informa long tail wireless spotlight: wifi for m2m
DESCRIPTION
This spotlight is part of a series of concise reviews examining opportunities in long-tail wireless.Long-tail wireless is Informa Telecoms & Media’s term for wireless technologies used for vertical-market applications.The research focuses on identifying logical adjacencies and new revenue streams for general-purpose and industry-specific technologies.In this spotlight, Informa explores the use of Wi-Fi for M2M, discussing how communication service providers and vendors might profit.TRANSCRIPT
10 January, 2011
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Wi-Fi for M2MLong-tail Wireless Spotlight
Camille Mendler
Principal Analyst
May 2012
Informa Telecoms & Media: Who are we?
www.informatandm.com
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• 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
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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 Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
Informa’s Long-tail Wireless Spotlights
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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
Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
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.
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Warehousing Public safety
Health monitoringLighting control
Agribusiness Vending machines
*Informa-SAP M2M Communications Survey, February 2012
Wi-Fi for M2M: Existing applications
Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
Ecosystem: Wi-Fi for M2M
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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?
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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.
Source: Informa Telecoms & Media
Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
Competitors: Wi-Fi for M2M
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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
Source: Informa Telecoms & Media
Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
Project examples: Wi-Fi for M2M
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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
Source: Informa Telecoms & Media
Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
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.)
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10Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
Source: Informa Telecoms & Media
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.
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11Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
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
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12Informa Long-tail Wireless Spotlight: Wi-Fi for M2M, May 2012
For more information, contact:
Camille MendlerE-mail: [email protected]
Twitter: @cmendler
Phone: +44 (0)7766 131528