Machine to Machine services offer CSPs an opportunity to .... C...s beyond traditional Telco. Agenda...

Machine to Machine serviceopportunity to grow businesCaio BottiglierigBusiness Development

© Nokia Siemens Networks 2011

es offer CSPs anss beyond traditional Telco

Agenda

• M2M Market OpportunityK S F t• Key Success Factors

• M2M Value Chain Vertical E amples• Vertical Examples

• Summary


M2M opportunity

Gross value of connected smart systems fo

50 Bn €

CAGR:33%

CAGR:28%

CAGR:21%

CAGR:32%

CAG28%

50 Bn €

40 Bn €

30 Bn €30 Bn €

20 Bn €

10 Bn €

Resources Retail SeSa

Health Care

Industrial0 Bn €


*Harbour research Machine-To-Machine (M2M) & Smart Systems Forecast 201

280 Bn € smart servicesmarket in 2013 with an average growth rate of 33%*

orecast *average growth rate of 33%*

GR:%

CAGR:28%

CAGR:33%

CAGR:34%

CAGR:24%

2013

2014

2011

2012

2

IT & Networks

curityfety

Transport BuildingsEnergy

10-1014, excluding consumer/professional numbers

Service providers have a very co

• Managed connectivity offering – as a result of footprint, platform & organization

• Economics of scale• Market po er to p t in place strong• Market power to put in place strong

partnerships• Strong brands, high network qualityg , g q y

Service Providers well posObj t S i t CObject Services to Consum


ompetitive M2M offering

sitioned to offer Smart & E t imers & Enterprises

… but competition is increasing are expected to decline• Competition is expected to have

similar offering in less than 12 months

p

• Commoditization will change the focus on price, resulting in declining marginsmargins

• Differentiation will become critical…

To build a long-term, defendM2M ecosystem, CSPs needconnectivityconnectivity


and margins

s

able position in the ds to offer more than

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Smart objects result in Machine

• Low ARPU• Low acquisition costLow acquisition cost

• No device subsidies• No mass market expense

of C

are

urn

ion

Cos

t

RPU

• Low cost of care• Low churn

Cos

t o Ch

Acq

uisi

t

AR

• Zillions endpoints

M2M …. long tail - build a londefendable position in the M2CSPs needs to offer more tha


to Machine (M2M) Markets

Traditional Subscribers

Machines

Number of endpoints

ng-term, 2M ecosystem, an connectivity

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l6 Is there color coding to go with the arrows on the left? i tried to harmonize thei graph a bit.lommaket, 12/08/2011

Vertical Know-how is key

• Identify key target Verticals • Know-how on vertical industriesKnow how on vertical industries

missing• Each vertical have own language

business practicesbusiness practices• Deep vertical knowledge for laun

& growing M2M business• Driven initially by key vertical

• Energy, Telematics & Healthcare


e and

ching

e

Expand your role in the value ch

Value ofValue of smart objects services

R

Trusted i i

Remoof sm

Reliable & efficient connectivity for smart

communication with smart objects

yobjects

Managed objects

Managed connectivity


objectsconnectivity

hain as horizontal enabler

Enterprise architecture design & integration

t t

Smart object dataprocessing &aggregation

ote management mart objects

Smart data Smart servicesservices

Smart objects services layers an

Energy Transport Home SecService provider

Service enabler Service en

provider

enabler Service en

Object management

Managed

Data managem

Managed c

Managed connectivity provider

Access nAccess provider

0 © Nokia Siemens Networks 2011

kWh

nd value chain

curity HealthPayment

nablementnablement

Charging & billing

ment

connectivity

networks

NSN’s Vision: CSP at the centre Win-win partnership with our customers to chang

CSPBilling Marketing

New, sustainable revenue streams for CSP

End User RelationshipsSales & Distribution

Local I&CMarketingCSPs

Services on cloud for low t d l b l

+F t li ti

cost and global access

New revenue models

Ecosystem

Fast application development due to software standardization

D

Device

Cloud HostingDrivers

SensorsInterfa

ApplicationsHarmonization of fragmented devices


of the M2M storyge the M2M game in their markets

Monetization of data and insights

n Opening of M2M for ll b i d

+small businesses and individuals

N i ti

Revenue share

m Management

New, innovative applications and use scenarios

Data & Analytics

esCommunity

Enablement

Logistics

aces

Ecosystem expansion due to harmonization

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Home Gateway act as local data collector. M2M service ena

Market: CSP. Solution Home Aut

Buildings with ThereGate M2M Platfor

yunctionality, reports and user management to the owner of thcharge of resort management.

Buildings with ThereGateTemperature sensorsHumidity sensorsPower or water meterRemote switches etc Data AggregationRemote switches etc.

ayer

Data Aggregation

Fault Management

Age

nts)

nsm

issi

on L

a

Config. Manageme

Perf. Management

(O&

M A

Dat

a Tr

an

Data Processing


ablement provides the mass data processing, alarm

tomation for Holiday Resort.

rm

p p g,he resorts and/or to real estate companies who are in

M2M Application

yer

• User & Inventory Management• Report Generation• Statistical Evaluations

Alarming

rface

Lay • Alarming

t

tion

Inte

r

ent

t

App

licat

Smart Container: Ocean TranVertical : Logistics MSC

ContainerMonitoring

BSCCentral

Gateway

land based BTS

Container with Sensor

Container with Se

Problem• Ensure security and protection concerning manipulation, t• Monitor possible damage or the perishing of goods: high-

ship is in portroad / rail

o to poss b e da age o t e pe s g o goods gSolution differentiator

• GSM connectivity for effective real time tracking on-board• Complete GSM service on-board for crew members

Go-To-Market

3 © Nokia Siemens Networks 2011© Nokia Siemens Networks – Confidential and Proprietary

• Partner with global CSP. The cost of implementing the �“sachieved by shippers and their partners resulting from su

nsit Monitoring

Satellite System

SAT Modem

Exist link

ensor Container with Sensor

RemoteGateway

BTS

theft or terrorism tech products, medical equipment, food …

Market Sizint ship on see

tec p oducts, ed ca equ p e t, ood

d and regular monitoring

smart container�” initiative can be paid by the cost savings pply chain efficiencies and loss prevention

Smart Traffic ManagementVertical : Automotive and Electronic Toll

CS

M2M TMManagPlatfor

ProblemITS operators and niche ASPs eager to explore services to fleet companievehicles, networks and road-side infrastructure

SolutionOpen M2M applications for toll payments and value added intelligent Traff

Solution DifferentiationScalable M2M Platform with flexible Device agents and open application dmanagement

Go-To-MarketPartnership with Domain Technology Vendors, Partner with CSPs (sell-thr


Gain credibility with pilots in an early phase

Insurance CompanySP

Insurance Company

Fleet Management

Developers

Government/City/Private Highways

Traffic tgement

rm

es, public sectors, and consumers, utilizing data aggregated from

fic Management & Infotainment Services

development to access aggregated traffic data, strong Partner / Device

rough)

Smart Grid: Demand RespoVertical : EnergyVertical : Energy

Peak shaving

Problem

time

Valley filling

Power price chang

• Utilities need to cope with Peak Energy Demand and the varSolution

• Application running on-top of our Meter Data Management, PGeneration to shape Demand avoiding investments to cope f

Solution DifferentiationSolution Differentiation• Real-time M2M meter data management, long-term data stor

Services Go-To-Market

• Address Utilities directly through NSN CO SGS channel


• Support of early market entry based on managed services w

onse

With enPower

Valley filling ge

y gthrough

consumption Stimulation

riable output of renewable Energy Sources

Profiling and Optimization of Power Consumption and for Peak Demands

rage reporting and analysis, Integration and Consulting

with a high value/low risk approach

Summary: Smart object servicesan opportunity to growth businepp y g

CSPs can expand their role in the value chain from

Horizontal service enablement can trigger servicevalue chain from

pure connectivity provider up to full smart object

trigger service growth and capture values from vertical j

service provider opportunities


s offer CSPs ess beyond traditional telcoy

Nokia Siemens Networks helps CSPs as a partner

Nokia Siemens Networks smart object servicesCSPs as a partner

to growth in the M2M business from services

object services framework addresses M2M specific challenges

enablement up to full live cycle management

p gutilising proven telco assets

What are the next steps?

What is your strategy and need in your

What would be the first M2M vertical domainneed in your

M2M Market?vertical domain to start offering services to?


What is the largest M2M market to pilot?market to pilot?

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l4 The "note stiker" graphics that were on this slide did not match to the other slides visually so I removed those from this slide. Also the texts were questions so discussion boxes fit better to the content. Hopefully OK.lommaket, 12/08/2011

Thank you


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