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IoT road‐map and strategic implications for industry stakeholders

ETSI oneM2M Workshop Presentation

Ken Figueredo

9 December 2015


Raise awareness by Tweeting to:

@oneM2M and @MoreWithMobile

using #ETSIM2M


Introduction – Ken Figueredo

• Business consultant, focused on the connected devices market since 2008 – Advised on the GSMA’s ‘new‐markets’ strategy (Connected Living market‐development campaign)

• Background in business consultancy and innovation via mobile telecoms

• Today’s presentation draws on IoT market insights from some of my current projects

– oneM2M Ecosystem Accelerator : working with a group of companies to promote oneM2M amongst commercial audiences

– IoT strategy and implementation projects involving three multi‐country, mobile operators


Where are the growth opportunities in the M2M/IoT market?

1. Move up the value chain

3. New business opportunities from interoperability across

application silos

2. Expand footprint via more connectivity technologies

(e.g. LPWA, Wi‐Fi, Bluetooth etc.)

Managed Connectivity

Application Enablement

M2M/IoT Applications

Network Connectivity

Devices & Modules


Moving up the value chain: a 20x revenue‐growth potential

~5%

IoT Application Revenues

~80%

Network access and connectivity revenues

~15% • Application Enablement Platforms (AEP)• Connected Device Platforms (CDP)Enabling platform service revenues

Percentage Distribution of IoT‐application Revenues

SOURCE: Verizon, http://fortune.com/2015/10/28/verizon‐internet‐of‐things/






Some of the leading‐edge telcos are moving right up the value chain and experimenting with end‐to‐end application offers (examples)

SOURCES: Company presentations at industry events (Industrial Internet Consortium conference, IoT Week Korea 2015) and press publications


~Eur24/ yearMobile

connectivity

PER‐DEVICE CONNECTIVITY PRICING TREND

Support for new connectivity technologies: lower, per‐subscription revenues by at least 20x

http://www.lightreading.com/iot/iot‐strategies/sigfox‐plans‐global‐iot‐network/d/d‐id/712227


2. Expand footprint via more connectivity technologies

(e.g. LPWA, Wi‐Fi, Bluetooth etc.)Devices & Modules

~Eur1.2/ yearSigFox

connectivity


Interoperability opportunities account for 40% of the value of the IoT opportunity (i.e. a 1.4x multiplier on silo applications)





AllseenAlliance

oneM2M

Device clouds & data exchanges

HyperCAT

Google Thread

Illustrative Industry Initiatives

SOURCE: McKinsey Global Institute, The Internet of Things: Mapping the Value Beyond the Hype (June 2015)http://www.mckinsey.com/insights/business_technology/the_internet_of_things_the_value_of_digitizing_the_physical_world

OIC


Businesses will follow multi‐step strategies to capitalize on different value drivers (what’s optimal)

~20x(per application)~20x

(per application)

~0.05x(per device)~0.05x(per device)

~1.4x(per application)~1.4x

(per application)

1. Move up the value chain

2. Expand connectivity footprint 3. Interoperability

opportunities

REVENUE IMPACTS OF DIFFERENT GROWTH STRATEGIES

IoT Applications

Market Development

Requirements Specifications Standards Test & Certification

Commercial Incubation

M2M/IoT ApplicationEnablers(Horizontal Platforms)

Connectivity Management

Networking

> > > > >

LoRALoRALoRAWANLoRAWAN

Thread GroupThread Group802.15.4802.15.4

HyperCATHyperCATHTTPS, JSON,

RESTHTTPS, JSON,

REST

oneM2M(industry standard)

oneM2M(industry standard)

Ope

n Intercon

nect

Consortiu

m (O

IC)

Ope

n Intercon

nect

Consortiu

m (O

IC)

Allse

enAlliance

Allse

enAlliance

Industrial Internet

Consortium (IIC)

Industrial Internet

Consortium (IIC)

IIC Test BedsIIC Test Beds

Company Trials

Company Trials

FiWARE (reference platform)FiWARE (reference platform)

Where does oneM2M fit in relation to cross‐industry efforts?


Strategic implications for oneM2M

• Need to progress from standards to (many) visible commercial offers– standards are good but users are looking for commercial solutions

• No single company can address all IoT service enabler requirements; an open eco‐system will be key for the commercial market

– oneM2M device vendors depend on platform service providers and vice versa– Value‐added service providers depend on host platforms and devices to manage

• Learn from strategic growth avenues to plan oneM2M standards road‐map– Address opportunities and requirements higher up the value chain– Interoperability applies to different layers of the value chain– Plan ahead for ‘high‐volume, very low‐cost’ economics


Issues for industry stakeholders ..

• Hardware vendors – will you build a platform or partner with platform providers?

• MNOs – how best to deal with the risk of disintermediation?

• Platform service providers – how to attract device vendors plug‐in services and application developers?

• Enterprise users – what are the financial alternatives of a proprietary vs. standards approach?

• Do industry incumbents want to create value organically or acquiring externally (data exchanges, analytics‐as‐a‐service etc.)?


Thank you and please stay in touch

Ken Figueredo

ken@more‐with‐mobile.com

+1 202 262 7344

@MoreWithMobile

www.more‐with‐mobile.com – newsletter and market insights

iot road map and strategic implications for stakeholders...mmw ‐with‐mobile.com strategic...

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