M2M is not a solution – it’s a way to segment the market

Beecham Sector Map kopiaM2M is not a solution. It is a way to segment the market: are we connecting a business, person or a thing to the Internet? The actual connection is of less importance to users – it is what it enables that makes sense. And the data created makes even more sense. We have seen the movie before – when people and business were connected to the Internet we started focusing on the connection. Then we discovered enormous benefits when processes became much more efficient. And finally innovative solutions and business models started change industries upside down. We entered the “as-a-service” era.

Over the last 18 months we have seen a clear change from the 50 billion devices approach to M2M towards a more user oriented approach where a range of M2M solutions are part of the ICT toolbox. If we compare to when Internet arrived we are leaving the connectivity period and enter the enabling user value era. We solve customer problems, we save money, we increase efficiency, we bring cost down or save energy. We create operational value. Previously everyone talked about smart meters and connected vehicles due to the large numbers involved. Now the addressed markets discussed are increasingly granular. The further we go down this road the more critical specialist service enablers become.

Last year the Connected Home pavilion at MWC in Barcelona was an important frequently visited showcase for M2M solutions and M2M was mentioned in most key notes. This year, the Connected City pavilion at MWC was a quite boring and less crowded but in every corner of the show and at every party people discussed what could be done with M2M solutions.

Mobile operators all try to figure out which role to play. Subscriptions alone seem less interesting. Adding device connectivity on top of the network helps deliver a better service. Going after large applications like smart meters, ebooks and connected cars is a no brainer. But how to win and deliver the second and third-tier of opportunities is the thousand dollar question of today. Small business is big business. I am convinced that those who can find a way to collaborate with the specialist service enablers will win. And such collaboration is not a matter of technical integration – it’s all about trust, business models and how to go to market. Our Swedish M2M Service Enablers alliance is always interested in efforts to answer the thousand dollar question of today.

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