M2M Platforms and Providers: Solutions Based on Specialized Software

June 2015

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Analytical Report (full version)

M2M Platforms and Providers: Solutions Based on Specialized Software
M2M Platforms and Providers: Solutions Based on Specialized Software
June 2015

M2M Platforms and Providers: Solutions Based on Specialized Software

June 2015

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One of the key trends in the Machine-to-Machine (M2M) segment is the gradual transition from customized M2M-solutions aimed at the certain industry to the universal apps - Internet of Things (IoT). J’son & Partners Consulting presents brief results of the research - M2M Platforms and Providers: Solutions Based on Specialized Software.


Key Questions of the Research:


Main global and Russian market tendencies and forecasts of current M2M and IoT platforms are considered in the research. A lot of attention was paid to the analysis of different solutions’ functionalities, operators’ cases and opportunities for implementation of value added services by operators based on M2M and IoT.


Practical Value of the Research:


There is a detailed analysis of the following issues in the research:


  • M2M-platforms presented by over 60 foreign and Russian vendors by key functions;
  • Foreign and Russian cases – the use of M2M-platforms on vertical markets;
  • Main tendencies and perspectives of M2M and IoT solutions development.


Target Audience


The research is aimed at cellular and fixed communication operators, M2M/IoT platforms’ developers, hardware manufacturers, apps developers, system integrators, venture and investment funds, start-ups and research agencies.


Resume of the Research


Global Market


The expected exponential growth of connected devices and complicated IoT solutions all over the world require more intellectual communicational platforms and higher software level. In accordance with Berg Insight estimation, in 2014 the total income of IoT platforms’ suppliers had reached €450 mln and the forecasted growth of this indicator is €2.4 bln in 2020.


M2M-platform market can be segmented in the following categories:

  • Platforms to manage SIM-cards;
  • Platforms to manage connections;
  • Platforms to manage devices;
  • Platforms for apps (Application enablement platforms, AEP).


At the same time, platforms by different vendors can have simultaneously several functions. For example, Aeris solution provides SIM-cards management, devices and connection and Axeda solution, additionally to this can also manage apps.



Each industry can use specialized platform.


Let us look at some examples:


  • Platforms for Smart Home – AT&T, Orange, Deutsche Telekom, Verizon. Equipment connected to home networks, which can be managed via apps on smartphones and tablets can be purchased on operators’ portals.
  • In the sphere of Connected Car can be named the following operator platforms - AT&T, Deutsche Telekom and Verizon. AT&T had launched a module platform for connected car manufacturers and solutions for developers - AT&T Drive Studio, among them in particular, Samsung (platform for car lease service).


Vodafone has mHealth platform. NTT DoCoMo had signed an agreement on integration of mobile platform for Renaissance fitness club all around the country. Verzion closed 2 platforms for provision of end-to-end solutions in the sphere of mHealth in 2014 – subscribers prefer to use only cloud service or only video transfer.


Key M2M market players gradually transit from customized M2M-solutions oriented on the certain industry to the universal apps for Internet of Things.



As regard to technological M2M platforms, two main strategies can be specified:

  • the development of in-house solutions (Vodafone, Telenor, Orange, T-Mobile etc);
  • the use of external solutions from the leading M2M platforms suppliers (AT&T, Telefonica, KPN, Rogers, O2 etc).

It is worth to mention separately the Vodafone solution – operator offers services in partnership with variety of M2M/IoT platforms including platforms for vertical solutions (for example, Airbiquity, CalAmp, Novero).


Deutsche Telekom Case Study


Deutsche Telekom is one of the most actively developing M2M/IoT ecosystem European operators. In September 2013, operator had launched QIVICON platform for Smart Home. The base of the solution is gateway Qivicon Home Base, which connects devices via specialized protocol HomeMatic (868 MHz); there is an option – support of ZigBee, Z-Wave and Wi-Fi technologies.


In March 2015 it was announced about the possibility to deploy QIVICON in Netherlands and UK, later it was expanded on Italian, Spanish and Scandinavian markets. Among partners are Samsung, Philips, Miele, Belkin, Huawei. In March 2015, only 4 from 36 partners had provided commercial services, the number of users was less than 10 thousand.


During the total platform’s lifecycle, the pricing model had been changing: in the beginning the user was have to purchase a “start” package for €299, but the number of offers was expanded afterwards and prices on start packages had been reduced, as the demand on the general readymade solution was low.


Russian Market


The active promotion of services based on specialized M2M-platforms had started on Russian market several years ago. For example, since the end of 2010 VimpelCom has been offering the Managed M2M Center solutions developed on the base of Jasper Wireless platform. The necessity in such solutions was due to prevent non-targeted use of SIM-Cards M2M by employees, in order to control traffic and expenses on the communication. Besides separate numbering capacity in DEF-code and SMS-center provide platform users such advantages as lack of spam. Correct level of consumed traffic, free intercity roaming all around the country and general pull of traffic (an opportunity to distribute traffic packages among SIM-cards) allow to optimize costs.


Based on its own specialized platform M2M-Monitoring, Megafon offers services for companies, which are specializing in different objects and transport security and monitoring. Another solution – Under Control-Resource – is oriented on the sector of housing utility services and management companies and homeowner associations, in order to monitor data from electricity, water and gas meters. Additionally in autumn 2012 Megafon executed agreement with Ericson for the use of cloud solution - Ericsson Device Connection Platform, which can be adjusted under the needs of different industries.


In the meantime, Russian operators didn’t experience fully all classes of platforms. In particular, the leader of Russian M2M market – MTS company – is only on the stage of study of developers offers (platforms to manage M2M-devices: M2M MDM). Let’s not forget that in 2011 operator has launched M2M-Manager portal, in partnership with Plus Odin Company. The portal allows to manage connected telematic devices. Share of MTS’ corporate clients, which use MDM service, is relatively low. This is a niche offer, which operator is offering on demand.


Examples of IoT-platforms for vertical markets are geoplatforms to manage transport or employees, vending equipment etc.


According to J'son & Partners Consulting, the perspectives of Russian M2M/IoT market are connected to the choice of solutions, which can integrate operators’ apps and apps of different M2M-devices’ vendors. Main part of these services will be provided as cloud services in the total IoT ecosystem. In the meantime, due to the wide variety of spheres, where M2M-solutions can be used, operators will gradually transit from the provision of services by themselves towards the provision of cloud platforms with the required functionality of industry partners.


The detailed analysis of business cases by used in the world M2M platforms is presented in the full version of the report.


Experts Opinion



What are the main tendencies in the sphere of technological platforms M2M/IoT functionality development?


Communication operators distinguish platforms in 2 parts:


  1. Platforms to manage SIM-cards and connections, which allow companies to manage large number of devices with lowest costs and risks.
  2. IoT-platforms for apps. For example, geo-platforms to manage transport or employees, platforms to manage vending devices.


In any case, all platforms are becoming a part of larger solutions, and are being used for high level management apps. Geolocation and remote objects’ management opportunities allow to develop new class business-solutions. Only 10 years ago it was difficult to imagine that is possible combine in one app such options as the fullness of refrigerator with mineral water or product’s logistic, transportation of trade representatives and online-orders on the factory. And the most important is that solutions of such class are becoming massive, it means their cost for business is lowering.


On what vertical markets M2M/IOT-solutions are the most popular? How the demand will change in the future?


In some way Russia repeats the global experience of M2M solutions development, but has its own characteristics. Today we speak about many projects in corporate segment, where there are 4 main categories: transport and logistics, safety, banks and payment systems, F&E Complex and Housing utilities. But in the rest of the world, one of the key drivers for M2M are services for individuals – from e-books till smart home systems. By our opinion the tendency of services development for private users will develop here also, as only the development of massive products will launch our market on the new level.


What kind of business models can be implemented by operators or other IoT market players on M2M/IoT platforms?


In fact, any. The main difference between IoT or M2M of the present business models is the transition from production and sale of hardware model to services. When the manufacturer of electronics start to fight for the client by quality of service and not only via the price of the device or a package. And the only thing that is left for every market player in this model – is to provide the best and high quality service to the customer.


How can technological M2M/IoT platforms be classified, presented on the global and Russian markets?


The practice shows that one of M2M/IoT market peculiarity is the lack of industrial standardized technology, as IoT market has not been structured yet. There are a lot of “self-written” solutions, which shows relatively positive results on the first stage of implementation, but not solve questions regarding the development of technologies and its scaling require industrial platforms. It is obvious that the requirements to such platforms can help to classify M2M/IoT platforms. For example:


  • How easy/cheap is to connect the device to the network? What interfaces can be used?
  • How good the scheme of device work on IoT platform is described? If there is a necessity in the specialized educated employees?
  • If the platform allows to integrate with industrial apps (ERP, CRM, PLM…), industrial cloud services?
  • The cost of “light” and “heavy” apps development on such platform?
  • The availability of sources on the platform to analyze connections in (big) data?


What best practices of M2M/IoT solutions on vertical markets can you point out?


Peculiarity of good IoT solutions is its attractiveness for both vertical and horizontal markets. No one is impressed anymore with taxi drivers’ strikes against implementation of IoT solutions into taxi services. In fact, when we speak about IoT solutions, we think about solution for provision of services in real time. For example, solutions to service remote/hard-to-get devices have already IoT apps in medicine, oil and gas, governmental sector (infrastructure management and households) etc. I think, all markets more or less will be “converted” by Internet of Things.


What kind of business models can be implemented by operators or other IoT market players on M2M/IoT platforms?


It is obvious that cellular communication operators will revenue only from the provision of this communication for data transfer from “things” to control units and back, but from the point of general IoT economy this will be an absolute minimum, approximately the same what car cable manufacturers receive. In order for operators to step on the next level, they have to know the sphere, where the services are being provided in real time. As there are a lot of such spheres, a partnership network should be established from the point of cellular communication operators. They will provide not only communication services, but services based on IoT platforms, such as apps development, writing of devices’ business logic, integration with industrial systems and clouds, analysis of Big Data.


How can technological M2M/IoT platforms be classified, presented on the global and Russian markets?


M2M market is actively developing. Vertical industrial solutions are presented on the global and Russian markets, they are aimed at the provision of services to the end customers in the specific industry, the most typical example is solutions to monitor transport vehicles.


Some M2M platforms had been developed only for a certain customers, for one large scale task, for example from the telemetric or energy industry. Such solutions almost invisible on the massive market, as they are only the internal product and are not used for provision of services for other clients.


There are platforms of higher level for communication operators or large system integrators. Often these are heavy integration solutions aimed at specialized operators’ and clients’ needs, for example – the management of SIM cards and statistical data processing. Although operators are active M2M market players nowadays and are launching the market with commercial services more and more often.


What best practices of M2M/IoT solutions on vertical markets can you point out?


If to speak about Russia, I think best novelties are still coming for us. There is a high penetration of solutions for transport based on M2M platforms. The process of such large projects as ERA-Glonass and Automatic Collection of Payments from Cargo is happening now.


As for the global experience, I would like to pay attention for 2 segments: Insurance Telematics and Smart Telemetrics - Automatic Meter Reading. In both industries there are a large scale implementations and practical results, which prove the efficiency and importance of such solutions.


What kind of business models can be implemented by operators or other IoT market players on M2M/IoT platforms?


Obviously, it is better to look at the best world practices. I told about this before.


There are some new segments, which are not covered yet, such as telemedicine. More and more devices appear for remote monitoring of health.


Solutions and platforms for collection and analysis of data are needed. I assume that universal solutions, free from any particular connection to a certain industry or device will be in demand. Platforms, which can be adjust for management and data collection from varies devices will be in demand among customers, which want to minimize the market launch period with innovational service and don’t see the necessity to carry out expensive development of M2M platform.


One of such universal cloud solution is M2M platform SensorLogic by Gemalto Company.


Detailed Results of the Research are Presented in the Full Version of the Report: The Analysis of Technological Platforms M2M/IoT and Providers of Specialized Software





  1. EcosystemM2MandIoT


1.1.1.   Evolution from M2M to IoT

1.1.2.   Standardization ofM2M/IoT

1.1.3.   Main Elements of M2M/IoT Solutions

1.1.4.   M2M/IoT Platforms


1.2.1.   Chipsets, Modules and Terminals

1.2.2.   The Development of Devices and Integration

1.2.3.   AddedValueChainDevelopment


1.3.1.   GSM и WCDMA/HSPA

1.3.2.   LTE

1.3.3.   Other Wireless Networks and Hybrid Solutions


1.4.1.   Telematics

1.4.2.   Management of Car Park

1.4.3.   Intellectual Meters

1.4.4.   Remote Management and Monitoring

1.4.5.   Consumer Electronics

1.4.6.   Other Apps

1.5.Solutions Suppliers and System Integrators

1.5.1.   Devices’ Manufacturers

1.5.2.   System Integrators

1.5.3.   Apps Service Providers (ASP) for Vertical Markets

1.5.4.   OEM-Manufacturers

  1. SoftwareandIT-Services

2.1.Implemented Software Environments

2.2.IT-Systems Companies and Services

  1. PlatformsforDevicesManagement

3.1.Analysis of the Market – Platforms to Manage Devices

3.1.1.   Market Structure

3.1.2.   Main Tendencies

3.2.Companies’ Profiles and Strategies

3.2.1.   Sierra Wireless

3.2.2.   Gemalto M2M

3.2.3.   Telit (ILS Technology)

3.2.4.   Huawei

3.2.5.   Novatel Wireless

3.2.6.   Digi International (Etherios)

3.2.7.   ARM

3.2.8.   Bug Labs

3.2.9.   Electric Imp

3.2.10.                Eurotech

3.2.11.                Intel

3.2.12.                Mformation

3.2.13.                Redband

  1. Platforms for Management of SIM-Cards and Connections

4.1.M2M-Platforms by Connections Management

4.2.M2M-Platforms by SIM-Cards

4.3.Main Vendors and Communication Operators Proprietary Platforms

4.3.1.   Jasper

4.3.2.   Ericsson

4.3.3.   Amdocs

4.3.4.   Comarch

4.3.5.   nTels

4.3.6.   Telenity

4.3.7.   InterDigital

4.3.8.   China Mobile

4.3.9.   Deutsche Telekom

4.3.10.                NTT DoCoMo

4.3.11.                Orange

4.3.12.                SK Telecom

4.3.13.                Telefonica

4.3.14.                Verizon Communications

4.3.15.                Vodafone

4.4.Main Vendors – Solutions to Manage SIM-Cards

4.4.1.   Giesecke & Devrient

4.4.2.   Oberthur Technologies

4.4.3.   Safran Morpho

4.5.Providers of Managed M2M Services

4.5.1.   Aeris Communications

4.5.2.   KORE Telematics

4.5.3.   Numerex

4.5.4.   Stream Technologies

4.5.5.   Wireless Logic

4.5.6.   Wyless

  1. Platforms for Apps (Application enablement platforms, AEP)

5.1.Apps Use

5.2.Main Functions and Components

5.3.Deals, Partnerships and Ecosystem

5.4.Companies’ Profiles and Strategies

5.4.1.   2lemetry

5.4.2.   Arrayent

5.4.3.   Ayla Networks

5.4.4.   Blackberry

5.4.5.   Bosch SI

5.4.6.   Carriots

5.4.7.   Clayster

5.4.8.   Concirrus

5.4.9.   Cumulocity

5.4.10.                Device Insight

5.4.11.                EVRYTHNG

5.4.12.                Exosite

5.4.13.                General Electric

5.4.14.                Kombridge

5.4.15.                MachineShop

5.4.16.                M2M

5.4.17.                PLAT.ONE

5.4.18.                ProSyst

5.4.19.                RTC

5.4.20.                SeeControl

5.4.21.                Solair

5.4.22.                Wot.io

5.4.23.                Xively

  1. Russian Companies’ Solutions

6.1.1.   Peter-Service

6.1.2.   Svyazcom

6.1.3.   Nvision Group

6.1.4.   Others

  1. GlobalOperatorsCases




7.4.NTT DoCoMo

7.5.Deutsche Telekom

7.6.Telecom Italia

7.7.SK Telecom

7.8.Verizon Communications


  1. The Analysis of Use of M2M-Platforms by Russian Operators

8.1.1.   VimpelCom

8.1.2.   Megafon

8.1.3.   MTS

  1. Forecasts

9.1.M2M-Platforms Market – Management of Connections

9.2.Market of Platforms for Apps and Management of Devices



Annex. List of Companies Mentioned in the Report


This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.


One of the key trends in the Machine-to-Machine (M2M) segment is the gradual transition from customized M2M-solutions aimed at the certain industry to the universal apps - Internet of Things (IoT). J’son & Partners Consulting presents brief results of the research - M2M Platforms and Providers: Solutions Based on Specialized Software.