Strategic Alliances in the Machine-to-Machine (M2M) Ecosystem

Publisher Name :
Date: 6-Dec-2012
No. of pages: 270

A typical machine-to-machine (M2M) solution consists of five or six stakeholders.  Each stakeholder performs one or more dedicated tasks as part of a comprehensive solution. These tasks include connectivity, platform, software development, integration services, consultation, deployment, activation and often many more depending upon the specific industry and application.

M2M partnerships are formed for various purposes including reduction of complexity from the customer perspective and often to develop specific M2M applications which promise reduced time to market for enterprise clients.

Given the level of complexity, and the desire for companies to focus on their core competencies, a single company is often not in a position to provide integrated end-to-end solution by itself.  Strategic alliances are therefore a critical aspect of the M2M ecosystem.

This report evaluates 43 strategic alliances that have been formed over the last two years within the M2M ecosystem.   This research includes analysis of long term strategies of major telecom service providers and MVNO companies.   This is must reading for any company already within the M2M ecosystem and/or any company evaluating the M2M value chain to determine potential partnerships, repositioning/renegotiation, mergers and acquisitions.

Target Audience:

  • Mobile network operators
  • Systems integration companies
  • Enterprise companies of all types
  • Investment and M&A companies of all types
  • M2M equipment and service providers of all types

Companies in Report:

Telecommunications Service Provider

  • América Móvil
  • Avea
  • China Unicom
  • CSL
  • Datatrade
  • Deutsche Telekom
  • Etisalat
  • Everything Everywhere
  • France Telecom-Orange
  • FreeMove
  • KPN
  • Mobily
  • NTT Docomo
  • Optimus
  • Rogers
  • Singtel
  • Sprint
  • Telefónica
  • TeliaSonera
  • Telstra
  • T-Mobile
  • Verizon Wireless
  • VimpelCom
  • Vodafone

MVNO/MVNE

  • Atmovia
  • Jasper Wireless
  • NextM2M
  • Transatel

Platform Provider

  • Axeda
  • SensorLogic

Communications Solution Integrators

  • NEC
  • Orange Business Services

M2M Technology and Service Providers

  • Cinterion
  • Digi International
  • ILS Technology
  • Multi-Tech Systems
  • Numerex
  • RACO Wireless
  • Sierra Wireless
  • Transaction Network Services (TNS)
  • Wyless

Technology and Service Providers

  • Bosch Group
  • Giesecke & Devrient
  • ITOCHU Techno-Solutions Corporation (CTC)

Telecom Hardware and Software Providers

  • Nokia Siemens

Companies Partnering to Develop Specific M2M Applications

  • BMW
  • Cetecom
  • ClearConnex
  • Cotecna
  • Gemalto
  • Geoforce
  • IBM
  • Intel
  • Openmatics
  • RedTail Telematics
  • Sypes Canyon Communications
  • Veolia and Veolia Water

Strategic Alliances in the Machine-to-Machine (M2M) Ecosystem

TABLE OF CONTENTS

PREFACE   1

CHAPTER 1.INTRODUCTION        3
THE CONNECTED WORLD   3
WHAT EXACTLY IS M2M?   4
APPLICATIONS OF M2M    4
PREDICTIONS FOR THIS SECTOR 6
IMPORTANCE OF M2M / WHY THE HYPE?  6
MOBILITY 6
FLEXIBILITY         7
REAL-TIME ACCESS TO INFORMATION   7
PROFITABILITY  7
DEPLOYMENT    7
SPEED & COST   7

CHAPTER 2.M2M ECOSYSTEM    8
BASICS OF M2M    8
DATA ACQUISITION        8
DATA TRANSMISSION    9
DATA ANALYSIS     10
THE M2M ECOSYSTEM   11
END DEVICE / EQUIPMENT 11
CONSUMER        11
COMMUNICATION LINK    11
SENSOR     12
APPLICATION    12
MIDDLEWARE PLATFORM 13
EMBEDDED MODULE      14
SIM        15
FINAL DEPICTION OF M2M ECOSYSTEM 16
THE M2M VALUE CHAIN    17
EQUIPMENT SUPPLIER  17
TELECOM OPERATOR     17
SOFTWARE PUBLISHER  17
INTEGRATOR     18
DISTRIBUTOR     18
CONSULTING     18
HOSTING AND SERVICE PLATFORM SUPPLIER     18
SECURITY: A KEY ISSUE  19
TECHNICAL REASONS FOR M2M'S ENTRY INTO WIRELESS DOMAIN  20
SUDDEN INTEREST FROM GIANTS 21
NEW AVENUES 21
REGULATORY REQUIREMENTS   21
LOW CAPEX REQUIREMENT         21
SCALE OF MARKET & REVENUE INCREASE  21
SPREAD ACROSS VALUE CHAIN  22
THREAT FROM CLOUD SERVICE PROVIDERS         22
UNWILLING TO BE A MERE BYSTANDER 22

CHAPTER 3.BASICS OF STRATEGIC ALLIANCES     23
DEFINITION OF STRATEGIC ALLIANCE     23
REASON FOR FORMING ALLIANCES         23
1. INCREASE GROWTH        23
2. SHARED KNOWLEDGE AND EXPERTISE    23
3. COMPLEMENTARY RESOURCES 24
4. ECONOMIES OF SCALE   24
5. SPEED TO MARKET 24
6. ACCESS TO TECHNOLOGY AND MARKET     24
7. SHARED R&D EFFORTS AND COSTS  24
8. SETTING NEW GLOBAL STANDARDS        25
9. SHARED RISKS   25
10. FOREIGN COMPETITION    25
11. INTERNATIONAL EXPANSION     25
12. REGULATIONS IN INTERNATIONAL MARKET        26
13. MANAGE IDIOSYNCRATIC RISK  26
14. "ANTICIPATING THE PLAY" 26
15. REDUCTION IN TRANSACTION COST        26
RISKS OF STRATEGIC ALLIANCES     27
COSTLY 27
TECHNOLOGY AND IP RISK  27
UNEQUAL BALANCE OF POWER     27
REASON FOR FAILURE OF STRATEGIC ALLIANCES    28
POOR PROJECT MANAGEMENT 28
STRATEGIC GRIDLOCK    28
LOSING CONTROL OF BASIC STRATEGY  28
FOCUS ON BENEFITS TO PARTNERS         28
POORLY DEFINED GOALS   28
POOR PARTNER CHOICE     29
CONSOLIDATION OF FRAGMENTED INDUSTRY   29
1. LIMITED MARKET  30
2. DEVELOPMENT TIME AND RESOURCES  30
3. VENTURE CAPITALISTS  30
4. ACQUISITION OF COMPETITOR 30
5. POSSIBILITY OF GOING PUBLIC  30
6. SELLING AT RIGHT TIME     30
THE CONSOLIDATION CURVE      31
STAGE 1: OPENING         31
STAGE 2: SCALE 32
STAGE 3: FOCUS    32
STAGE 4: BALANCE AND ALLIANCE  33

CHAPTER 4.COMPANY STRATEGIES 34
ORANGE BUSINESS SERVICES     34
T-MOBILE USA  35
ETISALAT  35
SIERRA WIRELESS  36
TELEFÓNICA       38
EVERYTHING EVERYWHERE 39
VODAFONE        40
AXEDA  41
JASPER WIRELESS  42

CHAPTER 5.DETAILS OF ALLIANCES IN M2M DOMAIN      44
OPERATOR OPERATING MODELS   44
LEASE AIRTIME  45
COOPERATION WITH AGGREGATOR       45
PROVIDING SYSTEM INTEGRATION         45
COOPERATION WITH DEVICE MANUFACTURERS    46
COOPERATION WITH APPLICATION SERVICE PROVIDER 46
ALLIANCE # 1: DEUTSCHE TELEKOM AND DIGI INTERNATIONAL  47
ABOUT DIGI INTERNATIONAL     48
ABOUT DEUTSCHE TELEKOM       48
ALLIANCE OVERVIEW     49
ALLIANCE # 2: ORANGE BUSINESS SERVICES AND OPENMATICS 50
ABOUT OPENMATICS     51
ABOUT ORANGE BUSINESS SERVICES     51
ALLIANCE OVERVIEW     52
ALLIANCE # 3: GEOFORCE AND SYPES CANYON COMMUNICATIONS        53
ABOUT GEOFORCE, INC.    54
ABOUT SYPES CANYON COMMUNICATIONS, INC. 55
ALLIANCE OVERVIEW     55
ALLIANCE # 4: IBM AND VODAFONE        56
ABOUT IBM CLOUD COMPUTING  57
ABOUT VODAFONE         57
ALLIANCE OVERVIEW     58
ALLIANCE # 5: VEOLIA AND FREEMOVE  59
ABOUT FREEMOVE 60
ABOUT VEOLIA 60
ALLIANCE OVERVIEW     61
ALLIANCE # 6: TNS AND TELSTRA    62
ABOUT TNS        63
ABOUT TELSTRA    63
ALLIANCE OVERVIEW     64
ALLIANCE # 7: KPN, NTT DOCOMO, ROGERS, SINGTEL, TELEFÓNICA, TELSTRA AND VIMPELCOM 65
ABOUT KPN        66
ABOUT NTT DOCOMO   66
ABOUT ROGERS     67
ABOUT SINGTEL    67
ABOUT TELEFÓNICA DIGITAL      67
ABOUT TELSTRA    67
ABOUT VIMPELCOM      68
ALLIANCE OVERVIEW     69
ALLIANCE # 8: TELEFÓNICA AND ETISALAT 73
ABOUT TELEFÓNICA DIGITAL      74
ABOUT ETISALAT   75
ALLIANCE OVERVIEW     76
ALLIANCE # 9: CHINA UNICOM, TELEFÓNICA, TELSTRA AND G&D    77
ABOUT CHINA UNICOM     78
ABOUT TELEFÓNICA       78
ABOUT TELEFÓNICA DIGITAL      79
ABOUT TELSTRA    79
ABOUT GIESECKE & DEVRIENT   79
ALLIANCE OVERVIEW     81
ALLIANCE # 10: NOKIA SIEMENS AND EVERYTHING EVERYWHERE   83
ABOUT EVERYTHING EVERYWHERE 84
ABOUT NOKIA SIEMENS NETWORKS       85
ALLIANCE OVERVIEW     86
ALLIANCE # 11: NUMEREX AND TRANSATEL         87
ABOUT NUMEREX  88
ABOUT TRANSATEL         88
ALLIANCE OVERVIEW     89
ALLIANCE # 12: ILS TECHNOLOGY AND ITOCHU TECHNO-SOLUTIONS CORPORATION (CTC) 90
ABOUT ITOCHU TECHNO-SOLUTIONS CORPORATION (CTC)         91
ABOUT ILS TECHNOLOGY   91
ALLIANCE OVERVIEW     92
ALLIANCE # 13: AXEDA AND MULTI-TECH SYSTEMS  93
ABOUT AXEDA  94
ABOUT MULTI-TECH SYSTEMS    94
ALLIANCE OVERVIEW     95
ALLIANCE # 14: TELEFÓNICA UK AND JASPER WIRELESS  96
ABOUT JASPER WIRELESS  97
ABOUT TELEFÓNICA UK     97
ALLIANCE OVERVIEW     98
ALLIANCE # 15: NEXTM2M AND CETECOM 99
ABOUT CETECOM 100
ABOUT NEXTM2M  101
ALLIANCE OVERVIEW     102
ALLIANCE # 16: NEXTM2M AND DATATRADE       103
ABOUT DATATRADE        105
ABOUT NEXTM2M  105
ALLIANCE OVERVIEW     106
ALLIANCE # 17: ROGERS COMMUNICATIONS AND AXEDA  107
ABOUT ROGERS COMMUNICATIONS      108
ABOUT AXEDA  108
ALLIANCE OVERVIEW     109
ALLIANCE # 18: COTECNA AND ORANGE BUSINESS SERVICES       110
ABOUT COTECNA  111
ABOUT ORANGE BUSINESS SERVICES     111
ALLIANCE OVERVIEW     112
ALLIANCE # 19: NEC AND WYLESS  113
ABOUT NEC CORPORATION        113
ABOUT WYLESS 114
ALLIANCE OVERVIEW     115
ALLIANCE # 20: MOBILY AND GEMALTO 116
ABOUT GEMALTO 117
ABOUT MOBILY     118
ALLIANCE OVERVIEW     119
ALLIANCE # 21: BMW AND VODAFONE  120
ABOUT VODAFONE         120
ABOUT BMW     121
ALLIANCE OVERVIEW     121
ALLIANCE # 22: NTT DOCOMO AND JASPER WIRELESS     122
ABOUT JASPER WIRELESS  122
ABOUT NTT DOCOMO   123
ALLIANCE OVERVIEW     124
ALLIANCE # 23: NEC AND TRANSATEL      125
ABOUT NEC CORPORATION        126
ABOUT TRANSATEL         126
ALLIANCE OVERVIEW     127
ALLIANCE # 24: OPTIMUS AND JASPER WIRELESS   128
ABOUT JASPER WIRELESS  129
ABOUT OPTIMUS  129
ALLIANCE OVERVIEW     130
ALLIANCE # 25: SPRINT AND ORANGE BUSINESS SERVICES 131
ABOUT THE SPRINT EMERGING SOLUTIONS GROUP        133
ABOUT SPRINT NEXTEL  133
ABOUT ORANGE   133
ALLIANCE OVERVIEW     135
ALLIANCE # 26: GEMALTO AND SENSORLOGIC    136
ABOUT GEMALTO 137
ABOUT SENSORLOGIC   137
ALLIANCE OVERVIEW     138
ALLIANCE # 27: AXEDA AND CLEARCONNEX         139
ABOUT AXEDA  140
ABOUT CLEARCONNEX  140
ALLIANCE OVERVIEW     141
ALLIANCE # 28: JASPER AND CSL     142
ABOUT JASPER WIRELESS  143
ABOUT CSL         143
ALLIANCE OVERVIEW     144
ALLIANCE # 29: TRANSATEL AND EVERYTHING EVERYWHERE        145
ABOUT TRANSATEL         146
ABOUT EVERYTHING EVERYWHERE 146
ALLIANCE OVERVIEW     147
ALLIANCE # 30: RACO WIRELESS AND EVERYTHING EVERYWHERE    148
ABOUT RACO WIRELESS     149
ABOUT EVERYTHING EVERYWHERE 149
ALLIANCE OVERVIEW     150
ALLIANCE # 31: EVERYTHING EVERYWHERE AND ATMOVIA  151
ABOUT EVERYTHING EVERYWHERE 152
ABOUT ATMOVIA 153
ALLIANCE OVERVIEW     153
ALLIANCE # 32: EVERYTHING EVERYWHERE AND REDTAIL TELEMATICS    154
ABOUT REDTAIL TELEMATICS®   155
ABOUT EVERYTHING EVERYWHERE 155
ALLIANCE OVERVIEW     156
ALLIANCE # 33: TELIASONERA, FRANCE TELECOM-ORANGE AND DEUTSCHE TELEKOM     157
ABOUT DEUTSCHE TELEKOM       159
ABOUT FRANCE TELECOM-ORANGE        159
ABOUT TELIASONERA    160
ALLIANCE OVERVIEW     161
ALLIANCE # 34: RACO WIRELESS AND T-MOBILE 162
ABOUT RACO WIRELESS     163
ABOUT T-MOBILE 163
ALLIANCE OVERVIEW     164
ALLIANCE # 35: DEUTSCHE TELEKOM AND GEMALTO       165
ABOUT DEUTSCHE TELEKOM       166
ABOUT GEMALTO 166
ALLIANCE OVERVIEW     167
ALLIANCE # 36: TELEFÓNICA AND AVEA 168
ABOUT TELEFÓNICA DIGITAL      169
ABOUT AVEA     169
ALLIANCE OVERVIEW     171
ALLIANCE # 37: VEOLIA WATER AND ORANGE     172
ABOUT VEOLIA WATER  173
ABOUT ORANGE BUSINESS SERVICES     173
ALLIANCE OVERVIEW     174
ALLIANCE # 38: VERIZON WIRELESS AND ILS TECHNOLOGY 175
ABOUT VERIZON WIRELESS         176
ABOUT ILS TECHNOLOGY   176
ALLIANCE OVERVIEW     177
ALLIANCE # 39: BOSCH GROUP AND VODAFONE    178
ABOUT BOSCH GROUP  179
ABOUT VODAFONE GLOBAL ENTERPRISE   180
ALLIANCE OVERVIEW     181
ALLIANCE # 40: VODAFONE AND INTEL  182
ABOUT VODAFONE         183
ABOUT INTEL     183
ALLIANCE OVERVIEW     184
ALLIANCE # 41: KPN AND SIERRA WIRELESS 185
ABOUT KPN        187
ABOUT SIERRA WIRELESS  188
ALLIANCE OVERVIEW     189
ALLIANCE # 42: AMÉRICA MÓVIL AND JASPER WIRELESS     190
ABOUT AMÉRICA MÓVIL   191
ABOUT JASPER WIRELESS  191
ALLIANCE OVERVIEW     192
ALLIANCE # 43: VODAFONE AND CINTERION       193
ABOUT VODAFONE         193
ABOUT CINTERION 193
ALLIANCE OVERVIEW     194
SUMMARY TABLE FOR ALLIANCES FORMED         195

CHAPTER 6.FUTURE OF M2M DOMAIN  199
STEPS REQUIRED FOR BETTER M2M SERVICES     199
MAKING IT EASIER TO USE M2M CONNECTIVITY    200
MAKING IT EASIER TO DEVELOP, LAUNCH AND MAINTAIN APPLICATIONS.... FLEXIBLY    200
NEED FOR OPEN PLATFORM       201
INDUSTRY'S POINT-OF-VIEW ON OPEN PLATFORM 201
INITIATIVES TAKEN FOR DEVELOPMENT OF OPEN-PLATFORM    204
OWNERSHIP OF DATA    204
REGULATORY ISSUES      205
SECURITY ISSUES   205
HANDLING THE SCALE    205
TIME-TO-MARKET  205
LIABILITY   206
LEGAL ISSUE       206
DATA COLLECTION AND PROCESSING     206
EDUCATING THE CONSUMER     206
CONNECTING BILLIONS OF DEVICES        207
PROVIDING A GLOBAL SIM 207
USING THE DATA  208
TAKE ON INTERNET OF THINGS (IOT)      209
STANDARDS GROUP FORMED TO ENABLE INTERNET OF THINGS     210
ABOUT WEIGHTLESS       212
ABOUT TV WHITE SPACE    212
ABOUT ARM      212
ABOUT CABLE&WIRELESS WORLDWIDE 212
ABOUT CSR         212
ABOUT NEUL     213
FUTURE OF M2M 'INDUSTRY'     214

CHAPTER 7.CONCLUSIONS  215
REFERENCES       218
BOOKS  218
PAPERS     218
WHITEPAPER     219
ARTICLES  219
PRESS RELEASE  220

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