Alex Brisbourne

Machine-to-machine technology is gaining traction among businesses across all industries, and many view connecting machines to the Internet as a way to stay competitive, according to a recent survey conducted by Beecham Research Ltd.

Of the 267 responses, 82% of businesses consider instituting M2M as “imperative” and “very important” for their future, according to the survey. Businesses also view the technology as a way to create new service opportunities.

Beecham, which does research focused on the development of the M2M market, sent out the survey to companies that have been early adopters of the technology for remote device management. The survey was conducted between July and September and responses were received from companies based all over the world, covering all sectors of business.

The leading reason why companies implement M2M technology is to “stay competitive, indicating the importance placed on network enablement as a competitive advantage,” according to the survey.

In addition, 52% said their companies already support and monitor existing devices deployed in the field using M2M, according to the survey.

Finding value

Companies surveyed include product manufacturers, system integrators for product/system assemblies, service providers and end users. The survey indicates devices can be monitored in virtually every field, including building infrastructure, transportation, security, health care, retail and other services. The technology can detect problems with heating and cooling units in buildings, vehicle diagnostics, home-security systems and even when a vending machine is low on snacks.

Ed Bursk, chief marketing officer of KORE Telematics, said the survey results reflect that businesses are seeing the value M2M technology provides to its business operations and customers. KORE is part of a group of companies that sponsored the Beecham survey.

Companies see M2M as “very important to their future success,” Bursk said. “They see it as a competitive issue.”

Bursk said M2M is also becoming part of the discussion of a viable technology among businesses.

“We are hearing M2M being talked about more and more,” he said. “It is on the verge of becoming mainstream.”

The survey also shows that many companies are also shipping products that are network enabled, meaning they are connected and can be monitored through another machine. Only 15% of the respondents indicated they don’t ship any products that are network enabled. This is expected to decline to 5% next year and 1% in three years, according to the survey.

In comparison, 23% of companies that now said they ship all products with M2M capabilities will increase to 36% in three years.

“It is evident from this that product manufacturers are expecting to quickly increase the percentage of their products shipped that are network enabled,” according to the survey. “Although these indications do not provide a sufficient basis for forecasting, they do indicate an intention to drive-up network enablement at a rapid rate.”

Cellular is No. 1

Cellular by far is the network that is mostly used by these companies to connect their machines, but satellite, WiMAX, fixed Ethernet and DSL/cable are also widely used, according to the survey.

Companies are also shipping their products to international destinations, requiring the use of numerous network providers. Of the companies surveyed, 66% said they have multi-country deployments.

“This raises questions for mobile operators, who typically operate within one country and have roaming agreements elsewhere, to cater to this growing requirement,” according to the survey.

Alex Brisbourne, KORE president and COO, said operators need to address their roaming agreements and M2M network infrastructure needs to be uniform across the globe.

“These companies have a need to replicate M2M functionality in a number of markets,” he said.

Brisbourne said he is excited about the future growth of the M2M market. According to Beecham Research, the M2M market is a $50 billion business with projected growth of more than $250 billion by the end of 2012.

“Enterprises are saying that M2M is the next frontier we have to get serious about,” Brisbourne said.

KORE Telematics sponsored the survey along with Anywhere Technologies, Maingate, M2M Alliance, ORBCOMM, Sierra Wireless, Telefonica O2, Tridium, Wavecom and Wyless. It is the second year in a row Beecham has conducted such a survey.

“The survey is a way to see the world through the paying customer,” Brisbourne said. “It is an area we will continue to pursue. Our business is to make sure we remove roadblocks that hinder M2M adoption.”

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Tags: Emails-Wireless M2M Telemetry , Emails-Wireless Networks , infrastructure , KORE Telematics , m2m , operators , Retail , roaming , Telefonica , Wavecom , wimax

Section: Wireless M2M Telemetry

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