M2M Now Magazine February / March 2015

IN O U AF YO N E LO SE CE R A B

M2M Now: ISSN 2046-5882

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CONNECTED DEVICES

TALKING HEADS Telit president Yosi Fait reveals IoT’s impact on enterprise IT

TRANSPORT & TELEMATICS How can mass market potential be maximised?

Our Exclusive Analysts’ Report in the April issue

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How connected devices change roles in IT & operations

AUTOMOTIVE M2M

SMART UTILITIES

mHEALTH

THE BLACK BOOK

Fast forward to connected vehicles See Our Analysts’ Report at: www.m2mnow.biz

Benefits and challenges of making utilities smarter and more dynamic See Our Analysts’ Report at: www.m2mnow.biz

How M2M is improving healthcare efficiency See Our Analysts’ Report at: www.m2mnow.biz

Independent analysis of IoT in 5 Key Industries Read our Analysts’ Report at: www.m2mnow.biz

PLUS: INDUSTRIAL INTERNET OF THINGS: Analysts comment Inside! • Your Guide to #MWC15 in this issue • IoT dealmaking tops US$14bn in 2014 • Arqiva and SIGFOX launch low energy network in UK • Strip mining the Radio Spectrum for low power, long range • Stream Technologies talks on low-power radio • The Contract Hot List • www.m2mnow.biz

P R O F I T

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O F

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D E V I C E S

THANK YOU FOR MAKING US YOUR M2M/IOT GO-TO REFERENCE FOR THE PAST 10 YEARS.

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WE LOOK FORWARD TO A NEW DECADE OF SOLID CONTRIBUTION TO THE BUILDING OF TECHNOLOGY’S MOST EXCITING NEW INDUSTRY. www.telit.com

CONTENTS

27 16 TALKING HEADS

53 CONNECTIVITY

IN THIS ISSUE

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EDITOR’S COMMENT As M2M becomes the IoT, new skills, talents and experience are moving in

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MARKET NEWS M2M module market grows three-fold; LoRa Alliance launched; IoT deal-making passes $14 billion mark

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COMPANY NEWS B&B Electronics becomes B+B SmartWorx; Arqiva launches SIGFOX network in UK; Siemens in partnership with Arkessa

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CONTRACT NEWS & HOT LIST The latest deals for Maingate, SIGFOX and many more

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PEOPLE NEWS New names at B+B SmartWorx, Cyan and International M2M Council

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PRODUCT NEWS SecureRF announces PKI secured NFC tag; nomos launches new integrator tools and platforms; ARM delivers enhanced safety for ARM Cortex-R5 processor

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EXPERT OPINION Oracle’s Dave Hofert, head of IoT strategy, explains how merging IT and Operational Technology can transform Industrial Automation TALKING HEADS How do you successfully connect the enterprise to the edge? Yosi Fait, Telit’s president and finance director talks to M2M Now

20 INTERVIEW Philip Cole, European sales director of Wireless Logic explains the role of managed service provision in M2M and IoT markets 24 EXPERT OPINION Andreas Thiel, executive director at u-blox, introduces the concept of the ‘Internet of Things That Really Matter’ and its importance to industry

27 M2M NOW ANALYST REPORT – INDUSTRIAL AUTOMATION AND THE IoT In this edition’s independent Analyst Report, Brian Partridge, VP at 451 Research and leader of its Mobility Team, looks at how product makers can dramatically improve manufacturing efficiencies and create new business models – and what cultural and organisational factors currently hold some companies back 40 EXPERT OPINION B+B SmartWorx’s Tim Taberner asks whether we can pick up some tips from nature – and specifically social insects – by using ‘SWARM Intelligence’ to solve network scalability problems 42 INTERVIEW Michael Lynch from SAP shows how industrial companies can build entirely new revenue streams through IoT strategies while also increasing their overall efficiency 45 BIZ TALK Oozi Cats, Telit’s CEO on the tangible steps that both companies and the community can take to ensure that the entire M2M/IoT value chain is secure and their brands protected 49 INTERVIEW Two of wot.io’s founders explain how their data exchange service provides users with flexible access to a range of data analytics, management tools and applications 53 CONNECTIVITY SUPPLEMENT Articles and interviews from Gemalto, Stream Technologies, Link Labs and Telit explore the impact of recent developments in radio technologies such as LTE-M and new long-range low-power options 70 AUTOMOTIVE REPORT M2M Now’s Jeremy Cowan looks at the latest news in this increasingly hot sector, including security, telematics, location services and driverless vehicles

Cover Sponsor: Telit Wireless Solutions is a brand of Telit Communications PLC, a global enabler of machine-to-machine (M2M) communications and the Internet of Things (IoT). It provides wireless products as Telit Wireless Solutions, automotive products and services from business unit Telit Automotive Solutions, GNSS modules from business unit Telit GNSS Solutions and services, including mobile connectivity and cloud/backend (PaaS), from business unit m2mAIR. www.telit.com

M2M Now - February / March 2015

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COMMENT

EDITORIAL ADVISORS

Breadth of Vision: an increasingly key asset in IoT Stepping into Jeremy Cowan’s footsteps as the new editor of M2M Now magazine has given me many fresh insights into our exciting sector’s evolution. In my career I’ve been involved with many of the changes that now underpin our deeply interconnected societies, from the first analogue-digital switchovers, through fibre-optics, cellular, IP, OSS/BSS and so on, as well as a number of ‘wild cards’, such as Virtual Reality.

Over the last few weeks, I’ve had a number of fascinating discussions with some leading innovators in the M2M/IoT world that go far beyond just the basic enabling technologies. Drawn from both Alun Lewis, traditional industries as well Editor, M2M high-tech, these people Now Magazine represent the best of ‘joinedup’ thinking, recognising that technology must be understood in wider contexts if it’s to be successfully applied across our personal, social and work lives.

This edition’s M2M Now Analyst Report on the Industrial Internet of Things provides a good example of this (pages 27-39). Brian Partridge, VP at 451 Research, analyses how M2M/IoT are changing the manufacturing environment – but also examines the all too human cultural issues that hold some companies back. Also from an ‘organic’ perspective comes a proposal from Tim

Contributors in this issue of M2M Now We are always proud to bring you the best writers and commentators in M2M and IoT. In this issue they include:

EDITOR Alun Lewis Tel: +44 (0) 1296 660423 alun@m2mnow.biz EDITORIAL DIRECTOR & PUBLISHER Jeremy Cowan Tel: +44 (0) 1420 588638 j.cowan@m2mnow.biz DIGITAL EDITOR Nathalie Bisnar Tel: +44 (0) 1732 808690 n.bisnar@m2mnow.biz

Taberner of B+B SmartWorx who suggests that lessons can be learned from colonies of social insects (pages 40-41). People issues additionally resonate with Telit’s Oozi Cats, who argues on pages 45-48 that human organisational factors are critical in securing the M2M/IoT value chain. Another highly original take comes from Allen Proithis and Tom Gilley of wot.io, who propose that human pattern recognition skills need to be enhanced with powerful tools if we’re to exploit the data now streaming into our systems (pages 49-52).

Finally, in a separate supplement, we take a quick preview of this year’s MWC. At the risk of being thought mildly eccentric, I’m actually looking forward to the event for the first time for some years. The reason? Putting faces to some of the people I’ve enjoyed working with during this issue and continuing what seems like the infinitely open-ended conversation that is at the heart of the Internet of Things vision.

George Malim: Editor of our sister title VanillaPlus, talks to SAP about IoT transformations

Arif Mohamed: IT and comms journalist Arif Mohamed, speaks with Gemalto about security in the M2M chain

Brian Partridge: head of Mobility at 451 Research, Brian Partridge explores the Industrial Internet of Things

Expert telecoms writer Guy Daniels explores the possibilities of lowpower radio with Stream Technologies

BUSINESS DEVELOPMENT DIRECTOR Cherisse Jameson Tel: +44 (0) 1732 807410 c.jameson@m2mnow.biz

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Erik Brenneis, head of Vodafone M2M

Alexander Bufalino, SVP, Global Marketing, Telit.

Robin DukeWoolley, CEO, Beecham Research

Baard Eilertsen, president & CEO, Maingate

Andrew Parker, project marketing director, Connected Living, GSMA

Gert Pauwels, M2M marketing director, Orange Business

Robert Brunbäck, CMO, Telenor Connexion

David Taylor, managing director, M2M, Telefónica UK

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Olivier Beaujard, vice-president Market Development, Sierra Wireless

All rights reserved. No part of this publication may be copied, stored, published or © WeKnow Media Ltd 2015 in any way reproduced without the prior written consent of the Publisher. M2M Now: ISSN 2046-5882

Bill Zujewski, SVP, IoT Marketing & Strategy, PTC

M2M Now - February / March 2015

MARKET NEWS NEWS IN BRIEF

Mobile M2M module market to grow nearly three-fold to US$4.5 bn by 2018 In mid-January, Infonetics Research released its latest Mobile M2M Modules report. “Machine-tomachine (M2M) and the Internet of Things (IoT) are transforming industries and creating tremendous opportunities for mobile M2M module vendors around the world,” said John Byrne, directing analyst for M2M and IoT at the company.

“The market will account for US$1.6 billion in sales this year, driven by M2M services reported by customers of tier 1 mobile operators.”

“Infonetics is forecasting the global mobile M2M module market to accelerate more noticeably in 2015, and ultimately to nearly triple to $4.5 billion by 2018,” Byrne added.

Key findings of the report indicate that while M2M module unit shipments are dominated by 2G today and 3G will soon rule the revenue opportunity with the shift

toward broadband technologies, 4G will emerge as the fastest-growing technology segment in terms of percentage of units.

Geographically, Asia Pacific is growing most quickly, buoyed by the tremendous investments being made in China and the transport segment is the largest and most important vertical sector, driven by connected car deployments. On top of this, regulatory smart grid investments are spurring the utility segment to strong growth that’s expected to continue through at least 2018, as European and Asian countries scurry to meet government mandates.

In terms of company rankings, the report suggests that Gemalto/Cinterion, Sierra Wireless, and Telit continue to dominate the M2M module market, together accounting for nearly two-thirds of total market revenue.

Internet of Things deal-making passed $14bn mark last year Internet of Things (IoT) deal-making activity rose sharply in 2014 with acquirers spending approximately $14.1bn to buy 60 companies during the year, according to a recent report from 451 Research. That spending sets a high watermark for the IoT industry and is nearly eight times the total spent by acquirers in all of the years prior to 2014. The number of deals increased more than twofold from 2013 to 2014 as companies such as Google, Samsung, Cisco, Intel, PTC and Qualcomm either staked out new ground or consolidated their market position in IoT. M&A activity in 2014 was almost evenly split between IoT-enabling horizontal infrastructure and vertical applications. In the infrastructure arena, acquirers notched up 20 deals, primarily targeting a broad range of the sensor, semiconductor, software platform, security infrastructure and connectivity

M2M Now - February / March 2015

technologies needed for IoT to work effectively. Within the verticals, the transport and logistics segment led the field with 11 transactions, followed by the fitness and healthcare segment with 10 transactions. Acquirers also purchased five companies related to the home automation segment.

“Acquirers don’t want to cede anything to the competition as demand for IoT services in both consumer and industrial markets builds,” said Brian Partridge, vice president of 451 Research’s mobility team, “Any firm with the strategic intention of being an IT infrastructure and services leader over the next 10 years does not have the option of ignoring this market.”

Research was based on the 451 M&A KnowledgeBase, which records more than 40,000 technology merger and acquisition transactions since 2002.

New LoRa™ Alliance enables worldwide interoperability Early January saw the launch of the LoRa™ Alliance, created to standardise Low Richard Viel Power Wide Area Networks (LPWAN) – and specifically the LoRa™ protocol (LoRaWAN™) - by sharing knowledge and experience to ensure interoperability between network operators.

The prospective initial Alliance members include leading IoT solution providers: Actility, Cisco, Eolane, IBM, Kerlink, IMST, MultiTech, Sagemcom, Semtech, and Microchip Technology, as well as leading telecom operators: Bouygues Telecom, KPN, SingTel, Proximus, Swisscom, and FastNet (part of Telkom South Africa).

“The LoRa technology is ideal to target battery-operated sensors and low power applications, as a complement to M2M cellular connectivity,” said Richard Viel, chief operating officer of Bouygues Telecom. “The LoRa Alliance is an essential step to ensure interoperability and, therefore, mobility across Europe for our customers.”

Open Mobile Alliance gains another member Stream Technologies announced that it now commercially supports the Open Mobile Alliance (OMA) Lightweight Machine-to-Machine (LWM2M) Standard within its IoT-X connectivity solution offering.

With Lightweight M2M being a new, emerging technical standard for IoT, specifically directed toward remote management of IoT devices, service enablement and application management, the OMA expects LWM2M to become the communications protocol embedded in a majority of IoT devices and platforms.

Alan Tait, CTO, Stream Technologies said, “Stream is excited to be joining the OMA. I really feel that the OMA provides excellent thought leadership not just for IoT and M2M but across communications in general. Standards such as LWM2M are crucial for the development and growth of the internet of things.”

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COMPANY NEWS NEWS IN BRIEF PTC’s Axeda and ThingWorx win multiple excellence awards at CES 2015 in Las Vegas PTC’s two IoT-enabling technology businesses acquired in 2014 – ThingWorx and Axeda – received three awards from Compass Intelligence at CES 2015, the world’s largest consumer electronics show. ThingWorx was awarded both Enabling Technology of the Year and App Development / Enablement Platform of the Year in its category, while Axeda was named Enabling Company of the Year.

“We are honoured to have been recognised for our innovations in advancing the technology that enables the Internet of Things,” said Jim Heppelmann, president and CEO, PTC. “We are focused on giving companies the tools and technology they need to connect their products and create the applications that will empower them to thrive in this new world. These awards validate the strength of our offerings.”

Siemens launches communications technology partnership with Arkessa Siemens is bolstering its portfolio of industrial communications solutions via a new partnership with Arkessa. It is Siemens’ first partnership focusing specifically on its RuggedCom and SCALANCE communication ranges.

Andrew Orrock, CEO at Arkessa, said: “We pride ourselves on delivering solutions that provide precise, consistent and secure management and monitoring from anywhere in the world, regardless of mobile network or indeed the underlying communications technology. We’re delighted to partner with Siemens to support their ever expanding industrial communications ranges.”

Ian Poulett, Industrial Communications and Identification, Siemens UK & Ireland, added: “Following the integration of our RuggedCom and SCALANCE solutions into one business unit, we wanted to identify a dedicated communications solution partner with unrivalled experience in the M2M market.

Delivering secure solutions, which can be deployed within corporate firewalls for example, while enhancing operational efficiency, is at the forefront of our strategy.”

Andrew Orrock, Arkessa

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B&B Electronics transforms itself into B+B SmartWorx B+B’s continued evolution of its latest IoT technologies and changing position in the industry has led the Jerry O’Gorman company to change its name. Its Wzzard Intelligent Sensing Platform for creating wireless sensor networks (WSNs) where customer applications and logic reside at the network edge, and its SWARM intelligence-based cellular edge gateway devices, are being combined to form the B+B SmartWorx IoT Edge Processing Architecture. B+B SmartWorx also plans to increase the intelligence in its connectivity segment, embedding intelligence throughout the network connectivity stack, from edge device to network backbone.

“IoT technologies have inserted more intelligence and complexity into the M2M conversation,” said Jerry O’Gorman, CEO of B+B SmartWorx.

“While companies want the improved data analytics that the IoT brings,

many are stopping short of adoption because of the complexity of integrating existing assets into the IoT vision. For several years B+B has been engineering solutions to bring existing equipment into the IoT conversation, and hence transitioning from connectivity technology to technology for connected intelligence, so the old B&B Electronics image didn’t fit us anymore.”

O’Gorman added, “Our acquisition of Czech Republic-based Conel gave us an immediate pedigree within Europe, and our new technologies build upon this trusted base. With the integration process complete it seems right to combine our identity into a single brand, bringing together the best of what has been achieved in Europe and the US over the past decades.” The new focus on the intelligence in the connectivity piece has also led B+B to invest in software engineering expertise at all of its global locations, including a new team in Galway, Ireland.

Nationwide IoT network launches in UK with Arqiva and SIGFOX UK Communications infrastructure and media services company Arqiva and SIGFOX, the energyefficient IoT connectivity vendor, Wendy have launched the first McMillan sites in the rollout of their IoT network across ten of the UK’s largest cities. The network is planned to make it simple and affordable to connect millions of “things”, helping cities and businesses to improve services, reduce costs and protect property and people. These first ten target cities have now gone live, connecting them to the SIGFOX global IoT network.

Wendy McMillan, managing director of smart metering and M2M solutions at Arqiva, said: “Our network is truly unlocking the promise of IoT.

Together with existing connectivity, such as street-level WiFi, these cities are becoming hubs for digital innovation. A whole host of smart city and intelligent building applications can now deliver strong benefits – from smart parking and waste level monitoring through to connected smoke alarms.”

Rodolphe Baronnet-Frugès, executive vice-president Network and Business Development at SIGFOX, added: “This two-way IoT network eliminates the cost and energy-use barriers to widespread adoption of IoT by UK municipalities and companies. Through this project, Arqiva and the UK are presenting a clear example to governments and network operators around the world of how conveniently the SIGFOX network can help make the IoT’s many projected benefits a reality.”

M2M Now - February / March 2015

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CONTRACT NEWS

Maingate announces first UK energy connectivity deal with SSEPD ICT and M2M specialist, Maingate, has announced a new contract with the UK’s Scottish and Southern Energy Power Distribution (SSEPD), providing a data connectivity solution for the company as part of a major energy efficiency project, Solent Achieving Value from Efficiency (SAVE), which is backed by UK utility regulator Ofgem. While Maingate is

already a lead partner in the SAVE initiative, this deal builds on the company’s role by providing the cloud-based data monitoring and processing that underpins the whole project.

SAVE will trial a range of energy efficient technologies and incentives across 8,000 homes covering urban,

suburban and rural areas. Maingate’s SIM card-based connectivity service will ensure that data can be collected from those homes that do not have a broadband connection. This information will then be integrated with data from other homes using Maingate’s mvio™ platform and shared with all stakeholders in a variety of formats.

OCEASOFT harnesses SIGFOX IoT network with Cobalt S3 sensors for environmental sensing OCEASOFT, specialist in sensorbased solutions for the health, medical, life science and coldchain/transport sectors, has announced a partnership with SIGFOX, along with a new line of Cobalt sensors that transmit data directly to cloud storage without needing traditional cellular or WiFi

service. Cobalt S3 offers all the monitoring capabilities of OCEASOFT’s existing Cobalt sensors, including temperature, humidity, ambient light and voltage, while providing always-on cloud connectivity via SIGFOX’s IoT (Internet of Things) network.

OCEASOFT serves hundreds of clients worldwide and will initially offer Cobalt S3 in areas where SIGFOX has rolled out its network: France, Holland, the UK, and Spain, as well as several major European cities.

THE CONTRACT HOT LIST M2M Now February/March 2015 It's free to be included in The Contract Hot List, which shows the companies announcing recent contract wins or product deployments. Email your contract details to us now, marked "Hot List" at <news@m2mnow.biz> Vendor/Partners ABB, Bosch, Cisco Accenture AT&T Blackberry Geotab Gemalto Greenvity Ikanos Italtel Intel Jasper Jasper Landis & Gyr KORE Lantronix Masternaut Maingate Ooma Orange Orange Business Services ORBCOMM Netcomm Wireless PodsystemM2M QIVICON QIVICON Semtech Semtech Semtech Sierra Wireless SIGFOX Silver Spring Networks Trimble ThingWorx u-blox u-blox

Client, Country Germany Structure, USA LoJack, USA NantHealth, USA Telefonica, Spain SafeNet, USA Mitsumi, Japan ST&T, Taiwan Telecom Italia, Italy Vuzix, USA Telecom Personal, Argentina Telkomsel, Indonesia Powel, Scandinavia Four Faith, China Torquing Group EES, UK SSEPD, UK Nest, USA USAID, USA Eutech Cybernetic, Singapore InSync, USA SPHINX, Germany Arnia, USA Huawei, China Netatmo, France Enverv, USA Link Labs FastNet, South Africa Maingate OCEASOFT, France Detectent, USA Indesit, UK Elisa, Finland, Estonia Cohda, Australia lesswire, Germany

Product / Service (Duration & Value) Announcement of joint venure to develop open smart home platform Acquisition by Accenture of Structure, smart grid specialist AT&T to support LoJack automotive and fleet telematics solutions Partnership to support Hbox, a portable medical monitoring device Partnership to introduce fleet transport telematics across Europe Gemalto acquires SafeNet Collaboration on turnkey solutions for LED outdoor lighting Contract to supply Fusiv Vx500 chipsets for smart home apps Contarct to deliver technical assistance on fixed and mobile networks Intel acquires 30% stake in Vuzix Partnership to provide turnkey M2M/IoT solutions in Argentina Announcement of joint agreement to bring M2M/IoT services to Indonesia Partnership for smart metering solutions Partnership for M2M cellular solutions Incorporation of secure WiFi for ZANO nano drone Contract for telematics services Contract for smart energy connectivity services Ooma Telo home monitoring service now integrated with Nest products Alliance formed to develop African mHealth solutions Contract to host IaaS for iVivaCloud smart city service platform ORBCOMM acquires InSync Distribution agreement for M2M products to key vertical markets Supply of SIM cards for bee hive monitoring service Partnership on smart home developments Partnership on smartphone apps for thermostats and weather station Semtech acquires assets of Enverv, powerline comms and smart grid company Partnership on new long range LoRa module Agreement to use LoRa technology for IoT applications Sierra acquires Maingate Partnership with new sensors and international connectivity and cloud services Silver Spring Networks acquires Detectent, utility analytics specialist Contract to provide GeoManager fleet management and driver safety solutions Deployment of ThingWorx to enable new Elisa IoT service Provision of GPS technology for Vehicle to Vehicle and Infrastructure solutions U-blox acquires automotive short range modules business from lesswire

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More information on these and other News stories can be found at www.m2mnow.biz

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M2M Now - February / March 2015

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PEOPLE NEWS Industrial IoT expert Tim Taberner joins B+B SmartWorx

Tim Taberner

B+B SmartWorx, the newly rebranded B&B Electronics (see page 6), has announced that one of Europe’s leading technology experts in the Industrial Internet of Things (IIoT) Tim Taberner, has joined the company as global product manager for IoT cellular gateways. Taberner is a frequent speaker and widely-published author on IoT topics, having been involved in this space since before the phrase ‘Internet of Things’ was coined. Previously, Taberner has held engineering, sales and marketing positions at Transmitton, Arcom Control Systems, and most recently at Eurotech.

A Chartered Engineer, Taberner has extensive experience in hardware and software engineering, engineering management, technical sales and management, SCADA, cloud-based computing and analytics. He is based at B+B’s EMEA headquarters in Galway, Ireland.

Cyan appoints new VP for Asia to grow business opportunities and expand into new markets

Vikas Kashyap

Cyan, which delivers mesh-based flexible wireless solutions for utility metering and lighting control, announced that Vikas Kashyap has been appointed to the role of vice-president Asia, with responsibility for business development and sales across Asia. Based at the Company’s headquarters in Cambridge UK, Vikas will manage strategic relationships already established in India and China, as well drive existing and new sales opportunities. In addition, Vikas will identify key markets and partners across Asia for large scale deployment of smart metering and lighting solutions.

Before joining Cyan, Vikas held the position of director of sales at Secure Meters (UK) Ltd. Secure is part of Secure Meters Ltd, one of India’s leading energy metering companies and the flagship company of Secure Group.

International M2M Council votes in KORE’s Alex Brisbourne as chairman The International M2M Council (IMC), the largest and fastest growing trade group serving the IoT and M2M sector, announced that KORE CEO Alex Brisbourne has been voted Chairman. Brisbourne was selected for his experience building KORE into one of the main independent providers of broad-based M2M service solutions. He has been a leading voice in M2M for more than 10 years, has been quoted in M2M Now and other publications and served as a presenter at wireless conferences.

Alex Brisbourne

“Alex is a pioneer in M2M and one of the most-recognised executives in our industry. We look forward to his leadership as we continue to grow the IMC and deliver increasing value to M2M members around the globe,” said IMC executive director Keith Kreisher.

OPINION

SPONSORED COLUMN

Streamlining the IoT value chain Gartner recently made the statement that the Internet of Things has reached the peak of its hype cycle. With such a proliferation of both actual applications and visibility, the need to accelerate cost-effective and risk-free creation and deployment of connected devices to the Internet of Things (IoT) is likewise becoming increasingly pronounced.

Although the industry has been very successful, value-chain fragmentation is impacting future growth. There is a clear and compelling need to simplify the value chain, to mask its complexity delivering a one-vendor connectivity offer that spans the full breadth from data collection all the way through to data processing. That way, adopters can focus on the two ends of the connected solution (their intellectual assets and business processes).

Alexander Bufalino, CMO, Telit Wireless Solutions

Entrants know what data they want to monitor and manage. They also know how they will make sense

M2M Now - February / March 2015

of that data, for example. process it into real-time information that is transferred to the company’s ERP system. OSOS delivers the matrix of products and services in the middle which together connect their assets to the IoT. There is nothing complex about the Telit ONE STOP. ONE SHOP. for adopters of the IoT. It delivers a streamlined experience with leading-edge technologies as well as two priceless commodities – expertise and commitment to meeting the demands of our increasingly connected world.

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PRODUCT NEWS

SecureRF announces secure NFC Tag for IoT with PKI authentication IoT security solutions provider SecureRF, has launched LIME Tag™ NX01, a secure Near Field Communication (NFC) tag that utilises Public Key Infrastructure (PKI) technology to deliver identification and authentication solutions that require no database or Internet connectivity when performing an authentication. The ‘passive’ NX01 doesn’t need a battery or other external power source and is

available as an inlay, card, or chip for integration into existing products, labels or tags. The PKI security features address a wide range of commercial applications including credentials, product and brand protection, ticketing, and other high value transactions.

The LIME Tag NX01 provides a dual interface option for both contact and contactless deployment. Both

interfaces, ISO7816 and ISO14443, are supported when using the contact power mode. The NX01 can be used as a contactless card or tag too. In contactless mode, the NX01 can be used with most NFC-enabled smartphones or readers and is supported by SecureRF’s Veridify Smartphone App, which in addition to authentication, can provide visual verification, location, and messaging features.

Safety support opens up markets for ARM Cortex-R5 processor ARM has delivered a comprehensive safety document set for the ARM® Cortex®-R5 processor to drive its adoption in safety-critical applications, focusing on the cost-effective Noel Hurley deployment of more technically advanced systems across multiple sectors including automotive, health

and industrial. The Cortex-R5 is the first in a range of ARM processors to come with a safety document set that semiconductor companies can use to demonstrate compliance with new functional safety standards.

“Functional safety is increasingly important for many markets, including automotive, medical and industrial applications, and ARM is committed to supporting partners wishing to pursue these rapidlyexpanding markets,” said Noel Hurley, general manager, CPU group, ARM.

“The Cortex-R5 processor has a rich set of fault detection and control features and the addition of generic safety documentation means developers can now use it across the broadest range of safety applications.

ARM will be supporting other processors from our diverse product portfolio in a similar way.”

Industrial safety-related systems need to demonstrate compliance to the IEC 61508 standard, and the Cortex-R5 safety document package supports this qualification.

Eurotech’s low-power single board computer with Freescale i.MX 6 Series processor Eurotech has launched its CPU-35113, an ARM-based embedded platform that extends the company’s family of products that enable M2M and IoT services. The CPU-351-13 is based on the Freescale® i.MX 6 series applications multicore processor, operating at speeds up to 1.2 GHz, to deliver superior functionality in a

small form factor that allows for efficient packaging and design.

The flexible platform can be used for a wide range of applications such as retail kiosk displays, medical equipment, and control panels for fitness equipment. With the Everyware Software Framework

(ESF) or the Everyware Cloud Client loaded on the CPU-351-13, any device using this platform is Everyware Cloud-enabled and ready to be part of the IoT. ESF also allows devices based on the CPU-351-13 to be remotely managed for reduced operational costs.

nomos system introduces IoT automation solution to connect any device to the world nomos system AG, the automation software platform, used CES to announce three new products: An IoT OEM automation package available as a white-label box that includes selected hardware or a software-asa-service licence only; an IoT Development Platform that gives

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users the tools to build their own automation product, employing the nomos multi-protocol gateway to speed development and help users gain interoperability among their own devices as well as third-party devices; and a System Integrator Tool that provides a personalised and

customisable user interface to connect one product universally. The nomos software platform offers flexibility, including but not limited to lighting, heating / aircon (HVAC), energy management, security / CCTV, AV distribution and entertainment.

M2M Now - February / March 2015

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EXPERT OPINION

EXPERT OPINION:

Dave Hofert, IoT strategy and business development at Oracle

The Internet of Things equation: IT + OT = Success As an IT company, Oracle might have a lot of credibility with over 400,000 customers. However, when working with customers on Internet of Things (IoT) engagements in Industrial Automation (IA), it’s very typical for them to wonder why I’m there, says Dave Hofert. While we do have products such as Java that run on devices, a lot of our value-add comes from bringing our nearly 40 years of IT expertise to the IoT space. Many of the challenges IoT faces such as security, identity, and managed device lifecycle are challenges that both Oracle and the wider IT sector have spent decades trying to resolve.

IoT is, at the core, a data-driven business operations process that seeks to better understand business operations or business customers. IoT is not a closed, static or finite process and, in many ways, IoT solutions are never complete. Data is gathered, analysis is performed, and insights are gained about how processes or equipment should be tuned or adjusted. Then new data is collected to observe how those adjustments worked - and then repeated again.

This iterative process is never completed because the equipment and processes involved are not static. The key point here is that new skills are needed to manage this process. Team members will be needed who are skilled both in data

analysis and in identifying what data actually matters to your processes and your wider business.

Obvious and not so obvious reasons why IoT is a good idea The obvious reasons for IoT in IA are to improve plant efficiencies and reduce costs. These efficiencies come from collecting better data from processes and machinery to optimise maintenance cycles, improve equipment utilisation, and minimise downtime from failures or accidents. Collecting data isn’t new. What has changed is that we can now collect more - and better - data across the plant, combining it with other environmental data to develop new operational insights. While IoT should be driven ▼

What IoT is – and what it is not

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M2M Now - February / March 2015

by business/operational needs, adopters initially often collect a lot of data and then wonder what they should do with it.

Beyond IoT, there are other interesting possibilities to consider such as sharing data with suppliers upstream and customers downstream.

With the right IoT techniques, any company can safely share data with their partners to improve overall quality and efficiency. In fact, sharing data openly can lead to interesting new extensions to your current business as ‘things’ become services.

Products can transform into services Many traditional IT functions have been transformed into services which are delivered via web-based requests. These services use standard interfaces (web protocols/formats) to access deeply embedded ERP or CRM data. This transformation has opened up access to business data for partners and internal staff and dramatically improved efficiency.

Manufactured products are now becoming services. One manufacturer I met recently makes standard vehicle parts. These parts are bought, consumed, and replaced every day. Via an IoT model, they can now sell this product by the mile instead of by the unit! They capture operational data via embedded sensors, enabling them to monitor product usage, maintenance, and the need for replacement. The data is captured locally by a gateway that wirelessly sends the data on to the manufacturer.

Why sell by the mile? The company optimises the product life for their customer by offering the monitoring service. The company also collects performance data on the product across vehicle types and customers to evaluate product design.

Ensuring proper maintenance helps support the brand value for quality. Thus, what was a very commonplace, everyday product has been transformed into a service, bringing significant, incremental value to both the producer and the consumer.

The success equation: IoT = OT + IT “IoT” is well named because it represents the merger of “IT” or Information Technology and “OT” or Operational Technology. While these technology spaces usually exist on different sides of a company, IoT solutions must combine them if they’re to work successfully.

The OT world is well acquainted with data collection in the physical world having done this for decades. While data collection has increased, one ongoing challenge has always been interfacing with so many custom or semicustomised solutions. Individually they might be fine, but they’re hard to scale and maintain. And, in addition, IoT solutions require connectivity and, of course security.

By contrast, IT works in a well-defined physical environment – the data centre. IT has evolved into a scalable and flexible resource supporting diverse internal business systems. But IT systems

have not yet seen the diversity and scale of nodes that will provide inputs in an IoT model. It’s one thing to have hundreds of servers and thousands of desktops, but hundreds of thousands of sensors and gateways will create a new challenge.

The ultimate recipe for success is for OT to leverage IT standards and management capabilities while continuing to deploy components in operational environments. IT meanwhile needs to provision, secure, and maintain an order of magnitude more devices found in the factory, or elsewhere. For example, Oracle has a large trucking company customer who went through this process1. They recognised the value of collecting operational and tracking data from their fleet of 11,000 trucks and 44,000 trailers, but discovered that their IT infrastructure couldn’t support this level of data exchange.

Restructuring IT allowed them to capitalise on this investment and enable their operational systems to collect data and take guidance. While trucking is different than IA – the same principles apply.

The company optimises the product life for their customer by offering the product as a monitored service.

The company also collects performance data on the product across vehicle types and customers to evaluate product design

The benefits of platforms and standards Embedded devices usually have hard constraints such as size, memory, cost, etc. and perform narrowly defined sets of functions. In the IT space, the focus instead is on systems that are both networked and expected to run a wide range of tasks on many different kinds of data. There is also a complementary strong focus on security and availability. Over time, standard practices emerged for data and software management, and were codified into formal standards and platform products.

IoT’s need for flexibility, connectivity, various data types, and enhanced security means that IT platform models have value for OT. Using a platform model means that unified development teams can decide where best to process data and decisions anywhere from the machine to the server. For example, a Java-based intelligent gateway can execute the same exact analytic code on the factory floor as that running on a remote IT server. This edge-based model helps respond to situations sooner, and also helps compress the vast amounts of raw data from many sensors into information that is more compact and transmitted more easily. These gateways can also drive better HMI displays to offer plant operators a clearer view of process operations within the context of the overall factory. And best of all, development teams from IT and OT can speak one common language using one consistent environment. Agile processes will need this level of integration to move as quickly as the markets that we’re all now serving.

Closing thoughts Even at this early stage, it’s transparently clear that businesses using IoT models can deliver more value to their customers. The good news is that many Industrial Automation companies already have their own secret weapon sitting in their IT departments – development and deployment standards and models that can be applied to the factory floor.

1 “Vehicle for Change”, Oracle Profit Magazine, August 2014

M2M Now - February / March 2015

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TALKING HEADS

Connecting the Enterprise to the Edge How connected devices are changing the role of IT and operations Boundaries – whether in the physical world or the digital one – are always problematic. Countless conflicts over the centuries have revolved around inappropriate or inaccurate lines drawn on maps; restrictions on goods or people crossing those boundaries; or subversive challenges to established frontiers. Over recent years, convergence technologies have seriously eroded many types of boundaries in both our public and private lives – and the world of IT and the enterprise are no different. M2M Now’s new editor, Alun Lewis, recently spoke with Yosi Fait, president and finance director of Telit Communications about the transformations now inexorably happening to both IT and operations domains.

YF: However advanced most company’s Information Systems (IS) have become, they still largely rely on remote or ‘outside’ data from the edge of the enterprise that is either derived from historical averages, looked up on actuarial tables, or requires human intervention and input. The Internet of Things (IoT) is about to change all that as it implies connecting every information asset directly to the enterprise’s information systems, no matter how remote its location or how small the size of the data load and information content involved.

The arrival of this new disruptive force is overwhelming CIOs and their Management Information Systems (MIS) organisations. From inside a company, a CEO, their executive peers and other managers can’t help but turn up the intensity and scope of demands for this information from the edge. From the supply side, every traditional vendor the CIO works with has conjured up a solution story for the IoT and isn’t sheepish about delivering it.

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That said, whoever delivers the IoT data connection between the edge assets and the enterprise IT environment must do so in a way that feels just as straightforward as plugging in a network patch cable – something literally that simple: one click on the edge side and one click on the enterprise services side, whether cloud or server. Anything else more complicated will do a disservice to the enterprise and become a potential blemish on a CIO’s plans for a brilliant career path.

M2M Now: M2M or, as you define it in this context - the Industrial Internet - has developed over the years to address specific operational considerations, often in the process creating silos of data within the larger organisation. How can IT and operations join forces to create a broader view of company data and, from that, deliver actionable information across the different business units involved?

YF: Decision making is especially tough when you try to translate strategic planning into tactical execution out in the real world. To do this successfully, you have to stay constantly focused on the company’s core business and on the specific strategies being used to improve ▼

M2M Now: The reach of the Internet is now extending into an ever-increasing variety of business assets. What’s going to be the impact of this on traditional enterprise IT?

M2M Now - February / March 2015

productivity. However, to do that more effectively than the competition, companies need more and more to leverage the information that resides at the edges of their business.

Against that backdrop, operations leadership and business line managers also need to find meaningful ways of sharing their data across the wider organisation if they’re to drive better decision making.

To do this, they need to leverage a uniform - and necessarily complex - set of technologies and services across each of their connected applications: these days, this includes connectivity hardware and network and value-added services, as well as a cloud-based service which is able to speak seamlessly to their ERP, irrespective of which vendor’s ERP they use. On top of this, they’re also likely to need help building, certifying, deploying and managing these connected assets.

At Telit, we have spent the last few years extending our footprint right across the value chain in order to simplify this whole process and help both IT and operations mitigate risk, reduce cost and complexity and speed their time to market. We call the approach: “ONE STOP. ONE SHOP”.

By delivering all the building blocks either together or selectively from an a la carte menu, we are able to help address unique operational considerations in a way that is both simple and palatable for IT needs across the entire enterprise.

As a result, both operations and IT end up becoming ‘hero’ organisations, capable of together delivering never-before-seen economic value to the entire organisation – whether the stakeholders involved are C-Suite executives, investors, staff or customers.

M2M Now: You just touched on economic value – and we both know that projections of the eventual economic impact of the Internet of Things are massive. What’s your take – are these bold claims overblown, or even possibly understated?

Yosi Fait: Extending our footprint across the value chain

▼

YF: For a large and well-established company to deliver double-digit growth for even a few years in a row takes genius. To do it for decades demands a top-down strategy that breaks with traditional management styles. Telit has experienced exceptional growth: a 25% year-onyear average for the last five years.

And, while doing that, we’ve also played a significant part in expanding the M2M market.

M2M Now - February / March 2015

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TALKING HEADS

About Yosi Fait: Mr. Fait is a Certified Public Accountant and has held a number of executive positions with private and public companies. Yosi's previous roles with listed companies have included CEO of both Alony Group and H&O. Yosi also served as CFO of Pelephone Communications Ltd, the first cellular operator in Israel. He began his professional career as an accountant with Ernst & Young Israel.

In his position at Telit he is responsible for Finance, Operations, Legal and IT – and, as a result, has a first row seat from which to view the transition described here.

“The good news, when it comes to the Industrial Internet, is that we are not merely ‘adding on’ security as an afterthought, as has often happened with other technologies in the past.”

The Gartner Group just came out with a statement that they believe IoT has reached the hype peak. That report presents astonishing figures – predicting a positive global economic impact that approaches the size of the entire U.S. economy. Am I willing to go that far? Not yet.

Am I willing to stake a claim that we will continue to accelerate both our growth and the wider growth of the Internet of Things at a double digit rate year-over-year for the foreseeable future? Absolutely!

examine security, privacy and end-to-end protection for IoT data from the perspective of solutions such as:

M2M Now: As the number of entry points to the Internet proliferates – far exceeding human numbers on the planet today, concerns about security are naturally becoming more and more prevalent – and, in fact, could reasonably be said to be one of the main barriers to adoption, especially with the increasing oversight of IT departments across these initiatives. What is being done to ensure privacy and security for this new form of the Internet?

• Telit’s unique ATOP module for automotive customers takes hardware-based security one step further, dedicating one of the module’s three processors exclusively to data encryption and offering a Hardware Security Module (HSM) on board to store and protect cyphering keys.

YF: I think this concern is natural – just as it was at the beginning of the smart phone and tablet phase when IT organisations spent countless hours drafting ‘Bring Your Own Device’ strategies to ensure enterprise data security. Of course, rightly or wrongly, concern about personal devices in the workplace has abated to the point that it is no longer even considered. Why? Certainly not because these devices or their manufacturers claim absolutely impenetrable security. Instead, it’s because a combination of advanced security measures with the undeniable benefit that such devices bring to both the enterprise and the individual have become acceptable.

The good news, when it comes to the Industrial Internet, is that we are not merely ‘adding on’ security as an after-thought, as has often happened with other technologies in the past.

When you are talking about mission and even potentially life-critical applications, Denial of Service (DoS), hacking and other attacks present simply unacceptable risks.

As a result, Telit has made data security its top priority for our ‘ONE STOP. ONE SHOP’ offering.

We see end-to-end cyber-protection for both IoT data and privacy as a fundamental requirement for providers in our space.

In Telit’s efforts to increase consumer and industry awareness, the company will continue to

• Embedded SIM: More than just a way to ruggedise SIM technology for the unique environmental requirements of M2M communications, an embedded SIM approach protects both service providers and their end users from SIM tampering. Telit offers multiple modules equipped with GSMA standard embedded SIM.

• Our m2m AIR Cloud application enablement platform is based on deviceWISE, the most secure middleware for IoT on the market according to ABI Research. Created by ILS Technology, a Telit company, deviceWISE applies the lessons learned from our industryleading secureWISE platform (nearly universally used to protect super high value intellectual property in play in semiconductor manufacturing) to enable file-level security. As a result of this approach to data security, information that is transferred from edge devices to the deviceWISE cloud is both transferred over a secure transport system and stored in a secure environment.

M2M Now: So, looking ahead, what do you see as the eventual role of IT in our connected future?

YF: I think we are at a true turning point for IT in the enterprise: a moment in which the IT organisation moves from being a pure service organisation to become a truly strategic asset.

Going far beyond setting and policing e-mail policies and outfitting new employees with laptops, we are already witnessing a major shift, particularly as it relates to cost savings and the provision of support for strategic initiatives like CRM as well as operational initiatives like asset tracking.

I expect the CIO to become even more central to the boardroom of the future as she or he delivers the real-time intelligence on which business decisions are made – ultimately becoming the seat of differentiation in our infinitely connected world.

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M2M Now - February / March 2015

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INTERVIEW

Philip Cole is the European sales director for Wireless Logic Group. He started his career in the IT industry in the late 1980s, and with co-founder Oliver Tucker, established Wireless Logic in 2000, which was purchased in 2002 by mobile distributor Phones International. In 2011, Philip and Oliver led a successful MBO with equity partners ECI Partners for £35 million.

Philip is now one of the UK’s most influential experts within the M2M sector.

How M2M and IoT Managed Service Providers are shaping up for a busy future Wireless Logic was formed in the UK in 2000 with a focus on selling connectivity to laptop users. This was the time of the birth of the mobile data market, where the focus was squarely on hardware. But just as the market has evolved to give rise to M2M and now the Internet of Things (IoT), so too has Wireless Logic. The company now has offices in Germany, France and Spain, and is seeing 60 per cent year-on-year growth in the European market. supporting 1.6 million customer subscriptions, and are signing up 30 to 40 new solution providers every month.”

Wireless Logic’s largest markets are the energy sector and utilities, followed by automotive and traffic management, smart metering, and smart signage. It recognises 10 main vertical markets, and is discovering hundreds of sub-verticals within these. ▼

Philip Cole, sales and marketing director for Europe, who co-founded the company with CEO Oliver Tucker, says the change was all down to listening to the needs of its customers.

“We started looking at M2M from 2007, investigating new verticals and non-phone devices,” he explains. “We now have 950 solution providers that buy from us, selling to their networks of customers. In total, we have a virtual sales team of 4,500 people worldwide,

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M2M Now - February / March 2015

With many of its customers operating vast networks of M2M and IoT devices, all connecting via mobile SIM cards, Wireless Logic has adopted what it calls a “Glocal” approach, working with 26 mobile network operators at both global and local levels. These large SIM estate owners need to efficiently manage their devices, keeping control of potential expenditure issues resulting from the high cost of data usage. It’s also about selecting the right network for the application, in terms of latency rates and congestion issues.

Global SIM (or roaming SIM) can provide multiple network operator access, but this tends to be suitable more for small applications, consuming up to 10MB of data per month. With higher data consumption applications, a local mobile operator is usually a more economical choice.

And increasingly M2M applications are utilising the higher data throughputs made possible with 3G and now 4G networks, moving away from the constraints imposed by GPRS. “That’s been the big shift,” says Cole, referring to the increase in data usage of remote devices.

“Three to four years ago our customers were doing about 2MB of data a month, but applications are becoming more sophisticated.

Whereas in the past, a vehicle fleet company might have just wanted to track a driver to make sure he was on the right road and moving, now it has evolved into the management of the vehicle itself, linking in to insurance issues, and so forth.

So the average now is around 18MB of data per month. And some high bandwidth solutions can reach 1GB – we even have a train operator customer who requires 20GB per month.”

But how do you manage multiple mobile networks? When you are using different platforms, different protocols, integrating new and old deployments, trying to utilise the same standards regardless of mobile network, dealing with multiple and inconsistent tariffs and differing levels of service experience, it can be a formidable challenge.

What you need is a software platform for M2M

M2M Now - February / March 2015

devices, enabling them to communicate through multiple networks to one central management application. Wireless Logic has been developing the SIMPro platform over the past 10 years, with the focus on reducing call-out costs for their customers. Take, for example, a remote Costa Express coffee machine. If there is a problem with the vending machine, it can cost £50 to £100 in call-out costs for an engineer to visit, and when you have thousands of these machines across the country, costs can soon spiral.

“Our customers use our SIMPro platform to manage and control all their devices,” says Cole.

“They can see in real-time the usage levels and therefore mitigate any commercial risk – the last thing you want is to leave an unwanted CCTV camera running for weeks, as costs will simply escalate. For many companies, managing 50 employees with their phones is sufficiently difficult – now think about managing 1,000 devices, all widely dispersed. It is imperative to have the visibility to remotely manage these devices in the field.”

The company also offers its NetPro service – a carrier-grade, secure, private network with colocated data centres, which acts as an overlay network for the global mobile operators. Wireless

Logic can use this to provide its customers with a service level agreement to ensure near 100 per cent uptime across their VPN – something not achievable with a standard public offering from a mobile network operator.

“With 950 solution providers covering all verticals, we don’t have to be rocket scientists,” explains Cole, “we just have to listen to our customers’ requirements.”

One of the earliest M2M enablers was vehicle tracking, but an increasing percentage of the market is now moving towards static M2M deployments, such as car parking, street signs, roadside lights, and yes, even coffee machines.

“As more M2M moves from mobile use to static use, it’s about giving customers the best coverage, and that’s using the right bearer ▼

SIM estate management

21

INTERVIEW

vital for service providers to get up and running quickly. In the end it comes down to increasing the reliability of their M2M solution.”

“You need a solution that offers one window into many networks, one that overlays existing networks and gives customers platforms where platforms don’t exist. Mobile SIMs are primarily designed for voice use, and don’t have these dedicated platforms.”

“Modems are quite dumb, so having routing capability is hugely valuable, saving customers a fortune in software development,” explains Cole.

“In M2M, it’s all about doing more at the network layer. Adding intelligence to the device means that remote engineers can interrogate them, and ease of routing makes the software stack less complex and less expensive.”

Customer demands It’s not just about connectivity though; M2M operators are looking towards the consolidation of services using fewer providers. They want their managed services provider to offer secure networks, device management, granular billing platforms, cross network aggregation, infrastructure, mapping, hardware, industry experience – in addition to connectivity. And the list goes on: financial stability, an agnostic approach, global presence, scalability, flexibility, speed to market, and the capability to deliver a solution over all types of communications networks, not just cellular.

“Above all, customers are looking for visibility and control,” says Cole. “The challenge is to educate the market that specialist solutions exist, rather than let them buy a voice SIM from a local phone shop. Too many companies think that all that’s required is a SIM card, but we can show them the benefit of having multiple layers of functionality and value. And it’s about granular billing; they want to consolidate the connectivity but don’t want the headaches of billing. Granular billing is

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Having a static IP address for M2M devices is another important service that the company provides. If you deploy units in remote locations, you still want to be able to fully interrogate them.

Platforms are required that can manage multiple level access, visibility and SIM management, enabling organisations to build complex hierarchical structures through a single uniform window, and to manage operations and get quick resolutions to problems. Real-time, two-way communication with remote devices via SMS using device management commands will ensure that their services remain switched on and operational.

Consumerisation of M2M “We’re just starting to see the consumerisation of IoT,” says Cole. “It’s been B2B-focused for so long, but we’re now seeing B2B2C applications emerge. However, there remain many challenges, and a lot of our customers are still tweaking their business models to make it work for consumers.”

Consumer IoT represents a huge opportunity for the industry, but providers have to persuade consumers to embrace it without seeing it as just another cost. Consumers will be unlikely to pay extra simply for the privilege of having an IoT ▼

“Modems are quite dumb, so having routing capability is hugely valuable, saving customers a fortune in software development”

services,” he says, adding that these could also include satellite and fixed line networks.

“Customers may be best served by Vodafone in one area, or Orange in another, depending on coverage and signal strength – both elements are critical. And in the future, White Space spectrum from providers such as SIGFOX might be included in the mix.

M2M Now - February / March 2015

connection in a white goods product, but they would be more likely to buy into the technology if it resulted in better performance or provided them with an enhanced service.

going to be expanding its presence in more countries – offering local knowledge to local companies, and creating sustainable country businesses.

“Solution providers will find traction by incorporating IoT in consumer goods for the benefit of the manufacturers,” believes Cole.

“Today, IoT is seen as a solution for providers to

“We have big expansion plans,” says Cole. “We’ll be announcing additional European roll-outs to meet the need for local mobile network operator solutions, especially as the market moves to

monitor their products for their benefit, rather than that of the consumer – for example washing machines, so that they can remotely check their operation and servicing. But it’s starting to change; connected heating controls and burglar alarms are providing tangible benefits for householders. The consumerisation is happening, but we are still a long way from the 50 billion IoT devices that are being forecast.”

higher bandwidth applications. People love their local operator brands, so we will leverage that.”

There are many other issues related to consumer IoT services. For example, how do they manage multiple devices? What consumer service plans will emerge? Will consumer goods always come SIM-enabled or will consumers want choice for their connectivity? And how will they acquire these services?

“Consumerisation could be massive,” says Cole, “but there is much work still to be done. There needs to be a seamless transition to IoT, and in many instances consumers won’t necessarily need to be aware that they have IoT devices in their homes.”

Future evolution In the meantime, Wireless Logic will continue to build out its business and its managed service offerings. It is adding more ‘bolt-on’ services as part of its multiple platform services, aiming towards seamless deliverable solutions and the provision of a genuine one-stop offering. It is also

M2M Now - February / March 2015

The company places a lot of attention on enabling value-added services, adding layers of value to the basic SIM card. Over the last two years, Wireless Logic has moved into mapping, offering services with location awareness. It is now supplying customers with mapping data from Nokia’s HERE and has signed up 250,000 subscribers in the past 18 months. The company is also Google’s OEM global partner for mapping, giving customers a choice of mapping data.

There are many other issues related to consumer IoT services. For example, how do they manage multiple devices?

Leveraging its technology and relationships, it has recently been awarded its first platform-as-a-service (PaaS) contract – offering a major car manufacturer its own platform to manage M2M devices across six different mobile network operators, enabling it to still work directly with each of the operators whilst simplifying management.

“Selling our platform as a standalone service is just one new innovation. It’s also about empowering the channel to remarket managed services to their own customer bases with shared revenue models,” says Cole. “We give our customers an a la carte service menu, from which they can pick and choose. As time goes on, we expect customers will take more of these valueadded services. And we are enabling the channel to get these products and services out to market quicker. We do whatever we can to increase value for our customers and enhance their capabilities.”

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INDUSTRIAL IoT

EXPERT OPINION:

The author is Andreas Thiel, executive director, Cellular Product Development, u-blox Andreas Thiel is responsible for the Product Center Cellular at u-blox. Mr. Thiel holds a degree in electrical engineering from Aachen University (RWTH) in Germany. From 1994 to 1997 he was a research assistant and project manager at the Swiss Federal Institute of Technology Zurich (ETH).

In 1997, he co-founded u-blox AG.

“The Internet of Things that Really Matter” The Internet of Things (IoT) has enormous potential with countless companies from many different sectors now applying their creativity. Dramatic falls in the cost of wireless communications, computing and sensors are all combining to make it feasible to "wire things together over the Internet”. While many products are targeted at the consumer market where price is key, there’s also increasing growth in industrial applications. Here, says Andreas Thiel, while price is still important the truly critical issue involves the need for extremely high levels of reliability.

IoT covers a wide range of applications and products, but the common function they all share is communication between “end points” (the devices that are the “things”) on the one side and data and control systems on the other. This type of communication, often referred to as machine-to-machine (M2M), has traditionally been done using closed hardwired networks. More recently it’s moved to the internet and now increasingly it’s done over wireless links.

It is important to emphasise what differentiates M2M and the IoT. With M2M, two devices exchange data with each other.

The IoT takes this concept a step further: data is sent into the cloud where information gathered from numerous independent sources can be aggregated. Now it becomes

possible to perform new management and analytical tasks, such as paying for services like car insurance on a per-use basis, or maintaining equipment on demand. At the same time, deep data analysis of “big data” can reveal previously unseen insights and trends.

The market moves to u-blox So why is the IoT market moving toward u-blox and not viceversa? The reason is simple. For quite some time we have been heavily involved in M2M communications - the building blocks of the IoT - and we continue to follow that core strategy of developing the components behind the IoT’s infrastructure. As companies invest in IoT, they require M2M as the base technology and we have extensive expertise in the chips and modules needed to get devices communicating with each other, whether over long distances using cellular or using short-range radio, or for location using GNSS satellite signals.

Furthermore, much of the hype around IoT is associated with relatively “lightweight” applications - ones where the actual value added by IoT is slight. However, there are good business

▼

In the industrial IoT space, u-blox finds itself in a unique position. Rather than having to change our business to meet these criteria, much of what we’ve always been doing is already a perfect fit. Building on our historic focus on quality and reliability, u-blox has made a conscious decision to concentrate on "business critical" applications. We refer to this as the "The Internet of Things that Really Matter."

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M2M Now - February / March 2015

reasons for adopting this technology. Companies can move from merely selling products to selling services with the recurring income that brings.

Companies in the industrial sector can offer their customers totally new functionalities, as shown in the following examples. We’re now concentrating on these markets and for us they fall under the heading of "The Internet of Things that Really Matter": areas where performance and robustness are mandatory.

Some IoT applications require the highest reliability To show that reliability is critical in The Internet of Things that Really Matter, consider two examples: The first involves an automotive telematics company that sells a UBI (usage-based insurance) service where in-vehicle positioning and wireless connectivity allow the collection of location, speed and acceleration data for use in insurance telematics applications that may dramatically reduce insurance costs and reduce fraud. The same company also provides services to automotive companies such as automatic alert assistance when a car is involved in a crash, theft alert assistance, plus breakdown and roadside assistance. In some cases, human lives might even depend on reliable communications. These services require both location information from one u-blox module along with cellular capability delivered by another u-blox module. If there are any malfunctions in these two devices, the customer's business model falls apart.

This application highlights another factor that makes u-blox stand out: its ability to create synergies from its multiple communications technologies: cellular, short-range (Wi-Fi and Bluetooth) and location/positioning.

Another application from the manufacturing sector involves an assembly tool that downloads settings for a specific job over wireless from a nearby controller. Any failure of the comms link will quickly bring the production line to its knees.

This particular customer defines our wireless links as being "more reliable than a cable".

As a result, these companies need a strong, competent partner such as u-blox who can provide not only high-quality, reliable products but also comprehensive applications engineering support from the conceptual level down to detailed designs.

We produce chips and modules; we do not provide end-user products or services. We do not make the products to handle big data, storage or service delivery. A simpler way of saying this is that while we provide the enabling technology for IoT devices, we don’t operate in the cloud -we simply make it possible for devices to send their time, location and other data there, data that describes the what/when/where of an event or task. When we provide application support, you can trust us completely with your design information because we don't compete with our customers.

Controlling core technologies We continually invest in controlling our core technologies. For instance, third-party chips aimed at products for the consumer market, such as smartphones, often aren’t the best choice for IoT and M2M. Instead, by controlling all our chipset and software technology, u-blox can quickly change product functions to meet new requirements, creating product differentiators through both performance and features. We offer products in several quality grades: standard grade for cost-sensitive applications; professional grade for after-market vehicle mounted devices and industrial products; and automotive grade for sophisticated first-mount vehicle applications where high-end features and tolerance to environmental stress are the highest priorities.

Products also undergo 100 percent outgoing testing following our zero-defect policy.

Finally, because we control the technology, u-blox can guarantee the long-term availability of our products.

u-blox focuses on the enabling technology other companies need to create products for the IoT; we do not get involved in end-user devices, cloud storage or services.

Both of these user cases illustrate requirements that all business-critical applications share: very high quality, robust performance, long service life and expert applications support. More specifically, u-blox focuses on the Connected Car (safety, vehicle diagnostics, infotainment, navigation and fleet management), Connected Cities (metering, parking, traffic control, lighting, electric-vehicle charging and real time analysis) and the Industrial Internet (aviation, oil and gas, transportation, power generation and distribution, manufacturing, healthcare and mining).

Companies often struggle with implementing wireless products Many companies see the potential of adding wireless communications and location capabilities to their products to exploit the IoT. While they might be specialists in their particular sectors, they don’t have the expertise needed to create a reliable wireless solutions. Furthermore, they’re often not aware of exactly what they are able to do with their data and how they can benefit from tagging it with very accurate time and location information.

M2M Now - February / March 2015

Ultimately, there’s a big difference between the IoT we are all familiar with and the Internet of Things that Really Matter. With our experience in wireless communications, a broad product range and an emphasis on quality, u-blox is in a perfect position to help companies across the automotive, industrial and consumer markets who want to enter the world of the IoT.

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ANALYST REPORT

THE INDUSTRIAL INTERNET OF THINGS A new dawn for manufacturers and their customers?

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Research excited 451 R esearch is e xcited to be a Supporting Partner at Mobile World World Congress Congress 2015!

2-5 Mar March ch 2015, Barcelona, Barcelona, Spain See Brian Partridge, Vic Vice e Pr esident of Mobility R esearch, President Research, onstage ffor: or:

The New Security Challenges: Per rspectives from from m Perspectives Service Providers WEDNESDAY 4 MARCH 2015 HALL 4, AUDITORIUM 4 16 : 30—17: 30 CE T

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JE NNIFE R CL ARK, VICE PRE PRESID SID E NT Covers: Networking tworking ((SDN), SDN), Networking Networking Functions Functions Covers: Software-Defined Software-Defined Ne Virtualization Diameter ter R Routing, outing, IPv6, DNS, DNS, Networking Networking Policy Policy Virtualization (NFV), Diame Management, Managemen t, MPLS MPLS, MPL , IP VPN, VPLS, VPLS, E-LINE, E-LINE, E-LAN, E-LAN, Carrier Carrier Core Core and Edge Edge Infrastructure

CHRIS HAZE E LTON, LT ON, RESE RE SE ARCH AR CH D IRECTO IRE C T O R e Mobilit y, M2M, Mobile Applic ations, Mobile Cloud, P Covers: Enterprise Mobility, Applications, Policy olicy u y urit Management, Security

SHE RYL YL KING KINGSTONE N S T ONE , D IRECTOR IRE C T OR Covers: Businesss In Intelligence ntelligence and Analytic Analytics, Customer Experience, s, C ustomer Experienc e, CRM, Web Portals, Social Network Analysis, SaaS, UX, Applicaocial a Media and Ne twork Analy sis, S aaS, U X, Mobile Applic ations, Big Data, a, Mobile o Web Web

D ECL AN LONE ONE N RGAN, R G AN, VICE PRESID PRE SID E NT Covers: Service e Provider Prrovider S Strategies, trategies, C Consumer onsumer Mobile S Services, ervices, Mobile Applications, Customer omer Experienc Experience, e, Mobile Br Broadband, oadband, Dat Data Monetization, a Mone tization, Mobile Messaging, aging, OTT OTT Communications Communications Applications Applications

CHRIS MARSH, S PRINCIPAL PRINCIP AL ANAL ANALYST YS T terprise Covers: Enterprise e Mobilit Mobility, y, En Enterprise terprise Mobile Applic Applications, ations, En Enterprise e t, C t, Mobility y Managemen Management, Consumerization, onsumerization, Mobile De Devices, vices, API Managemen Management, Mobile Data Orchestration estration

JORDAN AN MCKE C E , SE NIOR ANAL ANALYST YS T ansactions, Mobile P ayments, Mobile B Covers: Mobile Transactions, a Payments, Banking, anking, Mobile PoS, ATM AT TM Commerce, NFC, PoS,

BORIS ME TOD OD O IE IEV, V, RESE RE SE ARCH AR CH MANAG MANA G E R Covers: Mobile Devices, v vices, Smartphones, Smartphones, Handsets, Handsets, Connected Connected Consumer Consumer Electronics, E-Readers, Tablets, Patents, OS ader d s, T ablets, Mobile P atents, Mobile O S

KE N RE HBE HN, PRINCIP PRINCIPAL AL ANAL ANALYST YS T frrastructure, S ervice Pr ovider S trategies, LTE, A, Covers: Mobile Infrastructure, Service Provider Strategies, LT TE, HSP HSPA, --RAN, V oL LT TE, 3G /4 4G/5G, Public Wi-Fi, Wi-Fi, HotSpots, HotSpots, Fir stNet, Antennas, RRH, C-RAN, VoLTE, 3G/4G/5G, FirstNet, Spectrum

WAL LY SWAIN, AIN, SE NIOR VICE PRESID PRE SID E NT terprise Of ferCovers: Service e Pr Provider rovider S Strategies, trategies, B Business usiness E Evolution, volution, En Enterprise Offerervices ings and Strategies, s, Consumer Consumer Of Offerings ferings and S Strategies, trategies, Managed S Services and Outsourcing for o or Carriers Carriers

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CONTENTS

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40

ANALYST REPORT

SWARM INTELLIGENCE

42 NEW OPPORTUNITIES

45 SECURING BRANDS

49 UNDERSTANDING DATA

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M2M NOW INSIGHT REPORT Our series of specially commissioned Insight Reports continues with Brian Partridge, VP at 451 Research and leader of its Mobility Team, looking at how product makers can dramatically improve manufacturing efficiencies and create new business models and revenue streams â&#x20AC;&#x201C; and what cultural and organisational factors currently hold some companies back.

EXPERT OPINION: B+B SMARTWORX Could SWARM Intelligence concepts reduce cost of ownership, asks Tim Taberner, global product manager for advanced IoT gateways at recently rebranded B+B SmartWorx?

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INTERVIEW Michael Lynch, global co-lead of IoT at SAP, explores how IoT strategies are driving new business models and revenue streams and transforming enterprises

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BIZ TALK Oozi Cats, CEO at Telit Communications, explores how security, risk and privacy must be managed in increasingly merging public and private worlds to protect brands and reputations

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INTERVIEW Two founders of wot.io explain how their new data exchange service gives companies fast, secure and flexible access to much needed data analytics and management tools and applications

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ANALYST REPORT

The author is Brian Partridge, VP Mobility Team, 451 Research

Introduction Product manufacturers can scale new heights with Industrial IoT - but cultural challenges present major barriers Introduction The technology industry loves its buzzwords, and no recent tech buzzword has been more hyped to capture the consumer and IT industry’s imagination than the “Internet of Things.” The IoT vision points to a hyper-instrumented world of smart sensors and control systems (i.e. Things) “speaking” to other things or to humans, while interacting with verticalspecific applications (e.g. temperature control systems) and horizontal back-office enterprise systems such enterprise resource planning and customer relationship management (ERP/CRM) over standard IP networks. The “Internet” component of IoT infers that Internet protocol (IP) will be a primary communication protocol to deliver data from source to destination based on the IP addresses in packet headers.

The “Internet” of IoT also implies reliance on the compute/storage/network economics that have driven the development of the internet as a major platform for innovation in our work and private lives. This vision includes the combination of massive sensing capacity with big data and analytics to drive process optimisation while opening a raft of new business models such as pay-per-use.

There are innumerable processes that can be improved with the introduction of smart sensing, communications and control, spanning all major vertical industries such as: consumer goods, transportation, utilities, military operations, healthcare delivery and product manufacturing. The expected benefits of IoT are improved system performance and efficiency, as well as the creation of new sources of revenue and business models for IoT system buyers and sellers alike.

IoT will have two related - but distinct - consumer and enterprise development paths and ROI propositions. The enterprise application of IoT is generally referred to as the Industrial Internet or Industrial Internet of Things (IIoT) – a term invented by GE but now widely accepted as describing the application of IoT within the industrial context. As is often the case with IT, consumer technology adoption sometimes precedes and then catalyses enterprise adoption of the same or similar technologies – bring your own device (BYOD) smartphones in the workplace, app stores and cloud-based personal storage applications are good examples of useful

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technologies whose value was born in the consumer segment and then found to have similar utility in the enterprise IT context. We believe that the same will happen in some places in IoT as well, such as the use of wearable computing and smartphone apps connected to machines on the factory floor.

While the core building blocks of IIoT are the same for consumer and IoT applications – smart devices, network connectivity, cloud/big data storage, predictive analytics and applications, all wrapped in a shield of in-depth security – the relative feature importance, availability and security requirements, cost sensitivities and expected application lifecycles are vastly different, as are the operating environments and degrees of disruption where IoT technologies might be deployed.

Exhibit 1: Consumer vs. Industrial IoT Source: 451 Research, 2015 Features

Industrial IOT

Consumer

Expected Product Lifecycle

5.20+ years

1-5 years

Deployment environment

Very Complex

Relativity Simple

Connectivity

Power-line Networking, 2G/3G/4G, RF Mesh, T1, Frame Relay

WiFi, Bluetooth Low Energy, 2G/3G/4G, ZigBee 6LoWPAN

Price sensitivity for IoT Devices?

Low

High

Security concerns

Unauthorized access, DDoS

Breach of privacy

Industry Standards

Fragmented by vertical industry

Fragmented by IoT supplier

Availability

99.999

99.000

Failure response

High physical and logical redundancy

If it breaks then replace

A level-set on definitions We discuss several closely interrelated concepts in this article, with a focus on the intersection of three of these trends: IIoT, industrial automation and operations technology/information technology (OT/IT) convergence.

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ANALYST REPORT

We discuss several closely interrelated concepts in this article, with a focus on the intersection of three of these trends: IIoT, industrial automation and operations technology/information technology (OT/IT) convergence.

451 Research formally defines the IoT as a system of networks, hardware, software and services that enables the objects of the physical world to become connected and able to communicate with other devices, applications or services through information networks (usually the Internet). These connected objects can be accessed and access each other through the Internet or a network connection anytime, anywhere. Services are available to interact with these “smart objects” over the Internet or other networks, querying and changing their state or accessing any information associated with them. The concept of IoT is generally more expansive than its predecessor machine-to-machine (M2M), as shown in Exhibit 2. As 451 Research defines it, IoT differs from M2M in that M2M is: • More fragmented. M2M technology has its roots in purpose-built systems developed for specific vertical industries, and as such, fragmentation in the M2M ecosystem is rampant.

• Less dependent on big data and cloud. M2M systems did not typically require big data or cloud infrastructure to scale.

• More vertically oriented. Early connected machine systems were vertically oriented “stacks”, with key elements of devices, networks and servers. M2M systems built to support SCADA applications for remote monitoring/ industrial process optimisation are a great example.

• Becoming a subset of IoT. IoT is a broader set of networking and number-crunching systems that is expected to span wearables, home networks and massdeployed sensors. The vision for these systems is grander and more horizontal in nature than M2M, and the scale and data volumes anticipated will increase the need for big data tools and cloud infrastructure to be viable.

Industrial automation is a mature but active solutions category that describes the use of specialised compute and control systems to increase the efficiency of industrial machinery, industrial processes and systems – predominantly to save human labour costs, but also to save energy and improve quality and reduce waste through applied precision.

Industrial automation is not a new idea (it first came to bear in 1960s); but its value has already come close to being fully realised in the industrial setting. Industrial automation typically uses a combination of programmable logic controllers (PLCs) and distributed computing systems (DCSs),

M2M Now - February / March 2015

typically referred to as supervisory control and data acquisition (SCADA) systems, which rely on a diverse set of proprietary messaging protocols and networking systems for communication. SCADA systems can be argued as being the rightful forefathers of the IIoT. OT/IT convergence refers to the adoption of standards-based IT systems to augment and eventually replace proprietary systems in use in the industrial setting. These technologies have become iteratively better and more functional over the years, benefiting from the use of IT standards such as Intel PC and server designs, Windows OS and Ethernet/IP networking.

Exhibit 2: IoT vs. M2M Source: 451 Research, 2015

Machine-to-Machine

Internet of Things Devices/Sensors

Devices/Sensors DC/Cloud

Networks

Applications People, Processes

Networks

Applications People, Processes

Big Data

The evolution of industrial control technology We view the evolution of industrial control and automation technology as involving three major overlapping phases: The industrial automation phase, the convergence of the OT/IT phase, and the IIoT phase, which all closely follow and overlap one another. We view M2M as a middle step that provides the advantage of connected sensors and machines - but via the use of proprietary or cellular machine networking deployed in vertical application silos. The end-goal for OT/IT industrial control solutions is to use IT-centric technology components to streamline, collapse and create system and “system of system” data exchange architectures that are more affordable, responsive, and effective than the previous generations of OT technology. Adding IIoT introduces the potential for gamechanging economic benefits by adding advanced sensor

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Exhibit 3: Evolution of Industrial Control Technology Source: 451 Research, 2015

Industrial Automation

OT/IT Convergence

Internet of Things

• • • •

• • • •

• • • •

Networks: Proprietary I/O: Proprietary Computing Intrastructure: On-premise Business case for deployment: Efficiency

Networks: Hybrid I/O: Hybrid Computing Intrastructure: Hybrid Business case for deployment: Cost Savings

1960 - NOW

2000- NOW

technologies, mobility, cloud/big data and machine learning into the mix. The goal is create an environment of frictionless communications and interaction from manufacturing input/output (I/O) devices including sensors, actuators, analysers and robotics for increased manufacturing performance and flexibility (see Exhibit 3).

Building SCADA systems requires expert programmers and engineering staff to deliver the highest standards for system ruggedness and uptime. Slowly but surely, these systems can or will be upgraded to more economical general-purpose computing hardware and network technologies, thereby taking advantage of Moore’s Law and standard networking mechanisms such as Ethernet/IP. This next phase of industrial automation is already well underway. The early stages of this transition have seen more intelligence move to the edges of the systems and more reliance on IT industry standard technology, with the end goal of having all industrial devices supporting IP, including the upgrading of field-level I/O devices. This IP-enabled manufacturing automation architecture distributes more functions into a new crop of industrial controllers, drives and sensors/actuators with embedded processors.

Exhibit 4: ROI Impact of Industrial Control Technology

ROI Potential

Source: 451 Research, 2015

Machin Advanced Sensor Lea ch Big Data Cloud

Industrial IoT

M2M Industrial IP

IP Enabled PLC

OT/IT Convergence

Networks: IP I/O: Mostly IP Computing Intrastructure: Mostly Cloud Business case for deployment: New Revenue Models

2015+

The industrial automation sector has a successful history of adapting commercial IT technology for its purposes. In many cases, however, simple serial communication systems brought a 15 year replacement lifecycle with no pressing business driver to replace the system once it was deployed and working. The exploding proliferation of IP devices and mobility in the consumer space has begun to change that equation – for instance, the availability of productivity-enhancing smartphone apps providing monitoring and control of smart industrial equipment are finding their way onto the manufacturing plant floor whether they are sanctioned by management or not.

In this sense, applying the coming wave of IIoT technologies to improve performance and enable better integration with business systems is a logical next step. There is also a middle step on the road from industrial automation to IoT convergence of OT/IT. The best example of the use of IT technology in the industrial setting might be the rapid acceptance of Ethernet/IP for network-level data transport as an augmentation or replacement for ISDN and frame relay, as well as legacy communication protocols such as Modbus.

Ethernet/IP is an industrial Ethernet network that combines standard Ethernet technologies with the media-independent Common Industrial Protocol (CIP). It is one of the leading industrial Ethernet network technologies in the world and is widely used in a range of industries. We view industrial monitoring systems built on cellular M2M systems as a technology that essentially bridges between OT/IT convergence and IIoT (see Exhibit 4).

While important, this aspect of transformation is somewhat less interesting and can be difficult to justify from an ROI perspective – doing the same thing on more economical infrastructure doesn’t make sense if you’ve already paid for what is there and you aren’t planning to do anything more with the system. Just ask telecom operators about the challenges they’ve faced in decommissioning their Class 5 telephone networks. When the costs to maintain legacy systems become too high or the skills required to manage the old systems become scarce, an inflection point will be reached. That point usually comes much later than originally planned – in the case of PSTN transition, the industry started talking about replacing TDM switches with digital equivalents

Technology Maturity

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ANALYST REPORT

in the late ’90s, and globally we’ll be reasonably close to full migration by 2022, so the process in all took more than 25 years. But, when that inflection point is reached, the ROI model flips fast. In the next section we call out some of the game-changing technology trends that will drive OT/IT convergences to take advantage of IIoT.

The game changers: The next wave of industrial control trends The best chance of justifying a jump-start for the industrial technology refresh cycle and corresponding OT/IT convergence process is NOT cost saving. Cost savings alone are often not compelling enough to change legacy systems and accept all of the pain that goes with that. The game changers that will push OT and IT together are new IT innovations (applied to industrial automation) that have not been possible in the past and that create impossible-to-ignore competitive advantages/ROI. Areas such as ubiquitous mobile connectivity and IP networking, new sensor technologies, improved automation software and connectivity platforms and machine learning systems sit at the intersection of industrial automation, OT/IT convergence and IIoT. These game changers will create far more value than any legacy system has in the past, and therefore create a new inflection point (see Exhibit 5).

Exhibit 5: Relationship of Industrial Automation/OT/IT Convergence/IoT Source: 451 Research, 2015

Industrial Automation

Internet of Things

OT/IT Convergence

Networks • Ethernet/IP/WiFi/ Gateways • Intelligence edge networking (FOG computing) • Cellular Broadband Things • Embedded Computing/ Tiny Sensors • Drives/Actuators with Mobile Apps • Wearable Tech Cloud infrastructure • IoT Platforms • Big data/predictive analytics/machine learning

“Horizontal” IT Technology Game Changers Based on our ongoing research and industry conversations with companies such as B+B SmartWorx, PTC, Carriots, GE, Intel, ARM, AT&T, IBM, Verizon, Cisco, u-blox, Kontron, Rockwell Automation, Schneider Electric and others, we recognise the convergence of several key hardware, software and delivery model technology trends that will materially impact the pace and scale of a new round of investment in industrial control and automation enablers.

M2M Now - February / March 2015

First, there are many key IT-centric enabling technologies that will be critical to the development of industrial process control evolution through industry scale, cost advantages and security attributes. These enablers have the advantage of wide application across consumer and enterprise markets and massive industry scale, so driving costs down precipitously.

• Embedded computing/advanced sensor technologies Advances in embedded computing systems will remain a core game-changer as M2M and SCADA systems evolve to Industrial IoT variants. Embedded computing systems have long brought dedicated computing functionality into connected industrial systems – generally designed to support a specific function or set of functions.

Embedded computing systems are either powered by ordinary microprocessors using separate circuits for memory or peripherals or use integrated microcontrollers which provide all-in-one functionality thereby reducing costs, size, and power consumption. System-ona-chip (SOC) solutions can host all electronic components on a single chip that can operate for years on a single battery. In addition, the increasing availability of better, smaller, cheaper and smarter sensors will allow machines feel, see, hear, and react to their operating environment. These sensors pair up with tiny microprocessors to form microelectromechanical sensors (MEMs) that have the ability to work and make decisions autonomously or work as part of a larger connected system.

• Key vendors: Intel/Windriver, Kontron, ARM, Integrys, Synopsis, Eurotech, Ivensense AMD, Freescale, STMicroelectronics, TI, Kionix, Qualcomm, MicroGen Systems, Qualtre Inc, Semtech, Advantech • Networks - Ethernet/IP/WiFi/gateways. The proliferation of industrial Ethernet/IP networking and IoT optimised gateway infrastructures provide the economies of scale of a general IT technology with the data format requirements of industrial equipment. Advanced gateway designs provided ruggedised aggregation points for sensor data, which can also provide proxy security services for downstream things with limited on-device countermeasures. The IPv6 standard brings exponentially larger address spaces and improved security capability.

The availability of unlimited addresses changes the conversation with regards to addressing schemas for industrial networking architecture. IPV6 can easily support every human and machine on the planet.

Industrial 802.11 b/g/a/h/i access points are becoming ubiquitous in the industrial setting.

• Key vendors: Cisco, Siemens, Digi, CradlePoint, Intel, ARM, Eurotech, B+B SmartWorx, Moxa, Advantech, Lantronix, Multi-Tech Systems - Cellular broadband and unlicensed wireless. In the past five years the pricing for 2/3/4G cellular connectivity has fallen drastically due to hypercompetitive market

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conditions and strong motivation on the part of MNOs and MVNOs to win M2M/IoT business around the globe.

In just the past 12 months, LTE module pricing has fallen by more than 50%; 2G modules can be had for less than $10 when purchased at volume. At the same time, chipmakers are offering multiple connectivity options directly on chipset hardware. These forces have made cellular connectivity a viable alternative to legacy architectures such as frame relay, ISDN, wireless mesh and power-line networking (PLN). While MNOs will be eager to re-farm 2G bandwidth for 4G, the market has produced ultra-narrow band (UNB) cellular pure-plays such as Sigfox that plan to offer purpose-built networks for machine connections that don’t require broadband bandwidth and support super-low cost and edge power requirements. At the local area network level, WiFi, ZigBee, Z-Wave and Bluetooth LE networks provide ample connectivity options over unlicensed spectrum over very low-cost radios.

• Key vendors: AT&T, Vodafone, Sprint, T-Mobile, u-blox, Telefónica, Deustche Telekom, Orange, Telit, Gemalto, Sierra Wireless, Sigfox, Actility, Multi-Tech Systems, Intel, Freescale, ARM, Qualcomm, KORE, Aeris, Wyless, Numerex • Cloud infrastructure - Cloud computing/storage/network models. The availability of high-quality, virtualized, on-demand compute, storage and network resources in public, private or hybrid configuration has forever altered the enterprise IT infrastructure model for deploying and supporting enterprise application workloads. The gamechanging economic and scale advantages of the cloud model align perfectly with the requirements of IIoT and can be argued as the most critical enabler for its viability.

The important caveat to keep in mind here is that sensitivities exist around data storage and ownership – the degree of comfort with housing mission-critical data outside the enterprise on public cloud services will vary (industrial manufacturing companies tend to be very conservative in this regard).

• Key vendors: Amazon, Microsoft, IBM, SAP, Salesforce.com, Oracle, Verizon, Google, Rackspace - IoT connectivity and data platforms. With increasing demand for reliable, ongoing and secure connectivity to connected assets, a new crop of software platforms and PaaS alternatives have come online from both specialists and IT heavyweights designed to reduce the cost, time and complexity of managing connectivity, machine data storage and processing, application development, security and integration with existing IT systems. These solutions provide compelling alternatives to the internal IT-driven approach favoured by some of the early adopters of M2M. • Key vendors: GE, PTC, SAP, Salesforce.com, IBM, Oracle, Carriots, Exosite, EVRYTHNG, LogMeIn/Xively, Jasper, Stream Technologies, Ericsson, Aeris, KORE, Vodafone, Verizon, RTI, Bosch Software

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• Big data - Big data software/architectures. Without the tools to make sense of the impending blizzard of machine data, the IIoT hype will prove to be all bark and no bite. The great innovation possible in IIoT involves bringing massive internal and external data sets together to uncover new insights. Luckily, the demand for data tools has driven massive research investment that has produced innovations such as Hadoop for massively parallel processing of data sets. In-memory database systems are also promising for helping business leaders make decisions based on IIoT in real time. Data scientists who can combine deep vertical sector expertise with data sciences will be able to set their own market price, as these skills will be more valuable than many others in organisations. The lack of these skills in the manufacturing sector presents a significant challenge for OEMs and a service opportunity for vendors and integrators with these skills.

• Key vendors: Splunk, Software AG, SAS, Oracle, MongoDB, TIBCO, IBM, SAP, Cloudera, Microsoft, Informatica, Teradata, HP, Cisco, DataTorrent • Convergence of cloud/big data and networks - Intelligent edge networking/analytics. Innovation here represents the intersection of big data and next generation network infrastructure. New network designs eschew the logical data path that follows data packets from the edge all the way back to datacentre. A new crop of technologies will combine real-time analytics software directly into the router path at the network edge. Cisco and others are calling this “Fog” Computing. Edge intelligence brings significant value in a scaled IoT implementation on two axes. First, policy logic dictates that only data that “matters” is sent upstream, reducing the amount of data traffic that must flow from edge to core. Second, policy decisions can be made at the edge – for instance, immediately shutting down equipment if certain alarm condition occur. The data volumes and response times anticipated in large-scale IIoT applications will call for edge devices at different layers to have greater autonomy and more intelligence, for instance by using business logic to only send exception or alarm data back to the datacenter based on established business logic, thereby saving large volumes of data traffic that is captured - but is not particularly useful or doesn’t require an immediate response.

• Key vendors: B+B SmartWorx, Cisco, Ericsson, Juniper, Nokia, Intel, Alcatel-Lucent, HP

Industrial automation-specific game changers – near term • Advanced industrial automation technology. The latest generation of industrial control technologies is getting smarter and more efficient. Take, for instance, the ubiquitously deployed variable frequency drive (VFD), a control element that is used in electromechanical drive

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ANALYST REPORT

systems to control AC motor speed and torque by varying motor input frequency and voltage on mechanical systems such as pumps. Until this year, VFDs have not been connected products – if a drive had a fault, it required someone to manually intervene and physically read an error code from the machine itself. Schneider Electric recently released a new connected VFD that comes equipped with Ethernet/IP connectivity and its own embedded Web server. Now the product is far more intelligent and can work in conjunction with power-monitoring applications that bring game-changing granularity to the drive’s performance and power consumption. Given that nearly 25 percent of the globe’s electricity consumption can be attributed to industrial equipment, the potential savings for plant owners and the environment are particularly compelling.

• Key vendors: ABB, OMRON, Schneider Electric, Rockwell Automation, Emerson Electric, Siemens, Opto 22, Honeywell International, Johnson Controls, Texas Instruments, Datalogic, Yokogawa Electric • Mobile applications for industrial control. An oftenoverlooked trend within the industrial control market is that industrial automation equipment can now be monitored and controlled via smartphones and tablets running apps used by plant engineers and line-staff. The latest generation of industrial control equipment will be mobilised and come with apps that provide many of the productivity enhancements enterprise mobility has already brought to non-production workforces. These apps can bring tremendous value to industrial operations, empowering decisions on the fly with real-time information. One of the major challenges to overcome is a lack of common accounts with Apple or Google such that employees can seamlessly download these applications onto their personal devices. Devoid of these accounts and clear policies, employees are left to wonder if they can be reimbursed for purchasing these applications for use on their personal device.

• Key vendors: Apple, Google, Microsoft, Rockwell Automation, Schneider Electric, Siemens, Opto 22

Industrial automation-specific game changers – longer term • Predictive analytics/machine learning software. While it is generally agreed that machine learning is still a very nascent concept, the application of predictive analytics to industrial machinery is already making some progress. By connecting their industrial machinery with big data and predictive analytics, companies such as GE can predict failures before they actually happen, reducing downtime and improving the level of service delivered. This is truly game-changing to all parties involved. Plant managers will be able to understand the dynamics of their ‘systems of systems’ to make better decisions on plant design and operations. Machine learning aims to imitate human learning through mimicking learning behavior and decision-

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making functions but at far greater scale and speed.

Artificial intelligence and machine learning will be foundational components of autonomous factories that will discover new knowledge and make decisions without human intervention—an exciting and scary thought.

• Key vendors: SAS, SAP, Predixion, IBM, Rockwell Automation, Microsoft, Oracle, RapidMiner • Wearable technology. The past year has seen moderate adoption of wearable computing technology in the consumer sector although the recent decision by Google to hit pause on Google Glass can be viewed as a setback for that category. Wearable technology is predominately made up of wrist-worn devices such as smart watches, fitness trackers and head-up display devices such as the now discontinued Google Glass. There are a number of companies focused on bringing both technology categories into the industrial setting. It won’t be long until we see plant workers accessing information via HUD devices, relaying live video feeds from mechanical situations back to decision-making authorities.

• Key vendors: Google, Apple, Samsung, Qualcomm, Kopin, Vuzix, Motorola, Laster Technologies, CrowdOptic

Business drivers and inhibitors There are a number of drivers – technical and non-technical – that we expect will drive the investment in IoT-centric industrial automation at a significant pace. There are also significant hurdles spanning technology, process and organisational cultures that must be overcome (see Exhibit 6).

Exhibit 6: Investment Drivers and Inhibitors Source: 451 Research, 2015

Drivers • Mobile/IP networking

Inhibitors • Legacy infrastructure

• Mobile apps

• Cultural challenges

• Cloud computing architecture and economics

• Skills shortage

• Big data/predictive analytics

• Data ownership rights

• Security risks

• Advances in IA machinery • Government/regulation • Wearables

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ANALYST REPORT

Non-technical market drivers include: • Government programs. In Germany, the government is active in its promotion of what it calls “Industry 4.0” to help industries harness the intelligence generated by the IoT to optimise processes, increase efficiencies and spur innovation. The European Union has committed over 1bn Euros for “Factories of the Future” research. In the US, the Smart Manufacturing Leadership Coalition has focused on promoting “21st Century Smart Manufacturing”, involving best practices including reference architectures to support the integration of OT and IT environments.

• Reduced cost and increased efficiency. While we have made a case that pure cost reductions are sometimes not enough to tip the scale in favor in replacing legacy OT technology, the ability to save money is still a major benefit of a technology upgrade. Smart, connected products can help plant managers make products with better quality, in less time and using less energy. Once the product leaves the factory floor, ongoing connectivity to physical products provides game-changing insights and value for customers and suppliers alike.

• Increasing competitive pressure to get connected. As IIoT becomes real, companies that eschew the technology will find it increasingly difficult to compete on a global scale and will find that they are vulnerable to displacement by upstart competitors. The quality and time-to-market gains that can be realized by a connected plant using the latest innovations in industrial automation and IT as compared to existing setups translates into compelling competitive advantages.

• Availability of new business/servicing models. Industrial automation vendors with hyper-connected solutions may choose to sell their offerings in new ways – for example, by moving from traditional capital financing models to operational models that turn product sales into “as-aservice” models – so-called ‘servitisation’ strategies. These new business models can bring technology to small-tomedium-sized OEMs that may not have access to the capital required to invest in the latest and greatest technologies. For suppliers of industrial machinery, connected products provide ongoing feedback loops into product design and usage patterns; in this way the commercial market becomes an ongoing test bed and a driver of future innovation. Smart, connected products can be packaged in a variety of business and support models.

Market Inhibitors/Challenges The Industrial Internet of Things carries significant constraints to adoption. Some of them are legal, some cultural and some

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technical. These inhibitors are partly responsible for the poor level of adoption of IoT technology in the manufacturing sector to date (see Exhibit 7). These include: • ROI challenged by massive investments tied to legacy infrastructure. As might be expected, legacy infrastructure investments are significant inhibitors to new technologies without a compelling new value proposition beyond just cost saving. Network infrastructure based on frame relay and ISDN can be found in legacy industrial automation networks, while serial networking protocols such as Modbus are widespread amongst legacy I/O devices that still do their job effectively. A key value proposition that suppliers bring to the table involves the ability to overlay new infrastructure onto the legacy environment to bring this older technology into newer industrial automation systems, thereby protecting the original investment and layering in additional value by allowing them to participate in a modernized IT environment. Retrofitting existing technology with sensors is an easy interim step until the product lifecycle calls for a new industrial machine that comes embedded with IoT technologies.

• Challenge Level: High • Cultural issues. The cultural issues involved with complex technical evolutions are directly related to the legacy infrastructure challenge. The convergence of OT and IT brings as much cultural challenge, if not more, than the actual job of replacing old OT gear with new IT kit. These two camps have typically worked together at arm’s length if at all. While OT engineers bring deep expertise in process control technology, power management and high availability, they lack training and practical experience in basic IT security infrastructure, patching and networking. IT can build a secure and scaled network - but lacks the contextual understanding of what is required in the operational environment, which is different and often mission-critical. Several interviewees we spoke with have said that “OT and IT guys don’t like each other.” The only way to overcome this challenge is to organize OT and IT under common leadership, with a common purpose and appropriate cross-training and common language and governance. This is perhaps the largest challenge holding the industry back at the moment.

• Challenge Level: Very High • Data ownership and rights. The benefits and resultant growth of IIoT will not be realized without making good use of the data exhaust blowing off connected machines. As more and more systems come online, the network effects of community participation come into effect and will create step-changes in new insights and value. But how is this data to be shared, and with whom? Who actually owns it all? Product manufacturers will surely want to own some of

M2M Now - February / March 2015

ANALYST REPORT

the data flowing from their machines, but the customer will likely have some rights to it as well. These are thorny issues that are not easy to answer and will require regulatory intervention in a number of scenarios. Currently, connected machine manufacturers are addressing these issues on a customer-by-customer basis–some customers “care a lot” about retaining ownership of their data, others will release some ownership to improve their processes.

• Challenge Level: High • Security, security, security. The absolute best excuse to remain on the IoT sidelines is the very real threat of security risk and exposure. The attack surface expands exponentially for IT security leadership with the explosion of connected machines. Every IP addressable physical asset will become a potential attack target or point of ingress for hackers. Organisations in industrial control, manufacturing, IoT and other similar verticals have been worried about attacks against their purpose-built systems for some time.

The highly publicised Target data breach was widely rumored to have emanated from the company’s connected HVAC system. CEOs and CIOs are rightfully concerned with opening their firms’ reputations and brands to both known and unknown threats – with IIoT there are plenty of both to worry about.

• Challenge Level: High • Skills shortages. There are currently over 3 million unfilled manufacturing jobs in the US alone. Countries need to reeducate future computer science and engineering graduates that there are plenty of hard “IT” challenges to be solved in the fields of manufacturing operations perhaps even more so than those opportunities tied to working directly for a world class data center operator. The repatriation of the manufacturing sector to the US in

particular has been fuelled by a number of factors including cheap energy and better tax advantages. This trend will only be slowed if highly skilled data scientists and IT specialists cannot be attracted by exciting business challenges and the opportunity to apply the latest and greatest technologies to revitalise domestic manufacturing sectors. This shortage of skills opens opportunities for suppliers to lend their own expertise either directly or “as a service”.

• Challenge Level: High

Conclusions/recommendations The most crucial variables affecting how fast an OEM can move from a legacy industrial automation environment toward OT/IT convergence and, ultimately, IoT in the manufacturing environment, are not technical in nature. Manufacturing industry C-level execs must set the tone for a new era of collaboration within their organisations that draws on the best skills on both sides of the OT/IT coin. OT has the critical knowledge of real-time control systems and reliability requirements. IT knows IP networks, scaling, patching/security and cloud. IIoT holds game-changing upsides for companies that excel at managing this converging competency, quickly recognise and fill their skills gaps, and extract the maximum value from their connected assets while simultaneously keeping new risks under control. Industrial IoT vendors will be needed to help fill the data sciences skills gaps with their customers to ensure that data value is captured, monetised and exploited fully. Industrial manufacturing companies should jump-start their move to IIoT by converging OT/IT leadership and hiring data scientists, before starting to aggressively experiment with IoT through their business operations to identify the largest potential impacts and benefits.

Vice President Brian Partridge leads the 451 Research Mobility team, which was established in July 2014 with the integration of Yankee Group. In this role Partridge has overall responsibility for the team's syndicated and custom research services and editorial functions. As a researcher he leads the team's M2M/IoT research while contributing to a number of additional topics in the telecom and enterprise mobility domains.

M2M Now - February / March 2015

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COMPANY PROFILE

u-blox, headquartered in Thalwil, Switzerland, is a fabless semiconductor solution provider of embedded wireless and positioning communication solutions. The publicly traded company sells to industrial, automotive, and consumer market segments, with recorded revenues of approximately US$225M for CY2013. It has 540 FTE employees as of June, 2014 which is up from approximately 450 at the end of CY13 (21%), while around 65% of its employees work in R&D. u-blox has shown strong growth in the past couple of years – it grew 38.8% CY11/CY12 and 27% CY12/13 – and sells its solutions globally with regional splits in CY13 coming in 46% APAC, 28% Americas, and 25% landing in EMEA. The company mission is to be the leading provider of embedded wireless communications and positioning solutions to the global electronics industry.

Company credentials As Andeas Thiel, executive director, Cellular Product Development, u-blox explains, “The company has been on an acquisition streak, recently adding the connectBlue, Anctor, and auto OEM connectivity specialist lesswire over the past year. This brought us short-range radio technologies – specifically Bluetooth and WiFi - to complement our cellular and global positioning portfolio.

We’ve also been active in launching new products, one highlight being what we believe is one of the fastest LTE modules on the market (TOBY-L2). This delivers speeds of up to 150 Mbs, but also supports 2G/3G networks as well to provide backwards compatibility. While u-blox has built an expansive portfolio of long-range, short-range wireless, and positioning chip solutions, we’ve also found that some of our most popular applications in industrial markets are involved in enabling both fleet management and vehicle tracking solutions. Additionally, we’ve seen significant growth in the industrial timing and synchronisation application segment.”

Key differentiators When it comes to differentiators, u-blox places its focus and investments on its defined spot in IoT value chain technologies and little else – the company’s R&D is focused on constantly raising the bar for performance within its range of chipsets and modules and ensuring that they are always “industrial grade”. As Thiel explains,

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“We’ve resisted the temptation to move into “device cloud” and other value added services as we feel that this type of expansion potentially puts us into a competitive situation with our key customers – this is something we’d rather not do. By providing a broad suite of technologies with a focus on the module designs and costs we’ve already delivered strong growth and recently confirmed our guidance of delivering up to US$280M in CY14. We can count over 4500 distinct customers – and that number involves over 50M people, machines, and vehicles using our solutions for connectivity or positioning solutions. We estimate that our technology can be found in over 30% of the connected cars that are produced globally in a given year.”

Competitive pressures When asked about u-blox activities in different sectors, Mr Thiel commented, “In each market we compete in, the competitive dynamics are slightly different. There are several players in wireless and positioning technology we compete with. But we consistently win business based on our support for the lifecycle, security and robustness attributes that are required in each of the environments in which our solutions are deployed – this is especially important in industrial and automotive settings. Our commitment to remain focused on the module and chipset layers of IoT only is also a competitive differentiator.”

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COMPANY PROFILE

B&B SmartWorx designs, manufactures, and supports highly reliable and ruggedized connectivity and communications solutions. Founded in 1981, the company is headquartered in Ottawa, IL and has approximately 275 employees including 80 engineering and technical support staff. Until its recent rebranding effort in January 2015, the company had built a successful business focused on fixed and wireless industrial connectivity solutions under the name B&B Electronics. The company rebrand is a culmination of its own evolution including several recent acquisitions to enhance its solution portfolio, its shift in go-to market strategy from largely catalog direct to 100% channel partner driven, and technological innovations on the near-term roadmap to support the next phase of M2M/IoT in the industrial setting. The rebrand has been timed to coincide with anticipated demands from its customers for intelligent edge technologies and a greater reliance on well-established partner eco-systems to solve the challenges of IoT. The rebranding effort has also given the company the opportunity to re-introduce itself to the market with this new context and vision. B+B SmartWorx has over 30,000 customers globally spread across 160 countries.

Company credentials As Jerry O’Gorman, B+B SmartWorx CEO, explains, “B+B had built up an excellent reputation for industrial and ruggedised edge connectivity – our deployed equipment has facilitated M2M connectivity/interconnectivity for well over 3 million discrete devices. Our intention with rebranding ourselves as B+B SmartWorx to maintain the reputation and heritage we have established for excellence at the industrial connectivity edge, and build upon that with more advanced solutions and a greater emphasis and reliance on our partner eco-system to create value for our industrial customers. Part of this story also tied back to the strategic acquisitions we’ve made over the past several years which greatly enhanced our channel and partner programs—especially overseas.”

In 2011, B+B SmartWorx acquired industrial networking specialists Quatech. In 2012 it followed that up by acquiring a Czech Republic-based manufacturer of industrial cellular gateways called Conel, who also brought an established customer and channel presence across Europe. Later in 2012 the company picked up optical access and media gateway specialist, IMC Networks.

and intelligence to the network edge with maximum security, reliability, and flexibility. It can be thought of as a horizontal infrastructure that can learn about its environment, communicate and act locally, selectively engage and interface with outside “clouds” and seamlessly support additional applications and interfaces—even those not thought of yet. Mr. Gorman adds, “We developed our WZZRD platform around the MQTT protocol and we’re getting a strongly positive reaction from our customers and partners thus far. The new focus on intelligence at the edge of the network has driven the need for the company to quickly ramp software engineering staff around the globe. Our vision includes working with partners in areas such as predicative analytics software which could technically run directly within our infrastructure. The whole game is getting actionable intelligence into the hands of decision makers quickly and securely.”

The company has ramped up its eco-system development activities with key upstream actors in the IoT platform and analytics fields with dedicated personnel actively working on strategic engagements. “We are very quick to acknowledge that partnerships are critical in this next phase of industrial IoT. We think that we can add a lot of value in the places where our competencies are well established and our partners have been receptive.”

Key differentiators B+B SmartWorx is positioning its advanced edge processing technology as a secure and reliable bridge between the domains of M2M, OT/IT convergence, and Industrial IoT. “There is a lot of hype of the market right now around IoT”, O’Gorman explains, “We’ve successfully deployed solutions into mission-critical M2M and networking solutions in the industrial setting for years.

With our next generation solutions, including the commercially available Wzzard Intelligent Sensing Platform and our planned release of a next generation family of intelligent gateway devices (SmartSwarm) we think we are creating a strong position as a leading innovator in industrial IoT.” The idea with Wzzard and later SmartSwarm is to bring data aggregation, translation

M2M Now - February / March 2015

Competitive pressures The competitive landscape for Industrial IoT is fairly dynamic and differs by solution category and market region. Mr. O’Gorman explains, “We have a number of competitors that compete in the ruggedized gateway segment. We also come up against a wide range of competitors in the industrial networking space .We have a lot of respect for our competitors but we think the combination of our heritage in industrial networking and communications combined with our advanced enabling solutions including Wzzard and SmartSwarm, and our focus on working with best-in-class eco-system partners puts us into a unique place.”

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EXPERT OPINION

EMERGING TECHNOLOGY

SWARM TM Intelligence The new Edge paradigm

By Tim Taberner Global Product Manager - Advanced IoT Gateways for B+B SmartWorx

The power of SWARM intelligence is visible in nature, where the collective efforts of very simple creatures like ants, bees and termites can produce highly sophisticated results. Termites build enormous mounds in which internal temperatures are regulated to within a degree, even when temperatures outside the mound vary by 40oC or more. Individual ants forage at random, but the overall motion of the collective produces highly efficient search algorithms that researchers have compared to those used in Google Maps. Bees successfully build and defend hives, forage for food, protect the queen and raise their young, even though the drones themselves possess very little personal intelligence. Individual members of these collectives have no knowledge of the overall aims of the colony; they merely follow simple rule sets. Yet the collective itself exhibits characteristics that are not present in its individual members. The collective can almost be viewed as an organism in its own right.

The relevance to the Internet of Things The same principles that make natural collectives successful can be put to work in data networking. The sum of the knowledge embedded within thousands of relatively simple devices, if efficiently and effectively communicated between network nodes and applications, can produce benefits above and beyond those provided by the individual pieces of equipment. This can help address the problems that occur out at the network edge.

This approach solves the scalability problem which has been the ‘elephant in the room’ when discussing previous edge architectures. Doing so results in a quantifiable reduction in the total cost of ownership of an edge SWARM compared to other current solutions.

Five ways SWARM Intelligence reduces cost of ownership Service oriented Conventional edge devices are typically either relatively limited in their programmability providing, for example,

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With SWARM intelligence, an edge device does not have to be a single physical device, with implicit limitations on interfaces, resources and expansion. Instead, it can be made up of a number of discrete physical devices, with each one contributing its interfaces and processing capabilities to the

collective. Together, these individual devices can then be viewed, in architectural and functional terms, as a single entity.

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M2M Now - February / March 2015

simple scripting support, or may require detailed user programming that requires a high level of familiarity with the device and its underlying hardware and software structure. SWARM devices support both scripting and detailed programming, but dramatically reduce the time and risks involved in business logic development by providing fully rewireable services, coupled to an ontology engine that allows services to be broadcast throughout the SWARM. User programming becomes, to a much greater degree, an exercise in the binding of trusted services and user modules, while also allowing for the extension of the available services and modules for inclusion in the local SWARM. The generation of local business intelligence is further simplified by the provision of an internal continuous query engine, allowing users to filter and enrich underlying data passing through the SWARM by invoking calls using a comprehensive high level query language which includes the concepts of both time and number bound operations.

physical device in a single location, connecting each sensor or subsystem requires another cable run. That can be made even more expensive if trenching is required, or there is a need for armoured or specialist cables. In a SWARM-based system, a wireless node is connected to a sensor or device. The node then makes its data available to the SWARM, which provides a wireless path to the network gateway. This makes a cable run unnecessary.

Redundancy The ability to add and use new interfaces and resources, along with the routing capabilities built into each SWARM device, makes SWARM incredibly flexible. It is easy to set up strategies to attach business logic to multiple interfaces, providing redundancy of outputs, or x-out-of-y voting on input data. Redundancy need only be added to those interfaces that truly require it. This is far cheaper and far less complicated than creating redundancy by duplicating the entire edge.

Managed device infrastructure

This combination of features dramatically reduces the time and risk involved in the development and deployment of the business logic, analytics or other user programming required at the edge.

This shortens the overall time to revenue for systems based on SWARM.

Each device within the SWARM supports local configuration and management. More importantly, SWARM also supports remote management from a central location. This dramatically reduces the number of site trips required for system maintenance.

Adding future interfaces and resources

A SWARM reports the status of connected devices and allows for the download of user programs to both individual devices and groups of devices.

User programs are deployed in protected containers within the edge devices, and no user program can negatively impact services, interfaces or programs that are running outside those containers. If a user downloads a program that contains bugs, the program itself may crash.

However, the edge device remains operational, and the user can remotely recover the situation.

In traditional edge devices it is necessary to define the characteristics of the device prior to installation. Parameters may include the number and type of physical interfaces to be provided, the bandwidth of the processor, the amount of RAM and the persistent storage required. This often leads to the deployment of devices that are more expensive than is really necessary, as a means of “future-proofing” the installation. Even then, an installation may prove to be inadequate for some future task, calling for replacement with more advanced equipment, potentially also incurring costs for retest or recertification of the installation.

A SWARM edge is already future proof. If a new interface is required, or if a new edge application calls for more processing power, memory or storage resources, additional nodes with the necessary features can simply be added to the pre-existing SWARM, with no effect on any of the existing interfaces or the applications built upon them. As new classes of device emerge, the SWARM will absorb and incorporate them, thus increasing the overall capabilities of the collective.

This means that deployed devices can be sized for the known requirements at the point of deployment, without risk to the investment being made at the time.

Installation Costs SWARM technology can directly reduce the cost of integrating remote sensors and devices. In a traditional architecture, where the edge is a single

M2M Now - February / March 2015

“It’s greater than the sum of its parts”, says Tim Taberner, global product manager at B+B SmartWorx for the company’s advanced IoT cellular gateways

SWARM devices also include the ability to support “zero touch” provisioning, automatically contacting a central server to obtain their initial configurations and user modules on first power up. To bring an unconfigured SWARM device into service, the device need only be physically installed and switched on. This reduces the number of operational spares needed to support a system, as standard SWARM devices can be substituted without any pre-configuration process. Additionally, the installer needs no special skills.

Conclusion Like a beehive or an ant colony, SWARM technology lets individual devices contribute their abilities to the collective, even legacy equipment that was never designed to be a part of the Internet of Things. In doing so, SWARM technology provides massive scalability and the ability to easily integrate future, as yet undefined, interfaces and devices. SWARM can drastically reduce the costs of application development and deployment, installation, commissioning and maintenance out at the network edge.

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INTERVIEW

SAP says IoT for Business isn’t just about efficiency; it can create entirely new opportunities for enterprises IoT for Business is in phase one of its’ development but phase two and three are waiting in the wings and will enable organisations to transform themselves and achieve a new level of efficiency. They’ll potentially be able to enter new markets, Michael Lynch, the global co-lead of Internet of Things at SAP, tells George Malim

SAP sees itself as the provider of three key elements to achieving successful IoT for business.

The first is to take SAP’s existing applications and enable them for IoT. The next step will be to innovate with customers and partners to develop new applications.

“We don’t believe the existing applications are the end of the opportunity,” Lynch explains.

“Customers want to innovate in areas of their own choosing and we want to work with them to find breakthroughs that transform and enhance their businesses, using IoT.” The third element of SAP’s IoT for Business strategy is to provide the platforms businesses will require in order to handle the sheer scale of IoT deployments. “As the market develops and new applications and technologies are rolled out organisations require enormous scale in their IoT platforms,” says Lynch. “With big data and inmemory platforms like SAP HANA, we can provide a platform for other applications to scale up.

Partners want platforms that can develop rapidly.”

SAP sees an opportunity to provide those highly scalable platforms and enable organisations to connect into its networks and business suite innovations. The concept of a platform that can connect various business sources and has the power and scalability needed for organisations to extract business value is one that is regarded as highly difficult for individual organisations to achieve. SAP is looking to become the provider that enables businesses to accelerate and simplify IoT deployment by providing that platform.

It’s still early days for the IoT, though. Lynch, however, sees several sectors starting to move ahead with deployments. Large multi-national corporations in automotive and heavy asset industries, in utilities, in manufacturing and, increasingly now, in retail are embracing IoT. “You will see solutions in all kinds of areas,” confirms Lynch. “We see solutions in telematics and industrial automation helping those sectors.

Our main focus is on those industries but SAP is a big place and lots of other areas are being addressed.”

Although IoT is seen as relatively new, it’s worth considering that the business pre-dates the terminology. “SAP has been enabling IoT at the platform level for many years if you think about applications such as RFID (radio frequency identification), for which we have hundreds and hundreds of customers,” Lynch adds. “In terms of specific IoT products that we have in the market today, we’ve released an extended version of our manufacturing platform to optimise configuration and throughput and connect predictive analytics to maximise machine uptime.” ▼

Michael Lynch: Customers want to innovate in areas of their own choosing – and we want to help them

The Internet of Things (IoT) is starting to gain momentum in both consumer and enterprise sectors. As the hype continues to rage in the consumer market, the business sector is getting on with the business of generating value from IoT. “Our customers are looking now to drive business value out of the multitude of capabilities that IoT will bring,” confirms Michael Lynch, the global colead of Internet of Things at SAP. “We’re very focused on a group of systems that can grow value in a range of setting and change the focus from a technology discussion to the business outcome.”

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“That’s an example of an update to an existing technology but we also have a new product that enables cloud-based predictive maintenance, for example,” he says.

Lynch gives an example of a connected logistics deployment at the Port of Hamburg in Germany.

Hamburg Port Authority handles an average of 10,000 ships and nine million cargo containers each year and anticipates it will handle 25 million cargo containers by 2025. The challenge facing the Port is that it is unable to expand its geographic footprint so it needs to accelerate the turnaround time for ships docking and the trucks that collect the shipping containers.

With 5,000 trucks entering the port each day now, a traffic handling solution is required to enable it handle a likely trebling of truck numbers. SAP, along with Deutsche Telekom and other partners has created a traffic hub that ensures trucks don’t enter the port until their container is ready to collect.

Another example Lynch gives is at motorcycle manufacturer Harley-Davidson, which through using connected manufacturing applications from SAP, shrunk the size of its manufacturing platform by one-third and increased productivity by 19%, driving a 7% increase in margin.

Other companies are using IoT for business to take them into entirely new commercial areas.

Compressor manufacturer Kaeser initially deployed an IoT system to track its compressors and manage their uptime.

equipment and get a dashboard,” explains Lynch.

“However, that’s only the first step. Stopping there means you have the information but then have to go back to the practices of 1955 and send out a guy in a truck to check the situation. Phase one is to the get the information and the dashboard, phase two is to optimise what to do about the insights you receive and phase three is to provide new services to customers.”

Kaeser is using the insights it has gained to move to a pay per use model so, instead of simply selling compressors, it now can provide them as a service. The company says it has seen it double its business. This is the ultimate stage where creativity is applied to data from connected devices to create brand new business models, products and services. SAP is enabling this level of creativity and reimagining of business models for its customers today.

Kaeser is using the insights it has gained to move to a pay per use model so, instead of simply selling compressors, it now can provide them as a service

These early deployments are pioneering IoT for business and there is a long development path yet to be journeyed down. Lynch points out that much of that innovation will come from specialist companies or dedicated new teams within large businesses. Both will rely on the scale of the platforms and the connections into business applications that SAP can provide.

“If you look at IoT for Business as a process to transform the information into a database and then use it to transform the way a company operates with the end goal of re-imagining your customers’ experience, SAP is the only company with the capabilities to take through that path,” Lynch concludes.

“The first thing companies want to do is track

M2M Now - February / March 2015

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BIZ TALK

Balancing privacy, security, risk – and your brand - in an infinitely interconnected world New challenges demand new end-to-end strategies – not just more technologies, says Oozi Cats, CEO of Telit Communications

It’s one of those universal truisms that any increase in openness of any sort brings with it implicit risk. From stomach troubles on foreign holidays to teenage broken hearts, we spend our lives navigating often-narrow knife edges between opportunity and threat. It shouldn’t therefore be any surprise that the increasingly rapid adoption of IoT and M2M solutions by ever wider market sectors is presenting its own particular challenges to us, both as individual companies and as a wider collective community.

It’s already clear that two issues must be urgently addressed. First comes the all-important one of keeping a continued confidence amongst both the general public and the worlds of business, government and the utilities in our ability to protect their data and systems.

However, before we can really do this, the second issue must be tackled: how do we create the right kind of environment that ensures that security is built into our products, our solutions, our

M2M Now - February / March 2015

companies, our markets and, especially importantly, our staff in truly holistic ways.

The high technology sector – from the early days of both the Internet and GSM – has often rolled out amazing technologies only to find that they were implicitly insecure. The end result was a sometimes embarrassing and expensive scramble to retro-fit security techniques like encryption.

The Internet of Things (IoT) is too important to both our public and private lives for security to be seen as an afterthought.

Complementing this issue is another ‘softer’ issue and one to do with company cultures and organisational structures. Although things have improved, enterprise IT security departments have been seen in the past as business limiters – not business enablers. They were the ones who always asked awkward questions when some new business initiative was suggested and, because their strategic advice was ignored in a race for shortterm profit, often had to clear up the mess later.

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The high technology sector – from the early days of both the Internet and GSM – has often rolled out amazing technologies only to find that they were implicitly insecure

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BIZ TALKINTERVIEW

At Telit, both these facets of the central problem are very clear to us and we recently took a pledge to expand and enhance our efforts to educate and raise awareness of what security really means: not just amongst the technology community, but also across every market sector involved and the wider general public.

How the world perceives IoT risk When it comes to actual awareness of security pitfalls and vulnerabilities, a major survey of consumers, businesses and IT security specialists by international IT governance organisation ISACA (IT Risk-Reward Barometer, 2014) showed some interesting trends. Irrespective of region, most respondents knew about prominent data breaches of companies and most said their concerns had increased as a result. On further drilling down into the data, the research specifically addressed concerns about the IoT: vulnerabilities to hacking; usage of customer data; resale of personal information; and tracking of individual behaviours and travel. While around half of those polled said that they proactively managed their privacy settings, the rest were essentially passive, only changing things such as passwords when a specific event occurred – or not even then. Overall, despite recognising the benefits of IoT, more than a third of the ISACA members and IT professionals surveyed felt that the risks currently outweighed the benefits to enterprises.

So, what can we do to change these perceptions?

Despite its virtual nature, cyberspace displays many of the characteristics of real world geographies. Just like any city, there are safe areas and unsafe areas. Organised crime and black hat hackers have their own equivalents of seedy bars and hangouts, where vulnerabilities, tools and data are shared and swopped. Some of the larger criminal and terrorist organisations even have their own R&D operations, funded by the profits from their illegal operations. Despite this - and just like real world villains - they’ll almost always target the easiest, most vulnerable, low-hanging fruit.

The response to this, we at Telit feel, is to create our own equivalents of ‘safe neighbourhoods’ for IoT, where information and best practice is readily shared across our industry’s equivalent of the shopkeepers, business owners and householders.

This ‘zero tolerance’ strategy – just as it’s worked in some of the world’s major cities – can go a long way in deterring opportunistic crooks, driving them to move on in search of easier and weaker pickings.

That said, the incredibly complex value chains involved in much M2M/IoT activity will never be secured by simple point solutions and, again just as in the real world, a broad spectrum, multiagency approach is essential. Each technology sector will be familiar with its own vulnerabilities, while each market sector will also have its own native concerns. Around these are also the general public and ordinary everyday business users who’ll often inevitably try to avoid using appropriate security techniques if they impact on how easily they can use devices or services. Any cybercriminal will tell you that the easiest parts of the whole infrastructure to hack are actually human beings….

The whole is more than the sum of its parts Telit’s recent work provides a good example of how this multi-level, multi-agency approach can work in practice. While there are numerous national and multinational organisations out there concerned with IT and network security, risk, fraud and revenue management, we identified a number of strategic points within the entire IoT/M2M universe where active input and participation would have the greatest strategic benefit for ourselves, our customers and the wider community.

GSMA Embedded SIM project: SIMs are one of the essential building blocks of cellular connectivity, so it was essential that security principles were deeply rooted right from the start and Telit played an important role in crafting these and is amongst the first in the industry to commercialise a compliant solution – which you’ll be able to see at the Mobile World Congress in March.

ERTICO-ITS: This is a good example of sectorfocused activity, being a European organisation that promotes research and defines Intelligent Transportation System industry standards, connecting public authorities, businesses, infrastructure operators, users, national ITS associations and other organisations, both across Europe and internationally. Through ERTICO, Telit has been involved in defining secure specifications for the wider European eCall initative, which uses ‘black boxes’ deployed in vehicles to send alerts, sensor data and location information to emergency services in the event of accidents.

TIA’s TR-50 - The Telecommunications Industry Association’s (TIA) TR-50 initiative is developing an M2M Smart Device Communications framework able to work across different underlying wired and wireless links, using well-

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Despite its virtual nature, cyberspace displays many of the characteristics of real world geographies

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defined Application Programming Interfaces (APIs) that are agnostic to the specific vertical application domains such as Industrial Automation, ehealth and Smart Grids. Once again, Telit has been influential in developing specifications in both this and related protocols. oneM2M – Telit has also been deeply involved in addressing key security issues within this organisation on a more generic basis, effectively creating a standard of standards that can be applied across multiple industry sectors, consolidating work carried out by more specialised groups.

5G – While it currently seems to be true that if you ask a room full of radio engineers for their definitions of 5G, you’ll get more definitions than engineers, work is already moving apace in this domain.

Unlike previous network-focused standards, 5G will be the first to consider and incorporate the unique needs of machine communications – including security. Telit here, again, has been involved right from the earliest days, ensuring that issues around machine connectivity – and especially security – are incorporated from the ground up.

Integrating security – from the quantum level upwards The fractal nature of our industry – where there are the same levels of complexity at each stage up from microprocessor to the networked product – means that there’s a critical need to address security at the most basic levels of manufacturing and circuit design. This also extends to ensuring that where new firmware is distributed to remote devices for dynamic updating the whole path is secure.

With our 2013 acquisition of ILS Technology, Telit added critical expertise in data security. Take, for example their secureGATE solution, specially created to help semiconductor fabrication plants protect their design and manufacturing processes from digital infiltration and attack; while their secureWISE offering monitors and secures traffic to and from each tool on the factory floor.

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This kind of ground-up, silicon>component>system strategy is especially important when it comes to securing the Connected Car - or the

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Much like our broader ONE STOP. ONE SHOP. offering, we believe the first step to solving an industry-wide problem is acknowledging it

‘Smartphone on Wheels’, as some now define it, with its own IP address. As new functionalities are added to this platform, such as driver assistance systems, theft prevention, intelligent traffic management and more, each must be protected, both singly and when they’re operating in unison.

While the CAN bus and other architectures continue to evolve, increasing in speed and functionality, some suppliers have brought in specific point countermeasures to address individual elements in the digital command, content and control chain, such as secure keys, encrypted data, message filtering and the like. By contrast, Telit’s strategy has been to create a much wider, all-encompassing environment – ATOP, m2mAIR Mobile and deviceWISE – implementing multiple measures using state-ofthe-art bank transaction-level security where keys and certificates are used in each communications element and module. In fact, the ATOP module even has a dedicated processor to store keys and process encryption algorithms to protect the entire vehicle from digital attack.

Telit m2mAIR in particular offers Shield, a new service specifically designed to detect and protect against attacks at the device itself – essentially shutting down the communications module and recording attack data to transmit once the attack is complete, while deviceWISE, on which our m2mAIR Cloud offering is based, has been named the most secure M2M application enablement platform on the market two years running by leading research firm ABI, thanks to its file-level access policies which leverage and build upon the expertise behind secureWISE.

Adopting inclusive policies and strategies A famous French statesman once observed that “war was too important to be left to the military”.

The same applies to M2M/IoT security – it’s far too important to our entire world to be left solely to the security experts, excellent though they might be in their respective fields. Indeed, the sheer breadth of security issues that can impact different aspects of the M2M/IoT universe – cryptography, identity theft, authentication, physical and plant security, access control, social hacking and so on – urgently require the imposition of truly holistic operational security

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frameworks by companies working in this space.

In this context, a number of risk analysis and management methodologies already exist which can be adapted for M2M/IoT environments.

Much like our broader ONE STOP. ONE SHOP. offering, we believe the first step to solving an industry-wide problem is acknowledging it. Just like the boy who cried ‘wolf’ in the children’s tale, it may be unpopular with our industry peers to point out potential security risks associated with the M2M/IoT domain, but we’ve never shied away from such a challenge. We encourage you to talk to your suppliers and the many industry and technology organisations now sharing best practice advice about how they can help protect your mission-critical data at every possible entry point – from edge to HQ’s IT department. Then you’ll be able to determine for yourself whether your devices are secure at the edge, your data is secure in transit and arrives at your enterprise systems without tampering.

We see end-to-end cyber-protection for IoT data and privacy as a fundamental requirement for providers in our space. While there have been some recent high-profile security and privacy breaches in the news, that doesn’t mean that today’s connected consumer needs to be suspicious of the many services and benefits that the Internet of Things provides. Telit and its subsidiary companies are deeply committed to data security across the entire value chain and are actively engaged in defining and building the standards of security around device communications.

Oozi Cats has 25 years of experience in creating and leading business ventures. In 2000 Cats founded Telit, then an Israeli start-up for high level engineering and distribution in the field of wireless communications. In 2002 Cats led Telit to acquire a bankrupt GSM/GPRS handset company in Italy and restructured its human resources & strategy to become an M2M platform. In 2005 Cats took Telit Communications PLC public on LSE (AIM) raising about GBP 20M. With the funds in place Cats globalised the company by adding to its cellular GSM/GPRS core competence also CDMA, EVDO, UMTS and later also HxPA & LTE. Since then, Mr. Cats has led Telit to become a leading enabler of the Internet of Things by bringing together, through a series of acquisitions, all the pieces of the IoT puzzle including hardware, software and services across the entire M2M value chain.

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wot.io: Understanding the Chatter of Things One of the recurring problems of the whole convergence sector throughout its history has been that one part of the complex value-technology chains involved always – and inevitably - lags behind developments in the rest of the infrastructure and systems. As a result, potential commercial and personal benefits remain unrealised, money and time are wasted on ultimately fruitless integration initiatives and innovation grinds to a halt across the whole sector.

Sure, we do have data analytics tools and disciplines suited to supporting very narrow objectives through point solutions. Like all point solutions however, they’re often dedicated to resolving one particular problem and lack the dynamism, flexibility and openness that the emerging M2M/IoT landscape demands.

Now, however, new approaches to managing the flow of data and then properly exploiting it are

finally appearing. M2M Now’s Alun Lewis sat down with one company recently formed to address exactly this issue – wot.io – and spoke with two of its founders, president Allen Proithis and CTO Tom Gilley about its – so far – unique solution.

M2M Now: wot.io formally defines its offering as ‘a data service exchange, supporting a marketplace of pre-integrated third-party data services and applications’. While the terms used there may be clear to some readers, for many potential customers entangled with the often messy day-to-day realities of running a business, it’s just yet more technological jargon.

How do you explain your offering in language appropriate to the non-technical user?

AP: There are lots and lots of companies out there, as well as a diverse range of organisations and institutions such as city municipalities, who already know that there are potentially huge ▼

Until recently, it’s looked like the M2M/IoT sector was approaching just such a stop point.

Commercial and technological developments over the last few years have now given us a broad range of connectivity options suited for different markets. The device, sensor and gateway ecosystem has similarly widened to capture data – the lifeblood of these new value chains that we’re trying to create. One problem however remained: what to do with the data once we’d collected it….

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benefits to them, their customers and the wider human community from exploiting M2M/IoT. The problem is that they’re currently struggling to make sense of an extremely fragmented and still largely un-interconnected environment. Many of the ‘solutions’ out there still reflect their origins in specific sectors or technologies, and that heritage in turn affects how problems are identified and the answers proposed.

“Almost all of our team have worked at very senior levels in the telecoms and IT sectors over many years and have a simultaneously deep and broad appreciation of business-critical issues in ways that a younger cohort might not.” Allen Proithis

Allen Proithis is president and founder

A company could try and go it alone, but all too often they’ll find themselves quickly bogged down by the sheer number of suppliers, partners, technologies and systems that they need to get to work together in what should be seamless and harmonious ways. This complexity involves far more than just connectivity, especially where issues of corporate or personal data security, legality and privacy are involved. Compounding this complexity even further is the fact that each sector – indeed each company – always has some requirements that are unique.

This is especially true when it comes to extracting useful and actionable information and knowledge from the data gathered from a multitude of connected devices. Our key differentiator is that we have assembled a wide range of best-in-breed and often open-source application, tool, platform and framework partners. These complement our underlying data exchange service which links to the many platforms out there that are actually collecting data from devices.

Customers can select from these in almost infinitely flexible pick-and-mix ways to select the appropriate tools, applications and services as and when they need them on a subscription basis. Rather than the traditional approach to application integration where elements are almost welded in place, our concept is more like Velcro: easy to set up and similarly easy to tear down as business and data needs change.

These resources - what we call our ‘integrated marketplace’ - are continuing to grow and already include leading specialist companies in the fields of device management, data management, analytics, business intelligence, scripting, web automation, systems integration, and social media. If we don’t currently have the tools that you require, you can be sure that they’re already on our agenda.

M2M Now: One recurring thorn in the convergence vision – though that’s fast becoming a very dated and 20th century term – is who takes responsibility when something goes wrong given the extremely diffuse nature of the operating environment. How is wot.io addressing this in the M2M/IoT space?

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AP: You’re right and this is one thing we’ve focused on heavily right from the very beginning. Almost all of our team have worked at very senior levels in the telecoms and IT sectors over many years and have a simultaneously deep and broad appreciation of business-critical issues in ways that a younger, more web-centric cohort might not.

Put bluntly, our customers have one throat to grab – ours – while we’ll already have in place all the underlying SLAs and contracts needed to optimise our own partner relationships. We’re also able to interpret performance metrics as they relate to specific customer needs to ensure that service quality, availability and security are appropriately tailored for each user case. Taking these responsibilities on ourselves instantly frees the customer from the pain, grief and effort involved if they’d tried doing the whole thing themselves.

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One increasingly important rider to that concerns the legal issues that naturally arise when you’re dealing with often highly sensitive data in national or international contexts.

Once again, we’ve addressed these issues from day one of the company and helping customers mitigate or control these risks forms an implicit part of our whole offering.

M2M Now: Your answers so far seem to indicate that you could be aiming to make at least some of the classic System Integrator (S.I.) community ultimately redundant. How do you see them reacting to offerings like yours?

“Underpinning the wot.io data exchange services is our bip.io Web Automation platform which offers access to over 50 data services.” Tom Gilley

AP: It’s true that S.I.s have often had problems selling into this space in the past. While very few of their potential customers have the skills and expertise in place to develop their own M2M/IoT solutions, they’ll also shy away from what they perceive could be an open-ended and expensive lock-in relationship with a system integrator.

What we’re now finding very interesting is that some S.I.s are now starting to use wot.io’s platform and services as a way of economically and flexibly enhancing their own very real strengths in specific market sectors, merging this insight with our tools and operating environment. It’s a complementary relationship: they can focus on delivering high-end strategic consultancy and project management – wot.io deals with the technical integration, as well as the essential commercial and legal frameworks that underpin service delivery and guarantee QoS. Indeed, some S.I.s are now finding that with us as part of their proposal, they’ve got a second chance of winning a contract.

We’re agnostic here, both in terms of our tools and our business model, and while we might advise customers, we have no intention of becoming sector-centric business service providers.

Tom Gilley is chief technical officer and founder

M2M Now: Tom, as CTO, you’ve got a complex landscape of partners, tools, products, frameworks and applications to support. Can you talk us through what you see as some of the most significant elements here?

TG: Before drilling down into specifics, we can roughly divide these domains into three mutually supporting areas.

Firstly there’s our growing range of data service and applications partners – more on them shortly.

Underpinning the wot.io data exchange services is our bip.io Web Automation platform which offers access to over 50 data services. This a free platform, fully open for developers to explore and experiment with, which integrates our operating environment with the world of business workflow, linking into email, productivity and CRM tools including Zoho, Slack, Dropbox and Google Drive; social apps like Twitter and Flickr; as well as syndication feeds such as RSS and Atom. We’re currently getting around five to ten users a day sign up to exploit this.

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Alongside this, we also recently announced a partnership to provide appliance and connected device application developers with an easy path to mass production through use of Marvell’s Kinoma Create platform. In this device context, wot.io was already partnering with ARM to provide native support for the company’s mbed platform across a range of architectures, including ARM’s recently released mbed IoT device platform. In fact, towards the end of last year, we won a Best in Show Award at ARM’s TechCon 2014 conference. Extending our operating environment down to the actual device chip and OS gives developers and users a huge advantage in creating a

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M2M Now: And what of the products and applications that you’ve integrated into your marketplace?

TG: As I said earlier, there are currently over 50 data services available and we’re continuing to add to them. As an indication of the breadth of the portfolio already assembled, we announced at the start of this year seven new data services from Elasticsearch, Jinfonet Software, Kibana, MongoDB, Pentaho, Apache Solr and SQLstream.

These offer an incredibly wide set of tools and functionalities to developers and users, including business intelligence and data visualisation, and real time data analytics – and we support streaming data in our framework, search engines, databases, data mining, and dashboards.

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M2M Now: While the IoT world is extending its reach into our private, public and work lives at an astounding speed, much of this is going on below the waterline of most people’s awareness. Even when some new functionality or service suddenly pops up in their workplace, on their smartphone, in their connected car or in their increasingly smart home, it’s usually greeted with a ‘I never knew that it could do that….”. What does however instantly attract their attention – and varying levels of concern – is when some big story about customer data or identities being hacked or stolen hits the media.

What’s wot.io’s view on the growing security challenges involved in keeping the world’s data and devices safe?

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TG: For a start, security and wider risk management strategies have to be built in to any company operating in this interconnected environment right from the start. Each new boundary – between all the companies, systems, databases, applications and devices involved – must be protected and, on top of that, the human environment must also be taken into account.

You can have the best systems security in place but, as the US government has already found, a disgruntled employee can easily defeat that.

What’s especially critical is realising that these potential problems are not going to be solved by individual companies operating in isolation and instead is going to require a collaboration across the entire value chain of vendors, suppliers and operators. End customer education is also going to be important.

That said, those involved in the connected device space are now more than ever creating products with device management solutions that are based on industry standards that have included security as a fundamental building block right from their earliest design. Examples of these that wot.io is intimately involved with include AllJoyn from the AllSeen Alliance and ARM’s mbed platform.

Data is fast becoming the critical defining asset of businesses in the 21st century as industry and commerce move away from traditional models of plant and resource ownership. It’s wot.io’s job and responsibility to offer our customers and partners a choice of secure device management solutions, as well as access control and data security vendor applications as integral parts of our data exchange service.

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CONNECTIVITY: Extending and securing the IoT’s frontiers

NETWORKS NOW NEED UBIQUITOUS AVAILABILITY, RELIABILITY, LONGEVITY AND STRONG SECURITY Gemalto’s Norbert Muhrer explains the route to a safe and profitable future

PLUS: Stream Technologies on low-power networks • The status of standards in Low Throughput Networking • Link Labs on new long-range, low-power connectivity solutions • Telit reveals its LTE strategy • Automotive sector report • Events

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Securing Connectivity for an infinite set of devices and apps

The view from Gemalto One attribute absolutely essential for any relationship – commercial or otherwise is trust. Trust in turn relies on security – and imposing appropriate levels of security across an increasingly complex and interconnected environment requires a broad set of skills and tools. Norbert Muhrer, senior vice president of M2M at digital security company Gemalto, recently shared his opinion on these issues with M2M Now.

NM: We’re sure to see a focus on the evolving ‘Internet of Things’ (IoT) and a flurry of related innovations. As mobility and connectivity to all forms of sensors expands and data is

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everywhere, the industry is taking a more serious look at security and the importance of designing and implementing end-to-end security architectures. We hope the industry understands how critical it is to move open architectures towards being secure IoT solutions. We also hope the show inspires continued innovation and passion for the enormous benefits the IoT is bringing to the world. ▼

M2M Now: As a participant in Mobile World Congress 2015, which gathers industry leaders, visionaries and innovators, what are your hopes for this year’s conference?

M2M Now - February / March 2015

NM: The new Industrial Revolution has arrived and these are exciting times! Wireless connectivity has moved beyond smartphones, computers and enterprise applications to encompass virtually everything - from connected cars and smart meters to mHealth medical devices, wearables, smart home appliances and much more. IoT connections are expected to reach 2.1bn in the next five years growing at a 36 percent annual growth rate according to Analysys Mason. We are heading into a future of innovation where seamless, secure and ubiquitous IoT applications play a vital part in our daily routines.

M2M Now: We now have a wider choice of technologies for IoT connectivity. How much further can traditional cellular options carry the industry forward?

NM: We believe traditional and emerging cellular options still provide a viable path to the future.

MNOs are fully committed to the IoT marketplace recognising its power as a new growth area to supplement the handset and consumer device market. Where cellular offers its strongest advantage over other options is the ubiquitous availability of networks and in delivering the highest quality of service. Mature and proven IoT solutions, services, security and platforms are key enablers across the value chain, offering reliability and security, combined with easy integration due to interoperability through standardisation.

M2M Now: What changes have you seen in M2M over the past few years?

NM: We’ve seen the marketplace accelerate as a result of technology evolution, dedicated MNO support, more competitive pricing and mergers and acquisitions. In addition, the industry as a whole has embraced the importance of software and services to help simplify and accelerate growth. Gemalto expanded its product offerings adding Trusted Services, Security and cloudbased Platforms to its market-leading suite of M2M Module and MIM solutions. The trend to include embedded processing across product platforms has simplified development and backend integration, speeding time to market for new applications. And, with growth, comes a heightened awareness of the need for end-to-end security architectures to protect data and systems and mitigate risk.

M2M Now: IoT is an area of huge innovation and growth. Where are you seeing game-changing applications of IoT connectivity?

NM: We’ve seen compelling innovations in smart home applications such as Nest, smart energy solutions including Gemalto-enabled SOLARKIOSK E-HUBB and Kiwigrid Secure

M2M Now - February / March 2015

Gateway, and in wearables like the new Limmex emergency call wristwatch. However, the connected car remains at the leading edge of IoT innovation with experts estimating that 90 percent of all vehicles will be connected by 2020.

State-of-the art in-vehicle communications, permanent remote care of the car, NFC keyless entry and driver authentication, V2V and V2X technologies are enabling safer and more fuelefficient traffic patterns and revolutionising modern transportation.

We believe traditional and emerging cellular options still provide a viable path to the future

M2M Now: What are the main market drivers for IoT and where are you seeing the most growth?

NM: There is no doubt that the markets for intelligent devices and sensors that connect to the cloud are nearly limitless. Yet growth remains relatively cautious when compared to the smartphone industry. This is due to complexity.

There is no cookie-cutter model in IoT and each industry vertical has its own rules. The key factor to drive growth is to remove complexity and the path is clear: connect the device – manage device connectivity – manage the data – wrap it all in a layer of security to provide a trusted solution. We offer this in four steps.

Firstly, get connected. Cinterion modules and MIMs connect customers to any mobile network.

Secondly, manage subscriptions. Enterprises or MNOs need to be able to dynamically manage subscriptions over the air. Gemalto’s On-DemandConnectivity platform implements GSMAspecified standardised architecture to enable remote provisioning and improve simplicity, flexibility and security.

Thirdly, manage devices in the field. Gemalto’s SensorLogic platform simplifies device and overall solution management. Once the “plumbing” is in place, customers need to develop vertical specific applications. The SensorLogic Application Enabling Platform provides the toolbox with software kits, data management capabilities and graphic user interfaces for an easy data management in the cloud.

The fourth thing is to secure the solution. These solutions handle sensitive business data and we need to ensure that devices only talk to their own host cloud and vice-versa, that cloud platforms only interact with authenticated devices. They need strong authentication with secure elements at the edge, i.e. the device and secured platforms at the core.

M2M Now: What sort of services are being developed to simplify the way connected devices are launched and operated?

NM: On-Demand Connectivity (ODC) and Over The Air (OTA) software provisioning greatly ▼

M2M Now: How would you describe the current wireless connectivity scene?

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INTERVIEW We believe the MTC roadmap provides a strong and reliable path forward for IoT and M2M OEMs by providing ubiquitous network availability, reliability, longevity and strong security

Norbert Muhrer, senior vice president of M2M at digital security company Gemalto

simplify both the road to market and solution management over long life spans. Until recently, manufacturers of devices like smart home thermostats needed to deliver a different solution variant for each MNO region where the thermostat is deployed. ODC clearly addresses this pain point, especially with international deployments and solutions like connected cars that are designed to operate for 10-15 years. Gemalto’s secure ODC solution delivers specific credentials governing mobile network use securely over the air to a Universal MIM card already embedded in the device.

most require only small bandwidth with bursts of data transmitted via a secure always-on channel.

MNOs are developing specs for a cost-effective channel – MTC - within the LTE pipeline specifically for M2M applications including versions that compete with 3G, 2G and noncellular/short-range alternatives.

Gemalto has been securely managing service provisioning for decades for MNOs, financial institutions and governments and we are quickly bringing this capability to the IoT space. For example, Swiss watch manufacturer Limmex is using Gemalto’s LinqUs ODC solution for its new connected wristwatch with embedded emergency communications and GPS capabilities. Launched with Swisscom, the watch can be used globally and securely provisioned over-the-air for any MNO.

NM: Gemalto is already the global leader in digital security. Our solutions are used every day in billions of devices to secure mobile payments, financial transactions, government passports and much more. The acquisition of SafeNet strengthens our leadership even further allowing us to expand security from the edge to core of IT solutions. For example, software monetisation solutions can help businesses protect their intellectual property on IoT devices as well as in the cloud.

M2M Now: Your solutions and services cover a huge spectrum of industries: which are the ones to watch in terms of network innovation and growth?

M2M Now: How mature and effective are today’s security options – and how do you see cellular network security evolving?

NM: The automotive industry is really on the cutting edge when it comes to both innovation and growth. Other similar verticals remain strong including vehicle tracking and recovery, usagebased insurance rates and toll-collect systems.

The Point-of-Sales segment is another growing segment, motivated by EMV (Europay, MasterCard and Visa) conversion across the globe and mobile payment via smartphone is also on the rise. Other industries to watch include the smart energy sector and healthcare.

M2M Now: What is your view of the emerging M2M/IoT Low Power WAN approaches?

NM: We are looking at many emerging connectivity approaches; some are more feasible than others. We believe the most promising is the evolution of LTE to MTC (Machine Type Communications). Networks are evolving to LTE (Long Term Evolution) but not all M2M solutions require the bandwidth of a connected car. In fact,

We believe the MTC roadmap provides a strong and reliable path forward for IoT and M2M OEMs by providing ubiquitous network availability, reliability, longevity and strong security. In addition to the inherent security already built in with MIM and SIM cards, the industry can also leverage additional layers of mature technology including secure elements, NFC applications and two-factor authentication solutions that have been proven in mobile banking and other segments for decades.

M2M Now: Security and data privacy remain a key industry concern; what does your acquisition of SafeNet bring to your platforms and services?

NM: Today’s security solutions are both mature and effective. Use of secure elements, two-factor authentication and OTA software solutions have been proven successful in sensitive industries including healthcare, telecommunications, banking, government and other sectors for years.

However, IoT security often remains an afterthought in solution design exposing implementers to enormous risks - both financial and to brand reputation.

This dynamic is swiftly changing. OEMs, developers and service providers are engaging with trusted security experts for thorough risk evaluation and end-to-end security architecture design that mitigates risks and protects solutions, data and backend IT systems from cyber threats.

To initiate any type of trusted connected world communication, the first step must always include secure service provisioning or On Demand Connectivity. If initial registration and credential delivery cannot be trusted, the device cannot be trusted.

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M2M Now - February / March 2015

Join us at the MWC Wrap Party March 4th 2015 19.30 - late Marmalade Restaurant Bar Cocktails Riera Alta 4-6, 08001 Barcelona For party invitations please e-mail

mark@vanillaplus.com

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INTERVIEW

Low Power Radio Networks for the Internet of Things – a view from Stream Technologies Providing unified access for Low Power Radio Networks In today’s fragmented multiple network environment, managing services to provide quality customer engagement whilst maximising revenues is a challenge for service providers. Where distributed networks can now include hundreds of thousands of Internet of Things (IoT) connections, this challenge is only getting more complex as members of the Stream Technologies executive team explain.

Stream Technologies began in 2000 as a pure M2M company, looking to make the management of M2M devices simpler for providers. But as the market has changed and evolved, so too has Stream. The company specialises in reducing the complexity of not just M2M, but also global IoT connectivity. With over 500 enterprise and SME customers across more than 25 industry sectors – including smart meters, telematics and broadcast solutions – Stream offers a wide choice of wireless networks and technologies.

“In 2005 we realised we need to take the friction out of the management of networks for our customers, especially those who have to manage multiple network connections, such as 100,000s of smart meters,” explains Nigel Chadwick, CEO of Stream Technologies. “And so we developed a platform to manage the lifetime of a connection – one that also integrated low power radio connections.”

Whilst there were a handful of solutions available from the large, traditional telecoms vendors, they were expensive and disruptive. Some major mobile service providers also had products, but these were focused on connectivity and tied to their cellular networks. Stream saw a clear market gap – to use its internal platform and make it available to third parties, such as the 300 or so tier two mobile operators who want offer M2M solutions but didn’t have platforms of their own.

“The Stream IoT-X Unified Access Connectivity Environment unifies all forms of connectivity,” says Alan Tait, CTO of Stream Technologies. “We’ll connect anything to anything – it doesn’t matter if its radio or satellite, IP or non-IP. To us it’s just a connection. We make it easy for customers to manage and monetise their networks.”

“If you look at a real smart city deployment, which is where IoT is going in the short term,” adds Tracy Hopkins, SVP for Low Power Radio at Stream Technologies, “each application has a different requirement. That could be QoS, high bandwidth, low power, mobility, etc. All feature sets are different. Stream enables enterprise customers to provide all that connectivity. We see IoT-X as the glue that connects it all together.”

Low Power Radio So what does that mean specifically for low power radio networks (LPR), and why is LPR so important for the IoT? “LPR is about opening up the entire area of IoT that is not served by cellular or WiFi, or indeed satellites,” says Tait. “Eighty per cent of all IoT connections will be non cellular – either through hotspots or ad hoc connections. We see it not as competition to mobile, but rather as complementary, and essential to the future success of IoT.” Tracy Hopkins agrees, adding that LPR offers many advantages over cellular solutions.

“Machines talk in a very different way to people, sending small amounts of data at a time,” she says. “Instead of call quality and latency being important, the cost of operation becomes critical.

LPR is licence free, has low power operation and low technology cost – no need for SIM cards and associated chips. Also important is the fact that LPR can work across multiple frequency bands, especially sub-GHz networks, which provides more coverage from less infrastructure.

“There is no one size fits all solution for low power radio, rather the best solutions match the best ▼

“LPR is about opening up the entire area of IoT that is not served by cellular or wi-fi, or indeed satellites”

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M2M Now - February / March 2015

Alan Tait, CTO, Stream Technologies

technological approach to each specific application,” she says.

“I joined Stream because of their approach and their ability to aggregate all types of communication networks. You can now deploy an IoT network that uses all types of physical layer, which I’ve never seen before, one that addresses multiple applications. The result is we are seeing an urgent global demand for IoT-X.” Stream will be working with the newly-formed LoRa Alliance, established by microprocessor firm Semtech to help standardise Low Power WANs for mobile operators.

“We like how they are developing ecosystems of partners, especially for network provision and hosting,” says Tait. “We believe we can provide hosted management services for LoRa networks, as we have the management technology to bridge mobile network operators’ cellular and LPR solutions, enabling their subscribers to receive a single data path for their traffic – and equally important a single invoice.”

The company is also looking at non-LoRa technologies, such as the Orion Security Network. It operates data collections and provisioning for the European private data network, routing data to their customers when they need it via the IoT-X solution.

“It is important not to focus on only one technology, but to support them all,” explains Tait. “All we need is the specification of the device, some test sensors and base stations, and then we can roll out service. While we focus on low power applications, a lot of systems we have built can work on satellite-based non-IP as well as cellular. There are far more similarities between them than differences.”

It’s not just LPR, though. “We find the best solution for the job,” explained Tait. “We can aggregate data for a customer, from LPR, wi-fi or satellite. We can provide subscriber segregation and data aggregation, routing and security, and essentially direct it accordingly. Provide management solutions onto lots of different networks that don’t have these capabilities.”

Unified access Unified access is vitally important for network operators.

Whilst they might not have dedicated IoT platforms

themselves, they do have their own networks – but they can only offer services on their own networks. IoT-X can help them manage their own network, as well as service their customers outside their home market.

“From a mobile operator perspective, it’s all integrated,” explains Tait. “Their customers don’t have to speak to other network operators. IoT-X gives them the ability to have one unified access environment – one screen.”

Whilst mobile operators have numerous roaming agreements in place, these can be too expensive for all but the largest enterprises. Tier One operators also have limited footprints and associated agreements, all of which use different platforms and pricing systems, and so the market is becoming fragmented.

It’s a similar move to what happened to fixed ISPs, with network operators accepting that they are becoming transits providers inside their own markets. Roaming is good for voice and consumers; how much does data actually cost? Whilst it works technically, it doesn’t work as well commercially.”

And it’s not just a technical challenge. The management of M2M data around the world, dealing with applicable laws and safe harbour issues, are all essential components of M2M management.

“Mobile network operators are trying to use their existing expertise, IP and staffing, which have been built to support voice and data in consumer and corporate markets,” says Chadwick. “Systems that have evolved for cellular don’t enable the level of granular control that is absolutely essential to realtime M2M data monitoring. Very few mobile operators have been successful in changing their processes and teams to deal with M2M.” “On one side are large platform companies, and on the other side service providers and operators with their fragmented ecosystems,” Chadwick adds. “We are far more flexible, agnostic and easier to deploy, and a lot less expensive. IoT-X creates a new ecosystem, completely agnostic to carrier services. Plus we add technologies to make even the cellular services more resilient and easier to manage. Our platform is here today; and it works.”

Visit Stream at MWC Hall 7 Stand #7C18 to see a live demonstration of IoT-X For further information contact: info@Stream-Technologies.com

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CONNECTIVITY

Strip-mining the radio spectrum New connectivity technologies hope to extract the maximum value from a finite resource using low-power, long-range networks. But where are the standards, asks M2M Now’s new editor, Alun Lewis?

Already, a number of technologies, vendors, communities and operators have appeared to fill this space – such as SIGFOX, LoRa, OnRamp, Link Labs, Weightless, Semtech, NWave, M2Communication and many others. Their intention is to exploit advances in radio and other technologies to create networks specifically designed for IoT applications and devices – covering large areas, usually in unlicensed

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spectrum, and with the minimal power demands needed to deliver the long battery life required to support connected devices and sensors.

It is, however, early days yet. As a result, there’s still a lot of uncertainty about how these different approaches and technologies will compete and coexist – and which might eventually evolve into formal standards. This is a journey familiar to anyone who has been in the industry for any length of time and factors other than just sheer technological excellence will inevitably influence the paths eventually chosen. As Otto von Bismarck, founder of the German state, once famously remarked, “Laws are like sausages, it is better not to see them being made.”

Or, as one experienced industry commentator has sceptically observed about this specific space, “Some ‘standards’ are often just corporate ▼

It’s always fascinating watching evolution at work in our industry. Just as out in the real biological world, as soon as new gaps, landscapes and opportunities emerge, so too do new technologies pop up to support and colonise them. Over the last couple of years, while cellular and satellite connectivity services for M2M/IoT have continued to develop, a flurry of activity has been taking place in another nascent sector: lowpower, long-range wireless networking.

M2M Now - February / March 2015

Readers can expect a significant acceleration of debate about spectrum issues in the coming months

William Webb Weightless SIG

Moving beyond cellular and satellite connectivity: first find your frequency Michael Barkway, consultant at The Technology Partnership, sees the growing attraction of the “sub-GHz” domain, exploiting lower frequency ISM bands that are available around the world: “The promise of free spectrum is proving seductive for new entrants like SigFox, LoRa, OnRamp, and Coronis where a relatively simple protocol allows wide area - though contended - access. Rules and spectrum allocations vary across the world, but these lower frequencies gets inside buildings better and the use of “ultra-narrowband” helps manage signal-to-noise problems at long range, allowing very low-power devices. The downside is ultra-low data rates, and even further restricted downlink performance. SigFox, for example, is intended as a wide-area “public” network, with the other technologies available as either public or private networks. Bandwidth restrictions cause some tough challenges for software updates and security, but nonetheless, the technology is an interesting alternative for long-range, low-power deployments.

As far as standards paths are concerned, Barkway questions, “Will these technologies converge into one dominant standard for Wide Area Networks? At the moment, that’s not looking very likely. The market is in an early development phase now, with emerging standards competing with existing and nonstandard devices. Standards take a lot of industry collaboration, time and energy to produce, and there needs to be a strong and clear driver. That said, while technologies like cellular, WiFi, and Bluetooth required interoperability from the start, for M2M that’s less critical and non-standard products and WAN services have already escaped onto the market.

Standards can however evolve by a more de facto approach too, and this looks like the more likely outcome in a substantial part of remote M2M access infrastructures.”

M2M Now - February / March 2015

The role of unlicensed spectrum is also highlighted by Chris Howarth, head of networks for Accenture in the UK and Ireland: “Wide area M2M applications currently rely on a variety of networks such as WiFi mesh network, 2G mobile networks and proprietary networks such as Weightless, SIGFOX, Flexnet and OnRamp. In future, M2M could also rely on low power LTE-M, and choice of network will be dictated

by M2M application requirements. The majority of wide area M2M applications however use very small data despite large numbers of transactions. The spectrum demand for M2M applications is therefore low compared with the anticipated demand for spectrum for mobile video consumption on smart phones and tablets. Under 1GHz spectrum is ideal for M2M applications due to low power requirements for M2M devices.

Some European countries are currently trialling white spaces in the UHF band for potential M2M applications.”

“That said, Howarth adds, “Interference can be an issue in unlicensed spectrum bands if not coordinated well. In future, dynamic spectrum access could solve interference problems.

However, the majority of M2M devices/terminals would cost less than $2, so may not have intelligence built in for adaptive spectrum usage. Therefore, growth of the M2M sector depends on regulatory certainty on frequency band usage, and the monitoring of spectrum usage to identify potential interference problems. Frequency harmonisation across Europe for M2M spectrum would also fuel growth in M2M applications as it would provide economies scale for deployments.”

Readers can expect a significant acceleration of debate about spectrum issues in the coming months. With the next World Radiocommunication Conference (WRC) scheduled for Geneva in November, realpolitik issues of spectrum allocation will increasingly come to the fore as the many different players involved try to find harmony, while inevitably also protecting their own national or business interests. ▼

objectives thinly disguised in sheep’s clothing when you look at them closely”.

Thomas Nicholls SIGFOX

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CONNECTIVITY

Staale Pettersen LoRa Alliance

Cast in concrete – or silicon – or a more dynamic approach as the market evolves?

In this context, the growing role of the Dynamic Spectrum Alliance (DSA) could be important for the M2M/IoT community, especially in developing countries. As it’s executive director, Professor H. Nwana, ex-group head of spectrum policy at the UK’s OFCOM regulatory body, explains, while the explosive growth of mobile data is putting enough strain on radio capacity, M2M/IoT demand will increase this further, driving a need for dynamic spectrum access to exploit both licensed and unlicensed bands.

“Dynamic spectrum access refers to a set of technologies which allow users to share access to spectrum,” Nwana says.

“This will enable regulators to tailor technical conditions to the particular location and times where sharing is to occur; maximise spectrum usage efficiency and facilitate innovation; and protect incumbent services from harmful interference.”

In terms of the M2M community’s views on low-power, longrange connectivity, the International M2M Council (IMC) - a trade group that has amassed over 5,000 associate members in the past year, including both OEMs and enterprise users interested in deploying IoT solutions - intends to put questions about low-throughput networks to its membership in a new survey. “We definitely do not know what the awareness levels are about low-throughput network connectivity among M2M adopters at this time. We expect to see some differences between OEMs that are actually designing devices and enterprise users that are deploying them. Then again, I’ve been surprised by our group before,” says IMC executive director Keith Kreisher. The survey will be one of the broadest ever conducted in the M2M sector, polling IMC Adopter Members (associates) from at least six crucial vertical markets on five continents.

Michael Barkway TTP

Keith Kreisher IMC

Formed at the start of this year, the LoRa Alliance already includes IoT solution providers such as Actility, Cisco, Eolane, IBM, Kerlink, IMST, MultiTech, Sagemcom, Semtech, and Microchip Technology as well as some major telecom operators including Bouygues Telecom, KPN, SingTel, Proximus, Swisscom, and FastNet - part of Telkom South Africa.

According to the Alliance’s acting chair, Staale Pettersen, “A LoRaWAN network architecture is typically defined as a starof-stars topology in which gateways act as a transparent bridge relaying messages between end-devices and a central network server. All end-point communication is bi-directional, allowing user downlink messages even in ad-hoc applications, while enabling network management and authentication.

To support Over the Air software upgrades as well as mass distribution of messages, a multicast/broad cast mode can also be used.”

When it comes to communication between end-devices and gateways, Pettersen explains, “This is spread out on different frequency channels (FHSS) and uses different data rates, making a trade-off between communication range and message duration. With its spread spectrum technology, communications with different data rates don’t interfere with each other and a set of "virtual" channels is created, increasing the capacity of the gateway as well as reducing the self-generated interference and the probability of collisions.

LoRaWAN data rates range from 0.3 kbps to 50 kbps. To maximize both battery life of the end-devices and overall network capacity, the LoRaWAN network server manages the data rate and RF output for each end-device individually by means of an adaptive data rate (ADR) scheme.”

When is a standard open or closed ?

As always where possible standards battles are concerned, there’s always strength in numbers and the low-power, longrange landscape is no different. So far, two main groups have emerged, each championing their solutions – the LoRa Alliance and the Weightless SIG – to sit alongside individual vendors championing their own solutions from a variety of perspectives.

He poses the question: “Imagine you’re a washing machine manufacturer in China and want to connect your device to provide a range of consumer benefits. What connectivity solution will you build in? Bluetooth, WiFi, PLC, 2G, 3G, 4G, proprietary SIGFOX or Semtech – or all of these in the hope one might work? Alternatively, imagine you make fitness gear

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▼

The technologies – coopetition, competition or peaceful coexistence?

For Professor William Webb, CEO of the Weightless SIG which recently launched the Weightless-N standard for lowpower, long-range applications, decisions about appropriate technologies must take into account much more strategic issues than just bandwidth and coverage.

M2M Now - February / March 2015

“While our Weightless-N technology is technically very similar to proprietary solutions from Sigfox and others, it is a global open standard with royalty-free licensing”

Jonathan Wiggin NWave

Chris Howarth Accenture

and want to connect your device, then you’ll immediately reach for a Bluetooth chipset. That’s why we have a lot more connected wearables than connected white goods - and we need to do for the IoT what Bluetooth did for personal connectivity.”

barriers to entry for application developers – whereas we go in royalty-free. The Weightless-N standard is rapidly evolving and we are on target to deliver compliant development kit hardware to IoT engineers in Q2 2015”.

“Firstly, it has to be a standard,” Webb suggests.

“The washing machine problem shows that proprietary solutions just won’t work – and history tells us this too. Secondly, it has to be custom-designed for IoT, as cellular and WiFi over-deliver on data rates at the expense of cost and battery life. Thirdly, it has to be deployable by a network operator to provide ubiquitous coverage that multiple applications can leverage.

Contrasting viewpoints and the rush to market

“While our Weightless-N technology is technically very similar to proprietary solutions from SIGFOX and others, it is a global open standard with royalty-free licensing,” he emphasises. “An open standard is much more than a notional label to describe a proposition with perceived traction in the marketplace - even a verifiably leading technology is not a ‘standard’ in the context of the relationship between supplier and developer.

It is something specific; it defines the way in which developers, in this case of IoT products, ultimately pay for the connectivity technology.

With a proprietary technology developers are locked into a single vendor and a single network operator. And monopolies never benefit the buyer. In an open standard, multiple vendors ensure competitive products both in terms of continuous improvement and in cost.”

NWave Technologies, an IoT connectivity technology vendor and core member of the Weightless SIG, is already heading up the Weightless-N working group developing the specification. Jonathan Wiggin, CEO of NWave explains, “Although originally founded in Russia, we’ve now moved our HQ to London, opened an office in Dallas in the USA and have a number of networks, both built by ourselves, or through partners such as BT in the UK. We firmly believe that proprietary technologies often end up supporting vertical silos as well as creating

M2M Now - February / March 2015

Meanwhile, SIGFOX has been busy, aggressively building out coverage for its low-power, wide range technology through a series of deals.

Thomas Nicholls, head of marketing and communication at SIGFOX sets the scene: “Through the SIGFOX Network Operator partnership programme, more than 2 million square kilometres and 8 million booked subscriptions are already covered in partnership with local network operators. It’s already up and running in France, as well as the U.K., Spain and the Netherlands. It will soon begin deployment in the U.S. and other European countries. In addition, it is deployed in several cities, including Munich, Milan, Dublin, Lisbon, and Graz, Austria.

SIGFOX Ready device makers can choose from a wide range of chipmakers, including Texas Instruments, Atmel, AXSEM and Silicon Labs.”

While standards issues will no doubt continue to generate a lot of dissent and discussion as each community and company continues to promote their own individual vision, it is significant that European standards body ETSI announced the formation in autumn last year of a standardisation group dedicated specifically to Low Throughput Networks (LTN) technology, aiming to allow object connections for just a few euros per year, with a few milliwatts for transmission and a modem costing less than one euro. The group has just released the first three specifications of an Internet of Things (IoT) network dedicated to low throughput communications. With potentially billions of devices just waiting to be connected – or so the pundits tell us – long-range, low-power connectivity is going to be one of the most interesting M2M/IoT enabling technologies for some time to come.

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INTERVIEW

The Link Labs story Developing a synchronous, duplex, low-power and long-range M2M wireless network option for multiple applications and markets

“The cost of our network module is less than $25. With our solution, you can cover large areas with a single gateway radio receiving and transmitting small bits of data”

There are already contexts and applications where short range 802.11 technologies or highpower cellular solutions are not a good fit. In these situations, M2M connectivity options that combine low- power and long-range present huge opportunities. Any potential M2M solution that requires extended battery life is an example - parking, structural integrity monitoring, and agriculture monitoring and management are all obvious candidates. Currently, there are a number of different low-power and long-range solutions in the market – and Link Labs is one of these. Established two years ago and working from their office in Washington D.C., Link Labs is an extensive team of highly skilled engineers who have developed a patent pending low-power long-range M2M solution for an increasingly diverse marketplace. Beecham Research’s Saverio Romeo recently met with Brian Ray, Link Labs CEO, to learn more about his company and report for M2M Now on their position in the market.

Saverio Romeo: Brian, what’s your view on the current state of development of the Internet of Things vision?

Brian Ray: M2M isn’t a new concept. Industrial and manufacturing organisations know the value of sensor data and use that data for optimising and automating processes. The Internet of Things is a broader vision that aims to bring M2M concepts into the everyday lives of people. That

said, it’s sometimes difficult to show how Internet of Things concepts bring value to everyday endusers - and not just to companies wanting internal improvements. Organisations often ask for the end-user’s data and, in doing so, they enter our digital lives. In return, end-users want to see a return on that exchange in terms of added value for them – but it’s not necessarily straightforward to clearly demonstrate that value.

Therefore, the road to the IoT vision is still a long one. However, at the M2M communications level, and up the chain at the business level, there have already been major developments and there’s still much more to come. The pace of technological development across every aspect of M2M is dramatic and it’s enabling new M2M applications that go far beyond just connectivity involving basic data transmission and simple value added services.

Saverio Romeo: From what you are saying, there is a lot to be proved in the B2C side. But, on the B2B side, the more M2M-centric part, that’s expanding rapidly across different sectors. What does Link Labs offer to this current market landscape?

Brian Ray: Our offer is composed of two parts.

The first part involves bringing together our radio modules, gateways, wireless protocol, and data services and selling these as a rapidly deployable solution to companies who want to build their own networks. We call this our Connectivity Solutions offering and it allows companies to quickly capture IoT business opportunities. The second part involves taking all our technologies and applying them on a wide scale. Both involve synchronous, duplex, low latency and low power communications and, in a nutshell, we’re able to deploy a long-range M2M wireless network that’s also very efficient in terms of its power consumption and communication capabilities.

Saverio Romeo: What are the specific advantages of having such a wide area, lowpower network solution? ▼

Machine to machine (M2M) solutions have been in the market place for a long time, solving specific business operational problems such as asset tracking and remote management. In recent years, they’ve also moved into other business and consumer sectors and become strategically important for many organisations. As we increase the number of connected machines and devices and move towards creating more and more M2M solutions, we’ll also require different connectivity options.

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M2M Now - February / March 2015

Link Labs CEO Brian Ray at one of the company's antenna sites near Washington DC. From this 760 ft tall tower, Link Labs covers over 50 square miles with low power network coverage.

Brian Ray: Using cellular solutions for certain applications is simply too expensive and too power hungry. Therefore, you need an alternative that delivers all the positive features of cellular - but at lower cost and at lower power. Therefore, our focus is on applications where the return on investment isn’t high enough to justify the use of cellular while additionally the power budget also isn’t suited for cellular solutions. Good examples of those situations are water meters and parking sensors.

Saverio Romeo: What are the advantages of using the Link Labs solution?

Brian Ray: The Link Labs solution offers all the advantages of a long-range and low-cost M2M network. The cost of a typical network endpoint is less than $25. With our solution, you can cover large areas with a single gateway radio receiving and transmitting small bits of data. Our system also allows connections through multiple walls, therefore delivering much greater penetration into buildings. Our radio modules achieve longrange network connectivity through short (<100ms) bursts of data that draw only around 50 mA. The rest of the time, the system draws only a few µA. Consequently, our modules can work for many years, keeping both initial costs and maintenance overheads low. Our system also ensures high levels of security by encrypting bi-directional data from the end point throughout the data system. The solution is suitable for worldwide deployments, supporting radio hardware and compliant MAC architectures for use in 915 MHz ISM bands, 868 MHz, and 433 MHz. Saverio Romeo: In relation to your long-range solution, what’s your business model?

▼

Brian Ray: At the moment, our long-range network is being deployed in the Washington

M2M Now - February / March 2015

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INTERVIEW

DC metro region with over 37 sites that cover more than 6 million people. However, we want to expand our coverage and we want to do that through collaboration. Therefore, we’ve adopted an open business model in order to encourage partners to build networks with us. Link Labs supports customers with ‘ready to build and run’ long-range low-power networks in a variety of ways. We provide the entire solution including back-end services that are ready to go on the air. It’s also very easy to integrate our technology with sensor hardware and other existing IT solutions.

Saverio Romeo: Which sectors and applications do you expect will benefit most from Link Labs technologies?

Brian Ray: Currently, Link Labs is focused on the B2B space and we help organisations that want to develop networks for their internal business functions. We have several projects involving on-demand response applications such as smart grid control. The current electrical grid design allows utilities to send electricity to homes on a one-way path. Smart grid concepts allow for two-way communication, so there’s a more efficient transmission energy path and better integration with renewable energy sources. We are also working on municipal water metering networks in order to enable automatic readings and transmit data to a central location. In addition, we are working with an access and security company for building access control and we also have a project in smart agriculture. Through our long-range network, embedded sensors in the ground transmit information about the soil and the cultivation state back to a central location. Farmers can then understand the places that need water and the places that don’t. This allows agriculture companies to save up to 70% of their historic consumption of water.

Saverio Romeo: Which business models are best leveraged using Link Labs solution? Can you give us some examples of clients being able to monetise a Link Labs solution successfully?

“Link Labs supports customers with 'ready to build and run’ long-range low-power networks in a variety of ways”

Brian Ray: The use of our Connectivity Solution is not always tied directly to revenue generation, but more to the optimisation of processes that are foundational to the economics of the business. For long-range wide area networks, Link Labs is working with a company called AirFinder that provides asset tracking solutions for smart city applications. AirFinder offers low-cost tracking devices with a 1 year or more battery life and those devices work on a Link Labs network. AirFinder - using our network – therefore provides value to customers through those devices. The customer purchases the device and the service and there’s a direct link to revenue generation through the Link Labs network. Another project involves a large smart parking provider. We are transitioning their infrastructure and services to our network and they’ll eventually run their parking activities on a Link Labs network. The number of these case stories will increase as our network deployment expands across US territories.

▼

Saverio Romeo: Interest in wide area and low-power network solutions has increased strongly over the last three years. Different unlicensed spectrum low-power network solutions and cellular-based solution such as LTE-M have

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M2M Now - February / March 2015

contributed to that. Is the marketplace becoming too fragmented?

obviously active in the USA - where else do you want to expand to geographically?

Brian Ray: Certainly, interest in low-power and long-range M2M networks is strong in the marketplace and there are several players using different technologies and different approaches.

However, we are in an initial phase of development and the market will eventually select the best solutions. We believe that we have a technology that is ahead of the competition because it is very flexible, reliable, easy-to-use, synchronous and duplex. Regarding LTE-M, it will take some time before it will come to the market place. Link Labs however is already there and growing rapidly.

Brian Ray: Canada and the USA are our primary focus and we want to carry on deploying our network here to cover the entire region. However, we also have clients in Europe with France, Spain and the UK seeming to be moving the fastest towards long-range and low-power networking.

We have strong interest too from Singapore, Hong Kong and India and are actively exploring partnerships in those countries. Local partnerships are going to be key for our geographic expansion.

Saverio Romeo: Apart from the main technological features discussed previously, what other elements put Link Labs in a position of competitive advantage?

Brian Ray: Our solution has dynamic MAC scheduling that allows gateways to re-allocate uplink versus downlink resources frame-by-frame.

Another important feature involves message acknowledgment. Thousands of nodes can be acknowledged per frame, saving end-node power and extending node operational life significantly.

And, decentralised gateways can perform network processing locally, allowing less dependency on central server processing.

Additionally, active interference avoidance enables up to 48 gateways to co-exist without interference. Finally, our patented technology is the result of real world experience out in the field by a world-class tech team. That team is an important part of our proposition and they’re able to support partners who want to deploy long-range and low-power networks.

Saverio Romeo: At the moment, Link Labs is

“Our customer base is doubling about every six months. We want to continue to grow with our customer base and continue to serve all of them extraordinarily well.”

Saverio Romeo: How will 2015 be for Link Labs?

What milestones do you want to reach during this year?

Brian Ray: Currently, our customer base is doubling about every six months. We want to continue to grow with our customer base and continue to serve all of them extraordinarily well. In addition, we want to continue our network deployments and expand our footprint in other markets.

Saverio Romeo: And looking at the near future, towards 2020, what are Link Labs’ ambitions?

Brian Ray: We believe that the possibilities of our technology are almost endless. It can be used in water meters, smart parking, irrigation management and control systems, asset tracking, smart grid control, smart lighting, smoke detectors, fire alarms, and facilities management monitors. We also believe that our proposition is critically attractive in terms of costs. Our ambitions are to expand our offering worldwide, while simultaneously becoming the preferred long-range and low-cost M2M wireless network operator for the USA and Canada.

Brian Ray is the founder and CEO of Link Labs. Brian led the creation and deployment of Link Labs’ new type of long-range, low-power wireless networking solution which is transforming the M2M space. Prior to Link Labs, he led a team at the Johns Hopkins Applied Physics Laboratory which solved communications and geolocation problems for the US intelligence community. Brian is also a graduate of Oxford University, the US Naval Academy, and served for eight years as a submarine officer in the US Navy.

M2M Now - February / March 2015

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EXPERT OPINION

EXPERT OPINION:

Felix Marchal, Chief Product Officer atTelit

New options for LTE tailored specifically for M2M Standard, protocols and modules evolve to exploit opportunities Felix Marchal, chief product officer at Telit, explains how new techniques, standards and products are being developed to help M2M users and service providers extract the most value from continued rapid rollout of LTE networks around the world. In January this year, the GSMA announced that 263 LTE networks had been deployed in 97 countries around the world, with a further 260 operators currently engaged in planning their networks.

LTE also employs a different air interface technology, OFDM (orthogonal frequency-division multiplexing), which makes more efficient use of spectrum and in turn that enables the quantum jump in data rates. Currently there are five

different LTE UE (User Equipment) categories: Category 5â&#x20AC;&#x2122;s download rate is 300 Mbps, which meets the requirements of smartphone and tablet users, but high data rates are not required except in M2M sectors such as video surveillance and incar infotainment.

LTE represents the future for MNOs (mobile network operators) and the technology has the potential to deliver significant benefits for M2M communications. For example, the efficient use of spectrum can reduce the cost of delivering services. For devices that stay in the field for 10 or more years, LTE future-proofs the solution against 2G and 2.5G networks being discontinued.

â&#x2013;ź

GSM cellular networks have evolved over the years: 2G, 2.5G and 3G. LTE (Long Term Evolution) is marketed as 4G but LTE networks are significantly different to those earlier generations. They are based on a simple, flat, allIP architecture that is more efficient and that can accommodate up to 10 times more traffic, which will be needed to handle the deployment of tens of billions of smart devices.

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M2M Now - February / March 2015

“Cat 0 is in its early days, but going forward the reduction in complexity it brings to LTE modules will drive cost down to something nearer that of a 2G.” Felix Marchal, Telit

So much for the up direction 3GPP, the standards body, has defined a new LTE profile, Category 0, which is also known as LTE-M (Machine Type Communications). Right now GSM/GPRS are the dominant technologies for M2M communications, but transitioning to LTE-M will give devices good quality, reliable, low-latency performance at communications at rates up to 1 Mbps, which is more than adequate for most M2M applications. The only downside is the higher cost of the modules, which is the inevitable result of the cost and complexity of the chipsets.

Prices will come down over time, but a more significant reduction is needed now to make LTE modules an attractive proposition for most M2M applications. The leading chipset vendors will continue to focus on the consumer market; new developments are taking place for categories 6 and 7, but category 0 LTE looks set to create a significant market opportunity for other chipset vendors. This opportunity is helped by the fact that the design is significantly simpler, as are other elements of the module: for example, integration of the power amplifier in single chip solution, half duplex operation and a new power-saving mode.

Cat 0 is in its early days, but going forward the reduction in complexity it brings to LTE modules will drive cost down to something nearer that of a 2G. Then LTE-M will become an attractive proposition for mass adoption by the IoT (Internet of Things). The data rate will also come down, to around 1 Mbps and even lower, but that is more than adequate for the majority of M2M applications.

It will be sometime before the new chipsets and modules are certified and devices are ready for deployment, but Telit is tracking this development very closely and we are ideally placed to meet this type of future challenge and opportunity.

Efficient communication protocols M2M traffic is primarily comprised of very small data packets that are transmitted at regular intervals, e.g. every 15 minutes.

The communications protocol of the Internet (IP) is widely employed but it is not an efficient way to handle low-volume

M2M Now - February / March 2015

traffic. Cellular networks, for example, were designed for voice and high-volume data traffic, not intermittent payloads of under 30 bytes only requiring a throughput of 100 bps.

Moreover the communications overhead can be 500 to 600 bytes: well over an order of magnitude higher.

That particular issue has led to the development of lightweight protocols, such as 6LoWPAN (IPv6 over Low power WPAN), a somewhat clumsy acronym but one that is set to become an IETF standard. Low power indicates that it targets wireless sensor networks that run on batteries for years. LTE supports IPv6, which expands the addressable IP space to an inexhaustible figure, far more than is needed for even the most optimistic estimates of IoT device deployments, e.g.

50 billion by 2020.

Message Queue Telemetry Transport (MQTT) is another lightweight protocol, but it is also a technology. IM-type messages can be used and files exchanged, which means that transportation is payload-agnostic. In addition MQTT has three QoS (Quality of Service) levels. It is going through the OASIS body as a standard for IoT communications. ILS Technology supports MQTT in its deviceWISE platform, which is also the foundation for m2mAIR Cloud.

Telit’s role Telit is tracking this development very closely and as Europe’s leading vendor of M2M modules our objective would be to be the first to market an LTE-M product. The company’s LTE credentials include the LE910 and LE920 Series, which combine two high-speed cellular modes: LTE and HSPA+.

Quad or Dual-band support for 2.5G provides backwardcompatibility, which ensures connectivity in remote areas where is no 4G or 3G coverage. Many operators have certified this module already for use on their LTE and HSPA+ networks.

The timeline for availability of LTE-M modules is contingent on the chipset vendors, but they will be a key component of our hardware and value-added network services offer. They will leverage the potential created by cumulative module sales of over 100 million units by 2018 and establish Telit as the leading provider of cloud-centric M2M services.

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AUTOMOTIVE M2M

A zero-emission automated shuttle being developed for the £8 million GATEway project (Greenwich Automated Transport Environment) in S.E. London, under a consortium led by the UK’s Transport Research Laboratory.

Porsche buys analytic skills as automotive OEMs focus on data as much as cars The market for automotive machine-to-machine (M2M) communications is accelerating into an era of vehicle-to-vehicle (V2V) links, car sharing schemes powered by location-based apps, Fit-It-Yourself car telematics enabling usagebased insurance (UBI), and over-the-air (OTA) updates. Jeremy Cowan reports.

At the recent Consumer Electronics Show 2015 in Las Vegas, Hyundai unveiled its Blue Link smartwatch app by which drivers can start, stop, lock and unlock their vehicles remotely. The app works through a smartwatch and responds to voice commands. It already works with 2015 Hyundais, helping drivers to find their vehicle in a busy car park by flashing the lights and sounding the horn, much to the delight of the neighbours.

BMW went one step better, demonstrating that you don’t even need a valet for parking. The German car maker has developed a smartwatch and laser sensor-enabled system through which drivers can instruct their cars to park themselves, even in a multi-level car park. It can also call the car back to the driver when needed.

Visteon demonstrated how Red Bend’s over-theair updating is being used in its OpenAir head unit, an automotive infotainment platform that provides flexible in-vehicle connectivity in an integrated entertainment system. This end-to-end platform was featured in a North American Ford, a European Jaguar Land Rover and a Japanese Mazda.

At the AT&T Developer Summit, Red Bend’s EVP of product, strategy and marketing, Oren Betzaleli, spoke chillingly about the growing number of software-related recalls while stressing the importance of over-the-air (OTA) software updates in the connected car industry. According

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to Oren, “More than 50% of (car recalls) are because of bugs in the software, not because of some mechanical issue. In the future it will be more than that.”

Automated vehicles in £8m UK trial Automated vehicles are not forgotten, though. A consortium led by TRL (the UK’s Transport Research Laboratory) has been selected by a government-backed agency Innovate UK to deliver the GATEway project (Greenwich Automated Transport Environment) in London.

The £8 million (€10.4 million) project will see trials of three different types of zero-emission automated vehicles in a technology-agnostic test environment, to demonstrate automated transport systems to the public and industry, including public tests of fully automated passenger shuttle transport systems and autonomous valet parking for adapted cars. Risk, liability and insurance issues will be specifically addressed, as will pedestrian interaction with automated vehicles.

Among the organisations involved are insurer Royal Sun Alliance, energy company Shell and communications provider Telefonica. The University of Greenwich and Imperial College London will provide internationally recognised domain specialists for pedestrian modelling and cybersecurity respectively. Automated vehicle

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“More than 50% of (car recalls) are because of bugs in the software, not because of some mechanical issue. In future it will be more than that.”

Oren Betzaleli, Red Bend

M2M Now - February / March 2015

technology will be provided by Phoenix Wings, a Greenwich-based company involved in worldwide demonstrations of automated transport.

Mercedes-Benz launched a selfdriving concept car at CES in Las Vegas (left)

Investments and acquisitions In September 2014 INRIX®, Inc., a global provider of transportation information, analytics and driver services for the connected car (and smart cities), announced that Porsche Automobil Holding SE, the holding company with a controlling interest in Volkswagen Group, had invested around US$55 million in INRIX. This gives Porsche a stake of approximately 10% in the US-based company.

The INRIX Traffic Intelligence platform continuously analyses real-time data from various sources including a crowd-sourced network of more than 175 million real-time vehicles and devices. Today, it provides real-time traffic information for 6.4 million kilometres (4 million miles) of roads across 40 countries. Bryan Mistele, president and CEO of INRIX said, “We’re pleased to have an investor like Porsche SE who shares our vision for transforming INRIX from a traffic data company to a connected car and smart cities leader worldwide.”

As Philipp von Hagen, member of Porsche SE’s executive board responsible for investment management, explains, “Connectivity between cars and infrastructure is one of the mega trends in the automotive industry. The need for trafficrelated information and data-driven solutions is therefore growing fast.”

Safety first Market rationalisation shows no sign of abating.

Swiss based u-blox has acquired automotivegrade Bluetooth and WiFi module products plus a team of engineers from lesswire AG, a subsidiary of the PRETTL Group. Hitherto privately-owned lesswire provides vehicle-ready, short range wireless communication modules to Tier-1 automotive electronics suppliers in Europe and Asia.

Herbert Blaser, VP of short range products at u-blox said the deal, “positions u-blox as a strategic supplier of wireless technology to the fast growing market for in-car and vehicle-to-vehicle (V2V) communication systems. Besides high demand for in-car connectivity, next generation smart cars will have advanced safety and collision avoidance systems that depend on robust, reliable communications.”

M2M Now - February / March 2015

Canada’s LocoMobi Inc. Also announced in January that it will acquire the parking-related assets of Florida-based Smart Marketing Concepts Inc (SMC), including subsidiaries SMC Software and eMarketing247. LocoMobi specialises in connected parking, tolling and transport as part of a smart city transportation grid.

Telematics and Insurance Working with with Octo Telematics, Sierra Wireless has designed what the two companies call the ‘super easy telematics box’ for usagebased insurance (UBI). Emmanuel Walckenaer, senior vice-president Europe at Sierra Wireless, told M2M Now, “We have designed this with Octo Telematics to be easily installed on any car by the end user. It’s very simple, just two screws, anybody can do that; so the cost of the solution is reduced significantly. I’ve done it on my car, it took me three minutes max.”

Emmanuel Walckenaer, Sierra Wireless: Octo Telematics and Sierra Wireless launch ‘super easy telematics box’ for usage-based insurance

“The box captures data such as the time of the day, driving patterns as you accelerate or brake, turn left or right. All this information is filtered on the module. There are some analytics done on the module then the filtered information is sent to Octo Telematics. They provide their customers’ driver behaviour and a driver score to the insurance company,” he added. “You’ll pay less if you are a good driver and it will be based on the mileage you’re actually doing and not just on a demographic.”

The service is being offered in Italy, France, and Germany, and Octo Telematics are working with more than 100 insurance companies worldwide, mainly on a white-label basis. OCTO is now considering other services, such as breakdown assistance, theft prevention, and car recovery.

Bryan Mistele, president and CEO of INRIX: Porsche invests around US$55 million in INRIX, global provider of transportation information, analytics and driver services for the connected car

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EVENT DIARY

Telematics for Usage Based Insurance Conference on London, UK 18-19 February 2015

European Smart Grid Cyber Security Marriott Hotel, Regents Park in London 9-10 March 2015 www.smi-online.co.uk/utility/uk/ conference/european-smart-gridcyber-security

M2M+ Symposium Milan, Italy 27 and 30 April 2015 http://www.m2mplusforum.com

M2M Forum Milan, Italy 28-29 April 2015

Wearable Technology Show ExCel, London www.smi-online.co.uk/utility/uk /conference/m2m-telematics-fleetmanagement-and-user-basedinsurance

India M2M + !oT Forum 2015 New Delhi, India 19-20 February 2015 The Royal Plaza, 19 Ashok Road www.indiam2mforum.com

Embedded World 2015 Nurnberg, Germany 24-26 February 2015 www.embedded-world.de/en/

Automotive Tec. AD Berlin Hotel Moa, Berlin, Germany 26-27 February 2015 http://autonomous-driving-techberlin.we-conect.com

10-11 March 2015 www.wearabletechnologyshow.net

Connected Fleets Europe 2015 Novotel Amsterdam City, Amsterdam 10-11 March 2015 http://www.tuauto.com/fleeteurope

CW Technology and Engineering Conference London, UK 24 March 2015 http://www.cambridgewireless.co.u k/cwtec/

IoT North America Hyatt Regency Schaumberg, Chicago, USA 15-16 April 2015

Mobile World Congress 2015 Barcelona, Spain 2-5 March 2015 http://www.remotemagazine.com /internetofthings

http://www.m2mforum.it/en/

M2M World Congress 2015 London, UK 28-29 April 2015 http://www.m2mconference.com

Smart to Future Cities London, UK 28-29 April 2015 http://smarttofuture.com

M2M For Oil & Gas London, UK 29-30 April 2015 http://www.smionline.co.uk/energy/uk/conference/ M2M-for-the-Oil-and-Gas-Industry

Mobilize the Enterprise: Productivity Ottawa, Canada 5-6 May 2015

Social Media in Utilities Sector London, UK www.mobileworldcongress.com

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16-17 April 2015 http://www.smionline.co.uk/utility/uk/conference/ social-media-in-the-utilities-sector

Profitability and Possibilities www.wavefrontsummits.com

M2M Now - February / March 2015

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THE CEO GUIDE TO MOBILE WORLD CONGRESS 2015, BARCELONA

New M2M/IoT business models and new players need new solutions Yuval Mayron, Amdocs’ Head of IoT, on the challenges of a fast-changing landscape

LATEST NEWS & VIDEOS AT www.m2mnow.biz P LU S : M WC P rev i ew a n d M 2 M / I o T P re d i c t i o n s f ro m t h e G S M A’s H e a d o f C o n n e c t e d L i v i n g

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CONTENTS

CEO GUIDE MOBILE WORLD CONGRESS 2015 Welcome to Barcelona When it comes to superlatives, you soon start running out of them to describe MWC each year. From small beginnings in Cannes around twenty years ago, it’s become the pre-eminent event for the world’s mobile industry and is, in turn, increasingly sucking in participants from many other sectors such as health, automotive, the utilities and consumer goods. Indeed, it’s fast becoming clear that one of the main drivers for the event has now become our very own M2M/IoT sector – and that influence can only increase in coming years.

The statistics alone are startling. While last year broke all previous records - over 85,000 attendees, more than 46,000 C-Level leaders, 4,500 CEOs and 1,800 exhibitors – expect yet more records to be broken this year. We at M2M Now wish you all the best for a successful and stimulating visit to Barcelona this time around.

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INTERVIEW: YUVAL MAYRON Amdocs’ Head of IoT speaks to Beecham Research’s CEO, Robin Duke-Woolley about why new M2M/IoT business models and new players need new solutions and on the challenges customers face in a fast-changing, interconnected landscape

MWC NEWS John Cleese to host Global Mobile Awards. Aeris and Tech Mahindra to jumpstart IoT. FAMOCO to launch secure NFC readers. NGMN to announce 5G White Paper at event

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PREVIEW FROM THE TOP

MWC PREVIEW

Graham Trickey, head of connected living at the GSMA makes a few predictions for the show and explains some of the roles that his organisation is playing as a key catalyst in the M2M/IoT sector

A quick informal tour of what’s going to be on at the industry’s ‘show of shows’ this year – PR embargoes permitting

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M2M Now MWC Supplement - February / March 2015

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MWC NEWS

John Cleese brings a smile to the job of connecting people in Barcelona World-renowned actor and comedian, John Cleese will be joining the 70,000+ delegates at Mobile World Congress in his role as host of the GSMA’s 20th Global Mobile Awards. The awards are one of the highlights of the annual congress held this year from March 2-5.

The comedian, actor and writer John Cleese is to host the 2015 Global Mobile Awards ceremony at Mobile World Congress in Barcelona. The GSMA has announced the 270 awards nominees for the ceremony on Tuesday, March 3. (See: www.globalmobileawards.com/nominees-2015) Nominees include many organisations with strong Internet of Things (IoT) and machine-to-machine communications (M2M) pedigrees in mobile health, automotive, NFC & mobile money, m-commerce, authentication & identity, the environment,

Aeris® and Tech Mahindra Jumpstart IoT

Matt Hatton

In a new joint move designed to deliver the technology, expertise and strategy for a successful IoT deployment, California-based technology and service provider, Aeris, and New Delhi’s Tech Mahindra, a specialist in digital transformation, consulting and business re-engineering, have launched their Jumpstart IoT service solution. This aims to give mobile operators the blueprint to build a scalable and profitable IoT business.

According to Machina Research, global M2M and IoT services spend is expected to reach US$126 billion in 2015, with a 23.5% CAGR through to 2020. By using this joint solution, operators can reportedly increase their share of enterprise M2M and IoT spend by as much as 300% over connectivity services alone. Jumpstart IoT expands operator service offerings to include packaged applications in key vertical solutions including fleet, asset tracking, and insurance, and to offer managed data services.

“This year Internet of Things will be at the top of most carriers’ agendas; and if it’s not, it should be,” noted Matt Hatton, founder & CEO of Machina Research. “They need a well-considered approach to coherently and profitably address the market. In particular IoT, compared to M2M, requires mobile network operators (MNOs) to tackle a broader range of issues including more complex regulation and issues associated with data management.”

Dan McBride

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“The role of mobile operators in the IoT era is clear,” said Dan McBride, head of operator marketing at Aeris. “Not only will they continue to supply connectivity services, but they are also becoming a focal point for the access, use and billing of M2M / IoT applications. Additionally, MNOs will be the repositories and distributors of data from the IoT, providing secure, controlled data access services that will fuel explosive IoT growth.”

mobile enterprise, and wearable technologies.

The event organisers, GSMA, have also revealed that senior executives from companies active in IoT and M2M will join the Congress’s keynote speakers. They include: Simon Segars, CEO of ARM; Hans Vestberg, president and CEO, Ericsson; Steve Mollenkopf, CEO, Qualcomm Inc.; and Bill McDermott, CEO of SAP. (See: www.mobileworldcongress.com.)

Secure NFC readers Visitors to MWC can get to know FAMOCO, a near field communication (NFC) specialist, based in France.

FAMOCO will be showing its solution for secure, connected NFC readers that combines smartphone technology with the security requirements of the bank-card sector.

FAMOCO has launched what it describes as “the first dedicated, secure and android-based NFC reader,” for sectors where identification and access control are required, such as e-governance, attendance tracking, contactless payments, ID reading and mobile point-of-sale. (www.famoco.com)

5G White Paper The 5G Initiative team studying next generation mobile networks has finalised an Executive Version of its NGMN 5G White Paper (www.ngmn.org). The full White Paper is to be unveiled at a press conference in Barcelona, and will enable MNOs, vendors and researchers to consider NGMN’s 5G guidelines.

The NGMN Alliance has established liaisons on 5G with relevant industry organisations worldwide. The final version will also be discussed at the NGMN Industry Conference & Exhibition on March 24-25 in Frankfurt.

For a list of exhibitors at #MWC15 see: http://www.mobileworldcongress.com/2015-exhibitors/ Try this app to find people or companies: http://www.mobileworldcongress.com/seedo/networking/my-mwc/

M2M Now MWC Supplement - February / March 2015

INTERVIEW

Delivering Value in an IoT Environment: the Amdocs answer Amdocs has long been recognised as one of the industry’s leading software and services companies, supporting telecommunications, media and entertainment service providers around the world. With more and more M2M/IoT solutions looking to come to market, it’s fast becoming clear that new types of services and vendor relationships will be required to drive and support increasing demand. To get Amdocs’ views on these developments, Robin Duke-Woolley, CEO of Beecham Research, spoke with Yuval Mayron, head of IoT at Amdocs with responsibility for defining the company’s IoT strategy and building its offerings through Amdocs’ assets and partners.

Yuval: Indeed - we have been very active in the M2M and IoT markets for a few years already. Two years ago we launched our M2M Connected Device Platform and cloud-based Connected Home Solution. We’re seeing positive uptake in the market for both of these.

We continue to be proactive in these markets because cellular-based IoT is our natural playground. We provide the solutions and services that enable telcos or communications service providers (CSPs) to easily expand their

M2M Now MWC Supplement - February / March 2015

offerings from traditional communications into IoT services.

The IoT market is characterised by large ecosystems with complex value chains, which must constantly change and adapt to new market demands and, across which, we believe there are several areas where Amdocs can deliver value. For example, in B2B, Amdocs’ M2M wholesale capabilities enable CSPs to shorten the on-boarding time of any IoT business partner, supporting complex settlement models and significantly cutting the costs of operations.

Similarly, Amdocs can leverage its global BSS/OSS installed base to enable IoT application providers to extend their geographic reach and

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Robin: We see Amdocs becoming more active in the M2M and IoT markets. What is driving this and how do you see it developing further?

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INTERVIEW

We also see an exciting opportunity for Amdocs customers to add value by bundling communications and IoT services together. The result: consumers enjoy a better, more holistic experience, increased value for their money, and a one-stopshop for service and support; the IoT application providers enjoy better market exposure without the need for significant upfront investment; while the CSPs can expand their customer base, increase ARPU and loyalty, while driving new revenues beyond just connectivity. OnStar and AT&T are a great example where Amdocs has added value to joint customers.

The growth in the number of connected mobile devices will also put networks in a very challenging situation that might impact on the overall network experience. Compared to regular smartphones, IoT devices are typically characterised by excessive signalling overheads and minimal payload (telco ARPU). Also, their network “behaviour” is not always predictable. Firmware upgrades to millions of devices in a specific location or random data bursts from millions of smart-grid sensors can create dramatic network degradation, requiring a paradigm change in overall network planning and costs. Amdocs’ network solutions enable CSPs to easily track in real-time where there are access bottlenecks in the network and apply rules in order to optimise the overall network experience, as well as increase efficiency in network planning.

We are also seeing a growing interest in Customer Experience Management (CEM) from emerging IoT service providers.

These are, for example, car makers, who are shifting their focus to owning the customer and managing the holistic experience. Car makers seek solutions for customer management, predictive maintenance and intelligence to enable a superior after-sale experience and turn the car into a holistic entertainment and information unit. The car will enable parking payments, toll roads, UBI, content consumption, and WiFi connectivity. We’re already seeing some car makers and local dealers willing to become MVNOs as well.

And all of this is just the beginning. We’re being approached by both CSPs and IoT application developers asking us to help them push new IoT services to the market. The challenge is two-fold: the CSPs have limited resources to qualify the various IoT vertical solutions out there, while the application developers have limited experience in establishing an enterprise grade operation. This is a gap that Amdocs can fill like “operational glue” that will expedite the process. For the CSPs, we can scout for new ideas and applications, perform application testing and certification, provide business consulting, ensure compliance with regulations, and much more. For application developers, we can become a vehicle that exposes and extends their reach to the world’s leading CSPs and their subscribers.

Robin: And what about the data? We are heading for a market where there will be huge amounts of data available from connected devices, located everywhere. What is Amdocs’ view on managing it?

Yuval: Amdocs also brings significant value through our Big Data Analytics offerings. Through different analytics applications and our Big Data Insight Engine, we are able to analyse endless amounts of information from multiple sources and cross-reference them. This provides the necessary insight

that CSPs and IoT application providers need to improve the experience of specific IoT applications or create new bundled offers to meet changing customer demands.

If we just think of home appliances alone, built by different vendors and replaced every so often - do we fully understand the complexities of managing these? Can we really make the individual consumer the "integration point" of all these connected devices and the hundreds of applications that will be available to better utilise the resulting web of devices?

There are three large concerns – IoT/Device interoperability, IoT/Data interoperability and customer ownership. Then, on top of those you have to add the role of regulation and the challenges of data security. We also must keep in mind that within the IoT domain the challenge of customer ownership also coincides with the challenge of identity management.

The industry needs ways to foster both device interoperability and data interoperability. We will need to look seriously at ways to change the paradigm of how data is stored, shared and owned, potentially by open software models that break the current trend towards fragmented silos.

Now, in regard to customer ownership, every CEO from every industry wants to own the consumer. There are no exceptions.

This drive spans the car OEMs, the telephone companies, the insurers and, of course, the internet giants like Google. But we believe that eventually the customer should own the customer. Ownership boils down to who owns the data and we strongly believe that individuals own their data!

As an industry - or rather a set of combined industries - we need to cooperate to solve the interoperability issue and to find ways individuals can own their own data.

To partially address both the interoperability and data ownership problems, we are leading open standards and open source projects to make IoT secure and ubiquitous – breaking down vendor silos while attempting to provide a set of secure data vaults for real-time data persistence (availability) in the internet. This initiative is called Matrix.org. We are adapting it from lessons learned in the core communications market where there is no interoperability between communications apps (for IM and VoIP, for example). We welcome the industry looking into the Matrix, critiquing it, improving it and participating in its open source community.

Matrix.org is only one approach to solving these problems and other similar approaches are being pushed in different industry groups. The main thing however is that we solve the problem for the industry’s overall benefit.

Robin: Amdocs offers a broad set of BSS/OSS solutions for communications service providers. How did you approach the development of your IoT offering?

Yuval: We asked – “Who is the customer?” and “What is the value we can bring to them?” Those two questions lie at the heart of everything we do in this market. In the complex IoT ecosystem there are many different players or “customers”. Each type of customer in the ecosystem has different needs. The trick here is to identify the relevant customers that Amdocs can provide value to by addressing their unique needs.

Robin: So what types of customers do you support in the IoT market? ▼

manage their SIM cards and devices, integrating their backend applications with Amdocs M2M platforms.

IN ASSOCIATION WITH AMDOCS S6

M2M Now MWC Supplement - February / March 2015

2. Emerging Communications Service Providers.

These are the providers with limited IoT business today. They are looking for partners like Amdocs that will help them to penetrate the IoT market with low-risk solutions and minimal upfront investment.

3. Emerging IoT Service Providers (“IoT SPs”).

These are the product manufacturers who have traditionally sold standalone consumer products, such as suppliers of PC laptops, wearables, car manufacturers, home security agencies and more. Now they want to sell services alongside their products, both to provide richer offerings and to build closer relationships with their customers. Ultimately, the IoT SP wants to increase the value to their customers and consequently win their loyalty.

providers, for example. They already have significant assets such as customer service practices, billing, collections, analytics, and others. Amdocs can help these providers leverage these assets and better monetise them by offering them to IoT application providers, as-a-service, on their behalf. Another value that Amdocs brings is helping the mature communications service providers leverage their enormous customer base asset. For example, we’ve developed an end-to-end white-labelled, connected home solution that is already being deployed via a partnership with a world-wide Security Service Provider. In this model, Amdocs provides the platform, the Security SP the home devices, panels and call centre, and the Communication SP the access. Those models might go through changes in the future as Communication SPs would like to enjoy a bigger piece in the value chain.

Yuval Mayron, Amdocs

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Yuval: Amdocs currently defines 4 different types of customers: 1. Mature Communications Service Providers.

These customers have been operating in the M2M/IoT market for some time, mostly focused on connectivity, with significant initiatives mainly around the connected home, connected car, and remote health. These providers have big plans to take IoT to the next level.

4. IoT Application Developers. These are the IoT developers who come with great ideas. They have a core technology and are trying to approach the market to distribute their offerings worldwide and provide the service around it. There’s a long list of technology companies in this category, developing car sensors, location modules, smart switches, and so forth. For example, in the drinking water industry, Amdocs is engaging with a start-up company that produces smart waterpurification public coolers that can be distributed in urban and developing countries’ rural areas.

The coolers also serve as cellular charging stations, providing WiFi access and digital advertising. All these requirements need management, billing, integration to local operators, and mobile payments. Amdocs can provide these capabilities and bring them to relevant CSPs and markets.

Yuval: Absolutely. Let’s take the mature communications service

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Robin: So for each of these customer types you aim to provide a different business value?

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INTERVIEW

Robin: How is this connected home solution being brought to the market?

Yuval: The home is the most important long term battleground for IoT. Home Security adoption rates in NA are 25%, in Europe they are closer to 3% and in the developing markets are less than 1%. This will be a domain where subscriber uptake is relatively slow but very long lasting. The average consumer contract term for a security service provider is seven years. Those CSPs that are able to bundle a wide range of digital appliances on top of basic home connectivity will have a huge degree of customer stickiness.

We are also rolling out multi-country programs today where we provide an end-to-end home security solution from the apps on the smart phone, firmware on the security panel, and business logic in the cloud. We go to market with a world-wide security hardware and services supplier which brings all of the regulatory aspects, installation and maintenance and supply chain capabilities. This combined offer allows CSPs to enter this domain with very low cost and friction – almost in a pay-as-you-grow franchise model.

We are also rolling out multicountry programs today where we provide an endto-end home security solution from the apps on the smart phone, firmware on the security panel, and business logic in the cloud

Robin: What particular value are you providing to communications service providers for connectivity management?

Yuval: There are several commercial cloud-based solutions out there for SIM management, as well as each CSP’s home-grown solutions. For the current market situation, these solutions are reasonably okay, but looking forward there will be new challenges for both the CSPs and the enterprises. For example, the popular revenue share model will become a business barrier in the low-ARPU IoT market. On the infrastructure level, regulation and security for sensitive verticals such as smart grid and government applications will become a priority. We also anticipate a challenge in the ability to support new identity methods for multiple access technologies as well as for the scalability which is required to support billions of devices with guaranteed qualities of service.

Global reach at predictable cost is another important issue that is currently not being well addressed. For these reasons we built Amdocs M2M Connected Device Platform (CDP) in such a way that we can offer it in three models: as a service in the cloud, as a stand-alone platform, and as an add-on for Amdocs’ existing BSS customers. With this flexibility, we address the CSP’s key requirements and provide a secured, scalable, comprehensive solution.

Robin: We have talked about the first category of customers – the mature communications service providers. What about the emerging communications service providers?

Yuval: The main challenge for these providers is their limited know-how and available budget to invest in establishing a new line of business. In many cases they don’t even see much demand for IoT services today. For these CSPs, Amdocs serves as their trusted long-term partner, with

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solutions offered in a “pay-as-you-grow” model to minimise their risk. By packaging Amdocs’ products and services – CDP, managed services, systems integration and consulting services – the CSPs can significantly reduce their required upfront investment and time to market. This is a smooth entry point for the emerging telco to prepare for the future without incurring unnecessary risk. And we also bring to the table, from day one, multiple IoT application partners, from various industries, so these emerging providers can pick and choose the ones most relevant to their IoT strategies and generate demand. We constantly work on expanding this list of vertical companies, to address new sectors.

Robin: You mentioned the “Emerging IoT Service Providers”. What value does Amdocs offer them?

Yuval: The Emerging IoT Service Providers are trying to move up the value chain from selling just products towards the world of serving the customer after that sale. Their main challenge is in establishing a global service operation that’s available 24x7. This is not their strongest competency. Amdocs’ value for these providers lies in helping them to connect their back-end applications to the CSPs’ networks to manage their devices globally. Amdocs can provide a single point of access to any device they manage.

This is of huge value for the Emerging IoT Service Providers as this information helps them to better serve their end customers. For the larger Emerging IoT Service Providers, that require a full blown CRM and Billing solution and for this cohort Amdocs offers a suite of proven products and services, as well as a wealth of know-how focused on customer experience management.

Robin: What about your fourth category of customers – IoT Application Developers?

Yuval: Many IoT Application Developers are small start-up companies with great ideas. They need to convince the market that their service is mature and can be deployed on a large scale.

These CSPs can be a great vehicle to do that, but they will do it only with enterprise-grade applications. Amdocs partnership programs can enable these application developers in many aspects such as match-making between them and relevant CSPs, and by becoming an aggregator who will team up with application developers, certify and scale-proof their applications, and provide the necessary operational support and guidance.

Robin: I can see a lot of thinking has gone into Amdocs’ approach to IoT with a particularly broad set of solutions proposed.

Yuval: These are exciting times with significant challenges. The fact that Amdocs has expanded its offerings into new domains such as the network, big data analytics and mobile financial services, opens more doors for Amdocs to help our new and existing customers accelerate their IoT strategies.

M2M Now MWC Supplement - February / March 2015

MWC PREVIEW

The Show of Shows – MWC preview Trying to cram a preview of what’s expected at this year’s MWC into a few pages is, to use a typically understated engineering phrase, “a non-trivial problem”.

While data compression techniques might have moved ahead, it’s far more problematic to do justice to such a vast event with words – especially when many companies keep announcements tightly clasped to their corporate chests until the show’s opening day. That said, M2M Now has tried to pry loose a few predictions, announcements and opinions of what’s going to be on offer there, with an obvious focus on M2M/IoT issues. So, in no particular order – and with a great dependence on how awake various PR companies were at the time - let the preview commence….

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MWC PREVIEW

Ecosystems and the Enterprise of Things For Andrew Orrock, CEO of M2M/IoT connectivity specialists Arkessa, “Our team been attending MWC since it was still hosted in Cannes and the whole Congress used to break for lunch, together. That seems a far cry from the connected cars, over 80k visitors, huge stands and tired legs of the last few years. Over the past three years we’ve seen the focus of the event shift as M2M has gained traction and, most especially, as the M2M world transitions into IoT. Last year #iot was the most Tweeted news item at MWC14: the world’s catching on!

“We see the coordination of an ecosystem of the leading partners as critical in bringing IoT solutions to market. We have expanded the team with new premises in UK and Germany to support and build on our partnerships and ensure we lead in delivering M2M and IoT solutions to Enterprise users. In addition to the recent strategic partnership with Siemens, we will be making some significant announcements around MWC. 2015, the year of the Enterprise of Things? We think so...”

Andrew Orrock, Arkessa

The internet starts growing eyes Much of the new value to be created in our sector is going to come from bottom up developments with new sensor technologies – and the optical domain’s prospects are likely to be huge, especially as machine vision software improves. High tech R&D company Rambus will be announcing a lensless smart sensor that measures just 50 µm across. Rambus are working with IXDS and have invited various hackers/makers to come to the MLOVE booth at 4YFN (Old Fira) on Monday afternoon to play with the lensless smart sensor (LSS) kits including Arduino, Raspberry Pi and Galileo. Developer Dr Patrick Gill explains, “The present case for image capture uses in IoT is limited as a result of the technology we use to capture light. Modern lens-based optics are

fantastic, but there are limitations in terms of what can be achieved in terms of both size and cost. At Rambus we’ve developed a sensor that uses a diffraction grating that creates a unique pattern from the in-coming light. This pattern is then reconstructed as an image using algorithms.”

He adds, “The cost savings are phenomenal as the LSS comes in at less than a dollar per unit. The amount of power required to use the LSS is a fraction of that required to use a lens-based camera. There are zero moving parts to the LSS so life expectancy per unit is also greater – in fact, since the part of the solution doing the work is the compute power, the devices will get faster and more accurate as they get older.

Imagine a lens that improved with age!”

Operators changing track From another design and development company, Cambridge Consultants (Hall 7 Stand 7B21) in the UK, Tim Ensor, head of Connected Devices makes a few predictions: “My observation is that at Mobile World Congress, which traditionally has a telecoms focus, there will be increasing interest from mobile operators to get into the IoT space, moving beyond just offering customers SIM cards. At CES, for example, I spoke with two or three mobile operators that are interested in exploring these opportunities.

He adds, “Orange has already launched Smart Home, which is basically a box that connects to sensors around the home. It was first launched in Poland in 2013, then France in the summer of 2014, and we’ll expect to see more of that from Orange

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this year at Mobile World Congress. Talking too to US operators, they are figuring out connected devices and some operators will be looking to produce services that compete with Nest. Other US cellular companies are interested in building out cloud-based services where they would be pitching alongside Amazon computing resources.

“MWC is becoming a lot like CES,” he concludes, “with lots of consumer products that just connect to a mobile device. The wearable space is a saturation of monitoring devices and I think a lot will consolidate this year. I didn’t see anything new in the wearables space at CES, so I don’t expect to see anything new in wearables at Mobile World Congress 2015.”

Tim Ensor, Cambridge Consultants

M2M Now MWC Supplement - February / March 2015

Caveat operator – and emptor For Tony Poulos, market strategist at WeDo Technologies (Hall 7 Stand 7G09), “We expect to see at MWC a shift from a focus on the “hows” and “whats” of connectivity, to the business models required and resulting revenue potential. Consumers presume that if a device is connected to their home broadband or mobile network, the traffic generated will be included in their bundle. But CSPs are scrambling to get a bigger piece of the action by partnering with device suppliers to build distinct service offerings around IoT and M2M components. This requires serious investment by CSPs to upgrade their

business support systems to collect all the data in a timely fashion, store it for analysis purposes (most likely as big data) and be able to bill for it. Because of the sheer volume of traffic, and the potential for not capturing all the data, they will need to invest in enterprise business assurance systems to monitor all the processes in realtime. However, everyone seems to be overlooking who the consumer calls if something goes wrong. CSPs are wellpositioned to provide this type of service and so many are now investigating how they can incorporate customer services into their offering as well.”

Tony Poulos, WeDo Technologies

Telematics in a real driving seat With a space in Telefonica’s tradeshow booth (Hall 3, 3J20), Geotab will be at Mobile World Congress 2015 to feature its newly developed interactive fleet management demonstration, complete with a dashboard and steering wheel, which will simulate the driver's in-vehicle experience from a telematics value perspective.

Geotab will be announcing new customer relationships and partnerships at the show, as well as discussing how the company plans to become the underlying platform for the telematics industry.

According to Neil Cawse, CEO, Geotab, "Telematics companies are worried about data security and at the same time making sure the devices extract the richest set of data from vehicles. It’s the rich data like seatbelt usage and engine faults that improve the value add of telematics. Great API's are also front of mind because full leveraging of telematics data will only occur when it’s integrated and combined into customers’ other systems. This helps simplify and automate businesses.”

Neil Cawse, Geotab

Looking at Clouds from all sides now Chris Halbard, president at Synchronoss Technologies (Hall 5 Stand 5B81), highlights the changing role of the cloud in our sector as a key theme at the show: “The problem is, most devices aren’t yet connected to each other. Expect this to change at MWC this year. Operators need all of their customers’ devices – not only their mobile phone but also their tablet, their appliances at home, even their car – to be aware of each other and, more importantly, aware of the owner that they all have in common. It’s here that operators can use the cloud as the crucial missing link

and the catalyst for new interconnected features and services for their customers.

“Therefore,” he adds, “expect to see as a key theme at Congress this year the cloud as a crucial hub, firstly, to enable large-scale wearable and connected car roll-outs: but also for operators to curate subscribers’ “digital profiles” – that is, a unique identity with its own content, features, settings and rules, which the subscriber can access and use across all of their devices and connections.”

Chris Halbard, Synchronoss Technologies

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MWC PREVIEW

MWC – a truly inclusive vision Macario Namie, VP marketing at Jasper, sees a continually widening perspective of the sector: “Given IDC and Gartner numbers on IoT acceleration and the swift uptake we’re seeing ourselves among our enterprise community, at Jasper we predict IoT growth will outpace the growth rate of the Internet itself this year, and we expect to see an abundance of IoT initiatives showcased at MWC15. Auto manufacturers will be in full force at the show, demonstrating the latest set of connected car features, including streaming infotainment, in-vehicle 4G mobile hotspots, safety and security services, usage-based insurance and more.

2015 is going to be the year where these connected features become a standard part of the car buying checklist. However, while consumer applications like Connected Car and Smart Home tend to steal the spotlight, we expect a much wider range of IoT services to be on display at MWC this year, with the influence of IoT already being felt in dozens of industries globally. From manufacturing, to agriculture, to healthcare, transportation and everything in between, we expect MWC15 to open attendees’ eyes to the huge impact that IoT is having across a vast array of businesses around the world.”

Macario Namie, Jasper

Disruption, security and change “If there’s something that is constant in the universe, apart from speed of light, that’s change, and the difficulty of trying to predict what will be the ‘hot topic’ at MWC,” says Ramsés Gallego, international VP and security strategist for ISACA. “Being a Barcelona native, it’s great to see such a globally recognised event being hosted in this vibrant and cosmopolitan city – for me the marriage of the two works perfectly. MWC 2014 represented the first year that the Internet of Things (IoT) was really given a platform for wider discussion, and the last 12 months have seen huge steps forward in the space. The last six months in particular have seen the wearables phenomenon gather pace and (Samsung is expected to launch its new

smart watch at the show) this has acted as a further catalyst, and ‘consumerising’ force around the IoT topic.

“As such,” he believes, “I would expect MWC 2015 to see a much more serious and in-depth debate and dialogue about the IoT moving towards practical implementation and the resulting challenges associated with privacy, data management, analytics, and device security. Furthermore I expect to see smartphones continue to get bigger, while sensors and chips that power the IoT will continue to get increasingly smaller – expect there to be some interesting nanotech announcements at the show, as well as some big post-MWC acquisitions over the coming year too.”

Ramses Gallego, ISACA

You’ve got to put IoT in context Mounir Ladki, president and CTO at MYCOM OSI predicts: “At Mobile World Congress this year, we’ll see more in the vein of sophisticated context-sensitive communications initiatives. These will take myriad forms, from digital advertising delivered when you walk past a small cellenabled billboard to context-aware ‘To Do

Lists’ and alarms that deliver relevant information at relevant times. The rise of such contextual information, m-payment, Internet of Things and M2M will shape not only the apps that we use, but also the data traffic they create. The sophistication of these services will change how apps, users and networks interact”.

Mounir Ladki, MYCOM OSI

Innovation City snapshot in action As part of the GSMA’s Innovation City, Sierra Wireless (Hall 3 Stand MR3) will be demonstrating with clients Philips, Schneider Electric and Oxblue how its intelligent wireless solutions can: secure and monitor construction projects with high-resolution time-lapse cameras that can be accessed with any internetconnected device through secure data

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servers over 4G LTE networks; improve public safety, manage energy consumption and lower maintenance costs through a public lighting system that can be remotely managed and adjusted to a city’s needs; and locate and book an electric vehicle charging station in advance through a smartphone application.

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MWC PREVIEW

A look ahead to Mobile World Congress 2015 Graham Trickey, head of connected living at the GSMA makes a few predictions for the show and explains some of the roles that his organisation is playing as a key catalyst in the M2M/IoT sector.

Of course, standards and regulations will play a crucial role in the development of the market, building the foundations for the eventual ubiquity of M2M. There are a number of encouraging regulations that give us reason to think that M2M is becoming a routine consideration of policymakers, particularly in the automotive sector. Mandates such as eCall in Europe, SIMRAV in Brazil and the commitment from U.S. Transport Secretary, Anthony Fox, to begin work on regulations for vehicle to vehicle (V2V) communication, suggests preparation for more investment in M2M. It’s due in part to regulations like these that there is such promising growth potential in the connected car market. The automotive sector is by far the largest scalable opportunity in M2M so far, with the GSMA’s Connected Car Forecast predicting that the global connected car market will double in value from now until 2018 to €39 billion.

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Recent research commissioned by the GSMA and conducted by analysts Beecham Research highlighted a number of key sectors in the coming year. Smart utilities and fleet management are set to see significant growth in terms of connections. We also predict significant growth in the consumer electronics market.

In the last six months there was much speculation about the budding mass market penetration of wearables, and in spite of the recent news about Google Glass, there is good reason to think that in 2015, wearables will become a mass market proposition. This was certainly the defining trend at this year’s CES, with many exhibitors keen to demonstrate the unique advantages that various wearables have over features we may expect to find on a smartphone. Functions such as blood glucose readers, pressure sensors and other biometric technology are not yet sufficiently integrated into smartphones and thus give wearables considerable market appeal.

The Healthmeter study demonstrated that the mHealth device considerably improved blood sugar levels of diabetes sufferers through regular monitoring and updating doctors as to the patient’s condition

Indeed there is certainly reason to expect that wearables offering significant health benefits can claim a foothold in the market, especially on the back of Istanbul University’s study of Turkcell’s Healthmeter. The Healthmeter study demonstrated that the mHealth device considerably improved blood sugar levels of diabetes sufferers through regular monitoring and updating doctors as to the patient’s condition. Mobile-specific monitoring technology like this offers clear benefits for the user and can be easily transposed to a wearable device. ▼

Although machine-to-machine (M2M) technology is still in its early stages of development, most industry experts predict explosive growth in the number of M2M connections over the next decade. Indeed, research published in September 2014 by GSMA Intelligence indicates that global cellular M2M connections will reach nearly one billion by 2020, which represents growth at 26 per cent per year (CAGR) in the period between 2014 and 2020. We also believe that this growth could even exceed 40 per cent a year if a number of favourable market conditions are achieved, potentially meaning two billion cellular M2M connections globally by 2020.

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MWC PREVIEW

Graham Trickey, GSMA: Core themes this year are transport and retail

We are keen to demonstrate the benefits that the Connected Living programme brings to the industry and invite all attendees of this year’s Mobile World Congress

At Mobile World Congress (MWC) this year we can expect to see operators and manufacturers showcasing new services and devices in the M2M and Internet of Things (IoT) markets. Central to the exhibition is the GSMA Innovation City, which expands upon the highly successful Connected City that has been a major highlight of Mobile World Congress for several years. Innovation City is a virtual urban environment that gives operators and manufacturers an opportunity to demonstrate the latest innovations and communicate the business opportunities arising from them. Inside the Innovation City we will convey how the very latest M2M and IoT technology is transforming the way each of us live. This year’s Innovation City includes a café, a theatre, shops, trains, connected cars and even a dental spa. Exhibits presented by GSMA partners, AT&T, Jasper, KT Corporation, Oral-B, Sierra Wireless and Vodafone will demonstrate the very latest in mobile-connected products and services.

Attendees will have the opportunity to experience immersive live demonstrations and interactive exhibits that cater to a wide range of interests. Last year there were 17,886 people that visited the Innovation City (formerly the Connected City), up from 15,204 the year before, which is a great indicator of the power and interest in this marketplace.

Two core themes at the Innovation City this year will be transport and retail. Various demonstrations of the connected car will be back, including a more detailed view of telematics and diagnostics from a manufacturer’s perspective. We can also expect to see the latest advancements in the field of smart utilities. Smart grids will demonstrate more efficient energy consumption and the role that operators have in forging a secure and optimised future network.

What was showcased at MWC last year, and will continue to be demonstrated at this year’s MWC, is the necessity for collaboration, cooperation and strategic partnerships between manufacturers, operators and vendor-specific companies. This is proving to be the lifeblood of M2M and the IoT in terms of technological development and key to unlocking new revenue streams.

The benefits of industry cooperation and the transformational impact and growth of M2M will be discussed in a series of seminars, talks, displays and presentations throughout. These will also provide exhaustive coverage of what the GSMA Connected Living programme is doing and give attendees an opportunity to discover firsthand, how Connected Living is accelerating the delivery of new connected devices and services in the M2M market.

This is the essential goal of the Connected Living programme: to accelerate the growth of M2M and

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IoT. To achieve this, the Connected Living programme aims to promote industry collaboration, appropriate regulation and create standards that will optimise network functionality.

Two prime examples of this are The GSMA’s IoT Device Connection Efficiency Guidelines and the GSMA Embedded SIM specifications, both of which will be prominently showcased at this year’s Innovation City.

The GSMA’s recently published IoT Device Connection Efficiency Guidelines outline how devices and applications should communicate via mobile networks in the most intelligent and efficient way. They are designed to support device and application developers as the IoT market develops and are intended for use by all players in the mobile ecosystem, ensuring that mobile networks can efficiently accommodate the increased number of connected devices and services resulting from the rapid growth of M2M. The Guidelines include a number of best practice areas such as data aggregation within devices, non-synchronous network access, application scalability and guidance on how to manage signalling traffic from de-activated or out-ofsubscription SIMs. They have received the backing of leading mobile operators, and in midJanuary 2015, it emerged that the Guidelines are central to a collaboration between Telit, Allianz Telematics and Telenor Connexion to ensure optimal behaviour of devices.

Another area which has generated much interest this year has been the GSMA’s Embedded SIM specification, which allows mobile network operators to provide scalable, reliable and secure connectivity for M2M connected devices that are often hermetically sealed, such as in the connected car or smart meters. It also facilitates over the air operator provisioning and management, which provides service flexibility to end customers.

The GSMA’s Embedded SIM specification promotes a common global architecture that will reduce costs, drive efficiencies and further accelerate the rapidly growing M2M market. A number of organisations have now launched compliant solutions and according to research commission by the GSMA, it is that estimated that the immediate industry-wide adoption and deployment of the GSMA Embedded SIM Specification will deliver 34 per cent higher market growth by 2020.

We are keen to demonstrate the benefits that the Connected Living programme brings to the industry and invite all attendees of this year’s Mobile World Congress to engage with us in our efforts to bring greater cooperation, technological advancement and new revenue opportunities to the IoT.

M2M Now MWC Supplement - February / March 2015

MWC PREVIEW

MWC EVENTS DIARY Hot things to see and do at the show GSMA Innovation City Location: Hall 3, Stands 3A11 & 3A31 The GSMA Innovation City builds on the hugely successful Connected City by bringing a fully immersive mobile experience to visitors in 2015. See first-hand how mobile-connected products will continue to transform our personal and working lives across the world in the largest and most interactive collaborative showcase at Mobile World Congress 2015.

Experiential demonstrations from AT&T, Jasper, KT Corporation, Oral-B, Sierra Wireless and Vodafone will come together with the GSMA which is presenting its key initiatives that pave the way for a more enriched, secure, connected future for global citizens. For the first time at Mobile World Congress, virtual reality technology will enable visitors to experience the future of mobile by travelling through the network from the inside, experiencing a world of connected devices and services.

APP PLANET EXHIBITION Location: Hall 8.1 App Planet The App Planet Exhibition showcases the products and services that are shaping mobile every day. More than 200 app-specific exhibitors showcase their apps and technology in App Planet.

CLOUD PAVILION Location: Hall 8.1 App Planet The Cloud Pavilion explores the growing number of cloud solutions and capabilities, while demonstrating how mobile technology can benefit from integrating smart cloud solutions.

KEY CONFERENCE SESSIONS Connected Living Conference Sessions in Hall 4: Keynote: Keys to the Connected Lifestyle – Monday, 2 March at 11:15 – 12:45 Integrating Interactions with the Connected Consumer – Monday, 2 March at 16:00 – 17:30 Connected Citizens, Managing Crisis – Tuesday, 3 March at 14:00 – 15:30 Wearables – Tuesday, 3 March at 14:00 – 15:30

GREEN TECHNOLOGY PAVILION Location: Hall 7 Whether it’s self-recharging fuel cell energy storage or a hybrid wind and solar storage solution, the Green Technology showcases companies creating efficient and sustainable products and solutions.

WEARABLES PAVILION Location: Congress Square From smart watches and smart glasses to health bands and smart fabrics, wearables are big business to mobile. Stop by this pavilion to see the variety of fun – and sometimes life-saving – wearable devices available.

M2M Now MWC Supplement - February / March 2015

Everything is Connected - Enabling IoT – Thursday, 5 March at 11:30 – 13:00

Health & Wellness Conference Sessions in Hall 4: Wearables – Tuesday 3 March at 14:00 – 15:30 Health and Education for Connected Citizens – Tuesday 3 March at 16:00- 17:30

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Join us at the MWC Wrap Party March 4th 2015 19.30 - late Marmalade Restaurant Bar Cocktails Riera Alta 4-6, 08001 Barcelona For party invitations please e-mail

mark@vanillaplus.com

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