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Managing the machines: How operators can get ahead in M2M

managing-the-machines-how-operators-can-get-ahead-in-m2

The deployment of Machine to Machine (M2M) initiatives is generating new revenue opportunities for operators and communication service providers (CSPs). Pravin Mirchandani, CMO, OneAccess Networks, explains how innovative traffic management services, delivered via customer premises-based equipment, or CPE, can help them capitalize on these opportunities.

Vodafone’s third annual M2M Barometer survey has confirmed that businesses are embracing M2M technologies faster than ever before. Over a quarter (27 per cent) of all companies worldwide are now using connected technology to develop and grow their businesses. In particular, the retail sector, together with the healthcare, utilities and automotive industries are all moving to maximize M2M’s potential. The returns are substantial: 59 percent of early adopters reported a significant ROI on their M2M investment.

Despite the market buzz, many operators and CSPs are yet to zero in on the most profitable and operationally efficient way to support this new wave of industrialized connectivity. Not least because the range of possible M2M use cases is vast. The diversity of devices being connected, their whereabouts, the conditions in which they operate and the amount of data they produce all impact on the CSP’s choice of supporting network equipment. One key commonality, however, is that all deployments require a connectivity infrastructure capable of aggregating, securing and backhauling M2M data in a cost-effective, fast and reliable manner.

As the number of connected devices skyrockets, the ability to offer a range of traffic management services will be a clincher for operators and CSPs looking to gain a foothold in this market and differentiate their offerings. The good news is that many of these can now be delivered via the CPE, without the need for additional devices. Establishing always-on connectivity is of course vital, but the ability to provide a robust business continuity failover to LTE could also prove attractive to customers for whom any amount of network downtime is harmful, no matter how small. Network monitoring and dynamic traffic routing software managed via the CPE can also be used to support traffic throughput at peak load times.

Before the M2M market can reach true maturity, however, fears relating to data protection and security must be assuaged. Given the limited processing power of M2M’s connecting sensors – which are incapable of performing heavy duty computational functions such as encryption – the opportunity here is in the hands of CSPs and, again, the CPE can help.

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SDN/NFV – Is it the breakthrough CSPs need to help level the OTT playing field?

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I think that it is fair to say that the business communications services market is going through one of its most challenging periods at the moment as CSPs struggle to come to terms with the demand for faster, more reliable and feature-rich services from their customers, whilst also dealing with increased competition and the inevitable pressure this puts on prices. Although this is a typical and predictable scenario in what is a rapidly maturing tech-based market, it means that service providers cannot afford to assume that their customers will continue to renew their contracts out of a sense of loyalty, no matter what.

With increased choices for core communications requirements such as telephony and business application services readily available from specialist 3rd party providers in the Cloud, the CSPs’ pipe is now in danger of becoming regarded as just another basic utility along with the mains power and water services any organization needs to function. The challenge for CSPs is to find ways to tap into the new revenue potential, and compensate for ARPU decreases, by offering innovative new services themselves and fighting back against the OTT players who are increasingly eating more of their lunch. But it is not easy to see how this can be achieved without a radical change to their existing core infrastructure and CPE access technologies.

Given this challenging picture, the arrival of SDN/NFV technology on the scene could be the timely and welcome development CSPs have been looking for. With the potential to level the playing field and enabling the rapid rollout of new services virtually on demand, service providers could realistically begin to compete on price, features and functionality with pure-play hosted service operators.

SDN, and NFV functionality in particular provides the prospect of enabling service providers to add new features or switch existing services on and off in alignment with customers’ changing needs without having to install new network edge devices or change the CPE. When combined with the ability to remotely manage and provision unlimited numbers of individual routers from a central office location it means the proposition could literally be a game-changer for service providers.

SDN/NFV however, represents both opportunity and challenge for CSPs. Its promise of agility, flexibility and reduced costs are highly attractive but implementing SDN/NFV across their current silo-based organization and changing well-established business practices will be a non-trivial and lengthy set of people-oriented tasks to navigate. CSPs are also looking to vendors to progress beyond architectural and vision statements and show them some real use-cases for this new technology.

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Latest News

  • EKINOPS Hires New CTO

    EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators and businesses, announces the appointment of Vincent Munière as its new Chief Technology Officer and Vice President of Research and Development (CTO and VP of R&D). He will strengthen the EKINOPS technology vision, accelerate software innovation and lead the Group’s engineering and support team.

     
  • EKINOPS Announces Partnership Agreement with Lanner

    EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading provider of open, future-proof and flexible solutions for the access network, today announces the completion of a partnership agreement covering North America and Mexico between EKINOPS and Lanner Electronics, the global leader in Whitebox Solutions™ for SD-WAN, uCPE, vCPE, and MEC platforms.

     
  • Robust profitability for EKINOPS in H1 2020: EBITDA margin over 14% despite a turbulent environment

    EKINOPS (Euronext Paris - FR0011466069 – EKI), a leading supplier of telecommunications solutions for telecom operators and businesses, has published its first half 2020 financial statements (for the period ended June 30, 2020) as approved by the Board of Directors on July 27, 2020. The statutory auditors have conducted a limited review of the first half financial statements and will shortly issue the corresponding report.

     

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