October 15, 2014
M2M Cloud platforms help Mobile Network Operators (MNOs) develop services, manage and assemble service packages that telcos would otherwise have to integrate themselves, reducing both time-to-market cycles and CAPEX for product launches. Axeda and Jasper have adopted vertical-focused M2M cloud platform strategies to help MNOs capitalize on the IoT and M2M opportunity.
It is high time for MNOs to assess the IoT and M2M market opportunity in their markets. The explosive growth in cellular connected devices and intelligent assets is driving opportunity to MNOs to increase revenue by offering Internet of Things (IoT) solutions that extend their M2M (Machine-to-Machine) connectivity services. The M2M cellular services have become a fundamental part of the MNOs strategy. In emerging regions, the number of mobile M2M connections will represent 1-3% of total mobile subscriptions by the end of 2014. We are projecting that contribution to triple by 2018.
To compete effectively in the M2M space, MNOs globally are developing partnerships with established technology vendors that allow them to accelerate time to market and create customer value through innovation. One such example is AT&T in the US. Pyramid Research believes that AT&T’s collaboration ecosystem, which includes Jasper Technologies, Axeda and Wipro, could be a model for mobile operators in emerging countries. In fact, leading operators such as Claro, Telcel and Tigo already seem to be moving in this direction, having replicated the AT&T model by implementing Jasper’s management platform themselves. By implementing technologies like that of Jasper, MNOs can start generating revenue in 4-9 months, depending on the architecture they choose and how motivated they are.
Under this model, AT&T has adopted a central role in promoting technological collaboration between the value chain players, including system integrators, technology vendors and vertical specialists. Through this collaboration ecosystem, AT&T has been able to optimize their operational models by providing M2M service management, real-time engagement, support diagnostics, billing and business automation to their M2M clients. Working with technology vendors, they can develop customer management and development sites that will serve as hubs for developers and business administrators. Also, to serve the needs of multinational firms, MNOs need to look for partners to launch and globally scale connected M2M service businesses.
Technology vendors such as Axeda and Jasper are now driving a transformation of how MNOs can orchestrate their M2M network and M2M value-added service portfolios for businesses. These leading technology vendors are providing cloud-based platforms to help telcos optimize the process of developing, integrating, marketing, selling, supporting M2M connectivity and M2M cloud services tailored to multiple verticals. In addition, Axeda and Jasper have introduced new business models as a way to mitigate the risk for telcos when they switch to cloud-based services.
The cloud aggregation platforms made possible by Axeda and Jasper’s offerings will improve customer lifetime value and ownership by reducing churn and acquisition costs as well as by increasing ARPU. However, the most important benefit for mobile operators is unquestionably that they gain the capability to upsell their M2M connectivity services by creating value-added services and to offer network service-level agreements (SLAs) to businesses.
Pyramid Research believes that the adoption of these types of platforms will be crucial for MNOs to overcoming the risks associated with the competitive environment. With the exception of some multinational operators, such as Telefonica, Vodafone, or Deutsch Telekom, MNOs in emerging countries should avoid the temptation to develop their own M2M management and application platforms. The complexity of M2M VAS development and deployment demands a continuing operational and commercial effort. MNOs should instead consider partnering with well-established technology vendors in order to accelerate time to market and create customer value through innovation. To minimize financial risks, MNOs should look to establish revenue-sharing arrangements with technology vendors.
— Daniel Ramos, Senior Consultant
Join Daniel Ramos, Senior Analyst for Pyramid Research and Dan Murphy, VP Marketing for Axeda as they discuss:
- Key research findings and recommendations from Pyramid’s latest report: Cellular M2M Services in Latin America: Redefining the Role of Mobile Operators. Learn about the report here.
- Case Studies in telematics, fleet management and smart city market sector in Latin America
- How an IoT platform can help Telco and Mobile Operators manage and build innovative applications
Register for this webinar to get an exclusive get key findings and recommendations directly from Pyramid Research’s Senior Analyst and to learn how your organization’s customers will benefit from IoT and M2M services.
- Date: Oct 21, 2014
- Time: 11:00 am EDT
- Session Details: Duration 55 min
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