18 Jul 2012
Maravedis-Rethink: Cloud to transform M2M market
The machine-to-machine market is poised for the biggest transformation in its 10-year history, according to Maravedis-Rethink's latest research report, "M2M and Cloud as the Foundation for the Internet of Things."
In the next three years, the M2M market will shift from vertically focused and often incompatible solutions to platforms and standards that can be used across many sectors.
This, in turn, says the analyst, will lay the foundation for the Internet of Things, expected to be one of the biggest growth drivers for the device supply chain and for service providers in the second half of this decade.
"The key catalyst for this change will be the adoption of cloud-based approaches for M2M applications," said Bill Lesieur, Cloud Analyst and author of the report. "That will help address many of the biggest challenges to mass market M2M adoption."
The move to the cloud will impact many aspects of the M2M sector, but will have the greatest effect on the two critical areas of cost to deploy and ability to scale.
By unlocking data 'trapped' in vertical silos and exposing M2M systems to applications such as Facebook, innovative applications and services will be enabled.
"The cloud has dramatically reduced the cost and time to get pilot programs up and running in order to establish organizational support and maintain interest in M2M initiatives. Based on discussions with vendors and end user customers, large enterprise M2M projects historically have taken two to three years to complete and often at least $25 million in IT infrastructure investment. Cloud can slash that to a third or less," added Lesieur.
Wireless carriers are eager to take a key role in the Internet of Things, but this raises dilemmas over spectrum. Some operators will keep 3G or even 2G networks running to support M2M, but most systems will rely on 4G gateways.
The top three verticals expected to benefit most from cloud-based M2M are utilities/energy, automotive/telematics, and transport/logistics
New services and revenues will be unlocked as M2M solutions gain interfaces to IT systems and to critical business applications like salesforce.com.
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