informa long tail wireless spotlight: wifi for m2m

10 January, 2011

Click to edit Master title

style

Click to edit Master subtitle style

Wi-Fi for M2MLong-tail Wireless Spotlight

Camille Mendler

Principal Analyst

[email protected]

May 2012

Informa Telecoms & Media: Who are we?

www.informatandm.com

© All rights reserved

2

• We are part of Informa plc, a $1.9 billion

UK corporation

• Informa delivers intelligence to decision

makers in the world’s largest industries

• At ITM, our 65 analysts deliver validated

insights with in-region research and

quantitative tools

We see telecom innovation as a growth catalyst in many industries.

Bringing Knowledge to Life

Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012

We advise on go-to-market strategiesBusiness models and partners

www.informatm.com

©Confidential

3

Connected Verticals

• Industries where telecom innovation can transform:

• Operational efficiency• Revenue growth • Business model

• Innovation can come from:• Technology• Processes• Applications

Nine out of 10 CSPs and builders of telecom infrastructure believe a vertical market focus can grow their top-line.


Informa’s Long-tail Wireless Spotlights


© All rights reserved

4

Long-tail wireless

• Defined as wireless technologies able to support vertical-market applications.

• Includes general-purpose and industry-specific technologies.

Rationale

• Identifying and validating market adjacencies.

• Creating new revenue streams.

• Diversifying CSP and vendor go-to-market.

Spotlight

• Provides a short

review of

opportunities.

• Highlights:

• Key issues

• Stakeholders

• Beneficiaries

Siloed thinking is often the biggest challenge in long-tail wireless.

Source: Informa Telecoms & Media


The opportunity: Wi-Fi for M2M

Informa viewpoint on Wi-Fi for M2M:

• Complements cellular M2M.

• Expands addressable range of objects.

• Supports “carrier-grade” Wi-Fi proposition.

• Bridges gap between private and public networks.

CSPs want 5% or more of their revenues to be M2M-related by 2015*– but it won’t happen via cellular alone.


©All rights reserved

5

Warehousing Public safety

Health monitoringLighting control

Agribusiness Vending machines

*Informa-SAP M2M Communications Survey, February 2012

Wi-Fi for M2M: Existing applications


Ecosystem: Wi-Fi for M2M



6

Enterprise take-up

• Outdoor Wi-Fi is in:

- 82% of utilities

- 58% of oil and gas

firms

- 43% of rail firms

(according to Informa

surveys).

• M2M is a key ICT

investment priority

(remote monitoring,

field-data backhaul).

Chip/module advances

•The Redpine Signals

WiseConnect module doesn’t

need a Wi-Fi access

point to connect to a

smartphone or tablet

• Ultra-low-power Wi-Fi

Vertical-market pursuits

• SingTel makes US$22

million investment in

Ruckus Wireless

(February 2012).

Vendor consolidation

• Ericsson buys BelAir

• Alvarion buys Wavion

• Laird buys Summit Data

Market demand, technology and vendor capabilities are increasingly aligned.Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012

Money flows: Wi-Fi for M2M

CSPWireless vendor Enterprise

Professional

services(one-time fee)

Equipment(upfront capex, deferred capex, pay as you grow)

Managed

services(monthly fee, shared

risk reward)

What’s sold?



7

Build, operate, manage Wi-Fi network and M2M apps

M2M managed service with access to carrier-grade Wi-Fi, cellular, with seamless hand-offs

Build, operate, manage Wi-Fi and M2M apps

Self-manage Wi-Fi network and M2M apps

Wi-Fi for M2M offers an extension of managed services and a richer M2M service.



Competitors: Wi-Fi for M2M



8

Despite having many competitors, Wi-Fi is well known and widely deployed in diverse industries – for both indoor and outdoor usage.

Type Name Frequency Selected supporters

Carrier-grade Wi-Fi Wi-Fi 802.11n 2.4GHz, 5GHz Altai, Belair, Cisco, Ruckus Wireless, Wavion

Industrial-process

control

WirelessHART 2.4GHz ISM ABB, Emerson, Siemens

ISA100.11a 2.4GHz ISM Honeywell, Yokogawa

Home automation ZigBee 868MHz, 915MHz,

2.4GHz ISM

Itron, Landis+Gyr, Schneider Electric, BT,

Telecom Italia, Telefonica

Z-Wave 868MHz, 908MHz,

921Mhz

Sigma Design/Zensys, NTT DoCoMo

M2M specific, low

power

Wavenis

(Wave2M)

433 MHz, 868MHz,

915MHz

Coronis, Elster, Orange Business Services

Weightless 400MHz-900MHz Neul Networks

Low power 6LoWPAN 315MHz, 433MHz,

868MHz, 915MHz

Google, Texas Instruments



Project examples: Wi-Fi for M2M



9

Wi-Fi is already widely deployed to support M2M and connected objects.

Vendor Customer Industry M2M application Wi-Fi

Alcatel-Lucent Groupe RATP (France) Urban rail Driverless-train real-time video control, digital signage

802.11a with 5GHz for train-to-ground communications

Aruba Networks

Milford Regional Medical Center (US)

Health care Telemetry from intravenous-infusion pumps

HIPAA-compliant 802.11n

Belair Networks

London Hydro (UK) Utilities Advanced metering infrastructure

802.11a/b access nodes with 5GHz backhaul links

Ruckus Wireless

ADI Logistics Warehousing /logistics

Inventory management 802.11n

Wavion (Alvarion)

City of Tlalnepantla (Mexico)

Public safety Traffic-video surveillance 802.11n with 5GHz backhaul links

Xirrus New College Swindon (UK)

Education Multifunction device management

802.11n



Addressable market: Wi-Fi for M2M

345.1

415.7

491.9

570.9

645.9

0 200 400 600 800

2011

2012

2013

2014

2015

Private enterprise Wi-Fi locations (mil.)

1.4

2.4

3.8

5.1

6.2

0 2 4 6 8

2011

2012

2013

2014

2015

Public Wi-Fi locations (mil.)



10Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012


Wi-Fi for M2M can connect a variety of objects, often crossing private and public Wi-Fi locations.

M2M object examples• Outdoor: Traffic lights, meters, CCTV• Indoor: Vending, ticket machines, lights

M2M object examples• Outdoor: Wells, pipelines, plants, CCTV • Indoor: Containers, building systems

Conclusions

• Peaceful coexistence is dawning for Wi-Fi, 3G and 4G

– Wireless vendors and CSPs can profit from deploying Wi-Fi assets that people and

objects can use.

• Carrier-grade Wi-Fi can become a premium M2M option

– End users can pay for automatic switching to best available M2M connectivity option.

• Wi-Fi technology continues to improve

– Low-power variants and simplified architecture options boost physical reach.

• Wi-Fi offload applies to all types of data, including M2M

– M2M traffic demands remain poorly understood, but CSPs must be prepared.




Further reading

• Blue-collar UC: A new frontier for collaboration, May 2012

• Wi-Fi reloaded: The M2M opportunity, March 2012

• M2M Communications: Turn potential into profit, March 2012

• Informa-Lloyd’s List Connected Ship survey, August 2011




http://ic.informatm.com/articles/show/121792










For more information, contact:

Camille MendlerE-mail: [email protected]

Twitter: @cmendler

Phone: +44 (0)7766 131528

informa long tail wireless spotlight: wifi for m2m

Technology

cellular m2m

wifi accesspoint

m2m enterprise

m2m appssource

m2m whats

tail wireless spotlights

richer m2m service

ruckus wireless