ENABLING FREEDOM FOR THE INTERNET OF THINGS

How to deliver customerchoice in the IoT

Interview with WylessCEO, Dan McDuffie

V O L U M E 4 I S S U E 4

M2M Now: ISSN 2046-5882

P R O F I T F R O M A W O R L D O F C O N N E C T E D D E V I C E S

PLUS: Smart Utilities Insight Report INSIDE PTC buys Axeda for US$170m Over half of networks not IoT-ready Connectedcar services to earn US$17bn in 2018 Consortium formed to ease IoT interoperability Freewave appoints new CEO The latest Contract Hot List Next Android to use Bluetooth 4.1 New M2M partnerships More news at www.m2mnow.biz

S E P T E M B E R 2 0 1 4

AUTOMOTIVE M2MFast forward toconnected vehiclesRead The AnalystsInsight Report in full atwww.m2mnow.biz

FLEET & ASSETMANAGEMENTHow can the mass marketpotential be maximised?Read the report at www.m2mnow.biz

mHEALTHWellness is just theopening gambit inmobile health!M2M Now InsightOut December 2014

SMART CITIESBetter lives not justbig profits boostinginterest in Smart citiesM2M Now InsightOut February 2015

THE BLACK BOOKFive key industryverticals assessed byleading M2M/IoT analystsAll in one book.Out February 2015

12TALKING

HEADS

CONTENTS

3September 2014

52NORDIC REVIEW

15SMART UTILITIESINSIGHT REPORT

33EUW 2014SUPPLEMENT

Cover Sponsor: Wyless is a leading global M2M managed services provider.Its platform, delivered in partnership with the worlds largest networkoperators, provides secure, reliable communications with wireless devices in

over 120 countries. Powerful management tools offer real-time reporting and control over all devicesconnected to our network. Wyless delivers a comprehensive suite of managed services with unrivalledexpertise, professional support and competitive pricing. Wyless enables its customers and partners todeploy M2M applications and services faster, cheaper and more effectively. www.wyless.com

4 EDITORS COMMENT Gift Horse or Trojan Horse

5 MARKET NEWS Connected car services to reap US$17bn in 2018. New open interconnect consortium launched

6 COMPANY NEWS PTC follows ThingWorx acquisition with $170m Axeda purchase. Networks not IoT-ready

7 PEOPLE NEWS New faces at Antenova M2M, Freewave, Nokia, SIMalliance, and ZTR Control Systems

8 CONTRACT NEWS & HOT LIST Cyan gets smart in India, Pomona takes Sedaru. New orders from Africa to the Americas

9 EVENT DIARY Whats On in the world of M2M & IoT

10 PRODUCT NEWS GE Predivity offers equipment insights; littleBits eases internet connectivity;

12 TALKING HEADS How do you deliver freedom in the Internet of Things? Dan McDuffie, Wyless CEO, talks to M2M Now

15 M2M NOW INSIGHT REPORT SMART UTILITIES In the latest of our ongoing series of specially commissioned, independent, analyst-written Insight Reports, Saverio Romeo of Beecham Research examines The Benefits and Challenges of Making Utilities Smart. He describes how smart metering is progressing, the challenges being faced, and reveals some new business opportunities and unexpected threats.

32 AUTOMOTIVE M2M The 4G-enabled car is the next hot consumer device

33 EUW 2014 SUPPLEMENT M2M Nows unrivalled 12-page Supplement to European Utility Week 2014 in Amsterdam

46 CONNECTED HOMES Smart connected homes are driving IoT. So says Antony Savvas, after canvassing the market.

48 INTERVIEW: SMART HOMES Saverio Romeo of Beecham Research asks Telenor Connexions CMO, Robert Brunbck how the wide-ranging business opportunity of connected homes can be exploited and the difficulties overcome

54 NORDIC REVIEW: THE PROS AND CONS OF BEING FIRST MOVERS IN M2M Scandinavia has enjoyed benefits from early adoption of M2M communications, but there are IoT problems too

57 THE GLASS BOARDROOM: A BRAVE NEW WORLD In an exclusive article for M2M Now, Oozi Cats, CEO of Telit Communications PLC, says that IoT is reinventing the way we all manage and do business

64 THE BACK PAGE George Elrington takes a sideways look at the connected world

IN THIS ISSUE

COMMENT

September 2014

EDITOR & PUBLISHERJeremy CowanTel: +44 (0) 1420 588638j.cowan@m2mnow.biz

DIGITAL EDITORNathalie BisnarTel: +44 (0) 1732 808690n.bisnar@m2mnow.biz

BUSINESS DEVELOPMENTDIRECTORCherisse JamesonTel: +44 (0) 1732 807410c.jameson@m2mnow.biz

DIRECTOR OF STRATEGICPLANNINGCharlie BisnarTel: +44 (0) 1732 807411charlie@wkm-global.com

DESIGNJason ApplebyArk Design Consultancy LtdTel: +44 (0) 1787 881623

CIRCULATIONCircdataTel: +44 (0) 1635 869868

PUBLISHED BYWeKnow Media Ltd. Suite 138,70 Churchill Square, Kings Hill,West Malling, Kent ME19 4YU, UKTel: +44 (0) 1732 807411

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M2M Now is distributed free to selected named individuals worldwide who meet the Publisher's termsof Circulation Control. If you would like to apply for a regular free copy supplied at the Publisher'sdiscretion visit www.m2mnow.biz If you do not qualify for a free subscription, paid subscriptions canbe obtained. Subscriptions for 5 issues per year cost 125.00 worldwide (or US$210 / 160) includingpost and packing.

All rights reserved. No partof this publication may becopied, stored, published orin any way reproducedwithout the prior written

consent of the Publisher. M2M Now: ISSN 2046-5882

WeKnow Media Ltd 2014

Erik Brenneis,head of

Vodafone M2M

OlivierBeaujard,

vice-presidentmarket

development,Sierra Wireless

AlexanderBufalino,

SVP, GlobalMarketing, Telit.

Robin Duke-Woolley, CEO,

BeechamResearch

Baard Eilertsen,president &

CEO, Maingate

Gwenn Larsson,director, M2M

Global Expansion,Telenor

Andrew Parker,project

marketingdirector,

ConnectedLiving, GSMA

Gert Pauwels,M2M marketing

director, OrangeBusiness

Bill Zujewski,CMO & EVP,

ProductStrategy at

Axeda Corp

EDITORIAL ADVISORS

Of all the domestic applications for M2M (machine-to-machine)communications proposed over the years few have generated as much

business optimism as smart utilities. But what do we really mean by smartutilities; are smart meters just the opening salvo in a global campaign to

create smart homes? And who are the main beneficiaries; domestic energyconsumers, business users, the utilities, the M2M industry (of which most

consumers are only dimly aware), or all of the above?

If providers of smart utility services are to winover the vocal sceptics they need to declaretheir intentions, tell users what the upsidesand downsides are, the scope of their plans,and they need to confront conspiracytheorists who see smart meters as a TrojanHorse giving Big Business a spy in the home.As independent analysts Beecham Researchsay in M2M Nows latest specially-commissioned Insight Report (starting onpage 19) smart metering is a means ofachieving a more green and effective energysystem and the EU aims to have 80% ofEuropes energy consumers so equipped by2020. To achieve this the industry will have toovercome consumer reluctance from thosewho fail to see the benefits of metering, andoutright resistance from those who suspectthe industrys motives. If handled right, this isan unparalleled opportunity for utilities to

build positive relationships with theircustomers. The alternative will benefit no-one.

A special bound-in supplement previewingthe upcoming European Utility Week event inAmsterdam starts on page 33. M2M Now willbe there and, based on past experience, werecommend you join us if you have an interestin connected homes and smarter utilities.Meanwhile, dont miss our articles onAutomotive M2M (page 54), the GlassBoardroom (page 57), and our Review ofM2M in the Nordic countries. We hope youenjoy the magazine.

Contributorsin this issueof M2M NowWe are alwaysproud to bring youthe best writers andcommentators inM2M and IoT. In thisissue they include:

Smart meters:Gift Horse or

Trojan Horse?

Jeremy Cowan,Editor & Publisher,

M2M Now

4

Experiencedfreelance writer,Alun Lewis, talks tosome leadingenablers of smartmetering

George Malim,editor of our sistertitle VanillaPlus,finds IoT isreinventing how wedo business

IT andcommunicationsjournalist, AntonySavvas, guides youthrough theconnected home

Senior analyst atBeecham Research,Dr Therese Cory,analyses smartutilities andmetering

Infonetics Research expects thatrevenue from connectivity, andother services to the connected carsegment, will more than triple from2013 to 2018, to US$16.9 billionworldwide. In fact, some serviceproviders are already seeing asmuch as 90% of their machine-to-machine (M2M) revenue generatedfrom the auto sector.

The firms Connected Car M2MConnections and Services marketsize and forecasts report focuses ontelecom-related services forautomotive applications, fleetmanagement, and telematics, as well

as the business models and trendsdriving the market.

Unlike the smart grid vertical, whichfavours 2G technology to keepusage cheap, or connected cameras,which require at least 3G and ideally4G technology for good quality, theconnected car vertical is able tomake use of every generation ofcellular technology available. Thismeans that just about anycommunications service provider,whether they have 2G, 3G, 4G, LTEor a combination of technologies,can find a niche in the connectedcar space.

Juniper Research has also releasedfigures looking to 2018, stating thatthe number of in-vehicle apps isexpected to reach 269 million. ItsConnected Cars: Consumer &Commercial Telematics andInfotainment 2014-2018 researchattributes growth to offerings such asApple's CarPlay which will promotein-vehicle apps to the mainstream.

Also by 2018,according to analystfirm Berg Insight,the number of activetracking devicesdeployed in cargoloading units willreach 4.1 million, upfrom 1.5 millionworldwide in Q4-2013 (CAGR 22.3%).

This includes trailers, intermodalcontainers, air cargo containers,cargo boxes, and pallets.

The North American trailertelematics market accounts for 60%of the total installed base today. Thetop providers include: Omnitracs,Skybitz, ID Systems, Orbcomm andSpireon which together have morethan 600,000 active units. InEurope, Idem Telematics, Mecomo,Schmitz Cargobull, and NovacomEurope are cited as trailer telematicsproviders with more than 20,000

active units each. The report alsolabels Orbcomm, Envotech,Zenatech, PearTrack Systems,Honeywell, and Savi Technology asmajor providers of intermodalcontainer tracking.

Logistics and transportationcompanies need to be ready to takeadvantage of the increasing amountof data generated by cargo trackingsolutions in order to effectivelyimprove productivity and customerservice levels said Johan Svanberg,senior analyst, Berg Insight.

Meanwhile, the number of activefleet management systems deployedin commercial vehicle fleets inRussia/CIS and Eastern Europe, was2.9 million in Q4-2013. Today, theregion has an installed base of wellover 1 million active units. Growingat a compound annual growth rate(CAGR) of 15.7% this is expected toreach 5.9 million by 2018.

Active cargo tracking units to reach 4.1 million

MARKET NEWS

Standards arecritical for theemergenceof IoT A new paper fromMachina Research,Standards for theInternet of Things,examines existingand emergingstandards forcommunications,connectivity,

networking, service layers, dataabstraction, and discoverability.

The author, Professor William Webb,said: Currently, what has beentermed the IoT is a jumble of openand proprietary standards, with alot of vertical and horizontal silos.Realistically, to move from thisInternet of Silos to the Internet ofThings is going to requirestandardisation. The emergence of asmall number of leading solutions inthe various spaces of localconnectivity, wide area connectivityand service or application layerwould simplify applicationdevelopment and allow industry tocoalesce around a few globalstandards.

Open interconnectconsortium established forbetter interoperabilityA new industry consortium willfocus on improving interoperabilityand defining the connectivityrequirements for the billions ofdevices that make up the IoT.Comprised of Atmel Corp,Broadcom Corp, Dell Inc, Intel Corp,Samsung Electronics Co., Ltd, andWind River, the Open InterconnectConsortium (OIC) will define acommon communicationsframework.

Member companies will contributesoftware and engineering resourcesto develop a protocol specification,open source implementation, and acertification programme with a viewof accelerating the development ofthe IoT. The OIC specification wouldinclude a range of connectivitysolutions, utilising existing andemerging wireless standards,compatible with a variety ofoperating systems.

NEWS IN BRIEF

5September 2014

Connected car service providersto reap $17 billion in 2018

Johan SvanbergBerg Insight

William Webb,associate expert

and author ofthe report

6 September 2014

PTC has signed adefinitiveagreement toacquire privately-held AxedaCorporation forapproximatelyUS$170 million incash. Axedastechnology,extensive customerbase andpartnershipscomplement the

PTC ThingWorx business (bought inDecember for $112m) and willaccelerate abilities across the entireInternet of Things technology stack.

In less than a year, PTC has quicklyscaled to a position of leadership inhelping manufacturers seize theopportunity presented by a smart,connected world, said PTC presidentand CEO, Jim Heppelmann. We

believe the combination ofThingWorx, Axeda, and our existingSLM and PLM solution portfolio willestablish PTC as the only provider oftrue closed-loop lifecycle managementsolutions for the Internet of Things.

Axeda serves more than 150customers processing hundreds ofmillions of machine messages dailyacross multiple sectors. Its broadpartner ecosystem includes mobilenetwork operators, edge device anddesign-in device makers, systemsintegrators, and businesssystems/analytics providers, andseveral strategic OEM agreements.

Its cloud offering includes M2M andIoT connectivity services, softwareagents, and toolkits that enablecompanies to connect products tothe cloud using virtually anycommunication channel, be it cellular,internet, WiFi, or satellite.

PTC expands IoT portfolio with US$170mAxeda acquisition after ThingWorx buy

The smart thermostat company tadohas closed a new round of financing,raising 10m (US$13.6m) fromcurrent backers Target Partners andShortcut Ventures, amongst others.

tado is the European market leaderin intelligent climate control forconsumers. Heating or AC systemswith its technology automaticallyadjust to the users needs via asmartphone app. For instance, whenresidents are leaving, or approachinghome, it sets the desired temperatureaccordingly. Weather forecasts,housing characteristics, and othersmart algorithms make up tadoscontrol strategy, which can achieveup to 31% energy savings.

The company plans to use the newinvestment to expand its brandglobally. Building a fully scalableInternet of Things technologyplatform and at the same timedeveloping control interfaces for over5,000 different types of heatingsystems has been a challenge overthe last three years.

We are fully committed to creatinggreat products and cutting-edgetechnology. The new investment willfurther strengthen our position andallow us to maintain the hugetechnological head start we havegained in covering Europe's varyingheating landscape, says JohannesSchwarz, founder and CTO of tado.

tado raises 10m to fuel global expansion

COMPANY NEWS

IT survey reveals that57% of networksnot IoT readyA survey of 400 ITprofessionals in the UK andUSA has uncovered that while86% of IT professionalsunderstand what will berequired for IoT (Internet ofThings) deployments, 46%expect this to become part oftheir organisations existingnetwork. Yet more than half(57%) reported their network isalready at full capacity; and54% see network infrastructuremanagement as a high priority.

Infoblox recommends whatnetwork managers can do nowto best prepare for the IoTdeluge, including: Set networkaccess policies for things toprevent inefficient use ofnetwork resources; Assesscontrol and automationsystems to avoid beingoverwhelmed by manual tasks;and, consider deploying IPv6 toprotect against the shortage ofIPv4 addresses.

Tighter race amongM2M module vendorsAccording to the latest analysisfrom ABI Research, SierraWireless has maintained the toprevenue position for M2Mcellular modules for a third year.However, the number twoposition, in terms of shipments,is becoming a much tighterrace. Among three vendors,the market share spread isabout 1% only.

Commenting on the data, ABIspractice director Dan Shey said,This demonstrates a change instrategies from 2012 to 2013.Some vendors have decidedthat value and one-stop shopservices are more important;while other vendors arefocused on driving volumes andbuilding market share.

The report is entitled M2MCellular Module VendorMarket Share.

NEWS IN BRIEF

Jim Heppelmann,President andCEO, PTC

Ramzi Haidamus, a technology-licensing expertwith proven business leadership skills and astrong innovation background, will step into anew role as president of Nokia's technologiesbusiness, and member of the group leadershipteam, with effect from September 3, 2014.

Born in Lebanon, Haidamus moved to the USwhere he completed degrees in electricalengineering at the University of the Pacific. Hespent 17 years of his career with DolbyLaboratories, which he helped to grow from aUS$72 million private business into a thriving US$1billion public company.

"Ramzi has the perfect blend of technology savvy,

business leadership and innovation experience tohead our cutting-edge technologies business,"said Rajeev Suri, president and chief executiveofficer of Nokia. "With Ramzi at the head of theworld-class Nokia Technologies team and ourcontinuing investment in advanced research anddevelopment, we are well-positioned to drive theinnovation and licensing business needed to moveus closer to our goal of technology leadership in aworld where everyone and everything is connected."

Henry Tirri, currently acting head of NokiaTechnologies, will continue in this role untilHaidamus joins. After this, Tirri will step downfrom the Group Leadership Team and become anadvisor to Suri on technology issues.

PEOPLE NEWS

7September 2014

Haidamus to head Nokias Technologies business

Nokia:Ramzi Haidamus,

president ofNokia's

technologiesbusiness

ZTR: Michael Tidy,

general manager

Antenova,Rob Orford

Freewave:Steve

Wulchin,president

FreeWave:Kim

Niederman,CEO

SIMallianceBoard:

MicheleScarlatella

SIMallianceBoard:

AlencarNunes

ZTR Control Systems has promoted Michael Tidyto general manager of its connected assetdivision telematics business. Tidy has over 25years of building and transforming technologycompanies while driving value for both customersand shareholders.

He initially joined the company in 2010 as thedirector of commercial development leading the

building of sales and customer solutionsorganisations. In his new position Tidy isresponsible for strategy, business development,marketing, sales, product development, channelpartners, technical services and support.Michael Tidy is also a member of ZTRsexecutive management team that works todevelop and implement strategic goals forthe company.

Tidy made GM of ZTR Control Systems connected assets

FreeWave has appointed Kim Niederman as chiefexecutive officer (CEO). He has a successful leadershiprecord in public and private companies, including:Cisco Systems, Polycom Inc., and FORE Systems, aswell as several start-up firms.

Most recently, he served as president of 8x8, Inc

where the company's market cap increased fivetimes to more than US$1 billion in the two and ahalf years under his leadership.

FreeWaves co-founder, Steve Wulchin, will continue toserve as president, overseeing FreeWaves penetrationinto existing and new international markets.

Executive appointments position FreeWave for industrial M2M

Specialist manufacturer of standard embeddedsurface mount antennas and RF antenna modules,Antenova M2M, has just appointed Rob Orford asEuropean sales manager. He will takeresponsibility for Antenovas distribution networkthroughout Europe, South Africa and Russia, aswell as to direct OEM customers.

Reporting to the director and VP of sales ColinNewman, Rob will be promoting the companys

high performance RF antennas, which aredesigned specifically for M2M wireless connectedapplications and consumer electronic devices.

Rob has specialised in working with RF antennasto date, having started out as a principal RFengineer for GEC Plessey, then working in salesroles with March Microwave, BFI Ibexsa (ACAL),and most recently with Anaren Microwave.

Antenova M2M appoints Orford as European sales manager

Following annual elections for two of its six Boardseats, SIMalliance has confimed its Board ofDirectors for 2014-15. The organisation is a global,non-profit industry association which simplifiessecure element (SE) implementation to drivesecure mobile services.

The Board members are Alencar Nunes da SilvaJunior, telecom new business, products andsolutions superintendent at VALID; and MicheleScarlatella, central marketing director, incarddivision, MMS Group at STMicroelectronics. BothAlencar and Michele have been re-elected to theBoard and will serve a one year term.

SIMalliance announces Board for 2014-15

A consortium, led byLarsen & Toubro(L&T), has beenselected by TataPower Mumbai (Tata)for the deployment ofCyans CyLecadvanced meteringinfrastructure (AMI)in India. Cyan is anintegrated systemand software designcompany deliveringmesh-based wireless

solutions for utility metering andlighting control.

Tata Power Mumbai, a Tata Groupcompany, is part of Indias largestintegrated power organisation. It has aninternational presence and approximately400,000 retail customers. The initialdeal is for the deployment of 5,000consumer meters in a district inMumbai planned to go live early 2015.

John Cronin, executive chairman, Cyan,feels that as Tata is viewed as a leaderin its field its selection of theconsortiums AMI technology will act asan important reference for otherutilities evaluating smart meteringtechnologies across India.

John Cronin,executivechairman, Cyan

Vendor/Partners Client, Country Product / Service (Duration & Value) AwardedAicent Syniverse, USA Completion of acquisition, expanding global communications network, for approx US$292m 8.2014Apple IBM, USA Exclusive global partnership to bring big data and analytics to iPhone and iPad 7.2014ARAD Obras Sanitarias del Contract to supply 45,000 communicating positive displacement water meters 7.2014 Estado, Latin AmericaCyan Tata Power Mumbai, India Selected to supply advanced metering infrastructure in India 7.2014Cybercom Atlas Copco, Sweden 5 month contract to help develop smart construction equipment for Dynapac 7.2014 Compaction Equipment AB EVRYTHNG Thinfilm Electronics, Norway Agreement to combine printed electronics, NFC, and cloud software to connect everyday 7.2014 objects to the web RFaxis GreenPeak Technologies, Collaboration to simplify chipset design for IoT in home automation and smart living 7.2014 USA initiativesGemalto GSMA, Africa Agreement to support mobile ecosystem with security expertise for 2 pan-African 7.2014 mHealth programmes IDModeling City of Pomona, USA Contract to supply Sedaru platform for intelligent water network operations 7.2014Landis+Gyr RWE, Germany Deal to provide smart meters in Warsaw for use inside residential buildings 7.2014littleBits Electronics RadioShack, USA Partnership to start connecting everyday objects to the internet in 2000 retail locations 7.2014Newport Media Atmel Corporation, USA Agreement to acquire the provider of high performance low power WiFi and Bluetooth 7.2014 solutions for US$140m Oberthur Technologies Cumulocity, Germany Partnership to offer application enablement and objects management platform for M2M 7.2014 and IoT industry Orange Business TAPcheck Holding Joint venture to connect after-care health monitoring objects across Europe, then 7.2014Services Europe internationallyORBCOMM Swing Transport, USA Selected to deliver comprehensive trailer tracking for 1000+ strong fleet of dry van trailers 7.2014PLAT.ONE Telecom Italia Digital Contract to develop and deploy connected solutions to food and beverage vending 7.2014 Solutions, Italy machine enterprisesSensus Pittsburgh Water & Sewer Deal to provide FlexNet communication network, meter data management software, 7.2014 Authority, USA and customer portalSilicom Undsiclosed smart Deal to implement Coleto Creek and Quad-Port 10G networking cards in next gen 7.2014 networking customer network appliances SkyBitz Transport America, USA Deal to supply asset management technology for entire fleet of trailers 7.2014Tele2 AB NetComm Wireless, USA Strategic partnership aims to transform asset management for vertical sectors 7.2014Tele2 Norway TeliaSonera, Sweden Agreement to sell Tele2 Norway to TeliaSonera for an enterprise value of SEK 5.1bn 7.2014Telit Wireless Solutions Telefonica, London Partnership to expand m2mAir mobile coverage across Europe and Latin America 7.2014WirelessCar Volvo Cars, China Deal to provide 'Volvo On Call' concierge services for customers in China 7.2014

More information on these and other News stories can be found at www.m2mnow.biz

M2M Now August/September 2014It's free to be included in The Contract Hot List, which shows the companies announcing recent contract winsor product deployments. Email your contract details to us now, marked "Hot List" at

THE CONTRACT HOT LIST

Mobility digital security experts,Oberthur Technologies (OT) havepartnered with Cumulocity, an Internetof Things (IoT) platform provider.Together, they will offer an applicationenablement and objects managementplatform for the machine-to-machine(M2M) and IoT markets.

The partnership enables the collection ofdata from any connected object over anynetwork and the ability to manage it inreal-time. This latest contribution to theindustry will have the flexibility to addressvarious use cases, from fleet managementand asset tracking to industrial remotemaintenance and surveillance.

CONTRACT NEWS

8 September 2014

OT expands M2M & IoT to appenablement with Cumulocity

Tele2 and NetCommWireless partner for M2M

A new strategic partnershipaims to create new M2M & IoTopportunities. Tele2 AB (Tele2)and NetComm Wireless haveallied to transform assetmanagement capabilitiesacross industrial automation,security, smart cities, andhealthcare. This is part of abroader collaboration betweenleading M2M/IoT ecosystempartners, selected by the twocompanies.

NetComm Wireless' M2M/IoTdevices provide the networkconnection and remotemanagement components,enhancing operational andcost efficiencies, by allowingbusinesses to monitor andcontrol mission-criticalequipment and valuable assetsover the Tele2 network.

NEWS IN BRIEF

Cyan receives smart orderfor Tata Power Mumbai

u-blox SARA-U2:

the worlds smallest 3G module

locate, communicate, accelerate

ththhe woorldld3

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September 2014

EVENT DIARY

Super Mobility Week,Las Vegas, CTIA

9-11 September 2014Sands Expo and Convention Center,

Las Vegas, USAhttp://www.supermobilityweek.com

M2M Zone Conference &Pavilion @ CTIA 2014Super Mobility Week9-11 September 2014Sands Expo and Convention Center,Las Vegas, USAhttp://m2mzone.com/events/CTIA_2014/CTIA2014_Pavillion.asp

Telecoms for Smart Grids22-23 September 2014Marriott Regents Park Hotel, London, UKwww.smi-online.co.uk/2014telecoms-smartgrids21.asp

Auto Apps Evolution 201422-23 September 2014Maritim proArte Hotel Berlin, Germanyhttp://automotive-apps2014.we-conect.com

M2M Summit EuropeSheraton Hotel and Spa, Madrid, Spain23-25 September 2014www.m2meu.com

DistributionAutomation Europe29-30 September 2014Holiday Inn Regents Park, London, UKwww.smi-online.co.uk/2014distribution-automation21.asp

TEE Conference 201430 September 2014Hyatt Regency, Santa Clara,California, USAwww.teeseminar.org

M2M Summit 201420-21 October 2014Congress Centre, Dsseldorf, Germanywww.m2m-summit.com

Intelligent SensorNetworks Conference4 November 2014High Tech Campus, Eindhoven,The Netherlandswww.isnconference.com

M2M Summit Scandinavia4-5 November 2014Kista Exhibition Centre, Stockholm,Swedenwww.m2m-summitscandinavia.com

European Utility Week4-6 November 2014Rai Centre, Amsterdam,The Netherlandswww.european-utility-week.com

ConnectedAutomobiles 201412-13 November 2014Lingotto Congress Centre, Turin, Italywww.connectedautomobiles.eu

Apps World Wearable Technologies12-13 November 2014ExCeL, London, UKwww.apps-world.net/europe

Apps World Connected Cars

12-13 November 2014ExCeL, London, UK

http://www.apps-world.net/europe/agenda/tracks/connected-cars

Automotive Tech.AD Detroit 201417-18 November 2014Marriott Troy Detroit, Michigan, USAhttp://autonomous-driving-tech-detroit.we-conect.com

Connected Fleets USA20-21 November 2014Westin Buckhead, Atlanta, USAwww.telematicsupdate.com/fleet/content3.php

IoT World Forum25-26 November 2014London, UKhttp://iotinternetofthingsconference.com

TM Forum Live!Digital Disruption8-10 December 2014San Jose, California, USAwww.tmforum.org/dd14M2M

10 September 2014

PRODUCT NEWS

Bluetooth smart technology islivening up the Internet of Things. Itsbringing wireless connectivity topractically any object and lends apowerful platform to developers.

ABI Researchs recent BluetoothMarket Research said that the IoTwill keep demand strong forstandalone Bluetooth ICs (integratedcircuits). The firm predicts that theshare of standalone Bluetooth ICs willbe about 40% by the end of 2014,remaining so until the end of 2019.

Interestingly, the next Androidoperating system (OS) is one of the

first to be based on Bluetoothversion 4.1. This adds the buildingblocks for IPv6 connectivity andopens the door for the always-onhub or gateway an essentialcomponent of the smart home.

The L-release, designed for phones,tablets and future devices, includesnative support for Bluetooth Smartand Bluetooth Classic. This meansthat devices running L can connectto virtually any of the billions ofBluetooth enabled wearables,beacons, health and fitness sensors,phones, tablets, cars, and PCs. Apress release from the company

suggests that, both now and in thefuture, these types of devices will beable to connect to one another aswell as to hundreds of millions ofdiverse Bluetooth Smart accessoriesand applications.

Googles next Android counts on Bluetooth smart technology

Hitting the streets this month,cloudBit, from littleBits Electronics,makes it possible to snap theinternet to anything. Thecompanys mission is to put thepower of electronics in the handsof everyone, thereby democratisingthe Internet of Things.

The offering can turn objects intointernet-connected devices in just

20 minutes, be it recreating themost popular connected devices,prototyping the next billion dollaridea, or solving a problem. Anymodule included in the companysCloud Starter Bundle can be pairedwith others from the littleBitslibrary to create trillions ofcombinations and ideas. ThecloudBit is available for $59 orincluded in the Bundle for $99.

Democratising the IoTlittle bit by littleBits GE Intelligent Platforms has unveiled a

new approach to equipment insight.The solution, from GE PredictivityTMenables OEMs to securely collect datafrom connected machines, analyse it,and extract actionable information todeliver better service levels and optimiseequipment performance. Leading to newrevenue streams and improved customersatisfaction, the system is powered byGEs Proficy software and rugged RXiIPCs. The offering also gives OEMs abetter understanding of how customersuse their machines, while helping themto optimise processes, assetperformance and profitability.

Equipment insightfrom GE for OEMs

Combining on and off-roadintelligence in one package, ZTRslatest compact OBDII hardwareattaches to almost any vehicle. Thesystem generates reports that shouldhelp to reduce the true cost to own(TCO) for service vehicles, thanks tousage-based business intelligence.

ZTR developed the on-road vehiclepackage in response to customersasking to streamline monitoring ofequipment and service vehicles, saidMichael Tidy, general manager, ZTRconnected asset division. They wantto be able to view their off-roadequipment and on-road vehicles inone place.

The system runs on the i3 platformwhich allows users to integrate alltelematics in one place with onelogin. Reports are delivered when andwhere customers want, includingvehicle usage, weekly single asset orfleet views, trip details, alarms; andbreadcrumbs pinpoint vehiclelocations on a smartphone.

For vehicles that dont need to beconstantly monitored, TRACKERsnew Vision Sprint brings simple fleetconnectivity. Its a plug-and-playsatnav device that incorporates fleettracking and can be transferredbetween vehicles. An in-cab Garminterminal allows managers to pinpoint

the location of an asset, access journeyplayback and other timed events,reporting, and customised alerts.

ZTR takes telematics off-road

www.orbcomm.com/contact

ORBCOMM. The leader in satellite M2M.

ORBCOMM. LAUNCHING THE NEXT GENERATION OF SATELLITE M2M.

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12 September 2014

Compared to other sectors of the communications industry - or indeed anyother business area - the sheer variety of technologies, standards,

applications, and commercial models possible in the M2M space can make ita daunting environment for users to navigate. For Dan McDuffie, CEO of

M2M/IoT connectivity platform specialist Wyless, that complexity is actuallygood for business. It continually creates new opportunities for his company

as it expands globally, through acquisitions and partnerships, into newmarkets and use cases. Alun Lewis reports.

M2M Now: Dan, where do you currently positionWyless in the M2M/IoT landscape?

DM: At its most basic, were into plumbing andservices - that is, we provide connectivity fromthe device across networks to the enterprise orcloud. Around that core offering theres a widerange of service, support, design and consultancythat we undertake to help our customers get themaximum strategic return on their deployments. Onthe one hand, we integrate M2M into their existingsystems; and on the other, extending reliableconnectivity to wherever in the world they need it. Wyless began life a little over 10 years ago

focused on providing that core connectivity.Since then, then weve grown our capabilities inline with the emerging needs of the markets wework in. Our clients provide their ownimagination we provide the supporting APIs,technologies, network access and enabling skills,including in many cases the devices anddeployment services themselves.

M2M Now: Its certainly a dynamic market.But the word dynamic often also impliesuncertainty and risk. What aspects of thecurrent M2M space do you currently see aschanging the fastest?

Complexity isgood for business

The more information that you gather, the smarter youcan work and the more cost-efficient you can become

TALKING HEADS

DM: Its obviously difficult to select a singlespecific driver amongst all the frenetic activityout there, but Id say that one of the mostinteresting developments in the last few yearsconcerns the range of wireless connectivityoptions now available. For a start, theres thetruly explosive, and highly successful, growth ofLTE deployments across many parts of the world.

On top of that, were seeing changes to theregulatory environment as far as the spectrum isconcerned, freeing up small chunks ofbandwidth which are ideally suited to M2Mservices and increase the agility of the differentsolutions available. Finally, theres also an ever-growing range of low power wireless connectivityoptions that can be deployed to create in-building coverage, mesh networks, or evenpersonal area networks to support fitness,healthcare and lifestyle M2M applications.

That said, these technology options are only ameans to an end. And that ultimate end is allabout creating new business models, addingvalue to existing operations, helping companiesand their customers reinvent themselves, andextracting actionable intelligence from devices,sensors and connected plant, equipment andproducts.

Thats where Big Data tools, specific supportinghardware packages, and mission-specificcreativity and insight come into play. Its alsowhere were able to help innovators realise theirvisions in the most productive, secure, and cost-effective ways possible. The more informationthat you gather, the smarter you can work andthe more cost-efficient you can become.

And, obviously, we wrap all these services withthe functions needed for customers to controltheir own destinies connected devices, lifecyclemanagement, web stores, billing, Quality ofService and so on. We help our customers

navigate across the boundaries between thesedifferent functional silos to make M2M and IoT assimple to use as possible. We call this entireproduct line Core2Cloud and we believe now,more than ever, that the time has come for asingle company to offer as many of theseservices in one place as possible.

M2M Now: As you raise the topic of boundaries,there seems to be increasing requirement in theM2M space to support global operations Iunderstand that Wyless has recently madesome international acquisitions?

DM: In February we acquired a majority stake inTM Data the first Brazilian M2M operator andthus have created Wyless Brazil. We're nowconnected to the four main cellular networks inthat country Vivo, Claro, OI and TIM and wesee the Brazilian presence acting as an importantjumping-off point for growing our entire businessline across South America and supportingcompanies from other parts of the world whowant to target that region.

Meanwhile, in Europe, earlier this year we alsoacquired ASPIDER M2M, a Dutch company with asignificant and successful focus on the Beneluxand German-speaking markets. This representsmuch more than just geographical diversity playhowever, as now we have our own core network,open SIM and associated solutions withcustomers like Philips Lighting, in a sector where

13September 2014

After a century or so of totalmarket dominance, some players

are still finding it difficult torealise that their continued

existence now relies onpartnering closely with other

specialist players in equal peer-to-peer ways.

IN ASSOCIATION WITH WYLESS

M2M and IoT technologies have a huge role toplay in both public and private lightingenvironments, as well as related smart grid andenergy efficiency.

Each part of the world tends to take slightlydifferent approaches to M2M/IoT. These are oftenlargely dictated or influenced by the strategiesof the regional cellular operators. Some havetried or are still trying to enter this marketthemselves, but they soon realise the specialistskills and platforms required to deliver robust andcost-effective services require heavy investmentin whats currently a tight financial part of thecycle for them.

This is where the thorny issue of standards orthe lack of them also impacts the direct entryof MNOs into this market. Theres a big differencebetween simply selling a SIM card for an M2Mapplication and providing comprehensive supportfor a truly end-to-end M2M/IoT solution over aproduct and service lifecycle that is going to bemeasured in years. Both the MNOs and theircustomers need an independent third party withthe skills, tools, platforms and equipmentavailable that benefits both ends of the valuechain and makes deployment a breeze. We like tothink that by being that company, we offer freedomof choice for our partners, not just over the networkbut across the entire value chain thats needed todevelop and deploy innovative applications.

Driving that, weve got close relationships withalmost 20 large domestic and internationaloperators, several of whom are using our Porthosservice management platform to offer white labelservices directly to their customers. Complementingthose relationships, we also run four highlyscalable Network Operations Centres (NOCs) forour private network and cloud services with ournetwork partner Interoute, providing the highlevels of resilience, security and redundancy thatwe in turn need to offer to our own clients. Infact, together with Interoute and their innovativenew Virtual Data Centre product, we have thecapability to carbon copy our Porthos Cloudinto what could soon be up to a dozeninternational locations.

M2M Now: Talking to you I get the impressionthat you, and Wyless, seem to revel in the sheerdiversity of applications and business modelsnow evolving out there amongst your customerbase. Which user stories in particular do youfind the most compelling either in originality orin impact?

DM: Thats a difficult question as Id like to thinkthat all our customers are unique and eachdeserves their own share of voice. At a pinch, andas a fairly representative selection of the breadthof customers that we support, Id probably startwith one application area that has potentiallyhuge personal implications for all of us or atleast those of us who are law-abiding.

We are working on providing a full package of

connectivity hardware and services to a reallyinnovative British company called Facewatch.Over the last few years, it has built a thrivingbusiness, thoroughly endorsed by the Britishpolice, that allows pub and shop owners tocapture CCTV images of thieves and pickpocketswho have hit their premises and customers, andsecurely share these and supporting witnessstatements with others in their retail communitiesand with the police. Its a very nice example ofhow our M2M platform can exploit multipledifferent technologies: CCTV, smartphones,mobile apps, social networking, cloud computing,and facial recognition all for the public good.

Following the success of the system in the UK,Facewatch is receiving huge interest from manyother countries and we look forward to using ourinternational presence to help them expandgeographically. Another Wyless customer,BiaSport, is also focused on personal safety andhealth. It has developed a smart watch/GPS/wearable combo aimed specifically at women.Combining a number of functions, it not onlyallows its users to track and monitor theiractivities while swimming, running and cyclingand share their performance through socialmedia, but also has an alert button thatautomatically sends an SMS and location map toa preset list of contacts if something untowardhappens while the user is out exercising.

Finally, theres the Philips Lighting example that Imentioned earlier. Its difficult for us to imagine,today, how life-changing the appearance ofelectric lighting in public spaces was around 130years ago. While lighting technologies haveobviously advanced considerably since then,theres huge potential from M2M, IoT andSmartCity perspectives to start to control andmanage that lighting in intelligent and dynamicways to ensure energy isnt wasted, repairs arecompleted quickly and costeffectively, and theurban living environment remains secure and safe.

M2M Now: And any final thoughts orobservations on possible roadblocks in the pathtowards the M2M future?

DM: If theres one thing that does concern me(and others I know in the industry), then its whatcan only be called an unjustified arroganceamongst some members of the telecoms sector.After a century or so of total market dominance,some players are still finding it difficult to realisethat their continued existence now relies onpartnering closely with other specialist players inequal peer-to-peer ways.

Despite having developed and deployed somepretty amazing technologies, many telcos have ironically been very bad at innovating when itcomes to services and applications. The days ofthe old status quo are over and business modelsor technologies once seen as subversive must berecognised as the only viable path ahead forthem. We call that Over the Top Technology - andthat brings true freedom to the IoT vision.

14 September 2014

TALKING HEADS

Dan McDuffietalks to AlunLewis, for M2MNow magazine.

Each part ofthe worldtends to takeslightlydifferentapproachesto M2M/IoT

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SPONSORS PROFILE

Telit Wireless Solutions (a brand of Telit Communications PLC) is a global provider ofwireless M2M products and services. The company began by providing engineering

services to the telecoms industry. Since then it has evolved from a provider ofcellular modules to that of wireless modules and value-added services, including

cloud based management. It is now one of the leading suppliers of connectivityinfrastructure, for M2M communications, as well a provider of satellite positioning

(GNSS) and automotive telematics module technology.

CredentialsTelit has over 700 staff in 35 sales offices andeight R&D centres worldwide. In 2013 it reportedrevenues of US$243.2 million. With some 5,000customers worldwide, the company is active in arange of industries including automotivetelematics, energy, healthcare, security, andconsumer electronics.

The company recognised the potential of theM2M market 12 years ago; since then it has grownorganically and through acquisitions, includingMotorolas M2M business (in 2011) and ILSTechnologies (in 2013). Today it claims to beamong the top three global module suppliersalong with Sierra Wireless and Gemalto. It alsoclaims to be the largest supplier to the industrialinternet which covers M2M applicationsdeployed in commercial and industrial systems,fleet equipment, and the automotive sector.

Telit is an active member in standards definitionsbodies for a number of segments and applicationareas involving M2M, including the EuropeanSmart Metering Industry Group (ESMIG), where itparticipates in a number of committees. It is alsoa member of the UNI-CIG Committee (ComitatoItaliano Gas) which is defining wireless standardsfor Italys large scale smart gas meter project.With ETSI, the European TelecommunicationsStandards Institute, Telit is involved with the M2Mtechnical committee.

As part of the Intel Intelligent Systems Alliance,Telit also has early access to roadmaps for Intelplatform releases, as well as the ability to testplatforms and offer design support.

Key DifferentiatorsTelit claims to be unique among module suppliersin supporting all relevant technologies for M2Mdeployments, including wireless (LTE, GSM/GPRS,UMTS/WEDGE/HSPA+ and CDMA/EV-DO) andshort-range (ZigBee, Wireless M-Bus and gatewaysfrom SigFox), with over 150 different modulesavailable. Its modules power utility deploymentsincluding smart energy and smart water metering.

Further, the company developed its own protocolstack, both with GSM/GPRS and short-rangenetwork protocols. It believes that the flexibility

afforded by total control over the stack (the mostcritical software component in the modulearchitecture) allows it to respond quickly toindividual needs, while customers can launchtheir products rapidly into target markets.

Telit also claims to offer longer life-cycle supportfor its modules. This means that customers dontneed to upgrade a module before the businessnecessitates it. Further, its ONE STOP.ONE SHOPis a go-to-market model that was developed toaccelerate the adoption and integration of M2Minto devices. Telit believes that this approachreduces development costs and time to marketfor customers M2M connected products,compared with traditional multi-vendor sourcing.It comes with Platform as a Service (PaaS)support and enablement tools to manage thedevice data, and with back-end integration withthe customers business systems.

The company also moved to augment its moduleOEM business with platform-centric enterprisesolutions. Its m2mAIR Cloud has allowed it tomove up one level into application enablement,delivering end-to-end solutions that go from thesensors through to the cloud and on to theenterprise environment.

This offering is based on a PaaS model, utilisingILS Technologys solutions coupled with Telitsown platform development efforts; it aims tomake value-added cloud services such asmanaged security key points of differentiation.Non-Telit equipment can also be supportedthrough a software agent deployed near themodule (eg. a gateway) thanks to m2mAIR Cloud.

Competitive PressuresAs a founding member of the International M2MCouncil, Telit is dedicated to the advocacy andeducation to drive adoption of M2M and of thenascent IoT.

Telit and its competitors are pursuing a similarstrategy of wrapping cloud management andapplication service capabilities to augment theirmodule/hardware businesses, in readiness for thearrival of real IoT implementations. The companyhas stated it is not ruling out additionalacquisitions in vertical markets.

Telit Wireless SolutionsCOMPANY INSIGHT:

IN ASSOCIATION WITH TELIT

28 September 2014

Registered address:

Telit Wireless Solutions7th Floor, 90 High Holborn

London WC1V 6XXUnited Kingdom

At Telenor Connexion we believe in a smarter and more sustainable world through the use of connected services. Together with our cus-tomers and partners we are creating a smarter society every day. We are talking about smart homes, smart cars, smart energy, smart healthcare and more.

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Connect with us!

Give us a call +46 8 410 338 00 or visit www.telenorconnexion.com

Smarter together

Make the world smarter and your business better

30 September 2014

EXPERT OPINION

The utilityindustry is not

traditionallyknown for being

fast moving. Infact, much of the

utilityinfrastructure

around theglobe hasnt

changedsignificantly fora hundred years

or more

The new workforceAs the generation that has never known a worldwithout the internet and cell phones enters theworkforce, it is only natural to expect businessdynamics to change. And change they will. Notonly because these new workers have a totallydifferent perspective on the unachievable, ie. theydo not think much is outside the realm ofpossibility; but also because they are arriving attheir desks just as the information technology(IT) and cellular industries converge once again.This congregation spawns two new spaces thatare so revolutionary that every top tiertechnology company is rushing to christen themwith their own names; and every analyst trying towrap their minds around the perplexingly vastreach of their impact the Internet of Thingsand Big Data.

Although rapidly changing, corporate decision-making processes are still, for the most part,structured around hierarchical data collectionsystems, from the lowest levels of thesupply/distribution chain, progressively movingup into departments. Eventually these processesmake their way into boardrooms as performancecharts, graphs, and red-flags, feeding traditionalgo/no-go project reviews, product launchevaluations, customer satisfaction issues,and others.

IT is the engine ofchange for businessA remarkable engine of change since the 1960s,IT has evolved from standalone mainframes tonetworks of PCs and other types of computingdevices; and at every step of this evolution,caused drops in the lag between the time data iscollected at the edge and its arrival in theboardroom. But even with this trail blazingevolution, bar a few exceptions, processes haveremained confined to data collected frombusiness information assets inside thecorporate campus.

Then, in the mid 80s innovators like FederalExpress started revolutionising corporateoperations with truly global deployment ofbusiness processes reaching and interacting withassets outside the gates. When that happened,

managers became capable of actually gleaningfundamental elements of their businessesassociated to operations outside the gates, suchas position and condition of raw materials, workin progress, and finished goods in transit to andfrom suppliers, customers and logistics partners;rather than simply estimating them.

A new wave of productivity2G cellular technology begets M2M and a newwave of productivity gains. About a decade later,with the arrival of the second generation cellulartelephony, mobile phone manufacturers startedspinning up departments to take on thedevelopment of the data side of cellulartechnology. Until then, this was non-existentbecause of the total focus on voicecommunications. With that effort, high-technology witnessed the arrival of the cellularcommunication module, a component that couldbe embedded into the electronics of machines,cars, truck, alarm systems and others, to carryout not only voice communications, but were alsointerfaced with that remote assets data systemsand relay information (such as geo-position,temperature, and other telemetry) andconversely receive data from the central office tounlock a door, disable a faulty sensor, and so on.

Economic powerThis marked the birth of Machine-to-Machinecommunication (M2M), an event of great impactand which continued extending the reach ofbusiness processes.

The economic power of the internet redefiningbusiness In the 90s, as the internet grew, analystsquickly moved to establish its impact on thebroader economy; particularly considering thattraditional commerce bricks-and-mortar retailprices typically include a 50% burden fordistribution margin stacking, a large valuecomponent that the internet could replace inalmost its entirety.

With global goods retail, valued in the trillions ofdollars, the potential represented by the internetwas an economy in (and of) itself. The drive toretrieve the 50% became the initial and pivotalpush to expand the internets role in corporateprocesses at a very fast pace. Indeed, it is this

The Internet of Things is changing the dynamics of how corporate managementworks. One example of this, writes Oozi Cats, CEO at Telit Communications PLC, is

allowing the older style, traditional graphs and charts - based on months-old data - tobe replaced by dynamically assembled dashboards of business context, synthesised in

real time with interactive, big data analysis systems utilising immersive telepresence,aided by the smarter, context-aware sensor networks.

The Glass Boardroom:A brave new world

IoT is reinventing the way we manage and do business

31September 2014

that started the change of the way we work, and the way weare measured for performance and professional development.

With their evolution, these processes hungered for access toassets even further outside the campus, drivingadvancements in the M2M industry, quickly pushing it tointersect the emerging cloud space. Cloud technology opensup the opportunity for machines, sensors, and other devicesto upload and store vast amounts of raw data. This becomesthe analysis base upon which new models can be developedfor assessing performance, profitability, competitiveness, andother business metrics. All in nearly real-time.

The Glass BoardroomJust as pilots in a glass-cockpit jet plane can punch up high-level information from hundreds of sensors and systems intomanageable displays, so will new managers in the modernboardroom the Glass Boardroom. In this environment,managers can leverage big data analytics to gleanperformance metrics of campaigns, product changes andlaunches, right as they are being rolled out. Whats more,managers can interact with assets all the way to the veryedge of the supply/operation chain and view amalgamatedreal-time results and data analytics-based predictions andtrends, including competitive performance.

Immersive telepresenceAlong with placing cloud-powered, big data analytics atmanagers fingertips, another way M2M is creating the GlassBoardroom - and fundamentally changing the way we work -is by facilitating development of the emerging space ofImmersive Telepresence.

With the generational evolution of video teleconferencing,these new system concepts allow managers, sitting half aworld apart from one another and from the key businessassets they manage. It brings ways to view and interact withpeers and systems seamlessly, and substantially moreeffectively than current generation collaboration systems.

Challenges and opportunities for utilitiesThe utility industry is not traditionally known for being fastmoving. In fact, much of the utility infrastructure around theglobe hasnt changed significantly for a hundred years ormore. This simple fact; combined with global populationgrowth, advances in building systems like air conditioning, agrowing trend toward electric vehicles and more, hascreated a major burden on utility companies to address bothconservation and load balancing with a fresh approach. Asutilities roll out smart meters and remote system monitoring,they can begin to address these challenges in new andsustainable ways. The glass boardroom not only enablesthem to better manage billing and save money onoperations, it also allows them to access real-time load dataand provide user incentives down to the individualhousehold in order to avoid rolling brown outs, or worse,blackouts ultimately providing better service to each oftheir customers.

Telit and the Glass BoardroomOn the 12-year journey leading to this reinvention of theboardroom, Telit has been part of the charge that enabledthe original M2M movement and now the Internet of Things.We welcome the worlds new thinkers and encourage thecontinued and relentless challenge of boundaries andlimitations. Our products and services are about simplifyingthe connection of things to the Internet of Things as wecontinue adding value to the business process revolution,making our jobs more about thinking than about conforming.

Oozi Cats, CEO, TelitCommunications PLC

IN ASSOCIATION WITH TELIT

The CEO Guide to European UtilityWeek, Amsterdam

Utilities smart grids needsmarter billing systemsWolfgang Kroh, Orga Systems CEO, on the key role of centralised billing

P R O F I T F R O M A W O R L D O F C O N N E C T E D D E V I C E S

www.m2mnow.biz

LATEST NEWS& VIDEOS AT

V O L U M E 4 I S S U E 4

S E P T E M B E R 2 0 1 4

34 September 2014

INTERVIEW

Smart grids require smarter,more sophisticated billing

systems. Many power utilitycompanies struggle with anantiquated metering estate

that makes it hard tointroduce new kinds of

dynamic pricing and real-time charging. To find outmore about these issues,

and how a centralisedbilling system can help to

address them, PrincipalAnalyst at Machina

Research, Jeremy Greenspoke to Wolfgang Kroh(pictured), CEO of Orga

Systems, a softwarevendor bringing its

expertise in telecomsconvergent billing to

the utility domain.

Utilities musttransform their

business from technology-driven

to customer-centric

35September 2014

Jeremy Green: What are the main driversfor utility companies to move towardsprepayment?

Wolfgang Kroh: The utility industry is on theverge of a technological change with newtechnologies, new domains and new businessmodels introduced around smart metering andsmart grid roll-outs. In addition regulatory,environmental and commercial factors havecreated a significant shift in focus in a oncemonopolistic utilities industry.

Utility companies need to transform theircurrent technology-driven organisation into acustomer-centric business that is able to meetconsumers expectations. They need to findnew and intelligent ways of managing theirenergy supply and monetise their assets.Finding the right business cases is key to utilitycompanies and smart metering and prepaidbilling as well as new customer interactioncapabilities are essential.

Offering new services such as prepaid, costcontrol and budgeting to their customers andbringing a more real-time customer experienceinto play are opportunities to unlock newstreams of revenue for utilities. With the roll-outof smart meters, prepayment should become aningredient of the back-end system for any utility.

What are the main challenges inimplementing prepayment in a utility setting?

WK: Upgrading or replacing existing customerinformation systems are long-term investmentsand business-critical projects incorporatingtechnological and financial risks. Industriessuch as telecommunication have provensuccessfully that a best of breed strategy andstepwise approach will limit the risks of sucha transformation.

Implementing an adjunct smart rating andflexible pricing engine, closely integrated withcustomer communication channels, helps toboost the business agility without renewing thewhole billing and CIS landscape. There is noneed to decide on hardware technology todaythat will sit on the customer side for decades.Managing the rating and pricing centrallymeans keeping one system up to date insteadof thousands or millions of meters installed on-site and being delivered by various vendors.

One of the major challenges utilities are facingwhen introducing prepayment is a lack ofinfrastructure for vending and distribution ofelectricity. Sometimes service bureaux andoffices are available, but they barely fulfill theexpectations of customers for opening hours orcapabilities for convenient balance reloads.

The introduction of smart metering and smartgrid technology is one of the most disruptive

changes to the utility industry.Wolfgang Kroh, Orga Systems

IN ASSOCIATION WITH ORGA SYSTEMS

36 September 2014

INTERVIEW

To ensure a positive customer experience, thereload of the account has to be as simple aspossible. Full support of vending via severalchannels such as online portals, smartphoneapps as well as streetseller and kiosk salesmodels, is a must for closing the loop ofbilling, engagement and the ability to interactwith customers successfully.

How does the introduction of a centralisedprepayment billing system benefit the utilityin terms of cost reduction?

WK: The utility industry is traditionally ahardware-driven business characterised bylong investment cycles for generation sitesand network infrastructure. Well-proventechnology decisions have to limit the risk thatcomes with huge investments in these areas.Futureproof architectures and systems are animperative to this.

In a centralised system design for smartmetering using a thin meter infrastructure, thebusiness model is no longer a question ofhardware and meters. Launching a prepaidenergy offering is simply a new type ofpayment model the customer can select. Noneed to send out workforce to change meters,no additional hardware investment justassigning a new tariff in the billing and thecustomer migration is done. It becomes aquestion of minutes to introduce new serviceofferings in a centralised billing infrastructurethat is designed around an IT-based pricingand billing. A new level of flexibility andefficiency can be achieved when keepingtariffs, configurations and pricing centralisedand close to the IT back office.

Are there other benefits for the utilitycompany, for example in terms ofrelationships with customers and / orcompetitive advantage vs. peers?

WK: Customers expect changes to the offeredproducts and services to be usable instantlyand maybe with the option to go back after aperiod of trial. We were told by one of ourclients, Meralco, the largest energy supplier inthe Philippines, that customers want tomanage things similarly across different areasof their digital life. Being able to offer this kindof customer orientation fuels acceptance ofnew offers and cross-promotions of add-onservices!

Select the customer, change his paymentsettings to prepaid save and close - and aformer postpaid customer becomes prepaidwithout touching the field. Next to thecustomer experience side of flexible tariffs,this opens up new options for utilities tointroduce an enhanced revenue collection andto reduce bad debt.

With a centralised billing system all tariffsavailable for postpaid customers can becontinued in a prepaid service. This is anadditional and essential element in changingthe market perception of prepaid energy.

Prepaid becomes a true payment option, withbudget control for both customer and utilitycompany instead of a penalty for bad debtcustomers. All this is based on a lean thinmeter infrastructure that limits investment andimproves the return on invest.

Providing tangible, visible, and directbenefits to consumers is key.Wolfgang Kroh, Orga Systems

37September 2014

What are the benefits for the customer?

WK: Closing the loop to customers deliversthe ground for budget control, more dynamictariffs, and new services, bundles andpromotions. Showing customers actual andtimely data is a must to get connected. Tocreate positive energy experienceconsumption data and cost transparency mustbe linked to the customer behaviour. Beinginstantly informed via mobile devices, a webportal or a home display is what attractspeoples attention.

Customers need relevant and understandableinformation instantly delivered that gives themthe opportunity to react. In order to targetcustomers, instant information enhanced byrecommendations and predictions are essential.

It is not only about informing, providinginformation or notifications. A two-waycommunication with customers is giving themthe possibility to interact. It is about thepossibility of opting in, choosing a tariff orrefilling a prepaid account anywhere and atany time.

Can you tell us about the relationshipbetween smart grid technology andprepayment, and about the wider social andenvironmental benefits that these bring?

WK: The introduction of smart metering andsmart grid technology is one of the mostdisruptive changes to the utility industry.Utilities need to think beyond just providingenergy to their customers. New technologies

and infrastructures create opportunities tooffer new products that change the waycustomers use services and interact with theirutility companies. Providing tangible, visible,and direct benefits to consumers is key toexploiting new areas of business andoperational efficiencies that are dependentupon customer intimacy.

All clients should have access to their usageinformation and benefit from the flexibility aprepayment model can provide. For examplein developing countries, customers whocannot afford to pay a fixed monthly fee forenergy can now have an option to purchaseand use energy as no instalments have to bepaid. And even if serving your clients withprepayment is restricted by law, like inGermany, utility providers are allowed to installa prepayment meter if a customer is notpaying his bills and the meter has beenremoved more than once.

Smart metering promises to radicallytransform how utilities serve their customers.With smart meters available that can operatein both credit and prepayment modes, there isno more need for dedicated prepaymentmeters that are costly for utilities to run.Switching between payment modes can bedone easily from the utility back office.

In the end it is all about talking the customerslanguage and the question is how utilitycompanies can transform their currenttechnology-driven organisation into acustomer-centric business that is able to meetcustomers expectations.

Showing customersactual and timely data is a

must to get connected.Wolfgang Kroh,

Orga Systems

IN ASSOCIATION WITH ORGA SYSTEMS

38 September 2014

EVENT PREVIEW

European Utility Week (November 4-6, 2014 in Amsterdam) is pioneeringa new type of show. Unlike previous years, much of the utility-led content

is going to be available free of charge on the exhibition floor.

What is there to learn aboututilities and the development

of the Smart Home?

Across both the strategic programme (in theconference area) and the case study programme(on the exhibition floor), the development of theSmart Home and the effect this has on the utilityindustry will be thoroughly explored.

Presentation highlights include: Smart Home and Connected Home Products: The Business View in Germany Dr Michael Westermeier, technical product manager, Smart Homes, RWE Efficiency GmbH

Active Citizen, Customer Engagement from the System Operator Viewpoint Susana Baares Hernandez, head of DSM department, Red Elctrica de Espaa; Marta Huerta Arribas, DSM department, Red Elctrica de Espaa

Working with Utilities to Develop New Consumer Engagement Services Andy Baynes, director of business development, Nest

Disintermediation Risk is Emerging Who Will Own the Future Customer Relationship? John McKiernan, head of external collaboration, ESB

Smart Consumer, Smart Customer, Smart Citizen Project: Empowering Smart Customers to Participate in Active Demand and Energy System Efficiency Peter Verboven, business development, EnergyVille

Integrating the Smart Meter in the Smart Home Yves Dherbecourt, senior project manager, EDF

What More can Utilities do to Enhance their Role in Development of the Smart Home? Dr Bartosz Wojszczyk, chief innovation officer, head of strategy and innovation office, Meralco;

Colin Calder, CEO, PassivSystems; Anne-Soizic Ranchre, market strategy director, EnergyPool; Holger Knopke, platform Qivicon, Deutsche Telekom; Louise Hahn, vice president, customers & markets, B2C, DONG Energy; Dr Peter C. Honebein, adjunct Professor, Indiana University

Besides Smart Homes & Consumer Engagement,European Utility Week covers the Grid &Renewables Integration, Storage, Smart MeteringICT & Grid Security, Smart Cities and Smart Waterto give you a complete end-to-end view. Witharound 300 speakers speaking across 10 differentcontent tracks, there is much more for you to see& learn. Check the website for the full speaker listof both programmes.

Additionally, the exhibition floor of EuropeanUtility Week the largest of its kind in Europe offers unparalleled opportunities to find out moreabout the technology and innovation shaping thepresent and future of smart energy from 350+leading solution providers. Products and serviceson display include: IT/ICT utility services, smarthome & end user engagement, smart meteringsolutions, T&D operations infrastructure, storage,smart water and smart cities solutions.

Get your M2M Now discount! As a reader of M2M Now magazine, we would liketo welcome you to Amsterdam on 4-6 November,and are pleased to offer a 20% discount on yourstrategic conference pass, or a FREE visitor passto the exhibition including access to the casestudy programme. Use promotional codeMED1003 to claim either the free pass or the20% discount!

www.european-utility-week.com

PREPAID UTILITIES

39September 2014

The answer for most markets, perhapssurprisingly, is longer than one might think. Theworld of the utilities is in many ways far morecomplex than that of telecoms. In the lattersector, global standards and internationalcooperation have been a fact of life for around acentury and a half and, while there are obviouslyslight variations in the use of technology fromcountry to country, one size does tend to fitall cases.

With the utilities, its a much more complex,multi-faceted and messy picture which has hugeimplications for the use of pre-paid systems.Models of ownership and control of the differentelements of the supply chain vary hugely fromcountry to country as do standards in manysupporting areas. On top of this must be addedsocial and political sensitivities that are absent inother industry sectors.

Access to essential utilities can sometimes meanthe literal difference between life and deathwhere vulnerable people or extreme weatherconditions are concerned. What electric utilitycompany is going to want to be blamed andtheir brand and share price affected - when an

automated process leads to the disconnection andresulting hypothermic demise of a pensioner?

Leading the waySo far, for a number of historic and politicalreasons, only two countries and, rather oddly,one Australian island are aggressively pursuingpre-payment smart meter-based deployments forenergy utilities. The UK and Zimbabwe, withTasmania bringing up the rear, are leading thefield as Rick Hanks, managing director, resourcesand smart meter lead for EMEA and LatinAmerica at Accenture, explained:

These countries are the only ones with a historyof the comparatively widespread use of pre-payment systems, with the UK currently runningat around 15%. Its important here to understandthe contexts in which prepayment has usuallybeen applied in the past and those contextsusually involve pre-payment meters beingimposed on consumers as a result of them beingperceived to be bad credit risks.

He added: In the past, installing prepaymentmeters and providing the infrastructure ofpayment and retail systems and keys to support

The concept of prepaid service has long been recognised as amajor driver in the explosive growth of mobile communications.With the rising costs of utility services, and the deployment ofthose services increasing across developing countries, and theavailability of smart meters and smart grid infrastructure, AlunLewis asks how long it will be until pre-paid models start beingwidely applied in this sector.

Lighting up futureutility modelsPrepayment metering and the smart grid

The author is Alun Lewis,freelance telecoms writer

40 September 2014

PREPAID UTILITIES

them has been an expensive overhead for theutilities. Political, legal and regulatory dimensionstoo are important here to ensure that vulnerablepeople arent left completely without power andthat theres the possibility to impose a loadlimiter as against total disconnection.

That said, once the new generation of smartmeters is installed, we see prepayment ascreating and supporting new sectors of users such as students whose accounts could betopped up remotely by their parents or, a fewyears down the line, those now-retired parentshaving their accounts topped up by theirchildren, or their power use monitored to ensuretheyre still active and well.

Thick and thin technology optionsIf thats the human and social context, what arethe technology options for deploying prepayservices? Once again, just as in telecoms, theresa debate between whether you apply intelligenceto do things at the centre or do things at theedge.

In utility speak, this respectively means thedifference between thin meters essentially actingas a dumb client, and thick meters with their ownprocessing capabilities and intelligence and animplicitly huge difference in the various systemsand infrastructure needed at the centre to monitor,manage, provision, bill and pay accounts.

While the EU has ESMIG (European Smart MeterIndustry Group) to coordinate activities, the UKsapproach of using thick meters stands out almostuniquely. As Rich Hampshire, principal consultantand smart meter and grid guru at CGI,developers of the Instant Energy platformcurrently used by seven energy suppliers in theUK, observed:

Lots of European countries are now looking atcentralised control using thin meter concepts.The UK has however taken the thick meter routebecause of how the concept of legal duty ofcare to possibly vulnerable customers by theutilities has evolved in the country. One of theconcerns around the thin meter approach is thatthe utility could erroneously disconnect thecustomer without any warning and issues likethese are likely to be flagged up by consumer

groups in other countries as smart grids and thinsmart meters are rolled out.

One of the advantages of moving to a smartmeter infrastructure is that, as long as you havethe back and front office systems in place, then amuch wider range of prepayment options plusadditional services become possible. Criticalwithin that framework is having sufficientlysecure and robust protocols to handle thetransfer of data and command signal. In the UK,this is represented by SMETS now up to version2 with longer crypto keys and better integration.

Neill Young, business development andmarketing director at international smart grid andmetering specialists, Trilliant, offered that: Itll bepossible for prepay users to top up their centralaccounts over the internet, through call centresand IVR platforms and be able to check theirbalance and usage through smartphones as well.Each country, even across Europe, has widelydiffering sets of responsibilities with some, suchas EDF in France, having a complete monopoly.While in the UK, each of the many energyretailers has responsibility for their meters.

The bigger pictureIrrespective of whatever model is adopted, oncethe smart grid/smart meter infrastructure is inplace, basic prepayment principles can be readilyexpanded. Oliver Neuberger at smart meteringinfrastructure integrator, Glue Reply explained:The homogenisation of household electricitymeters offered by smart metering means that allmeters will be capable of supporting a prepayarrangement.

This will allow energy retailers to focus onproviding a great user experience, enabling usersto pay for their energy in ways that suit them,making intelligent use of online and mobile self-service tools to allow this to be done at a minimalcost to the retailer, and without the historical costsassociated with managing a prepay relationship.

There are secondary benefits too throughbeing able to make short term pricing offers,retailers will be better able to influence thedemand profile of consumers to reduce thelikelihood of an energy crisis when demandsignificantly outstrips supply.

M2M Now Jargon Buster:

IVR: Interactive VoiceResponse

SMETS: Smart MeteringEquipment TechnicalSpecications

Rick Hanks,managing director,resources and smartmeter lead forEMEA and LatinAmerica, Accenture

Rich Hampshire,principalconsultant, CGI

Theres a debate between whetheryou apply intelligence to do things atthe centre - or do things at the edge.

Dr Therese Cory: What comprises a smart utility?Is this the same as digitising the energy market?

Baard Eilertsen: The question here is, how do weinvest smartly in infrastructure in order to avoidmaking the massive investments needed toupgrade obsolete infrastructure, which wouldamount to billions of Euros?

The use of new technology by the utilities couldminimise that investment in the legacyinfrastructure, by creating a digital layer abovethat. This would collect critical information andcreate decision points, allowing it to see how theutility behaves and how it can improve its

business. The larger utilities in both Europe andthe US have got a grip on this and haveembraced this concept to afford greaterefficiency and transparency.

TC: What is the role of M2M in the smart utility?M2M will play a smaller part in IoTdevelopments compared with conventionalM2M deployment, but will it be an essentialenabler?

BE: For the first time, we can see M2M as acritical component in the business, enabling thevertical integration of energy production, grid,retail and microgeneration. This is all about

Maingate Solutions was founded in 1998 as an M2M serviceprovider (a mobile virtual network operator) offering machine-to-machine communication services to enterprises and utilitiesin the Nordic region, while also serving industrial, domesticsecurity and point of sale verticals. In 2008 it began to focus onhow to handle the huge quantities of data produced. Maingatenow supplies an information management platform, targeted atutilities. And it feels it understands the challenges involved inthe digitisation of the industry. Here, Dr Therese Cory ofBeecham Research talks to Maingates CEO, Baard Eilertsenabout the future of smart utilities in the internet of things (IoT).

What willmake autilitysmart?

INTERVIEW

41September 2014

Dr Therese Cory,BeechamResearch

Baard Eilertsen,CEO, Maingate

decentralised equipment and infrastructures.M2M is important in how you collect, control andstore data, and convert it to information to actupon.

TC: What part does cellular connectivity play inthe smart utility?

BE: How you connect can be done in severalways, including power line communications,cellular, and WiFi. Cellular is going to be one ofthe components but not the only component that we will use. As of 2014, we know thelimitations of all these technologies, and willutilise the best available technologies for thepurpose, for example for the geographic area.

TC: How important are traditional SCADAsystems versus new IT technology?

BE: I would not say SCADA versus IT. SCADA isoriented towards the engineering of operations; itis critical for maintaining a good grid status. Thenew uses of IT will complement existing SCADAoperations. SCADA has a centralised orientationand is the primary mechanism for control,whereas IT will add a decentralised component,allowing more data to be collected from moredata points in the operations and integrated.

TC: How should the industry create the rightnew partnerships in the utility ecosystem,especially given the entry of big new playerssuch as Cisco, Microsoft, Google, and SchneiderElectric as well as software providers andintegrators. And how important are standardsand openness?

BE: I believe that there will be room in the newecosystem for all of us players including Cisco,Google and Microsoft but in different parts of it.For example, I do not see Google being involvedin grid solutions, but being more consumer-oriented.

The digitisation of utilities will bring Google,Microsoft and Apple into the consumer part ofthe chain, but they will feed off the data from thegrid. Other players are coming into the new

ecosystem including Schneider Electric, GE andthe utilities themselves.

Maingate is working with the larger partners,including with Schneider in Scandinavia. Here it isimportant to understand how to manage thisdata in order to know how to improve grid andsubstation efficiency; also in partnership withSchneider, Maingate is working with the utilityVattenfall to understand the flow of the grid inreal time, complementing their skills.

There is a growing need for the participati