisition of Position Logic Sep 13 Use of remote provisioning in M2M will focus on late binding of long life span high bandwidth applications Sep 13 Regulatory compliance and client demand drive MNOs to embrace IMSI swapping/remote provisioning in M2M In August, Machina Research shared a market observation in a Research Note titled Watch out here comes the M2M apps store. Within a few months, the market saw a number of leading players, such as Deutsche Telekom, announce an apps store like approach to the market, and others like ThingWorx Marketplace and SeeControl s Application Store capturing market attention with apps store models. Is this the beginning of a wave of M2M apps stores? Device Cloud Networks (DCN) offers a hosted M2M platform aimed at smaller mobile network operators. As well as a comprehensive technical solution, DCN also offers a potentially significant commercial benefit whereby smaller MNOs can effectively pool their services to tap into global or regional opportunities that might otherwise have been solely limited to bigger global groups. This Research Note examines the potential opportunity for DCN and the companies using the platform. This Research Note provides an update to Machina Research s M2M Leaderboard, examining the impact of the last few months developments in M2M on the likely success of MNOs. Since the last iteration in May 2013, Vodafone has expanded its global ambitions in Brazil and Korea, Deutsche Telekom has burnished its open platform credentials with payment and developer kit announcements, Telefonica has secured the biggest M2M contract ever with the UK s DECC smart meter win, Orange opted to implement Ericsson s DCP, and Telecom Italia joined the GMA. These, and many other events, have influenced Machina Research s ranking of global CSPs. This Research Note examines all of the latest developments in M2M for MNOs in the last few months and offers Machina Research s view on the likely impact On September 17th 2013, AT&T inaugurated its latest innovation Foundry in Plano, Texas, dedicated to supporting the creation and development of new M2M products and services. Co located in the same building with AT&T s first Foundry, the new M2M center will provide a collaboration space for technology partners and developers to create, test and potentially launch new M2M related devices, applications and solution platforms. This Research Note explores AT&T s innovation Foundry structure and approach in context with the operator s broader M2M strategy. In September 2013 Vodafone sold its stake in Verizon Wireless for USD130 billion. This deal has the potential to send repercussions through the whole global mobile industry, both in terms of the impact on Vodafone, as well as further knock on M&A activity that may occur. One piece of speculation that is not without merit is that AT&T might bid to acquire Vodafone. This Research Note looks specifically at the impact on the M2M sector of the Verizon deal and provides our view on the potential impact of AT&T acquiring Vodafone. Many cellular based M2M solutions are multi national. As a result MNOs looking to support clients will need to be able to provide services in countries all over the world. No operator has a complete global footprint. The use of roaming to fill in the gaps in service is fine for some applications and in some circumstances, but certainly not in all. This Research Note looks at the various reasons for prohibition on permanent roaming, examines the situations in key markets such as Brazil and the Middle East, and looks at some of the approaches that can be taken to overcome the challenges. On July 17th, US M2M service provider RACO Wireless announced the acquisition of Position Logic, a location based M2M services company with strong business presence in Latin America. With the acquisition RACO Wireless gains expanded service platform capabilities and, most importantly, a substantial book of business in Latin America. This Research Note examines these latest announcements in the context of our view on the overall positioning of RACO Wireless for success in the M2M market. In the Research Note Regulatory compliance and client demand drive MNOs to embrace IMSI swapping/remote provisioning in M2M (September 2013) we examined the drivers for the evolution towards remote provisioning. This Research Note focuses on the various ways in which remote provisioning is likely to be used, and the applications and services it is most likely to affect. Over the last twelve months there has been a substantial increase in focus from MNOs on embedded SIM and the associated issue of remote provisioning. This Research Note examines the main drivers for euicc/imsi swapping, and some of the strategies of MNOs towards this subject. A subsequent Research Note Use of remote provisioning in M2M will focus on late binding of long life span high bandwidth applications (September 2013) further examines the use of IMSI swapping and the impact on different M2M applications. 12

Aug 13 Watch out, here comes the new M2M Apps store Jun 13 Low Power Wide Area Wireless network technologies for M2M: a technical comparison of On Ramp, Sigfox and Weightless Jun 13 Low Power Wide Area Wireless networks: a potential global market of 15.5 billion M2M connections Jun 13 On Ramp, Sigfox and Weightless: a strategic comparison of competing approaches to M2M Jun 13 May 13 May 13 May 13 Confronting prospects of waning growth, Axeda adds partners and new capital injection to gain global scale and expand functionality M2M Leaderboard: AT&T snatches second spot from DT as top 4 all grow their expected global market share Addressing diverse M2M opportunities requires a different approach to channels Is there a need for data partners in the M2M ecosystem? Apr 13 Integrating M2M and mobile enterprise applications resources has distinct opportunities and advantages Apr 13 M2M & Big Data: how to monetise data in the Automotive sector The connection of devices is now becoming a commodity. Enterprises are looking to make better use of the data generated by the growing estates of connected devices, and improvements to business processes can only be achieved with intelligent business applications. To enable this, many M2M platforms providers are making the processes of apps development quicker and easier for customers. The issue will be for application developers to access this market with ready made, off the shelf intelligent business applications, quickly scalable and able to integrate or complement M2M devices in business processes. This Research Note explores the opportunity associated with M2M application development, independent of device connectivity, as demonstrated by companies like ThingWorx and SeeControl and how application development platforms now pave the way for M2M Application stores. The names Sigfox, Weightless and On Ramp are increasingly often heard in M2M circles. But what are the true capabilities of these emerging Low Power Wide Area (LPWA) wireless technologies? This Research Note examines the technical capabilities of the new competing network technologies, examining capacity, latency, coverage, power and numerous other characteristics to determine which might be the most appropriate for M2M communications. The names Sigfox, Weightless and On Ramp are increasingly often heard in M2M circles. But what is the true potential market for these Low Power Wide Area wireless solutions? This Research Note examines the opportunity that these LPWA technologies have to substitute for existing technologies, such as cellular, and drive additional growth in the M2M market. The names Sigfox, Weightless and On Ramp are increasingly often heard in M2M circles. What should we expect from these new technologies? What are the strategies of those that control the technologies, and how much of an impact are they likely to have? This Research Note explores the differing strategic approaches associated with these potentially competing technologies, looking at factors such as background, deployments and commercial issues. In May 2013, Machina Research analysts attended Axeda s Connexion 2013 event in Boston. During the course of that event the company made a number of interesting announcements including partnerships with Wipro, to add greater systems integration services, and JackBe, to beef up application development tools. The company also gave an update on its Axeda Ready hardware approval programme. On June 3rd, Axeda also announced that Wipro would also become a Platinum Partner in conjunction with a USD5m investment in Axeda from Wipro. This Research Note examines these latest announcements in the context of our view on the overall positioning of Axeda for success in the M2M market. This Research Note provides an update to Machina Research s M2M Leaderboard that ranks MNOs by expected revenue from M2M in 2020. This is an adjacent analysis to the M2M CSP Benchmarking Report which looks at the entirety of the CSP s capabilities, including both fixed and mobile, and examines best practice in M2M. The last update of the Leaderboard was at the end of December 2012. Players across the M2M value chain are looking at uncovering new seams of unmet demand for connectivity, and building strong relationships with enterprise end users. The big question is: how do you gain mind (and wallet) share in selling telecommunications services to enterprise users? Big Data introduces an opportunity for enterprises and public sectors to gain additional value from data generated by implemented M2M solutions. To monetize data, operators will need to deliver skills in data capture, processing, management, storage, analysis and presentation. While some operators do possess business intelligence capabilities, additions to these skills will be required, and new business models developed. To enter the market quickly with the right services, operators will need to explore partnerships with analytic platform providers. With the growth of M2M and mobile enterprise applications markets, similarities in enterprise business drivers as well as functionality in technology platforms are becoming apparent. This Research Note reviews how CSPs and mobile operators should consider merging these separate business and technology capabilities within their organizations, and what benefits and challenges integrations could provide. A tremendous amount of the value of M2M solutions lies in analysis of the data generated. Through telematics, the automotive sector has had more experience than other sectors in pursuing and utilizing (vehicle) data and, with advances in technology, additional opportunities are now emerging. This Research Note reviews what this data is, how the data could be applied in data communities, and what the opportunities and issues will be for providers like mobile operators in this emerging space. 13

Apr 13 Satellite operators look to build vertical expertise to capitalise on the M2M opportunity Mar 13 Momentum is building behind usage based insurance Mar 13 Global M2M statistics: what does the data tell us? Mar 13 Upgradeable licensing fees for 3G/LTE would remove a lot of friction in M2M Mar 13 Smart Home market is ripe for turnkey solutions, although channels remain unclear Mar 13 Near field communications could significantly enhance most M2M solutions Feb 13 How MNOs can grow M2M revenue Feb 13 Not all devices are equally suited to M2M connectivity Dec 12 Machina Research s 10 predictions for M2M in 2013 Dec 12 M2M Leaderboard: No significant change in operator positions Dec 12 What should Deutsche Telekom do about M2M in the US? Satellite players are pursuing opportunities in the M2M marketplace. Most are following a dual pronged strategy, developing their traditional wholesale businesses while exploring which verticals provide most opportunities for satellite in the M2M market. Despite growing demand for satellite services, there are still significant barriers to uptake, not least of all cost. This Research Note examines the key factors which are driving the M2M satellite market and its potential for growth. While there have been some notable pockets of adoption (particularly Italy), usagebased insurance has been slow to arrive. It is beginning to feature in the insurers portfolio of services in some geographic markets. Where it has been made available it often targets niche segments such as young drivers rather than the mass market. The slow stop/start nature of its development can be attributed to a number of factors but there is now more momentum behind the service. This paper examines some of the key success factors. As part of our process of market analysis Machina Research examines all available market data on a country by country basis. Typically there is only a limited amount of primary data from operators and regulators, often with different definitions from ours. Machina Research collects all of this data and seeks to normalize it and reconcile with our detailed bottom up market analysis. This paper examines some of the data released by third parties, particularly regulators, about particular markets and provides some insight into the process of analysis that Machina Research goes through. The growth of the M2M market is being stifled by the fact that customers are required to pay a premium for including multiple RAN technologies within devices despite not knowing whether these technologies will ultimately be used. This Research Note examines the potential for a virtual upgrade path whereby customers pay the licensing fees to IPR holders such as Qualcomm, only when corresponding technologies are used. The market for smart homes seems to have changed recently. The smart home concept is moving from being an aspirational future environment to something that is imminently about to become a reality. In this Research Note, we review the current state of the market, based on meetings at both Mobile World Congress and CeBIT. Since its inception around 10 years ago Near Field Communication (NFC) has been mainly talked of in the context of mobile payments and e ticketing. Yet there are other uses including applications in the M2M market for which near field communication solutions, whether using NFC or other solutions (e.g. bar codes, other RFID technologies), are well suited. This Research Note reviews the ways in which near field communications can be incorporated into M2M applications, what the overall opportunity could be in terms of M2M Revenue Generating Units (RGUs) and which verticals could benefit most. It is widely recognised that M2M represents a significant revenue opportunity for mobile network operators (MNOs), and that MNOs must deliver more than simple connectivity to avail themselves of such opportunities. There are a number of options that operators have for increasing their share of total potential addressable revenue. This Research Note investigates the effectiveness of a range of different approaches. It may often seem that the future is portrayed as being almost universally connected, with almost all devices being M2M enabled and stitched into the emerging internet of things. This Research Note explores the attributes and qualities of devices that are particularly well suited to M2M connectivity, and also specifically to WWAN M2M connectivity with a view to identifying those devices that will and won t be connected. Last year Machina Research published its predictions for how the M2M sector would evolve during 2012. In this Research Note we make a new set of predictions for 2013. This Research Note provides an update to Machina Research s M2M Leaderboard that ranks MNOs by expected revenue from M2M in 2020. The last update was at the end of July 2012. Machina Research believes that Deutsche Telekom s presence in the US is potentially one of its greatest assets in the M2M market. No other operator (with the possible exception of Vodafone) can span Europe and the US with facilities based capabilities. However, in May 2011, T Mobile USA chose to largely ignore the M2M opportunity while the abortive AT&T acquisition was being worked out. Since falling through, DT finds itself with a US asset with limited in house M2M capability. This research note examines what DT should do in M2M terms with the significant asset that is a US facilities based network. 14

Dec 12 Rapid growth in M2M will create opportunities for operators to provide field support services Dec 12 M2M vendor cloud platforms: Gemalto on a collision course with MNOs, Telit and Sierra look to complement them Dec 12 DLNA home content management: high uptake amongst suppliers, low amongst consumers Nov 12 Oct 12 Oct 12 Sierra Wireless is leading the M2M modules market, but is not flawless M2M: a revenue stream for the operator, or a barrier to cost reduction? More intelligence in the M2M edge device conflicts with the concept of big data Oct 12 Beyond traffic: Communications service provider (CSP) revenue opportunities in the building security market Sep 12 Cloud based M2M platforms such as Jasper s Control Center or Ericsson s DCP can help many MNOs in exploiting the potential of M2M Sep 12 Sep 12 Orange provides positive M2M strategy update Global ereader forecast and implications for MNO business models Many M2M connected devices will require field installation and maintenance services, and many more could be enhanced by the addition of such services. This Research Note explores this new downstream revenue opportunity for CSPs and others with appropriate field force capabilities. M2M module vendors (OEMs) are correctly concerned about commoditization. In order to add value all of them are looking to provide more of an end to end service for enterprises, incorporating cloud based service and device management platforms. The stand out examples are Gemalto s SensorLogic, Sierra s AirVantage and Telit s M2MAIR. This diversification is occurring at the same time as mobile operators are also looking to extend their role in the value chain. This Research Note examines vendor strategies and seeks to determine where and in what respects vendor strategies put them at risk of competing with their MNO customers, and where the strategies are complementary. The Digital Living Network Alliance (DLNA) was founded in 2003 to address the requirement to share digital content across networked devices in the home. Despite significant backing from the supply side with industry heavyweights such as Intel, Sony and Microsoft supporting it there has been far less awareness among consumers of the protocol and what it enables. Sierra is a leading manufacturer of M2M modules. This Research Note looks at its products, financial and operational performance and its future commercial strategy for growth. While the balance is shifting towards 3G, most new M2M devices are still 2G. As a result, Mobile Network Operator (MNO) strategies with regard to their 2G networks are critical to the future of M2M. Many are increasingly looking to refarm 2G (and 3G) for use with more spectrally efficient technologies. This Research Note examines the trend for spectrum refarming and assesses the impact on MNOs and the rest of the M2M value chain. There is an emerging trend for more intelligence to be shifted from the core out to edge M2M devices. As a result application developers and service providers will see a reduction in the amount of data collected from devices. This represents a potential conflict with the demands of Big Data which is based on analysis of as large an amount of granular data as possible. Provision of data transmission services for M2M applications does not always translate into significant revenues for CSPs. Operators need to seek ways to add value to the overall service package rather than focusing purely on traffic. Some operators are already forging ahead and have built solid businesses on providing comprehensive services targeting businesses and home owners with security applications. M2M connectivity support and service enablement platforms1 (e.g. Jasper Wireless s Control Center, Ericsson s Device Connection Platform or in house developed alternatives such as Vodafone s GDSP) play a critical role in the M2M space, and contribute significantly to the overall development of the M2M market as a whole. The deployment of an M2M platform can bring benefits to a mobile operator in several key areas including: reducing operator costs, supporting the demands of an operator s clients, helping MNOs to partner to deliver services, maintaining a leading edge proposition, maintaining focus on customer requirements, taking friction out of the sales cycle, and simplifying solution development. This Research Note discusses each of these roles in more detail and then examines the relative benefits of cloudbased M2M platform solutions compared to in house developed platforms. On 13th September Machina Research analysts attended a session hosted by France Telecom Orange giving an update on the company s M2M strategy. This Research Note comments on that strategy. Adoption of e reader devices has been uneven across developed markets. The US market has enjoyed significant growth in e readers followed by the UK but they have had little impact in most European markets including France and Germany. Japan and South Korea, early adopters of new technologies, also lag other developed markets. This research paper explores the factors driving and inhibiting e reader adoption in several markets. 15

Sep 12 The Global M2M Association (GMA) is announced with little fanfare Sep 12 The M2M market is evolving rapidly and MNOs must react Jul 12 M2M alliance forms around the Jasper Wireless platform, but where s AT&T? Jul 12 China Unicom, NTT DoCoMo and Telefonica are big winners in revised M2M Leaderboard In September 2012 the Global M2M Association (GMA) was finally announced at France Telecom Orange s partner event in Brussels, and Deutsche Telekom s M2M Partner Event in Budapest. For those watching the M2M market closely, this was not really news as the GMA name had been used in various contexts for the last 9 months. However, it was the first time it had been officially announced and the aims, membership and future direction been publicly discussed. This research note examines the alliance and what it means for the M2M success of the three members, and beyond. The M2M market is evolving rapidly. Machina Research s analysts have identified a number of critical areas in which the M2M market is subject to substantial change, almost all of which affect the role of Mobile Network Operators (MNOs). Some are changes that have been signposted for the last few years whereas others have yet to truly manifest their impact. This Research Note explores the changing dynamics of the sector and makes recommendations about how MNOs need to best react in order to address the new M2M order. In July 2012 seven MNOs running the Jasper Wireless Control Center platform announced an alliance to collaborate on M2M. Interestingly, AT&T the single biggest operator running the Jasper platform is not currently involved. This Research Note examines the reasons for the alliance, the expected impact and examines AT&T s likely motivations. This Research Note provides an update to the M2M Leaderboard that ranks global M2M operators by their expected revenue in 2020. The last update was in March 2012. Machina Research 本 総 代 理 店 株 式 会 社 データリソース 107-0052 東 京 都 港 区 坂 1-14-5 アークヒルズエグゼクティブタワーN313 TEL:03-3582-2531 FAX:03-3582-2861 Email:office@dri.co.jp データリソースについて http://www.dri.co.jp/ 1995 年 の 設 以 来 本 を 代 表 する 通 信 事 業 者 やメーカを 中 とした 本 企 業 の 々に 国 内 外 の 産 業 市 場 調 査 報 告 書 の 販 売 や 委 託 調 査 を ってまいりました 設 当 初 は 通 信 関 連 が 主 な 対 象 市 場 でしたが 現 在 は 既 存 のお 客 様 からのご 要 望 や 市 場 の 動 向 に 合 わせ 半 導 体 や 動 環 境 エネル ギーなど 幅 広 い 市 場 の 情 報 提 供 を っております 16