Competitive Overview

Colin Geis | April 2017

Agenda

• Competitive Market Pricing

• Market Positioning

• Competitor Matrix

• Remote Access

• Where We Win

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Average Market Prices

• AMER – Has a high share of 4G LTE routers

Note: Average market price is estimated based on market report and assumed competitors in each region.

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Mkt Revenue Mkt Units Avg Mkt Price Avg RLC Price

AMER $265M 950k $390 $420

APAC $140M 950k $194 $350

EMEA $130M 700k $334 $351

Source: Berg Insight – The Global M2M/IoT Terminal Market 2016

Avg Sales Price is < 10%

Above Avg Mkt Price

Router List Prices – Industrial Market

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$1,000

$2,000

$3,000

$4,000

$5,000

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Competitive Positioning – IIoT Gateway

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1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

$1,300 $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 $400

List Price

Netbiter EC350

Tixi Gateway

Red Lion RAM 6000

Multi-Tech Conduit

Opto22 SNAP PAC

b+b SmartFlex

Moxa UC 8112

Harting MICA

AVG Selling

Price $585 with

-4.8% CAGR to

2020

Red Lion RAM-

6xxx Avg sales

price $687

Source: ARC Report – Industrial Gateways-WW-2015

Competitive Positioning – LTE Routers

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1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

$550 $650 $600 $300 $350 $400 $450 $500 $900 $850 $800 $750 $700

Digi WR31

Sierra Wireless RV50

Moxa OnCell 3150

Option CloudGate

eWon Cosy 131

Red Lion SN 6000

Netcomm NTC-140W

Microhard BulletPlus

Price

Spectre 4G

AVG Selling

Price $418

with 9% CAGR

to 2020

Red Lion

SN-6xxx Avg

sales price $483

Source: ARC Report – Industrial Gateways-WW-2015

Key Takeaways

• Red Lion products are more expensive, but compared to like-for-like

products, we are < 10% higher.

• If you are being compared to another product (not in this presentation), the

customer may be using the incorrect product.

• Understand the use-case of the product. Remote access solves an

immediate problem, not a BIG problem.

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Competitive Comparison – IIoT Gateway

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Specifications Red Lion

RAM 6000

HARTING

MICA

Moxa

UC 8112

Multitech

Conduit

Product Pictures:

Model & Description of

Competitive Solution

SN-6921/6901 (LTE)

SN-6621/6601 (CDMA)

SN-6821/6801 (GSM)

MICA LTE UC-8131-LX (1eth/srl, LTE)

UC-8162-LX (2eth/srl, LTE)

Pricing $869 - $1,180 $799 $710 - $1,400 $500+modules

Target Industries /

Applications

Utility, W/WW, O&G,

Factory Automation

Factory Automation Utility, W/WW,

O&G, Alternative Energy,

factory automation

Factory Automation, Utility,

O&G, Energy.

Service Levels 1 Day Lead time Build to Order 1 Day Lead Time 1 Day Lead Time

Competitors USP Rugged, secure, feature-

rich with pre-configured

IIoT Platforms

Highly Modular, multi-radio

(WiFi, RFID, Cellular) with

Linux SDK

Micro-PC with MQTT via

Moxa ThingsPro™. Platform

for custom deployment

Highly modular IoT

gateway, LTE, WiFi, LoRA,

Bluetooth, Mdot (RF),

configured via NodeRED.

Source: www.redlion.net www.harting.com www.moxa.com http://www.multitech.com

Competitive Comparison – LTE Routers

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Specifications Red Lion

SN 6000

eWon

Cosy 131

Sierra Wireless RV50 Digi International

WR31

Product Pictures:

Model & Description of

Competitive Solution

SN-6921/6901 (LTE)

SN-6621/6601 (CDMA)

SN-6821/6801 (GSM)

EC61330 (Eth)

EC6133C (Eth,WiFi)

EC6133D (Eth, 3G GSM)

EC6133E (Eth, 4G GSM)

RV50 (CAT 3 LTE, Eth, Srl)

RV50X (CAT6 LTE, Eth, Srl)

WR31-L12A (LTE Int’l)

WR31-L52A (NA Int’l)

Pricing $869 $799 $589 $699

Target Industries /

Applications

Utility, W/WW, O&G Factory Automation Utility, W/WW, O&G,

Alternative Energy

Factory Automation,

Utility, Transportation,

O&G

Service Levels 1 Day Lead time 1 Day Lead Time 1 Day Lead Time 1 Day Lead Time

Competitors USP Rugged, secure, feature-

rich

Easy to deploy, secure,

remote connectivity

Low-energy consumption,

cutting-edge technology

Rugged, multiple ports,

secure/reliable

communication

Source: www.redlion.net www.eWon.com www.sierrawireless.com www.digi.com

Competitor Matrix Red Lion eWon Sierra Wireless Digi Option B+B/Advantech Moxa

RAM-6921 Cosy 131 RV50 WR31 CloudGate Spectre 4G -314 OnCell3470A

Power Connector Terminal Block Terminal Block Molex Terminal Block Molex Terminal Block Terminal Block

Power Input 8-30VDC 12-24VDC 7-36VDC 9-30VDC 9-33VDC 10-30VDC 12-48VDC

Ethernet Ports 5 4 1 2 1 2 4

RS-232 serial 1 - 1 - - - -

RS-485 serial - - - 1 - 1 -

GPS 1 - 1 - Shared 1 1

Wi-Fi - 1 - - - - -

USB Device Port 1 - - - - - -

USB Host Port - 1 1 Micro 1 - 1 -

I/O 1 2 1 3 - 2 2

SD Card* - Y - - - - -

Network Technology 4G LTE 4G LTE 4G LTE 4G LTE 4G LTE 4G LTE 4G LTE

Multi-Carrier Support 1 - 1 1 1 - -

Firewall 1 1 1 1 - 1 1

NEMO/DMNR 1 - 1 1 - - -

SDK 1 - 1 - 1 Limited -

Event Engine Yes – 99 Events - Yes - 5 Events - - - -

Network Protocols Modbus RTU, Modbus

TCP/IP, DNP3 slave

Rockwell, Mitsubishi,

Modbus, Omron,

Schneider, Siemens Modbus RTU,

DNP3*

Modbus RTU,

Modbus TCP/IP,

DNP3 slave - Modbus -

Operating Temperature -40°C to +75°C -25°C to +70°C -40°C to +70°C -30°C to +70°C -30°C to +70°C -30°C to +60°C -30°C to +70°C

IP Rating IP30 IP20 IP64 IP30 IP30 IP30 IP30

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Remote Access (via Cloud)

• Remote device has Cloud IP pre-programmed. When connected to Internet, device will attempt to establish connection with Cloud.

• When user logs into Cloud, then Remote device is accessible

• Benefits: Easy to deploy as destination IP (Cloud) is known. All “Outbound” connections.

• Issues: Very limited flexibility, no redundancy.

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Remote Access – Alternatives

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VPN

Private/

Custom APN

Private/Custom APN

Distrix SDN

Key Takeaway

• Red Lion doesn’t offer a cloud today. That doesn’t mean we cannot

offer customers remote access.

• There are a number of solutions to address this functionality.

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[Confidential] Utility – Smart Grid Customer Name Location Date

Trilliant Canada 2015/16

Customer Profile:

Trilliant helps utilities and energy retailers achieve their smart grid visions through the Trilliant

Smart Grid Platform, the only purpose-built communications platform that integrates disparate

utility systems into a unified whole.

Application Overview: The government of Ontario, Canada mandated that all utilities in the

province convert customers to time-of-use (TOU) billing, which allows for different electricity

rates at different times of day. Trilliant’s Smart Grid Platform is a proprietary 2.4GHz point to

multi-point radio network with aggregation/collector boxes. Red Lion’s RAM 6000 cellular RTUs

provide connectivity between the collectors and the head-end billing/management system.

Keywords (applications) Why Red Lion Won Project Revenue

• Smart Grid

• AMI

• Advanced Metering

• Demand Response

• Customer liked small form factor

• Customer required additional information to be retrieved from

cellular RTU which was only accessible via SDK.

• Red Lion’s hardware was Bell Mobility certified

• Red Lion’s technical support far exceeded competition (Sierra)

• Customers environment deployed in very harsh environments

• -40°C to 75°C with -40°C boot-up

• Customer required the ability to mass-update units in the field

Hardware: RAM-6701

Quantity: 8,930

RLC Revenue: $4.1M

Deployment Date: 2012-2016

Sold to:

System Integrator/OEM

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[Confidential] Gas Monitoring - IIoT Customer Name Location Date

Fort Leonard Wood Missouri, USA 2017 Pilot/Deployment

Customer Profile:

Fort Leonard Wood has > 400 building covering an area ~ 60,000 acres. All building have

natural gas and require individual monitoring and billing. Customer is using a combination of

2G cellular and legacy point-to-point radio with an old SCADA system for data collection.

Application Overview:

Red Lion distributor Set-Point used RAM-6901 cellular RTUs with a custom built driver to

communicate with the on-site natural gas flow meters and report the data back to a cloud-

based SCADA/billing system. The IIoT platform outputs a monthly report with current usage

and historical information for billing purposes.

Keywords (applications) Why Red Lion Won Project Revenue

• Gas Monitoring

• Energy Monitoring

• AMI

• SCADA

• Distributed assets

• Customer required a custom driver to be developed and loaded

on the RAM SDK.

• RAM cellular RTU provides reliable operation in harsh

environments.

• Had to connect customer data to IP Web Control IIoT platform via

SDK agent.

Hardware: RAM-6901

Quantity: 400

RLC Revenue: $120k

Deployment Date: 2017

Sold to:

Distributor

[Confidential] Water/Wastewater Customer Name Location Date

Utility in Florida Florida, USA 2017

Customer Profile:

County water/waste water services are responsible for ~ 1M people, and covers approximately

39,000 acres. Faced with a legacy SCADA communication network (Motorola DTMF radios), the

county was looking to upgrade their data collection and management equipment.

Application Overview:

Red Lion is deploying RAM-6921 cellular RTUs and are communicating to existing PLC/RTUs.

Cellular products will communicate XXX data to the SCADA server. With over 300 lift stations,

this large upgrade will be rolled out over two phases. Phase 2 will include E3 I/O modules and

Crimson Control products

Keywords (applications) Why Red Lion Won Project Revenue

• Factory Automation

• Connected Factory

• Connected Assets

• Data Management

• Predictive Maintenance

• Red Lion’s cellular products natively support Modbus and DNP3

within the cellular RTUs, making the transition for the customer

easy.

• Phase 2 of the project will be for control capabilities by integrating

to Crimson control products [Edge or Core controller].

• Industrially hardened equipment with wide temperature

specifications.

Hardware: RAM-6921

Quantity: 330

RLC Revenue: $170k

Deployment Date: 2017

Sold to:

Distributor

[Confidential] Water/wastewater– Cont’d

Metric Units Trunking Cellular Delta

Average Poll/COS Time

(Average amount of time to poll an RTU from the

FIU, or time to send a Change of State (COS))

sec 9.6 0.9 91%

Maximum Poll/COS Time (Max time to poll a site or send a COS transmission)

sec 63.0 1.7 97%

Average Message Retry

(Efficiency of the communication channel / RF

system - % of “failed” messages which need to be resent.)

% 7.3 1.6 78%

Time to send simultaneously an alarm from 5-10

RTUs.

(Typical “storm” scenario when multiple RTUs on the

same channel send alarms simultaneously.)

sec 48-70 2.6-3.5 >95%

[Confidential] Food Services - OEM Customer Name Location Date

Used Grease Collection System - OEM North Carolina, USA 2017/18 Pilot

Customer Profile:

A rotational molding and design company with roots in liquid management addresses the

needs of petroleum and food services industries. The customer builds solutions to address

common waste oil challenges and improve profitability for restaurants and oil recyclers alike.

Application Overview:

The solution is a combination of a Data Station Plus and RAM cellular RTU. The Crimson device

interfaces to an Emerson Coriolis flow meter and datalogs the information. A custom webpage

is hosted on the Data Station Plus, and the RAM-6901 or RAM-9911 will retrieve data and send

it to a central monitoring site.

Keywords (applications) Why Red Lion Won Project Revenue

• Connected Assets

• Data Management

• Asset monitoring

• Remote Monitoring

• Red lion provided a complete and cohesive solution to solve the

customers problems (protocol conversion and remote

communication).

• Jeff Kimmel (RL Matus) arranged with a local NC State EE to do the

software development for the customer to prove the solution

works.

• Red Lion is providing a local webpage for drivers to view the

system (webpage on Data Station Plus)

Hardware: Data Station Plus &

RAM-6901

Quantity: ~200+/yr

RLC Revenue: $

Deployment Date: 2017/18

Sold to:

Distributor

[Confidential] Utility - Gas Monitoring Customer Name Location Date

Consumers Energy Michigan 2015 – On-going

Customer Profile:

CE provides electric service to 1.8 million customers and natural gas service to 1.7 million

customers in Michigan’s Lower Peninsula. All told, they serve more than 6 million Michiganders.

Application Overview:

Red Lion’s cellular routers are used in two applications – Line voltage monitoring on telephone

poles whereby modem resides inside box for voltage measurement. Second, remote site

monitoring whereby data was collected to ensure gas flow rate was to specification.

Keywords (applications) Why Red Lion Won Project Revenue

• Power on demand

• Data Management

• Remote Monitoring

• Industrially hardened equipment with wide temperature

specifications

• Red Lion worked with customer to ship custom firmware on

IndustrialPro SN 6000 routers to support application requirements

• Multiple interface options (RS-232, and Ethernet) enabled them to

use same unit for multiple applications.

• Were satisfied with how the unit manages security particularly

IPsec, which supported their regulatory requirements

• SixView Manager is hosted on a customer owned server. No cellular

products touch public Internet, as the customer uses a private APN.

Hardware: SN 6701 / 6901 AT

and VZ

Quantity: 3,000+

RLC Revenue: $$$

Deployment Date: 2015 -

ongoing Sold to:

Distributor

OEM – Remote Monitoring Company Background Location Large multinational OEM, developing second generation machine. Had identified a number of pain points in existing solution that drove goals for design.

USA

Application Overview Current system required manual intervention in order to read system data; wanted automated

remote monitoring with ability to take local action in case of emergency shutdown As much as possible, wanted to make connectivity diagnostics, system maintenance, and

updating their systems something that could be done remotely Had already decided on I/O + PLC + cell modem architecture before Red Lion got involved Situation Factors Selected system integrator had experience with competitor and knew little about Red Lion Cellular carrier’s contractor had no experience with industrial comms protocols like Modbus Cellular carrier had quoted ~ $60k to build a cellular modem management tool, similar to our

SixView Manager

Competition Why We Won Emerson iPro PLC + CloudGate Omron PLC + eWON Opto-22 + MultiTech

E3 MIX module is very dense which made the form factor for the total solution quite small by comparison.

Demonstrated during discovery meeting that events can be set up in Event Engine to do what

they were planning to do in a PLC. With SixView Manager the OEM can view their deployment from anywhere and do firmware and security

updates remotely for a fraction of the cost of what the carrier quoted for a custom development. Red Lion had the best specs for shock, vibration & temperature, all critical to this design.

Project Details HW: RAM-6921-AT + E3-MIX24880 Qty Sold (to date): 50 Revenue: $75k Sales Cycle: 5/16-10/16

For more information

20 Willow Springs Circle | York, PA 17406 USA

+1 (717) 767-6511 | www.redlion.net | info@redlion.net

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