Heavy Reading Report - M2M Platforms

VOL. 13, NO.
3, MARCH 2013
Managed M2M Platforms: Report Highlights

Quick Fix vs. Long-Term Telecom operators need to
find cost-effective ways of
Solution targeting the M2M market
Operators must adjust
TABLE OF CONTENTS operational processes to
cope with ARPUs of a just
I. Introduction few dollars per device, or
they have no hope of
II. M2M Market Overview profitability
· M2M Market Trends Cloud-based managed

M2M platforms have
· The Operator Role in M2M emerged to take the pain out
· Challenges Facing Telecom Operators of M2M market entry for
network operators
· Operator Strategies for Serving the M2M market
The choice of partners and
technology options is
III. Supplier Positioning
increasing
IV. Supplier Profiles The jury is out on whether
cloud hosted solutions will
· Aeris Communications
be used long-term, or
· Alcatel-Lucent whether operators will
develop in-house platforms
· Axeda once they have learned how
· Cisco the market works
· Cumulocity Network effect will be

critical for M2M managed
· Ericsson platform provider survival;
carriers will be attracted to
· HP
M2M platforms that offer the
· ILS Technology best global reach and
vertical market support
· Jasper Wireless
· KORE M2M Systems Group Use of this PDF file is governed by
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· NEC Subscriber License Agreement
included in this file. Any violation of
· ZTE the terms of this Agreement, including
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Such acts are punishable in court by
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I. Introduction
Telecom operators have their eyes firmly set on winning machine-to-machine (M2M) market
share. With the world's press and analyst reports awash with predictions of many billions of
connected devices worldwide within a few short years, and associated M2M service and platform
revenues also forecasted to generate billions of dollars for those helping enterprises to monetize
all that connectivity, it should come as no surprise that telecom operators are working out how
they can win a chunk of the business.
They are guaranteed part of the value – without telecom connectivity, the "to" in machine-to-
machine simply does not exist. But the connectivity is only a small part of the value chain
associated with enabling M2M businesses to work efficiently and profitably. Indeed in some
vertical markets the connectivity represents as little as 10 percent of the full value of the M2M
solution. Consequently, operators are looking to increase their role in the market. They are
seeking to move beyond solely delivering telecom connectivity and to establish businesses
providing the associated service delivery and enablement platforms, and even developing and
providing M2M applications themselves.
As Stefan Vaillant, CTO of NSN spin-out Cumulocity puts it: "A SIM card delivered to a SME
might deliver 2-5 Euros per month. A full M2M application platform might generate 5 to 15 Euros
per month per server object. So you get more of the value if you can provide the complete
application (such as a vending or telematics solution)."
This takes operators into a whole new world. It requires them to develop new skills, new
processes and new business models. It also puts them into competition with many other, new
types of highly skilled competitor.
Enter the M2M platform provider. M2M platform providers offer a range of horizontally-focused
solutions designed to help telecom operators and service providers to efficiently target the M2M
market. These solutions can integrate everything from the management of SIMs and data plans,
through to provisioning of devices, rating and charging, mediation with and between legacy
devices in industrial networks, and storage and analysis of M2M data. These providers all
promise a level of automation that makes M2M service delivery profitable, and they all promise
telecom operators a relationship and time-to-market advantage that can springboard them into
the M2M space. What's more, most of these companies – though not all – offer managed M2M
services, so the telecom operators can avoid the investments in expertise, staff and technology
that would be needed to develop and operate their own solutions.
While many telecom operators appear inclined to buy expertise from third parties in order to
speed their market entry, there are some significant players not taking this path, and others may
be planning to go it alone longer-term.
This report looks at the M2M platform providers who are developing (predominantly) managed
propositions that support telecom operators to sell M2M services. It reviews the solutions they
offer, their progress to-date and considers whether they are likely to be long-term partners for
telecom operators. Finally, this report profiles 11 leading vendors in the market.
Companies profiled in this report include: Aeris Communications Inc.; Alcatel-Lucent (NYSE:
ALU); Axeda Corp.; Cisco Systems Inc. (Nasdaq: CSCO); Cumulocity GmbH; Ericsson AB
(Nasdaq: ERIC); Hewlett-Packard Co. (NYSE: HPQ); ILS Technology LLC; Jasper Wireless Inc.;
KORE M2M Systems Group Inc.; NEC Corp.; and ZTE Corp.
HEAVY READING INSIDER | VOL. 13, NO. 3, MARCH 2013 | © HEAVY READING 2
II. M2M Market Overview
A. M2M Market Trends
The M2M market is not young, but it is undergoing a rapid transformation. This transformation is
driven by the global availability of cheap computing devices, the low cost and increasing ubiquity
of telecom connectivity and, importantly, the emergence of cloud-based business models. Cloud-
based platforms offer technology and competency sharing to drive up capabilities and force down
costs, while opening up cross-border market opportunities.
At the same time, companies worldwide have become alerted to the idea that M2M solutions help
them increase efficiency, improve customer service, give them new ways to differentiate what
they already offer and offer insights that support the creation of entirely new types of products
and services.
As Bill Zujewski, EVP product strategy and marketing at Axeda puts it: "Machine-to-machine is
becoming a strategic enterprise play. Companies are 'copy-catting' the Apples and car
manufacturers – not in terms of the devices they sell, but in terms of the way they are building
services that surround their devices."
The possibility of creating new M2M applications and services by collecting, storing and analyzing
data from remote devices has permeated nearly every vertical market sector. Just some of the
examples now evident in the market include applications for:
· Energy – energy management in buildings and deployment of smart grids in the wide
area to make power supply more efficient
· Retail – digital signage, remote monitoring and stock control for vending machines
· Transport – parking lot management, cashless ticketing, advanced information systems
for operators and travelers
· Logistics – asset monitoring throughout the supply chain
· Security – asset tracking
· Automotive – advanced vehicle telematics, in-car entertainment
· Healthcare – personal health monitoring
· Industry – process monitoring, remote maintenance
· Consumer – intelligent homes
· Disaster prevention – environment monitoring
· Finance – cashless payments, identity management
· Agriculture – crop and pest monitoring
What's more, the combinations of effective communications with advanced analytics are creating
new possibilities. One new trend noted by Drew Johnson, VP engineering at Aeris
Communications, for instance, is the idea of crowdsourcing of machine information. "If there is a
customer with a small number of devices, it can leverage the metadata from a large population of
third party devices to help it diagnose the causes of problems it may be having."
A related trend is the emergence of machine search – essentially searching for and using the
data provided by other devices in near proximity. An example application of this can be applied in
the area of car safety. If one car's systems have access to data from the traction control sensors
on other vehicles, drivers can be warned if other vehicles on the road ahead have hit dangerous
conditions such as black ice.
B. The Operator Role in M2M
Operators have several capabilities that give them a significant opportunity to open up a larger
part of the machine-to-machine value chain. These include:
· Experience running service businesses

· The scale to pull together a variety of components into holistic solutions
· Their established relationships with smaller companies
Device vendors that want to begin selling access to content or services through their devices
need to evolve every aspect of their business. They have to restructure to become a services
organization. They must enable real-time delivery. They need billing systems. They need real-
time customer support when there is a problem. These are not insignificant challenges.
Operators are experienced at running nationwide service businesses. They have made multi-
million dollar investments in the necessary provisioning, billing, diagnostic systems and customer
relationship management (CRM) platforms. Macario Namie, Jasper Wireless's VP of marketing
makes the point that "operators can provide all the operational things that are not exciting, but
which make the difference between being able to sell services and to scale; or not."
What's more, historically smaller companies not able to engage with large system integrators
have had to cobble together all the different parts of the M2M solution and get it working. As Bill
Zujewski, EVP product strategy and marketing at Axeda points out, communications service
providers can do this for them. "And by climbing the value chain telecom operators can earn as
much as ten times the money for providing the solution, as they can for simply delivering the
SIMs and data plan."
The value of enabling M2M communications is percolating down to smaller and smaller
businesses. The majority of the market is still based on bespoke solutions for large organizations
– but this is changing. In the next wave of market development, more small to medium
enterprises (SMEs) will get involved in M2M, and will need more productized solutions. According
to Stefan Vaillant, the CTO at Cumulocity this means the market "will see more horizontally-
oriented solutions, with more out-of-the box, prepaid solutions, with defined interfaces that can be
plugged together." This plays to the strength of the operators.
The role of horizontal platform provider is one that operators really have the opportunity to make
their own in the M2M market. If they are successful, they will need to show customers not only
that they have the networks, but also that they have the know-how, the processes and the
platforms to make M2M simple.
According to Fred Yentz, CEO at ILS Technology, ensuring simplicity is the sweet spot: "Too
many people are making money by saying M2M is hard, and by creating complex problems. We
won't get mass market adoption until people realize M2M is not hard."
C. Challenges Facing Telecom Operators

Operators may have several assets and capabilities that make them attractive partners for
customers needing to establish M2M infrastructures, but they do face many new and unfamiliar
challenges in the M2M market. These challenges take several forms:
· The need to evolve their relationships with enterprise customers

· The need to learn new ways to sell to, engage with, and support customers
· The requirement to become more flexible around tariffing and charging for services
· Their need to become more efficient at what they do
With the exception of a very few telecom operators that have established successful systems
integrator businesses, most telecom operators' relationships with business customers have been
limited to provision of simple services, with carefully managed sets of devices and rate plans.
There is little dialog of a complex technical nature.
The M2M market is very different: it typically involves a very complex sale. This is very unlike the
handset sale an operator is used to. Many of the M2M managed services platforms are tackling
this by providing telecom operators with sales and marketing collateral, and in many cases
sending their own sales teams out with the telecom operator sales teams.
Operators also need to engage with developers and potential customers earlier in the product
development cycle. Cumulocity's CTO Stefan Vaillant argues that working with a M2M application
platform vendor enables them to do this. "Enterprises will initially develop their M2M hardware
and software using test cards," he says. "Only when their solution is mature will they issue an
RFQ [request for proposal] to a telecom operator. At that stage it is very late to influence the
solution. Because an M2M application platform is designed for developers, if the telco provides
that platform, it gets early access to those developers and this has a big impact in terms of its
influence over the solution ultimately deployed."
ILS Technology's Yentz argues that using a horizontal platform helps with credibility too.
"Operators need to create relationships with buyers, but … they can't credibly claim to be experts
in all vertical sectors. They can't credibly go to an insurance business and tell them they are
insurance experts. That's why a horizontally-focused platform is a great play for a telecom
operator. It can offer a tool which allows the customer to be the expert about its own business.
The telco is just helping them do what they are already doing more efficiently."
Once projects have been sold, operators then need to enable the creation of new rate plans for
their M2M customers on a bespoke basis. Many operators struggle with the swift implementation
of new ways of billing for services – the need to create new tariff plans can substantially slow
down new services launches. So the concept of enabling M2M customers to have multiple and
entirely customized tariffs is a real challenge.
Several specialist billing vendors have developed modules and solutions specifically designed to
support operators with this problem, and all the key M2M platform vendors offer means of
integrating with third-party billing systems where required. In addition, a number of them offer
their own proprietary rating and charging and billing modules. Macario Namie, Jasper Wireless's
VP of marketing explains why: "On any given day an operator might have, say, fifty rate plans.
But with M2M every enterprise may have an average of six custom rate plans. And they are all
customized. Every M2M customer is different. Operators can't pay millions of dollars for
professional services developments. The rating and provisioning system has to be zero touch."
Drew Johnson, VP of engineering at Aeris Communications agrees: "CSPs cannot work with
traditional billing vendors where they get charged to create new rate plans and it takes days. The
key to the business is the automation." The M2M platform vendors' solutions have typically been
designed to support complete customization; and require little to no professional services support
when a new custom rate plan is required.
Billing is not the only cost that must be driven out. Operators are used to ARPUs of up to $50 per
month. In the connected devices space, though, ARPUs are much more like $2-$4 per month.
That is a big gap to close. To make their M2M businesses profitable, telecom operators need to
automate out all of the costs. Pat Verrington, VP, carrier services development at KORE argues
this is a key success factor: "Given the low ARPUs evident in the M2M market, operators cannot
afford to ignore process optimization and streamlining as a way to drive cost out of M2M service
delivery and on-going customer support."
Miguel Blockstrand, Ericsson's head of product line device connections, points out that operators
can use help from specialists in other ways, too: "One challenge operators face in the M2M
market is the need to provide support." He asserts that the help desk needs are very different. "A
help desk for a mobile phone service is normally staffed by a very young person. But if I am a
global enterprise, and I have problem with 80,000 devices, the help desk operative can't simply
ask me to reboot them all. M2M help desk staff need different skills, vocabulary and analytics
capabilities than those telecom help desk staff are used to employing."
All these hurdles are being addressed by providers of horizontally-focused M2M platforms.
D. Operator Strategies for Serving the M2M Market

While it is evident that a variety of managed M2M platforms exist for telecom operators to use, it
is also clear that not all telecom operators plan to turn to third parties to manage their M2M
solutions. Telefónica is one company that has built its own solution.
Telefónica's Digital Smart M2M is a Web-based platform for the connectivity, management and
control of M2M communications. Developed in-house, the solution supports billing, real-time
monitoring of traffic type, volume and consumption, diagnostics, fraud detection and traffic
management, including the ability to cap traffic from individual devices.
The company is positioning Digital Smart M2M as a platform capable of serving its local and its
global customers, with local language support and country-specific plans and SIMs available.
Services were launched initially in Spain and Brazil in January 2013, with other offers soon to
follow in Argentina, Chile and the Czech Republic.
The company maintains that by developing its own solution it retains the flexibility to adapt the
platform or to add new features, as and when its customers need them.
Telefónica has already also launched several vertical sector solutions, including a platform for
smart metering, a consumer solution that enables people to buy via the Web short periods of 3G
connectivity for their tablets (works only with specific brands of tablets) and, in conjunction with
Generali, an insurance policy adjusted according to telematics data collected from the car
showing how the customer drives.
Belgacom is another national operator that has opted for in-house control of its M2M platforms.
And many other operators – even though they are working alongside managed M2M providers –
are also developing their own ecosystems of vertical market application and solution providers.
Deutsche Telekom for instance, uses several horizontal applications, but has also been pro-
active in nurturing its own partner network.
KORE is one M2M platform provider that is banking on operators' ultimate desire to manage
everything themselves. It expects that many of the big operators will want to control their own
M2M solutions – both because M2M looks like will be so strategically important for them, and
because that is in their nature. It is not a strategy devoid of logic. Most of the big telecom
operators have a strong heritage of wanting to control their key technologies.
III. Supplier Positioning
Large organizations wishing to buy a M2M solution can go to a few types of supplier:
· Systems integrators that can deploy a bespoke solution

· M2M platform providers that sell direct to enterprise customers. These vary in their
approaches between those that deploy on-premises or single customer solutions, and
those that offer cloud-based solutions designed to take as much pain and cost as
possible out of M2M network and application deployment by supplying standardized,
horizontally applicable solutions that can serve customers across multiple industry
sectors.
· Network operators that are attempting to climb the value chain from provision to
connectivity, to provision of connectivity and application management platforms
· Device vendors that have added control platforms to increase their share of the value
chain beyond simple provision of the equipment.
Network operators have not traditionally enjoyed much

Figure 1: M2M Value Chain success in trying to deliver services on top of the
connectivity because their process and infrastructures
have not been geared up to deliver highly customized,
highly technical, often global solutions at low cost.
However, recent changes in technology have made it
possible for telecom operators to start to extend their
business.
This, in turn, has created an opportunity for suppliers.

Telecom operators have a new need for platforms,
technologies and expertise to enable them to serve what is
largely a new market for them, cost effectively. Providers
have emerged that are offering platforms explicitly
designed to help network operators to compete in this
market.
These M2M platform providers vary widely in terms of the

solutions and capabilities they can bring to telecom
operators. Key axes of variation include the following:
Extent of Value Chain Coverage

Some providers of managed M2M service platforms
operate at the telecom connectivity end of the value chain.
They focus on streamlining the provisioning of connections
and management and billing of connectivity services.
These capabilities are shown at the top of Figure 1, left.
Most offer some sort of operator and enterprises portals for

self-service – typically covering those areas of the value
chain on which the supplier focuses.
Others support further data manipulation through storage,

merger and analysis of M2M payload data and metadata,
as opposed to analysis of traffic data, which is commonly
Source: Heavy Reading Insider provided by connectivity-focused players.
Some specialize in supporting the data connectivity by providing mediation platforms so that all
kinds of devices can be integrated into an M2M platform
Several vendors support application development, providing software development kits (SDKs),
toolkits and developer resources.
Finally some platform providers are supporting telecom operators in their sales efforts, too. These
are developing ecosystems of vertical sector specialists so that operators can resell a pre-
integrated suite of M2M application providers' products. Others offer sales and marketing support,
including sales teams to work alongside the operator's own sales force.
Cloud vs. On-Premises Deployments

Some of the M2M platform vendors – such as Jasper – offer a predominantly cloud-based
solution. They argue that this gives operators the fastest time to market, and that it helps
operators deliver global services because they can deploy solutions that use the networks of
other operators also connected to and integrated with the Jasper platform. They also argue that
the cloud approach makes M2M platform more attractive to enterprises that can integrate once,
and deploy globally on the networks of all the network operators using the M2M platform.
In contrast, there are other vendors – such as KORE – that argue that many operators already, or
will ultimately want the control and security of having the M2M platform hosted securely within
their own networks, in their own country and under their complete control.
Both types of vendor have won contracts with large telecom operators, so it is no surprise that a
third group of vendors has emerged offering either approach depending upon the customer's
preference.
All M2M platform providers will ultimately have to cope with the need for local data storage –
whether they offer cloud-based solution or not. So cloud providers must offer private cloud and
public cloud models. One reason for this is regulation, as Bill Zujewski, EVP product strategy and
marketing at Axeda points out: "Location of storage is really important. In some parts of the world,
for instance India or Brazil, you will be required to ensure the data storage is local."
Pat Verrington, VP, carrier services development at KORE concurs: "We have seen some
countries – for instance Turkey, India and Russia – pass legislation [to prevent] or generally
prohibit customers' billing data from leaving the country."
Verrington argues that security and privacy are key drivers for operators wanting local
deployments: "In the M2M market security and privacy are both top issues for buyers. By putting
the M2M platform in their network, behind their firewalls, operators can ensure their customers'
data only goes where the operators/and or customers want it to go."
ILS Technology's CEO, Fred Yentz, also sees these factors at play: "Where the data is kept
worries a lot of customers. A lot of large companies have thrown out vendors from RFPs due to
the issue of where the data is kept."
Scalability
Few of the M2M platforms offered have yet been tested at truly massive scale. This will change
and scalability will be crucial.
Drew Johnson, VP of engineering at Aeris Communications argues that when choosing their
M2M platform provider, communications service providers (CSPs) should focus on ensuring that
whatever solution they deploy works for big companies, as well as small ones. "Big companies
like car manufacturers might need to provision 10,000 devices at a time. Some operators will take
hours to do this, which is no good. They need a system to provision rapidly – within seconds, not
hours."
Bill Zujewski, EVP of product strategy and marketing at Axeda agrees: "Carriers need to develop
infrastructure which has been built for big data and big scale. It also needs to be optimized for
machine data, which is very different from classic consumer data. It has big data spikes; you have
to deal with malfunctioning devices" (which can deliver the equivalent of a DDoS attack from
within the organization).
M2M Connectivity Options

The majority of the M2M platform providers targeting operators are focusing on mobile service
providers. According to Miguel Blockstrand, Ericsson's head of product line device connections,
aside from availability, one of the reasons for this is that mobile communications are more secure.
"Security and integrity is really important. If you operate in the cloud you face new security issues.
You need to be sure of the provenance of information. This is the reason we believe most M2M
traffic will go through mobile networks. There are security mechanisms – authentication and
authorization – linked to the SIM card. This is standardized. Mobile networks offer the path of
least resistance."
Relatively few of the M2M platform providers have fixed networks or Wi-Fi networks in their
sights. This is leaving an element of the market wide open, and many enterprise customers may
think twice about using a M2M provider that cannot support their needs for Wi-Fi-based solutions
in warehouses or fixed network solutions (e.g., within energy infrastructures).
Business Models
M2M platform providers are offering various business models to telecom operators. Over time we
expect this to stabilize, but at the moment there is a customer land grab and M2M platform
vendors offer whatever models operators want. Approaches include:
· Pure capex-based models, with operators paying for installation of the equipment (often
on a capacity basis)
· Opex-based leasing of resources
· Resale arrangements
· Revenue share
· Full joint venture
IV. Supplier Profiles
Figure 2 identifies the key players providing M2M platforms to telecom operators, their products,
the network types they support and the business models they offer. It also lists publicly-
announced telecom operator or service provider customers.
We have excluded vendors whose offerings are limited to providing and managing their own
connectivity solutions (such as SIMs, devices and networking equipment). We have also
excluded from this table the very many platform providers that primarily serve enterprise
customers direct, and that do not have a major presence in the market to supply platforms to
network operators.
Figure 2: Leading Providers of M2M Platforms for Telecom Operators & Service Providers
Commercial
Hosted Cloud or
Company/ Managed Payment Model for/ Named Telecom Operator
Operator-Specific
Key Product(s) Solution? Relationship With Clients/ Partners
Deployment
Operators
Aeris Sprint, plus resale

Communications Typically revenue partnership with Tech
Hosted cloud Yes
AerPort & from share Mahindra for sales into the
2Q13 AerCloud telecom market
Alcatel-Lucent Both: multi-tenant Capex model and Verizon Wireless (Mobile

hosted or operator Yes opex/ licensing Device manager module
Motive specific model for LTE devices)
Axeda Typically, resale,

Cloud based,
payment for asset
Axeda Machine private cloud where Yes AT&T, Rogers
usage, sometimes
Cloud wanted
revenue share
Cisco
Cisco Smart
Operate Services Pay-as-you-grow
Hosted cloud Yes No data
for CPE, Cisco capex
Quantum Suite,
Packet Core
Cumulocity Hosted cloud; Deutsche Telekom,
Set-up fee, plus
Cumulocity optionally deployed Yes Everything Everywhere
revenue share
Conduct on-premises (through NSN)
Ericsson Megafon, Pt XL Axiata,

Delivered as a
Device Swisscom, Telenor
Hosted cloud Yes service. "Pay as you
Connection Connexion, TeliaSonera
grow"
Platform and Three UK
Hosted – private,
Options for
public or hybrid
HP managed
cloud – or non- Capex or opex
and References are not public
HP M2M platform hosted; operator- models
unmanaged
specific
solutions
deployment
Can be hosted in
Revenue share
the carrier's cloud
ILS Technology model that flexes
or ILS's cloud, or in AT&T, Sprint, Verizon
Yes based on how much
DeviceWise ASP or enterprise Wireless, Vodafone
each party
customer network/
does/manages
datacenter
Commercial
Hosted Cloud or
Company/ Managed Payment Model for/ Named Telecom Operator
Operator-Specific
Key Product(s) Solution? Relationship With Clients/ Partners
Deployment
Operators
America Movil (for

Jasper Wireless deployments across Latin
America), AT&T, Base,
Control Center Beeline, Claro, e-plus,
Platform, Service Software-as-a-
Hosted cloud Yes Etisalat, KPN, NTT
Manager service
Docomo, Mobily, Movistar,
Platform, and Optimus, Rogers, Singtel,
Catalyst Telcel, Telefónica, Telstra,
Vimpelcom
KORE
Revenue share or
M2M Service Belgacom, one
Operator-specific capacity licensing
Delivery Platform, No unannounced Asian telco,
deployment (100 percent capex
incorporating and KORE Wireless
model)
PRiSMPRO
NEC Transatel (MVNE),

Cloud Managed No data collaborations with NTT
Connexive Docomo
No data
ZTE
Operator-specific Opex licensing China Telecom, China
M2M Service No data
deployment model for smaller Mobile, China Unicom
Support Platform
customers
Source: Heavy Reading Insider
The following profiles cover leading providers of M2M platforms for telecom operators. They
include tables summarizing in detail the capabilities of the different companies.
A. Aeris Communications
Aeris differs from other M2M platform providers covered in this report because, as VP of
Engineering Drew Johnson puts it, Aeris is "fundamentally a carrier." It owns and operates a
mobile data network designed for M2M communications. Although it has no spectrum it operates
its own cellular packet data core. In that sense the proposition it can offer customers is quite
different. Its solution includes:
· Network infrastructure elements optimized for M2M so they deliver extra security and
efficiency (including HSS, HLR, SMSC, GGSN, AAA, PCRF elements, etc.).
· Business/operations support system (BSS/OSS): Aeris provides its own billing system,
arguing that M2M customers need a billing and rating model that can match how they
monetize their devices. It offers the ability to develop custom rate plans, and plans to
introduce support for event-based and split billing.
· Analytics to provide intelligence about the device and network behavior and support
automated diagnosis and resolution of issues.
· A connectivity enablement platform with a portal linking to network infrastructure, and
billing systems so the end-user enterprise can manage its own connectivity, costs and
diagnose problems.
Aeris does not provide an application enablement platform and does not typically deal with the
M2M payload data, although it can provide consultancy to help device optimization for security
and connectivity, which will involve analysis of metadata. However, Aeris is due to release a new
application enablement solution (currently in Beta) called AerCloud in the second quarter of 2013.
The company's current offer is focused on delivering cellular connectivity. Johnson expects this to
change though. "We absolutely envision the machine-to-machine market as a multi-access
space. Wi-Fi and white space will be big in M2M."
It sells M2M services direct to enterprise customers in the U.S., and claims clients in most major
M2M verticals and particular strength in the auto industry. Sprint is also a key customer in the
U.S., using Aeris's technology to underpin its M2M center. Elsewhere in the world, Aeris's go-to-
market strategy is to provide solutions to network operators and MVNOs rather than to sell direct.
The company's primary model for operators is to deliver a hosted, managed solution. "Providing a
hosted service allows us to deliver our operator customers new capabilities faster than they could
implement them themselves," argues Johnson.
He sees no tension in the fact that Aeris sells direct to enterprise customers, as well as through
operators – quite the opposite, in fact. "The experience gained from our direct service has greatly
enhanced our product for our operator customers. We get direct feedback which we can use to
help the operators build their businesses."
Aeris can provision systems in test mode to help customers get up and running. The devices will
ship from where they are manufactured, to the country where they are sold, where they can be
used to demonstrate/test the platform; when the solution is sold, the device flips into billing state.
Figure 3: Aeris Communications' M2M Platform for Network Operators: Details

Platform Characteristic Supported?
M2M access network types supported Cellular (soon Wi-Fi & white space); not fixed or satellite
Device management Yes
Connectivity management Yes
Subscription management Yes
Rating & charging Yes
Self-service portals for operators & developers Yes (AerPort dashboard)
M2M application development Yes from 2Q13, with launch of AerCloud
M2M payload data analytics Yes from 2Q13, with launch of AerCloud
M2M data storage Yes from 2Q13, with launch of AerCloud
M2M data mediation/transformation Yes from 2Q13, with launch of AerCloud
B. Alcatel-Lucent
Alcatel-Lucent's M2M platform for network operators is part of the Motive portfolio of products.
Motive M2M is designed to enable operators (and enterprises) to cost-effectively manage large
numbers of M2M devices. It automates service delivery functions and provides common M2M
functions that can be applied across verticals. Key features of this modular platform include:
· Communications Controller: This provides connection management, routing and

protocol conversion, group definition and management, and security for access to and
from applications and devices. All M2M data traffic is routed through the M2M controller
to enable control and optimization of the traffic.
· Motive Mobile Device Manager: Over-the-air provisioning, configuration, update,
management and troubleshooting of mobile devices.
· Motive Home Device Manager: Provisioning, configuration, update, management and
troubleshooting of a range of fixed devices.
· User Access Portal: Enabling self-service for enterprise users.
· Motive Customer Service Console: A service management tool offering diagnostic
intelligence and other relevant information about a customer's service from multiple
sources such as the customer device, the provider's network, third-party or partner
systems and back-office systems.
· Motive Service Management Platform: An integration platform to connect the MDM
system with other internal network devices and databases, such as OSS/BSS.
· Motive Application Lifecycle Manager: Enables management of applications installed
on mobile and fixed devices; can install, configure, start, upgrade and stop an application.
· Motive Data Collection Manager (DCM): Collects stores and retrieves data from
devices. DCM can be coupled with analytics utilities.
· Developer Support: Common M2M functions are exposed to developers through REST
application programming interfaces (APIs).
The platform supports white labeling so developers can offer own-branded services on the
operator's network.
Figure 4: Alcatel-Lucent's M2M Platform for Network Operators: Details

M2M access network types supported Fixed and mobile

Connectivity management Partial
Rating & charging Yes – through partner
Self-service portals for operators & developers Yes
M2M application development Yes – through partner
M2M payload data analytics Yes
M2M data storage Yes
M2M data mediation/transformation Yes
C. Axeda
Founded in 2000, Axeda is a software and services company that provides a cloud platform to
support connected products and M2M solutions. Called the Axeda Machine Cloud, its purpose is
to help customers unlock value from their machine data. "It's about sending data to the cloud, and
making it useful," says EVP product strategy and marketing, Bill Zujewski.
The company has gone through a process of evolution over the last decade. It has come from a
background of connecting big, expensive complex equipment (including assets such as MRIs and
ATMs) over secured Internet connections. It subsequently introduced cellular services, and more
recently created its horizontal M2M platform.
It has a strong base of enterprise customers, claiming over 150 blue-chip clients, more than 1
million connected assets, and it carries more than 500 million machine messages per day. The
company has also started selling its solution through wireless carriers. It has been able to
announce a major white label resale deal with AT&T. It is also working with Rogers in Canada
and is in negotiation with others with the aim of creating an exclusive global network of carrier
partners white labeling its solution. Key elements of Axeda's solution include:
· M2M application services (scripting APIs, Web services APIs for developers).
· M2M data management (rules engines, identity/access management and data models).
· M2M connectivity (software agents and mediation tools to support connectivity to a wide
range of devices. It runs an Axeda-ready program, certifying that devices work well with
its platform. "Carriers cannot afford to buy services linked to individual device vendors, [or
they limit their market]. They need device agnostic connectivity," asserts Zujewski.
· Axeda Wireless Console – single portal to view data about the SIMs, devices, data
communications and connected assets, and to manage and control the M2M deployment,
with API integration into Jasper Wireless and AT&T service delivery platforms (SDPs)
where needed.
· Axeda also offers an application enablement platform with pre-developed reference
applications for different vertical markets including asset tracking and usage-based
insurance.
Axeda's solution will typically sit above, and integrate with, mobile operator or third-party SDPs
(that separately offer the device provisioning, billing and SIM management) for the M2M
communications elements.
Axeda's software agents collect data from connected devices, communicate it to the cloud (using
translators where necessary), where the data is processed, stored and any necessary action is
taken on it. The stored data is then used in three broad ways: it might be forwarded to Axeda's
own suite of ready-developed connected product management applications, to developers to
create new apps or Web services, or to business information systems such as SAP,
Salesforce.com or Oracle.
It does not limit itself to solutions supported by cellular connectivity – indeed due to its legacy it
has a strong base of customers accessing its platform over secure fixed Internet, Wi-Fi,
Bluetooth, ZigBee and other access networks. "The value we provide is in our cloud and our
APIs," says Zujewski.
Axeda works with a range of partners including companies in the telecom market such as AT&T,
systems integrators like Wipro, and enterprise software and IT vendors such as Oracle,
Salesforce.com and SAP.
Figure 5: Axeda's M2M Platform for Network Operators: Details

M2M access network types supported Fixed, Internet, Wi-Fi, ZigBee, Bluetooth, cellular
Device management Where integrated with Jasper Wireless or operator SDP
Connectivity management Where integrated with Jasper Wireless or operator SDP
Subscription management Where integrated with Jasper Wireless or operator SDP
Rating & charging Where integrated with Jasper Wireless or operator SDP
M2M application development Yes
D. Cisco
Cisco provides a range of M2M-enabling technologies and solutions. In the words of Dan
Kurschner senior marketing manager for Cisco's Mobility Service Provider Segment, it provides
"everything from A to Z, except the A and Z." In other words it does not make sensors, and it
does not provide the software applications to serve specific M2M segments, but it does provide
all the elements needed in between those elements to run an M2M network.
Cisco's strategy is to become a one-stop shop provider for solutions to support the Internet of
Things.
Its portfolio includes:
· M2M gateways, which are small-sized, environmentally hardened routers designed for
establishing connectivity between peripheral and mobile assets (including vehicles) and
centralized application servers.
· Backhaul infrastructure
· Elastic packet core infrastructure, including chassis virtualization
· Data center infrastructure, which is virtualized so that services can be scaled up and
down as needed. Cisco also offers remote NOC facilities for M2M networks, databases
and applications from its data centers.
· Cisco Smart Operate Services for CPE, which is an M2M-focused, cloud-based
management solution that offers remote activation, provisioning and change
management for M2M devices and applications, remote license management, fault and
performance monitoring, problem management and root cause analysis. It can be white-
labeled to the carrier and is applicable across multiple industries. The solution also
includes automatic service onboarding through a portal for enterprise customers. This
supports SLA management, device ordering, data monitoring and remote infrastructure
and traffic management. It provides integration with operators' existing BSS and OSS.
· Cisco has also launched its Cisco Quantum Suite, which is designed to better enable
service providers to analyze and monetize the data in their networks. It includes:
o Quantum Network Abstraction Suite – a real-time network abstraction layer for data
collection and aggregation
o Quantum Policy Suite – a policy management solution
o Quantum Analytics Suite – for historical and real-time predictive analytics
o Quantum Orchestration suite – for improved network management.
The Quantum tools offer the capability to abstract, analyze and use M2M data, as well as any
other data flowing over a service provider's network.
Cisco sees its data center capabilities as a key differentiator. "The data center plays a critical
function in the M2M world. You can't scotch-tape in onto your offer." It also emphasizes its ability
to deliver an end-to-end integrated network, datacenter and application infrastructure – something
it does not believe many of its rivals can do.
Cisco sells direct to both carriers and enterprises, explains Kurschner: "Some carriers want to
position themselves as the platform people will come to in order to launch their M2M strategies.
Some enterprises want to do it on their own, but need some technology support."
In the context of the carrier market, Cisco is positioned to help operators provide managed M2M
services.
Figure 6: Cisco's M2M Platform for Network Operators: Details
Fixed, Internet, licensed and unlicensed wireless

M2M access network types supported
including Wi-Fi and cellular
Subscription management No data
Rating & charging Integrated with operators' existing systems
M2M application development No
E. Cumulocity
Cumulocity specializes in providing cloud-based platforms for M2M communications to both
enterprise and mobile operator customers. In the context of supporting mobile operators, it
provides a M2M application platform, and according to Stefan Vaillant, the company's CTO,
Cumulocity is working to "bring mobile operators to a central position in the M2M market; not only
for connectivity, but also for the services and applications provided on top, where the most
revenue and profit is made."
Cumulocity was spun out of Nokia Siemens Networks. It is based in Germany, with engineering
facilities in Germany, Poland and Portugal.
The company's platform for mobile network operators is called Cumulocity Conduct. This has a
range of features including:
· Developer platform – offering REST-based open APIs for customer application

integration; JavaScript and Java client libraries; examples, documentation and a forum.
· Device management tools – a Web-based environment to manage device status, with
alarms and roles-based user management utilities.
· Data management tools – to model and store M2M-related data (including information
about assets, configuration, sensor readings, sensor meta-data, events, etc.). Multi-
tenancy options are available to enable multiple customers to be served, while ensuring
separation of their data.
· Device connectivity (mediation) – agents to convert communications protocols from
legacy devices to the Cumulocity REST API.
· Smart agents – for integration with JavaSE, JavaME, C/C++ and Android.
Cumulocity does not get involved in the deployment or management of the devices, or
provisioning of the network connectivity, although it does assure that the connectivity exists.
According to Vaillant, his company's platform is device vendor agnostic. "We can service devices
from all types of device vendors, and have established relationships with Kontron, Cinterion and
others. The benefit for Cumulocity's customers, Vaillant asserts, is that customers can change
their device vendors, or use multiple vendors for their solutions.
Cumulocity offers a public edition of its M2M application platform for free, and enables integration
with its smart agents for free. Customers pay only for production use. Enterprise customers pay
for the cloud service according to published service tiers which vary in terms of permitted device
numbers, user numbers, storage volumes, volumes of API requests, and levels of support.
The company charges operators a set-up fee, and then works with them on a revenue share
basis. The community and development sandbox is managed by Cumulocity, and while its
standard offer is cloud-based Conduct can be integrated with operators' own websites, and
production deployments can be deployed on premises if required. Whether deployed in the cloud
or on-premises, Cumulocity Conduct is typically offered on a white-label basis.
Cumulocity can name several big brands amongst its customer base. In December 2012, it was
announced that Cumulocity Conduct is being used by Deutsche Telekom to underpin the latter's
M2M Developer Platform, visible at developergarden.com. A month earlier it was announced that
Nokia Siemens Networks and Cumulocity had signed a global partnership agreement. Under the
terms of the deal, NSN will resell Cumulocity's platform, using it to support its customers' mobile
broadband related M2M business. (One such customer is Everything Everywhere, which offers
Cumulocity's VendMe M2M vending solution internationally, with SIM cards provided by EE in the
U.K., and Deutsche Telekom and France Telecom in other countries.)
Figure 7: Cumulocity's M2M Platform for Network Operators: Details

M2M access network types supported Mobile cellular only

Connectivity management No
Subscription management No
Rating & charging No – CDRs deliver to billing system
F. Ericsson
Ericsson's M2M strategy is based on providing solutions that streamline the process of
establishing M2M connections. It is focusing on the development of standardized, managed,
cloud-based services, with tools that offer customers commercial business model flexibility (for
instance through the creation of tailored price plans) and the ability to tailor service parameters
(such as by setting QoS parameters for different types of data).
Ericsson promotes the cloud-based approach as a means of ensuring operators can deliver to
their own customers a suite of consistent M2M products and a consistent M2M experience at a
lower cost than if they developed their own solutions.
According to Miguel Blockstrand, the company's head of device connections, the cloud-based
approach is a great way to support operators' entry into the M2M market. He points out that when
operators want to set up M2M operations, they will typically face new types of problems. "They
need to meet both global and domestic needs. Large companies' M2M operations are global.
They need shipping and distribution across all multiple countries. Often the manufacturer does
not know what country devices will end up in when they are manufactured. Operators also have
to deal with local requirements including connectivity, and regulations." This requires investment.
And the trouble, Blockstrand asserts, is that with M2M it takes time to grow volumes, so it is
difficult for operators to overcome the risks associated with setting up an M2M services business.
He argues that "by buying a cloud service, operators can access the functions they need, and the
capacity they need, but they don't need to incur the cost of developing their own platform." He
also points out that all the customers of the cloud platform benefit from any technical upgrades,
security improvements and the cost of developing those improvements, as opposed to the silo
development approach where each operator has to cover the cost.
Ericsson supports its network operator customers from end-to-end, starting with strategy design,
through their go-to-market process and to post-launch optimization and ongoing operation. It
delivers its M2M solution as a service, and offers a "pay-as-you-grow" pricing model.
Its key product in this area is the Ericsson's Device Connection Platform. This is a wholesale
solution targeted at operators and MVNOs that want to provide M2M connectivity and services to
their enterprise customers. It encompasses pre-packaged M2M connectivity tools; core network,
BSS and OSS integration; and utilities for subscription management, device management
(including support for bulk provisioning of SIM cards), operator and enterprise self-service portals
(with API integration) and billing. It is designed to help operators streamline the handling of data
traffic, charging, billing, maintenance and upgrade of their M2M solutions. The next step in
development will be to support development, installation and execution of M2M applications.
Ericsson additionally offers systems integration services (solution analysis, design and
specification, development and integration) and consulting services (business strategy, go-to-
market support, operational consulting and technology consulting).
Named customers are Megafon, Pt XL Axiata, Swisscom, Telenor Connexion, TeliaSonera and
Three UK. Telenor Connexion was the first of its customers, acquired in August 2011, when
Ericsson acquired Telenor Connexion's M2M technology platform (taking on 10 staff at the same
time). Swisscom was the next operator on board, announcing in February 2012 that it would be
developing M2M services based on Ericsson's DCP, with a view to opening up what it regarded
as a potential 100 million connected devices market in Switzerland.
The end of 2012 saw a burst of announcements. Pt XL Axiata announced in October 2012 that it
had signed a partnership agreement with Ericsson to use its EDCP. (At that point Axiata already
had 92,000 customers across five M2M services, and it was looking for a platform to help it scale
the business). MegaFon announced a deal with Ericsson in November 2012, including the Device
Connection Platform and utilities market research as part of the agreement, as well as consulting
services and support to develop the M2M business in Russia. TeliaSonera Global M2M Services
announced in November 2012 that it would be using the Ericsson platform – mainly for the Nordic
and Baltic markets. Three UK announced in the same month that it would be targeting MVNOs
using Ericsson's platform. It promises to enable them to go live on its network within three weeks.
Three gives its wholesale partners access through their own portal to tools with which they can
activate and deactivate their own connections, track data usage, set alerts and apply data caps.
Figure 8: Ericsson M2M Platform for Network Operators: Details

M2M access network types supported Mobile


M2M payload data analytics No
M2M data storage No
M2M data mediation/transformation No
G. HP
HP has developed a suite of M2M solutions for telecom operators and has capabilities to enable
them to serve multiple vertical industry sectors (within which it has been providing bespoke M2M
solutions for some years).
According to Larry Marson, Director, Applications and Cloud Enablement, HP Communications

and Media, "Service providers want to move up the value chain, offering infrastructure as a
service, device management and business applications as a service." One area he says they can
increase the value they add is in the M2M market. "If there is a SIM card in a device, operators
can use it to deliver a wide range of things alongside communications – applications ranging from
telemetry to advertising."
HP offers an end-to-end M2M solution to telecom operators. This is not based on any individual
product or solution. Rather it is provided by leveraging several elements of its portfolio, and
according to Marson, "optimizing the service provider network by providing specific components
so the network is M2M-ready." HP promotes a blueprint or architecture for M2M service,
demonstrating how those portfolio elements – and the things an operator brings to the table (such
as carrier billing) – can create a compelling proposition. Important elements of HP's portfolio are:
· Communications infrastructure (including provisioning of gateways and devices using

dynamic provisioning and management of SIMs and devices, M2M policy enablement,
M2M AAA, M2M HLR).
· Data and service management (to help manage M2M devices, collect and process
operation and payload data). Includes data transformation from multiple sources and
formats, mediation between devices and real-time analytics (using the technology to
analyze large volumes of unstructured data that HP gained when it acquired Autonomy).
It also includes the ability to manage M2M devices, SIMs, application and network data in
a consistent environment.
· Service orchestration utilities – to give access to data and provisioning services through a
common platform, with dedicated self-management tools for M2M customers and M2M
administration tools for service providers.
· Cloud solutions to support hosted third-party M2M offers.
· Portals for developer access to APIs and for sale of applications to enterprise customers.
· Ecosystem management (tools and frameworks help build and manage ecosystems of
M2M vendors and to develop third-party offerings).
HP has been partnering/working with operators in several countries to develop M2M platforms
and ecosystems. It supports the provision of complete M2M-as-a-service solutions to the
operators' own customers within different vertical sectors.
In EMEA, HP is providing smart metering management for several customers, leveraging its M2M
platform. In Asia/Pacific, HP is working with a local health authority and a local operator. The
operator is delivering the cloud ecosystem. Internet service vendors are bringing end devices and
applications (such as a cardiovascular monitor in a watch).
HP offers different business models for its M2M solution including deployment within an
operator's own premises, or as a managed service delivered by HP managed services. Cloud
solutions can be based on private cloud, public cloud or hybrid environments. HP also works on
both opex or capex models with its telecom operator customers/partners.
Figure 9: HP M2M Platform for Network Operators: Details

M2M access network types supported Mobile, Fixed, Wi-Fi, Radio Low Frequency
H. ILS Technology
ILS Technology provides telecom operators with an M2M application platform designed to
complement other M2M platforms that focus on connectivity. According to CEO Fred Yentz, the
company's strategy has been to "make M2M configurable, instead of being a programming
exercise." He says that most companies have back-office infrastructure – ticketing, CRM, ERP,
fleet management, etc. – and that what they need to do is feed those systems with real-time data.
ILS Technology aims to makes those connections seamless, so customers can click to select a
driver, click to select their logic, and point and click to configure on the back-office side.
The company's key solution for telecom operators is DeviceWise. DeviceWise M2M is an M2M
Application Platform that provides device-to-device, device-to-database (for data collection and
collaboration) or device-to-application (for asset management and business processing)
communications. It is available as enterprise software, a gateway device or an embedded agent.
Delivered as a managed service DeviceWise is integrated with the networks of AT&T, Verizon,
and Vodafone, and with an ecosystem of partners, including cellular gateway OEMS (CalAmp,
MultiTech, and Kontron), IT software vendors (SAP, Oracle, IBM) and systems integrators (Avnet
and Arrow Electronics).
Yentz states that one of the differentiators his company offers is a robust driver library. It has
drivers that enable it to integrate back office enterprise business tools (such as databases, ERP
and analytical tools) to a very wide range of devices native to the energy, building automation,
automotive, semiconductor, data center and industrial automation equipment markets. This – he
argues – makes it attractive to large enterprises with many types of equipment and control
systems they want to connect. As its M2M platform is vertical-industry agnostic, they can use a
single platform to connect all their devices.
The drivers are delivered on its Enterprise Gateway, which can either reside in the operator's
datacenter or in a hosted cloud implementation. ILS Technology operates data centers in the
U.S., Taiwan and the U.K. According to Yentz most network operators – although they are
interested in knowing how the solution could be deployed in their network – initially opt for a
cooperative network solution, with their transport delivering data to ILS's datacenter and then
back out to customers. Other key features of ILS Technology's solution include:
· Edge processing – so data can be processed before being sent across the network
· Edge analytics
· Exception, time and event-based reporting to optimize the communication traffic between
devices and applications
· Its rules engines can be embedded on devices – which it regards as a big differentiator
· M2M proxies to support interaction with devices using legacy protocols
· Management portal – user and organization administration, provisioning management,
usage based billing and integrated support and trouble ticket system. Security. CDP
integration for provisioning and CDR interface.
· deviceWISE Enterprise Gateway – platform interfaces with customers' back office
solutions (SAP, IBM, Oracle, Microsoft)
· ILS deals with any type of M2M access connection – whether wired, wireless or satellite.
The company provides a Deployment Kit to enable testing before production deployment – a full
solution-in-a-box is available for $3000 so that customers can get it working before they commit
to a production system purchase.
In February 2011, ILS announced that Verizon Wireless had agreed to use its deviceWISE M2M
platform as a component of the Verizon Wireless M2M Management Center, enabling Verizon
Wireless's customers to connect any Verizon Wireless certified device to back-office, field service
applications or infrastructure over Verizon Wireless's mobile broadband network.
According to Yentz, carriers are most successful if they sell alongside M2M specialists when they
enter the M2M market. "We offer co-marketing. Carriers can buy our plan and receive an OTT
managed service. Once they have become comfortable and know how the value proposition
works, then the carrier can resell our service. And ultimately we expect they will move to a peer
installation in their own networks (which we would manage for them)." Telecom operator
deployments of ILS Technology's solution are typically white labeled.
ILS Technology also works with a range of partners to serve different vertical sectors, and
typically goes to market with an OEM approach outside the U.S. Alliances announced in 2012
include relationships with Skywave (SCADA integration), Option (DeviceWise CloudGate 3G
Gateway), Industrial Networking Solutions (systems integrator), ITOCHU Techno-Solutions (to
provide services in Japan) and KORE (combining the latter's PrismPro connected device platform
with ILS Technology's DeviceWise platform).
Figure 10: ILS Technology's M2M Platform for Network Operators: Details
M2M access network types supported Fixed, wireless, mobile and satellite
Subscription management No
Yes (OTT message service and rating and charging

Rating & charging provided. Network CDR provided through view into
carrier's CDP)
M2M payload data analytics Not typically. Can be provided on request
M2M data storage Not typically. Can be provided on request
I. Jasper Wireless
Jasper Wireless was founded in 2005. A privately-held company, it is backed by Benchmark
Capital, Sequoia Capital, Bridgescale Partners, DAG Ventures, Integral Capital Partners,
Crescendo Ventures and AllianceBerstein. It provides a cloud-based platform, applications and
design services for mobile operators and enterprises wishing to compete in the M2M and
embedded device markets. Its solution has several elements:
· The Control Center platform for enterprises – to support self-service provisioning,

customer care, subscription management and cost management for enterprise customers
running M2M operations.
· A M2M Developer Program – this enables potential customers to access a real-time
testing environment, API suite and all other Control Center tools prior to their purchase.
· The Jasper Service Manager platform for operators. This offers automation of operational
processes, including zero touch provisioning and activation, instant activation, real-time
diagnostic tools and detailed billing and usage reports.
Jasper operates the network and makes the processes smooth, but it does not get involved in the
data management. According to Macario Namie, Jasper Wireless's VP of marketing, "the
enterprise takes responsibility for exporting network-related data from the platform and combining
it with the app data." Jasper does not look at the app data itself.
In January 2013, Jasper Wireless launched its Catalyst go-to-market program to help mobile
operators bring their M2M solutions to market more quickly. The program includes sales and
marketing training and materials, a branded developer kit (including built and hosted ordering site
to provide automated provisioning of prospective customers onto the branded Control Center)
and relationships with over 200 vertical market specialists that have pre-integrated their solutions
with Jasper. The vertical specialists offer apps in diverse fields such as consumer electronics,
mHealth, home automation and security, vehicle telematics, fleet tracking and management,
safety, security, finance/POS, vending, smart grids and asset monitoring and tracking. After
service launch by the operator, Jasper also provides designated sales engineers to help
operators sell solutions to their enterprise customers.
Of all the M2M platform providers, Jasper Wireless has the largest announced base of telecom
operator customers, and between them those operators serve over 2,500 enterprises. Unlike
some of its competitors, Jasper does not serve enterprise customers directly – it is 100 percent
focused on meeting the needs of the mobile operators and Enterprises. That said, Namie points
out that Jasper's brand is clearly visible. "The operator will typically offer a co-branded product,
and Jasper Wireless will help to on-board the enterprise customer to the system."
Jasper is very much focused on the mobile market. It does not serve fixed or Wi-Fi-based M2M
deployments. "It is just a focus thing rather than a technology thing," points out Namie. "There are
plenty of opportunities in the mobile network." Namie cites Jasper's enterprise understanding as a
real differentiator. "We have over 2,500 enterprises on the platform," he says. "We get insights
from that customer base about what will be needed long before anyone else. It is a network effect
that is hard to replicate."
In December 2012, NTT Docomo announced the launch of a global connectivity solution for M2M,
providing M2M communications services in over 200 countries, using both Docomo's network,
and roaming on partner networks. Docomo's service uses the Jasper platform to provide a single
Web interface to access and enable provisioning across all the networks (replacing the need for a
separate platform in every country). It enables global device management with real-time
monitoring of data usage and fees, remote activation and decommissioning, and fault diagnosis.
Other customers named in 2012 include AT&T (which is using the Jasper control center so
customers can easily manage the wide range of devices that can be used on its network), Etisalat
(which has based its M2M Control Center on Jasper's Platform), Telefónica, (which has deployed
the Jasper platform in Ireland, Spain and the U.K.) and Optimus in Portugal.
Figure 11: Jasper Wireless M2M Platform for Network Operators: Details
M2M access network types supported Cellular mobile

M2M payload data analytics No
M2M data storage No
J. KORE M2M Systems Group

KORE provides an M2M connected device platform (CDP) called the M2M Service Delivery
Platform for network operators. It is designed to help network operators maximize their M2M
revenues, reduce their service delivery costs and differentiate themselves through operator-
branded and controlled M2M services. KORE's M2M service delivery platform is essentially an
optimized OSS/BSS solution for carriers, with additional service and device connection
management utilities. This includes:
· A provisioning engine
· Connectivity and device management tools, including flexible SIM states, fraud detection,
over-usage monitoring and session status reporting
· PRiSMPRO – a customer facing portal with API-based access into the network enabling
customers to manage their SIMs. It enables features such as IP address management
and activation/deactivation of features such as roaming voice or SMS; as well as
enabling access to different grades of service with SLAs for critical applications.
· An operator management portal
· A M2M-optimized mediation, rating, charging, invoicing and reporting engine
KORE also provides a service wrap, including go-to-market and deployment advisory services,
white-labeled sales and marketing collateral, customized integration, and access to a M2M
ecosystem including application developers, device management solution providers, module and
device manufacturers.
The KORE solution is designed to be deployed inside an operator's network. KORE believes this
is a different approach, as Pat Verrington VP, carrier services development explains: "Other
companies offer a hosted solution. That model is positioning an operator to be a sort of MVNO
rather than owning/running a platform for its own purposes." By putting its M2M optimized stack
into operators' own hardware and data centers, Verrington argues it gives the operator more
control over the platform, the services offered over it, and the data stored within it. "Our solution
enables customers to confidently say that all the data stays within their own network," he says.
Also, unlike others in the market, KORE does not manage the solution. The operator takes over
management of the platform, which runs on an off-the-shelf virtual machine. Verrington points out
that "every operator has an IT department running that type of application and hardware. This
approach resonates, [and makes it easy for the operator to control the deployment and resulting
services and commercial offers]."
KORE offers its platform to operators on a revenue share basis. "That is the same approach as
the hosting companies, and aligns the cents on an opex basis with the revenues," says
Verrington. But he points out that the model can subsequently be flipped into a traditional
capacity based model (based on licensing software based on capacity and SIM numbers) if the
customer wants. "When operators' business plans, revenues, and outlook stabilize we expect
they will want to switch from opex to capex models."
KORE M2M Systems is not to be confused with other companies operating under the KORE
brand – KORE Wireless and KORE Telematics. KORE Wireless and KORE Telematics are
service providers and are separate legal entities operating in Canada, Australia and the U.S. Both
utilize the KORE platform to provide M2M connectivity and value added services to enterprise,
application service provider and developer customers.
Figure 12: KORE Telematics M2M Platform for Network Operators: Details
M2M access network types supported Cellular (2G (GSM and CDMA), 3G, 4G and satellite
No (but offers integrations to third-party M2M
M2M application development
application platforms)
Yes (SIM, customer account and usage related, but
M2M payload data analytics
not payload analytics)
M2M data storage No
K. NEC Corp.
NEC has developed an M2M infrastructure platform called Connexive. Available in the market for
around two years, this is designed to support the introduction of end-to-end M2M solutions across
multiple vertical sectors, and connects all types of devices. Features of its Connexive portfolio
include:
· Connexive cloud service – an ICT platform enabling rapid launch of M2M solutions that
incorporates line provisioning, device authentication and control, device data collection,
control and storage, data analytics, security and interfaces for many kinds of devices. It
offers APIs so customers can build their own M2M applications, and service interfaces
tailored for different M2M services. As a cloud-based solution, NEC provides access to
Connexive from data centers in China, Japan, India, Singapore, Spain (and soon
Argentina and the U.S.).
· Connexive Application Service Provision – a one-stop service that covers devices,
networks and applications. NEC has developed a range of vertical industry applications
including solutions for agriculture, logistics, radiation measurement, energy management,
remote maintenance and asset tracking, healthcare and telematics.
· Consulting services (covering carrier selection, network equipment and authentication
support) and operational outsourcing for customers' M2M services.
One of the ideas behind Connexive is that NEC believes that by bringing different types of data
into one "big data" platform with strong analytics capabilities will enable customers to generate
new value for their businesses. "We are investigating what these solutions can offer to operators
and vendors," says Mr. Izumi, NEC's spokesman for M2M.
M2M Connexive has been deployed in nearly 30 countries. In most cases, NEC works direct with
end clients, buying capacity from operators. However, it does also work through operators.
According to Mr. Izumi, "For B2B, we prefer to provide services directly. For B2C applications, we
prefer to work with telecom operators." The reason for this is that it has strong B2B device and
industry expertise, but it is not a supplier of consumer-type devices, so it feels it makes sense to
work with telecom services providers that do.
It is also working with partners to achieve global coverage, including M2M specialists and telecom
service providers. For instance, in April 2012 NEC announced a strategic M2M service
partnership with M2M specialist Wyless. Under the agreement, NEC agreed to promote Wyless's
advanced management software "Porthos" to mobile operators worldwide, adding it to its
Connexive portfolio. In return Wyless agreed to promote NEC's platform to its customers. In
February 2012, NEC announced a strategic alliance with European MVNE/MVNA Transatel. The
agreement enabled NEC to provide immediate access to M2M services in Europe.
Figure 13: NEC M2M Platform for Network Operators: Details

3G and 4G Mobile, WiMax, Ethernet, Wi-Fi, DSL, FTTH,

M2M access network types supported
ZigBee, low power radio, infrared, Bluetooth, Z-Wave
Subscription management No data
Rating & charging No data
Self-service portals for operators & developers No data
L. ZTE
ZTE's M2M portfolio includes RFID products, M2M modules, a M2M Service Support Platform
and M2M applications.
Its M2M Service Support Platform is designed for telecom operators and M2M service providers
and provides a single interface for accessing and managing devices and the applications those
devices are running. ZTE's platform is designed to provide horizontal integration, so that
operators can manage applications for a variety of different vertical industry sectors. Key
elements of the M2M Service Support Platform include a:
· Service management module, including enterprise access management and application

management
· Terminal management module, offering terminal registration management, configuration
management, status management, asset management, upgrade management and
subscription management utilities
· Service customization module
· Service portal
· Interfaces to business systems, including NMS and billing systems, as well as location
databases
ZTE's platform offers a service creation environment. Its solution integrates with the mobile core
network, service support systems and billing/charging systems, so these are accessible to
developers through Open APIs, as well as information about devices such as terminal status, IP
address, roaming information and SIM status. Open APIs additionally provide developer access
to standard M2M applications.
ZTE promotes a "zero programming" graphic development environment. Customers can use
graphic editing tools, visualized page design and data definition, and drag-and-drop service
creation capabilities.
Smaller customers can rent usage of the platform rather than buying it outright.
Figure 14: ZTE's M2M Platform for Network Operators: Details

M2M access network types supported Mobile cellular

Rating & charging Interfaces to billing systems
M2M payload data analytics No data
M2M data mediation/transformation No data
V. Conclusions
Telecom operators have the opportunity to grow new businesses in the M2M market; but to
achieve this they must optimize and automate business processes to drive out cost. At the same
time, they need to support highly customized, highly unique services for every M2M customer.
Managed, cloud-based M2M solutions offer telecom operators a swift means of entering the M2M
market with services that cater for a wide range of different customers and industry sectors. Their
solutions support automation of many of the M2M deployment, provisioning, operation,
management and maintenance processes. And managed M2M platform providers have managed
to sign up many of the world's biggest telecom operators as customers.
Ultimately, many of the biggest telecom operators will want end-to-end control of their M2M
platforms, and we can expect to see more of them launching their own in-house platforms,
despite their existing or imminent relationships with managed service providers.
Telecom operators are not expected to cut the managed M2M solution providers adrift though.
Managed M2M solution providers will enable operators to cost effectively provide global services,
and to efficiently and effectively serve their customers in national markets where they have little
or no presence. Longer-term we expect managed service providers' roles will evolve from market
entry facilitators to global support facilitators.
Network effect will be critical. Carriers will be attracted to M2M platforms that offer the best global
reach (one point of integration and access to the maximum number of networks worldwide) and
the best vertical market support (the broadest range of vertical market partners and applications).
Many M2M platform providers targeting telecom operators are heavily emphasizing (and in some
cases focusing solely on) licensed mobile cellular connectivity options. This is leaving several
customer markets – where Wi-Fi and other unlicensed wireless technologies like ZigBee,
Bluetooth, etc., fixed connectivity, infrared, satellite and other connectivity options are needed –
wide open for specialists and system integrators.
Editor: Dennis Mendyk (mendyk@heavyreading.com)
Research Analyst: Simon Sherrington (sms@innovationobservatory.com)
Support: www.heavyreading.com/insider (support@heavyreading.com)
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VOL. 13, NO.

Managed M2M Platforms: Report Highlights

· M2M Market Trends Cloud-based managed

· Cumulocity Network effect will be

· Experience running service businesses

C. Challenges Facing Telecom Operators

· The need to evolve their relationships with enterprise customers

D. Operator Strategies for Serving the M2M Market

· Systems integrators that can deploy a bespoke solution

Network operators have not traditionally enjoyed much

This, in turn, has created an opportunity for suppliers.

These M2M platform providers vary widely in terms of the

Extent of Value Chain Coverage

Most offer some sort of operator and enterprises portals for

Others support further data manipulation through storage,

Cloud vs. On-Premises Deployments

M2M Connectivity Options

Aeris Sprint, plus resale

Alcatel-Lucent Both: multi-tenant Capex model and Verizon Wireless (Mobile

Axeda Typically, resale,

Ericsson Megafon, Pt XL Axiata,

America Movil (for

NEC Transatel (MVNE),

Figure 3: Aeris Communications' M2M Platform for Network Operators: Details

· Communications Controller: This provides connection management, routing and

Figure 4: Alcatel-Lucent's M2M Platform for Network Operators: Details

M2M access network types supported Fixed and mobile

Figure 5: Axeda's M2M Platform for Network Operators: Details

Its portfolio includes:

Fixed, Internet, licensed and unlicensed wireless

· Developer platform – offering REST-based open APIs for customer application

Figure 7: Cumulocity's M2M Platform for Network Operators: Details

M2M access network types supported Mobile cellular only

Figure 8: Ericsson M2M Platform for Network Operators: Details

M2M access network types supported Mobile

Rating & charging Yes

According to Larry Marson, Director, Applications and Cloud Enablement, HP Communications

· Communications infrastructure (including provisioning of gateways and devices using

Figure 9: HP M2M Platform for Network Operators: Details

Yes (OTT message service and rating and charging

· The Control Center platform for enterprises – to support self-service provisioning,

M2M access network types supported Cellular mobile

J. KORE M2M Systems Group

Figure 13: NEC M2M Platform for Network Operators: Details

3G and 4G Mobile, WiMax, Ethernet, Wi-Fi, DSL, FTTH,

· Service management module, including enterprise access management and application

Figure 14: ZTE's M2M Platform for Network Operators: Details

M2M access network types supported Mobile cellular

Editor: Dennis Mendyk (mendyk@heavyreading.com)

Research Analyst: Simon Sherrington (sms@innovationobservatory.com)

Support: www.heavyreading.com/insider (support@heavyreading.com)

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DISCLAIMER OF WARRANTY AND LIABILITY

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