MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Making Sense of M2M
Venkat EswaraDirector, Applications Services Marketing
Motorola NetworksMotorola, Inc.
October 2010
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Ecosystem and Business Model
Motorola’s Approach
Case Studies
Market Opportunities
Summary
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
The Internet of Things
Source: Beecham Research
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Opportunities for Mainstream Adoption
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Verizon Wireless, NA– Enables GM OnStar consumer telematic
service
– Partnership with Qualcomm
– Strategy:
• Wholesale connectivity provider to MVNOs and VARs
• Serving large corporate customers such as GM
– ODI (Open Development Initiative) for device developers to certify on Verizon Network
–Supporting wholesale and retail models
Market AdoptionEarly Deployments Showing Promise
Orange, EMEA– Launched the International M2M Center
(IMC) in 2009
– Acquired Data & Mobile, fleet management solutions provider
– Low cost M2M connectivity across its own footprint of 29 mobile networks and through partners’, covering 151 countries
– Segments: meter reading, city monitoring, fleet management, security monitoring, automotive networking, home automation, and health
– Over 2M SIMs by 2010
NTT DoCoMo, APAC– Domestic and International, through
MVNO Telargo
– Strategy – M2M for differentiation
– Segments - advanced metering infrastructure, EPOS, vending, fleet management, remote monitoring, pet and personal tracking, and remote content delivery
Sprint, Clearwire , NA– M2M traffic uses core voice/data
network infrastructure (CDMA, iDEN)
– Clearwire using WiMAX for M2M
– 4 channel strategies: open, wholesale, indirect, and direct
– Segments : utilities, fleet management solutions, and consumer electronics
Source: ABI Research, Current Analysis
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Value Chain and Ecosystem
M2M Enabled ProductM2M TerminalM2M ModuleChipset
Devices
WiMAX/LTECDMA/EV-DOHSPAGSM/GPRS
Networks
Health CareSmart MeteringTelematicsFleet
Management
Applications
POS TerminalsRemote Product Management
Security Alarms
Integrator
Hosting & Service Platform Supplier
Distributor
Go-to-market strategies critical for value chain players to justify investments
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Drivers and Challenges
Drivers– Adoption of wireless technologies
– Operational efficiencies with Telematics and Telemetry
– Leveraging scale for silicon from cellular/mobile industry
– Technical advances in 3G enabling high data centric M2M opportunities such as remote video surveillance, remote information display and multimedia content delivery
– Shift to Data-centric services for MNOs
– Governments and regulatory bodies mandating M2M - telematics and telemetry services
Challenges– Cellular M2M applications can be complex and
not core-competency for Service Providers (non MNOs)
– Limited knowledge of M2M and customer support
– Cost of M2M solutions can be an inhibitor for some applications
– Ex: Using SRW (short range wireless) and PLC (powerline carrier) vs cellular connections
– Slower adoption of 3G mobile networks to enable video enabled M2M services
– Cost differential between 2G and 3G inhibit adoption of 3G M2M services
– Business Model – Scale vs Profitability
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Business Model for MNOsMaking M2M viable
SCALE, SCALE, SCALE
Opportunities– Lower cost of service delivery
– Leverage service delivery platforms
– OSS/BSS for provisioning, billing, network management, trouble-shooting and customer support
– Network optimization and off-peak services to cater to M2M
– Lower customer acquisition cost
– Lack of device subsidy
– Share marketing/advertising cost with channel partners
– Lower churn
– Additional Revenue Opportunities
– Data Analytics
– VAS
– Service Bundling
Source: Current Analysis
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Ethernet overMicrowave
PDH/SDH Microwave
Carrier Ethernet over
SDH/Dark Fiber/WDM
IP/MPLS Network over
SDH/ Dark Fiber/ WDM
Internet
• Authentication• Security• Network
Recovery• Billings Systems• Monitoring• Service Delivery
Platforms• Service Level
Agreements (SLAs)
• QoS Management
• SIM management
Proposition for MNOsGo2Market Strategies and on-deck capabilities
Customer relationship model by ASP
Brand Strategy co-marketing and co-selling model
MNO ASP
M2M Vertical Market
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Management Agent
M2M OpportunitiesMillions to Billions Devices
Phone, EDA, STB hosted apps.
Locally or enterprise hosted apps.
1s - 10s of nodes 100s of nodes 1000s of nodes
Web hosted apps.
Active Lifestyles In-Home Monitoring
AssetTracking
Structural HealthMonitoring
Surveillance
Local Host
Set Top Box
AMI/AMR
Human Centric Device Centric
Gateway
Need for Scalable and Cost Effective Service Delivery Platforms
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Motorola’s E2E Offering
Applications
• Service Delivery Platforms
• Decentralized Edge Processing
• Ecosystem Partners & support 3rd party application development
• Revenue and Differentiation
• Reliability
Devices
• Multi-tiered• Specialized• Zero Time, Zero
Effort Proposition
OSS/BSS
• Flexible• Simplified• User Analysis
Services
• Professional Services• Network Optimization• Multi-vendor focus• MNO, Enterprise
Experience• Managed/Hosting
Services• Interoperability Across
Platforms & Languages
Network
• CDMA Family, GSM Family, WiMAX, LTE
• Coverage, Capacity, Reliability
• RF Planning Expertise
Service
•Reduced downtime•Fast response, Audit trails, etc•Usage patterns and analytics
Costs
• Efficient operations• Reduced & prioritized site
visits• Service Delivery Platforms
Revenue
•Business Models•Ecosystem•Manage Risk –Hosting/Managed Services
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Case Study - Fleet Management Solution
SITUATION MOTOROLA SOLUTIONPoor service quality / efficiency
Extensive data collection method
Poor truck utilization
Excessive paper work
Improved efficiency
Automated data collection
Reduced fuel consumption due to improved truck utilization
Significant reduction in accident rates
Bluetooth connectivity with Intelligent Mail Device
Security & Safety
• Emergency alert
• Asset Tracking
o Location
o Stolen Vehicle Tracking
• Accident risk reduction
RESULTS25% improvement in number of daily jobs completed
27% higher fleet utilization
13% reduction in fuel and maintenance costs
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Mobile Game DayM2M in Motion - Leveraging LBS, Mobile Video & M-Commerce
Section‐based Trivia, Fantasy Team Contests
Ticket Upgrades, Concession & Souvenir Coupons
Attendee Location‐Aware Data Collection
Fan Loyalty/ExperienceTrack arrival and location of VIPs for concierge
Section‐based trivia and fantasy contests
Section winner gets discounts on concession/souvenirs/tix
Section winners announced end of “period/quarter/half/inning”
Revenue OpportunitiesPush adds/coupons for discounts “this period/quarter/half/inning”
Discounts on concession/souvenirs
Fan Attendance and Seat Utilization
Last‐minute or mid‐game seat upgrades
Free upgrade to Fans on “loyalty” basis
Push future ticket promotions: Season ‐> Weekend Pack ‐> 6 Pack ‐> 3 Pack ‐> # Games etc
MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © Motorola, Inc. 2010
Summary
Access Aware - Solutions to be designed and optimized for the demanding telematics and telemetry markets
End-User Centric - Collaborative approach to meet global differences in end-users’ unique needs
Service Delivery Platforms – Cost effective service delivery platforms to lower customer management cost
Motorola has expertise and experience to resolve technology, businessand ecosystem complexities to enable M2M solutions
Business Models - Adoption and management of flexible business models is critical