m2m now apr-jun 2011 edition

MERGERS & Acquisitions in Focus • REVIEW: Where is M2M on everyone’s lips?

EVENT DIARY: What’s On Globally in M2M • GOOD TIMES, Bad Times in M2M

PRODUCT, PEOPLE & MARKET NEWS: See Inside or go to www.m2mnow.biz

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ALSO INSIDE!ALSO INSIDE!

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

V O L U M E 1 I S S U E 2

APRIL-JUNE 2011

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WIRELESS PLATFORMSBeer, Golf, Good Food,Better Health... Need anymore reasons to use them?

WIRELESS PLATFORMSBeer, Golf, Good Food,Better Health... Need anymore reasons to use them?

SMART METERINGThe future is now!Orange gets smart

with utilities

SMART METERINGThe future is now!Orange gets smart

with utilities

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M2M Now: ISSN 2046-5882

M2M IN THE CLOUDETSI’s progress heralds

M2M integration withmainstream business

IPv6 ROCKS!We show how it will takeconnection to a new level

EXPERT OPINIONFlexibility is the key to

smart energy billing

MOBILE COMMERCEOnly 16% of retailers are ready

for consumers demandingm-commerce: SURVEY INSIDE!

M2M NOW’sCEO INTERVIEW

Telit buys Motorola’s M2M product line and boosts R&D

M2M IN THE CLOUDETSI’s progress heralds

M2M integration withmainstream business

IPv6 ROCKS!We show how it will takeconnection to a new level

EXPERT OPINIONFlexibility is the key to

smart energy billing

MOBILE COMMERCEOnly 16% of retailers are ready

for consumers demandingm-commerce: SURVEY INSIDE!

M2M NOW’sCEO INTERVIEW

Telit buys Motorola’s M2M product line and boosts R&D

As the next billion users come online, the complex web of technologies that make up the global network will face critical issues that must be addressed to keep everything spinning.Keeping up with the exponential need for bandwidth, the demands of users for a 100% reliable always-up network that is protected from disruption, and keeping their information secure is a big job. Success depends on innovation and cooperation within the industry. TIA 2011—Inside the Network is the start of fi nding solutions for the most important information communication technology issues we will face in the coming years. Join your peers and industry leaders at the most important conference you may ever attend.

Your Future Revolves Around The Network

The Future of the Network Revolves Around TIA 2011

INDUSTRY SUMMIT

LIVE EVENT

DIGITAL MARKETPLACE

MAY 17-20 2011

DALLAS, TEXAS

www.tia2011.org +1�� 703.907.7002

[email protected]

BILLING

20

23

SMART SERVICES

Cover Photo: Lyndon DouglasPhotography for Richard Elliott.www.lyndondouglas.com

16

18

CEO INTERVIEW

EVENT REVIEW

CONTENTS 3

COMMENT 4by the Editor, Jeremy Cowan.

MARKET NEWS 5A round-up of the Market by Numbers.

MERGERS & ACQUISITIONS 6 Ericsson buys Telenor Connexion’s M2M platform.

PRODUCT NEWS 7Modules, security, automotive, and monetised video.

PEOPLE NEWS 8 Including 3 new Editorial Board members for M2M Now.

SMART METERING 9Orange gets smart with water, and outlines plans for energy metering

in today’s and tomorrow’s homes.

SMART CITIES: 11Singapore implements Phase 1 of its Intelligent Energy System

M2M STANDARDISATION 12Bob Emmerson sees a critical change of direction coming for the M2M sector.

MARKET WATCH: SMART METERS 14Smart meters are facilitating an M2M revolution, says Mark Ritorto.

IPv6 ROCKS 15Axel Pawlik says IPv6 will take internet connections to a whole new level.

EXPERT OPINION: BILLING FOR SMART SERVICES 16Find out how dynamic billing for energy services will enable personalised service offers.

BILLING 18Georgina Elrington investigates the issues and opportunities facing smart energy billing.

CEO INTERVIEW 20Oozi Cats describes the impact on Telit and its clients of buying Motorola’s M2M products.

EVENT DIARY 22What’s On and Where to Go for M2M and connected devices events worldwide.

EVENT REVIEW 23M2M was on many people’s lips at Mobile World Congress. Turn to page 23 to see why.

USER GROUP REVIEW 26M2M Now was the only English-language media invited to Digi’s meeting in Nice.

We report on the candid discussions.

MOBILE COMMERCE 28Startling stats emerge from a new study of business and consumer m-commerce readiness.

GOOD TIMES, BAD TIMES 30A sideways look at recent happenings in the world of connected devices.

CONTENTS

M2M Now April - June 2011 3

All rights reserved. No part of this publication may be copied, stored, publishedor in any way reproduced without the prior written consent of the PublisherM2M Now is distributed free to selected named individuals worldwide who meetthe Publisher's terms of Circulation Control. If you would like to apply for a regularfree copy supplied at the Publisher's discretion visit www.m2mnow.biz If you donot qualify for a free subscription, paid subscriptions can be obtained. Subscriptionsfor 4 issues per year cost £48.00 worldwide (or US$79 / €59) including post andpacking. M2M Now magazine is published quarterly.

© WeKnow Media Ltd 2011

Send your News to the Editor:[email protected] • www.m2mnow.biz

CONTENTS

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COMMENT

M2M Now April - June 20114 COMMENT

EDITOR & PUBLISHERJeremy CowanTel: +44 (0) 1420 [email protected]

DIGITAL EDITORNathalie BisnarTel: +44 (0) 1732 [email protected]

BUSINESS DEVELOPMENT DIRECTORCherisse DraperTel: +44 (0) 1732 [email protected]

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PUBLISHED BYWeKnow Media Ltd.Suite 28, 30 Churchill Square, Kings Hill,West Malling, Kent ME19 4YU, UKTel: +44 (0) 1732 897646

DISTRIBUTIONUK Postings LtdTel: +44 (0) 8456 444137

M2M Now is distributed free to selected namedindividuals worldwide who meet the Publisher's terms ofCirculation Control. If you would like to apply for aregular free copy supplied at the Publisher's discretion visitwww.m2mnow.biz If you do not qualify for a freesubscription, paid subscriptions can be obtained.Subscriptions for 4 issues per year cost £48.00 worldwide(or US$79 / €59) including post and packing. M2M Nowmagazine is published quarterly.

All rights reserved. No part of this publication may becopied, stored, published or in any way reproducedwithout the prior written consent of the Publisher

© WeKnow Media Ltd 2011

First, a simple thank you from all of the team here to ourthousands of new readers worldwide, and to clients andpartners who have made the launch of M2M Now magazineand portal a success. The response has been overwhelmingand we will be working hard to meet your information andnetworking needs.

John Aalbers,CEO, Volubill

Stuart Cochran,CTO, EvolvingSystems

Ann Hatchell,BridgewaterSystems

Tony Jackson,Director, Telecoms,Convergys SmartRevenue Solutions

Marie-Paule Odini,HP CMS

Fergus O'Reilly,Chief SolutionExpert, SAPConsume to Cash

Jeremy Cowan

EDITORIAL ADVISORS

M2M just got evenmore interesting

Meanwhile, the market is digesting news of some fascinating corporate mergers andacquisitions (see our new M&A column on page 6). It’s fair to say that Ericsson’s purchase ofTelenor Connexion’s M2M platform has stirred things up. Yiru Zhong, an analyst at Frost &Sullivan, says: “Ericsson’s acquisition provides service providers – and not only telecomsplayers – with an alternative way to achieve faster time to market with regards to deploymentof M2M communication services. We see a potential for Ericsson to disrupt traditional M2Mplayers by opening up possibilities for new types of service providers.”

Jasper Wireless, who enable operators worldwide to offer turn-key M2M solutions forenterprises, sees it differently. Macario Namie, Senior Director of Marketing, says: “There isnobody that questions Ericsson’s ability to sell networking equipment in a managed serviceenvironment. However, we believe the reason why an operator seeks to partner with us ... isabout bringing a deep understanding of the Enterprise OEM that is seeking to build and scalea connected device business across many operators and countries. This comprehensiveknowledge ... is what sets Jasper apart. We have not seen that any telecommunicationsinfrastructure provider has this level of experience or expertise today,” he adds bluntly.

Either way, such high profile corporate acquisitions are promoting interest in M2M servicesamong new customers, previously unwilling to deploy M2M applications despite the potentialfor cost-savings and enhanced industrial and service controls. In this issue we report on agrowing range of business and consumer applications ranging from locating your nearestvehicle service stations or a lost dog (page 7), home or city-wide energy management (pages9-11), to food safety control in global restaurant franchises (page 26), and accessing localisedweather reports (page 30). Clearly, the best is yet to come.

Editor, M2M [email protected]@jcm2m


MARKET NEWS

12%The European machine-to-machine market is recovering wellfrom the economic crisis of 2008-2009. Growth rates willexceed 12% over the 2010-2015 period, according toresearch from International Data Corporation. IDC arguesthat the convergence of device networking, M2Mcommunication and the internet has brought us severalsteps closer to a "smart world," with an "internet of things"enabled by an intelligent infrastructure linking objects,processes, information and people.

"In 2010 we have seen a solid turnaround driven by pricereductions but also a tighter integration of M2M solutionsacross what is still a fragmented eco-system,” says IDCResearch Director, Nicholas McQuire. Although the markethas a way to go, improvements in standards are also helping(see pages 12-13).”

M2M 2011 Forecast Update gives a forecast update for2009-2015 for Western Europe across M2M connectivity,modules, and services, plus a forecast for RFIDs.

M2M by numbers

1 billionA report from the UMTS Forum predicts the global existenceof one billion consumer electronics (CE) devices connected tomobile broadband networks by 2016.

Two Worlds Connected: Consumer Electronics Meets MobileBroadband, authored by Strategy Analytics, argues thatwhile the market for connected devices is embryonic, CEdevice connectivity will outstrip overall wireless marketgrowth in five years. This trend is signalled by a wave of

device categories – from e-book readers to personal satellitenavigation devices – that already need access to cellular datanetworks.

”The collision between mobile broadband networks andconnected devices – from digital cameras to personal healthmonitors – will see as many as a billion additionalconnections by 2016,” comments UMTS Forum Chairman,Jean-Pierre Bienaimé. “The CE industry must connect orperish,” adds Bienaimé.

67 million Overall connections in Asia-Pacific countries will grow to 67million - a compound annual growth rate (CAGR) of 30% - ledby strong growth in China, South Korea and Japan. So saysan M2M Data Snapshot issued by Yankee Group recently,which goes on to say that Asian markets will significantlyclose the gap on other regions by 2015.

Enterprises seeking to cut costs will drive steady growth infleet management and ATM, vending and point-of-saleapplications. Applications that cut fuel costs, curtail menial

tasks and improve work force efficiency will resonate withenterprises. Yankee Group predicts a CAGR of 17% in thesesegments.

Connected energy and mHealth represent massive potentialmarkets over the long term, says the company. As utilitiesincrease co-operation with carriers, the use of cellulartechnology for smart grid and smart metering projects willincrease more dramatically in 2014 and 2015. While mHealthhas generated substantial buzz in recent months, a shortage ofbusiness models and substantial regulatory hurdles may hamperthe short-term proliferation of stand-alone cellular devices.

www.orga-systems.com

April 2011Ericsson to buy Telenor Connexion’s M2M platformEricsson is buying Telenor Connexion’s M2M technology platformfor an undisclosed sum. Technology and 11 employees will betransferred as part of the deal. The platform provides telecomsoperators with a way to set up tailored M2M services forenterprise customers and is brought to market with a software-as-a-service business model, for a low initial investment intechnology and a fast time to market.

Telenor Connexion is wholly owned by Telenor Group, a mobileoperator with 203 million mobile subscribers. Telenor

Connexion also becomes the first customer forEricsson on its device connection platform,

a service launched during theMobile World Congress in

February.

March 2011Telit acquires Motorola’s M2M divisionTelit Wireless Solutions confirms that the transferof Motorola's M2M division to Telit has been finalised.A Telit spokesperson says: “The acquisition adds valuable human

resources, core disciplines and product lines to Telit. It willenable Telit to strengthen its global market position

and boost our possibilities to support clientsworldwide technically and logistically.”

Mergers & Acquisitions

The HomeGrid Forum (HGF) and the ZigBee® Alliance are extendingtheir collaboration on the ZigBee Smart Energy™ standarddevelopment. This work will pave the way for consumers and utilitiesto use ZigBee Smart Energy 2.0 wireless or wired networks toadvance smart grid programmes and deliver new energy, financialand environmental savings.

The organisations will collaborate to ensure that ZigBee SmartEnergy version 2 and HomeGrid Forum’s ITU-T G.hn and G.hnemstandards can be utilised in a variety of smart grid models. Whenfinalised, applications such as AMI (Advanced Metering Infrastructure),Demand Response (DR), Plug-in Electric Vehicles (PEV) and any othersmart grid application or service that needs a reliable Home AreaNetwork (HAN) or distribution/access network will benefit.

“Working with HomeGrid will give energy serviceproviders, utilities and consumers another wiredchoice when implementing either wired or wirelesshome area networks or utility links to smartmeters,” said Bob Heile, Chairman of the ZigBeeAlliance.

“Through the inclusion of G.hn’s high-speed datanetworking and G.hnem’s lower-speed smartenergy applications, network designers, appliancemanufacturers and consumers have the toolsavailable to build robust, ‘service anywhere’networks,” commented Matt Theall, President ofHomeGrid Forum.

HomeGrid Forum and ZigBeeAlliance team up for wired andwireless smart home applications

Telit Wireless Solutions, a specialist in wireless machine-to-machine(M2M) technology, has launched the Telit HE863, the first in a newseries of modules. The HE863 is said to be a powerful, low-costHSPA (high speed packet access) M2M module in a ball grid array(BGA) form factor with embedded GPS receiver.

The module is intended for devices requiring high throughput andlong-term data transmission, even after 2G networks have beenswitched off. This might include applications such as smart metering,healthcare, surveillance and tracking.

Smart metering devices such as electricity and water meters havebeen in use for several years.For this reason, manymanufacturers are alreadyusing 3G data transmissionto future-proof theirproducts against non-availability of the 2Gnetwork.

Previously, Telit only offered3G technology inconnectorised products. Tocomplete the product range,the HE series now includes3G modules with BGAtechnology for the first time.

Telit adds HSPA-BGA modulesto global portfolio

February 2011Antenna Software buysmobile internet specialist VolantisNew Jersey-based Antenna Software, Inc, hasacquired mobile internet software company, VolantisSystems Ltd, of the UK. The combination of Antenna's mobileapps technology with the ability to harness the mobile internet,positions the company as an end-to-end mobile solutions providerfor enterprises and carriers. The combined company will operateunder the Antenna brand.

Tollgrade Communications sails underGolden Gate Capital for $137mTollgrade Communications, Inc. of Pittsburgh agreed to beacquired by an affiliate of Golden Gate Capital in an all-cashtransaction valued at approximately US$137 million. Tollgrade

provides network service assurance solutions for telecomsoperators in the USA and Europe. Golden Gate

Capital is a San Francisco-based privateequity firm with more than $9 billion

of capital under management.

January 2011M2M Communicationsbought by EnerNOCBoston’s EnerNOC, Inc (NASDAQ: ENOC) hasacquired M2M Communications of Boise, Idaho, aprovider of wireless systems for managing energy anddemand response. EnerNOC helps utility and commercial,institutional and industrial customers to increase energy efficiencyand mitigate emissions. Its Network Operations Centre (NOC)works with over 100 utilities and grid operators globally.

M2M Now April - June 20116

MARKET NEWS

Matt Theall:‘Serviceanywhere’networks

www.orga-systems.com

Telit aims to offer a wide spectrum ofmobile communication and assemblytechnologies to meet the needs of allmarket segments. The HE863 measuresa compact 31.4 x 41.4 x 2.9 mm

www.orga-systems.com M2M Now April - June 2011 7

PRODUCT NEWS

Seattle-based Airbiquity, Inc. and HitachiAutomotive Systems of Tokyo haveannounced that the first commercialimplementation of their connectedservices platform for electric vehicles(EVs) is now available in the Nissan LEAF.

The jointly-developed system providesthe infrastructure for Nissan’sInformation and CommunicationTechnology (ICT) for the Nissan LEAF.With the ICT system, Nissan LEAF ownersare connected at all times to the data

and information they need tooptimise their EV experience.

Nissan LEAF owners anddrivers will be able to trackbattery charging and use,activate remote services andlocate charging stations,among other activities. The systemcan be accessed in the vehicle, by adedicated website for Nissan LEAFowners, or via mobile phones andsmartphones to manage energy usage.

Among other services Nissan LEAF driverswill be able to track battery usage andlocate charging stations

Stream Communications, an M2M-focused mobile network operator, hasintroduced what it describes as a “quickand secure way to access remotedevices”. Removing the need forsoftware installation and networkconfiguration, DINA is a securealternative to fixed public IP address.

The Direct Inbound Network Access, orDINA, platform is built upon Stream’sAPN (Access Point Name) architecture.DINA also takes advantage of theoperator’s multiple points of presence togive users a resilient and robust

connection to their remote devices.

“Through the provision of thousands ofSIM cards for secure, robustcommunication it has become clear thatthere is a need for a less complexalternative to VPNs and theshortcomings of fixed public IP,” saidNigel Chadwick, Founding Director ofStream.

“Standard fixed public IP addressing justdoes not provide the security andresilience needed for modern M2Msolutions. Unsolicited traffic to a fixed

public IP address is a particular problembecause it is billed to the SIM, which canlead to substantial, unexpected datacharges,” Chadwick added.

DINA works by creating an associationbetween a user’s IP address, a StreamSIM card and a public IP address. Thedevice can then only be accessed fromthe IP address specified in theassociation. This association can only bemade by an authenticated user, eitherthrough a simple web interface, or aweb API allowing access to be built intoconsumer solutions.

Stream offers ‘simple, secure access’ to remote devices

Retrieva sniffsout WirelessLogicDog trackingand anti-theftspecialistRetrieva UK is

working with aEuropean

roaming SIM fromTelenor, provided by

Wireless Logic. Todate, Retrieva collars

have connected viaGPRS over a single UK

network. Meeting withJon Smith, Wireless Logic’s

Business Development Manager, JonBryan was introduced to the Telenor globalSIM, with coverage in 196 countries.

Under its founders Andy Stuart and JonBryan, Retrieva UK has developed an

advanced tracking collar for dogs. As thefrustrated owners of dogs who wouldcontinually runaway from their masters, theex-City of London bankers realised thatintegrating GPS, GPRS and RF technologycould deliver a canine tracking solutiondirectly to an owner’s mobile phone.Coupled with this, they have developed anautomated anti-tamper and anti-theft collardesign with alert.

‘Instant’ video monetisation for TVs, PCs,tablets and smartphones Global Takeoff, Inc., a provider of convergeddigital entertainment and advertisingsystems, has launched YCast.TV, an over-the-top (OTT) service that delivers live TVand video-on-demand to TVs, PCs,smartphones and internet tablets withinminutes of setup. Now broadcasters andcontent owners have a solution formonetising video that eliminates long delaysassociated with video content distribution.

Content owners are scrambling toexpand their reach by leveraging OTTinternet technologies, whileconsumers often expect to have allTV and video content delivered toany internet-enabled screen,worldwide.

“With YCast.TV, video contentowners of all sizes can now tapinto the global reach of theinternet and monetise theircontent everywhere,” saidUday Reddy, Founder andCEO of Global Takeoff.YCast.TV enablescontent owners toacquire the sourcesignal, encode andstream video to morethan a billioninternet-enableddevices.

NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF I NEWS IN BRIEF

Global Connected Vehicle Services launched for Nissan LEAF by Airbiquity and Hitachi

www.orga-systems.comM2M Now April - June 20118

PEOPLE NEWS

M2M Now is pleased to welcome several new members to its Editorial Advisory Board. Theyare: Ann Hatchell, Director, Solution & Channel Marketing at Bridgewater Systems;Marie-Paule Odini, Chief Technologist at HP CMS; and John Aalbers, CEO of Volubill.

Ann joined Bridgewater in 2005 and over the last 20 years has held senior posts in hightech companies and her own consulting practice which included clients in real-timeoperating systems, security and enterprise IP solutions.

Marie Paule Odini is responsible for HP CMS’s future directions and interactions with customers oninnovation. She previously managed worldwide IMS SDP Solutions, VoIP and Wireless LAN programsfor HP and brings years of telecom experience including voice and data.

Prior to joining Volubill in 2006, John Aalbers spent five years at Intec Telecom Systems (acquiredrecently by CSG Systems) where he was the VP of Charging and Billing Products. Under John’sdirection, Volubill has grown its client base to over 75 customers around the globe.

The full board can be found at:www.m2mnow.biz/category/contributors/editorial-advisory-board/

BSQUARE expands itsEuropean operations andappoints Iversen

Bellevue, Washington-based BSQUARECorporation (NASDAQ:BSQR), an enabler ofsmart, connecteddevices, has expandedits European operationsand hired a newregional vice president.This expansion builds on

enhanced sales, support anddevelopment services in the Asia Pacificregion announced in December 2010.

The company's new Vice President andGeneral Manager, Europe, Morten DahlIversen, is responsiblefor acceleratingBSQUARE sales. Iversen joins thecompany from FORCE Technology andbrings more than 16 years of experiencein the embedded software industry.Before joining FORCE Technology, Iversenwas the founder of TTPCom Danmark, acompany later acquired by Motorola. Hehas also held senior posts at RTXTelecom, Siemens and Bosch Telecom.

Additional sales and support staff will behired in Germany and the UK in 2011.

M2M platform company Axeda takes on new CEOJack Sweeney has joined AxedaCorporation of Foxboro, Massachusettsas Chief Executive Officer. Axeda is acloud platform and applicationscompany for connected products.Sweeney’s brief is to shape Axeda’sstrategic business operations to scaleand fully capitalise on the rapidlyexpanding M2M market opportunity.

Sweeney brings over 20 years ofexperience as a technology entrepreneurand investor. He served as President andCEO of Apparent Networks before hispromotion to Executive Chairman.Previously, he held executive roles atEMC and Network Intelligence.

Brocade finds Jewellfor UK & Ireland Brocade® (NASDAQ: BRCD) hasappointed Marcus Jewell as CountryManager for the UK and Ireland. Hisresponsibilities will include managingand driving the sales and services teams,delivering aggressive growth targets inBrocade’s Ethernet/IP business, anddetermining Brocade’s partner andchannel strategies in the market. Jewell

has over 15 years ofexperience in thenetworking business,starting at Xeroxbefore joining MiTechEurope, where hebecame ManagingDirector of MiSpaceLtd, a managed ICTservices company.

By 2012, the EMEA enterprisenetworking market is expected to benearly US$15 billion a year (Source: IDC,Feb 2011), an increase of more than28% from 2010, with the UKaccounting for 16% of this total.

“I am delighted to have Marcus join usat this exciting time for Brocade. Our UKbusiness has seen strong performance inthe last couple of years, reflected in theexpansion of our UK team by almost 15percent in the past 12 months, and themove of our UK operations to a new,larger facility in Bracknell duringFebruary” said Albert Soto, VicePresident EMEA at Brocade, to whomJewell will report.

Send your News to the Editor: [email protected]

Three new Advisory Board members for M2M Now

Morten DahlIversen,BSQUARE

Marie-PauleOdini, HPCMS

John Aalbers,Volubill

Marcus Jewell,Brocad

Ann Hatchell,BridgewaterSystems


“When one of the

largest combination

natural gas and

electric utilities in

the US introduced

smart metering its

data volumes

increased 300-fold.”

- Orange Business

Services

SMART METERING

Conventional utility service meters use mechanical,electro-mechanical or electronic counters tomeasure consumption. They are generally locatedin places that are hard to access and provide thecustomer with only the most basic information ontheir usage.

A new generation of smart meters could change allthat. By relaying meter readings over fixed ormobile data connections, they can provide detailed,real-time information to the consumer and theutility company.

Users are considered more likely to reduceconsumption when they are aware of exactly howmuch they are spending on electricity and/or gas atany given time, while those who produce electricityvia solar panels or wind turbines can see how muchextra power they are generating and selling backinto the national grid.

The smart grid A smart grid, or intelligent networked grid thatencompasses smart meter, can measureconsumption data and send this information toapproved external third parties; send and receivecommands from these third parties; and act onthese commands to adjust the operating regime ofequipment or appliances linked to the Home AreaNetwork (HAN).

Smart metering of utility services is already delivering many environmental andbusiness benefits for power companies, government, businesses and homeowners, argues Rodolphe Frugès of Orange Business Services.

Orange gets smartwith M2M metering

Image: Lyndon Douglas Photographyfor Richard Elliott.www.lyndondouglas.com


A smart network would also be able to import andexport electricity generated via micro-generation;monitor the load at any moment to be able torecommend export or import behaviour to the endconsumer; and exert control at all levels of utilityproduction and transmission infrastructure,allowing real time adjustment to market demandand supply.

Smart metering is, therefore, a prerequisite toproviding some measure of control over equipmentand appliances linked to the Home Area Network.There cannot be a smart grid that influencesequipment linked to the HAN without a smartmeter infrastructure.

With M2M smart meters, energy producers couldmanage demand more effectively through bandedtariff structures to encourage consumers to spreadtheir use more evenly, thus reducing spikes indemand. Suppliers would expect to have to handlefewer phone calls from customers with meter-related enquiries thus reducing their customerservice costs.

Smart meters could also reduce the need forsending out staff to read meters, as the data willautomatically be transmitted back to the supplier.

Barriers steadily removedThe major challenge for utilities deploying smartmeters is collecting readings and managing themassive volume of data generated by these devices.The adoption of interface standards is vital to thecommercial roll-out of smart metering projects andthere are a number of initiatives between standardsbodies, governmental organisations and industryplayers to meet these ends.

The ITU has collated these initiatives in Activities inSmart Grid Standardization. Other standardisationbodies are also actively contributing to have thisstandardisation progress, such as ETSI, CEN andCENELEC in Europe or NIST in the USA. While thedebate over the communications technologies(powerline, cellular, DSl, mesh radio or PSTN) thatwill connect the outdoor meter to the utilitycompany continues, ZigBee is in a strong positionto be the standard for in-the-home wireless links.

The ZigBee Smart Energy public application profile,which will be used to provide the communicationslinks between utility meters and household devices,such as smart thermostats and appliances, is thefirst open standard to be endorsed by ESMIG (theEuropean Smart Metering Industry Group). It is asignificant step towards the development ofnetworked home appliances whose operation couldbe controlled by the smart meter, which couldsuspend their operation at times of peak energydemand.

Once the information has been gathered, utilityfirms will face the challenge of ensuring their backoffice applications can handle the massive increasein data generated. When one of the largestcombination natural gas and electric utilities in theUS introduced smart metering its data volumesincreased 300-fold. A number of leadingtechnology companies have come together to formthe Smart Energy Alliance in an attempt tomaximise the commercial opportunities created bythis convergence of information technology,communications and energy systems.

A market set to boom According to analyst firm Berg Insight, theworldwide installed base of smart electricity meterswill grow at 30% CAGR between 2009 and 2015 toreach over 300 million smart meters. By mid-decade,the majority of all electricity meters shipped in theworld’s leading economies is expected to haveadvanced functionalities and networking capabilities.Berg Insight anticipates that growth will continue inthe second half of this decade, with many marketsapproaching 100% penetration by 2020.

Europe will be the leading region for smartmetering with Berg Insight predicting that they willbe installed in 111 million European homes by2015, providing consumers with detailedinformation about their electricity consumption andincentives for using less energy or reducing theirbills by using power during off-peak periods.

This activity in smart metering is driven in part bythe efforts of the European Parliament to drivedown energy consumption. The 2009 ElectricityDirective, which defines market liberalisation andrenewable energy targets, expects the fulldeployment of smart metering by 2022 at the latest.

In addition, the European Parliament has voted toexpedite implementation by requiring that all newbuildings and buildings undergoing renovation beequipped with smart meters. However, no targethas been set yet for water or gas smart meters.

Water conservationWhile smart grid activities to date have focused onenergy efficiency, increasingly utilities are looking tosmart metering to improve water efficiency. Thishas been identified as a key issue by the UN,following the UN World Water Development Reportwhich predicted that if present levels ofconsumption continue, two-thirds of the globalpopulation will live in areas of water stress by 2025.Water metering is proven to reduce demand, andalso help identify areas of loss within the deliveryinfrastructure. According to Pike Research, globalinvestment in smart water meters is predicted toreach US$4.2 billion by 2016, with almost 32million units installed. The industry consultancy

“The worldwide

installed base of

smart electricity

meters will grow at

30% CAGR between

2009 and 2015 to

reach over 300

million smart

meters.”

- Berg Insight

SMART METERING

The author,RodolpheFrugès, is VicePresident ofInternet ofThings and M2Mat OrangeBusinessServices


estimates that using water meters to bill customerson their exact consumption cuts water use by 15%or more. When water suppliers add meter readingautomation to the mix, the conservation impact iseven more significant.

This is an area where a joint venture, set up bywater utility Veolia Eau and Orange, is helping todrive smart water metering forward in France. The“m2o city” project combines smart water meterreading technology for end users with

environmental sensors to detect water leaks andpollution in the delivery infrastructure.

To collect the data from the meters andenvironmental sensors, “m2o city” is developing anew ultra-low energy radio network which it willoperate on behalf of civic authorities. Networkssimilar to this one could eventually be deployed tosimultaneously collate data from many differenttypes of meters and sensors, for example electricity,gas, and environmental sensors.

Accenture has accepted Clarity and its partner STElectronics (Info-Comm Systems) Pte Ltd toimplement Phase 1 of the Intelligent EnergySystem (IES), a pilot project that is beingspearheaded by Singapore’s Energy MarketAuthority (EMA). The IES is an important steptowards a smarter power grid, which will provideits consumers with more information, choice andcontrol over their electricity usage.

Phase 1 of the IES pilot project will involvearound 4,500 customers in residential,commercial and industrial settings, including theNanyang Technological University (NTU) campus,the CleanTech Park at Jalan Bahar and thePunggol Eco-Precinct. This is taking place during2010-12 with an emphasis on establishing thesmart metering communication protocols andstandards. The focus will be on implementing the

advanced metering infrastructure andcommunication system.

Clarity, a provider of unified solutions designedto simplify operations across utilities andtelecoms, will be working with ST Electronics(Info-Comm Systems) and Accenture to deliver aunified operational management system tocentralise the collection and processing of datafrom multiple last mile technologies. Initially thiswill include RF mesh and PLC, to monitor theperformance of the last mile solution andmanage the distribution of data to otheroperational systems such as the Meter DataManagement System (MDMS).

Bob Darwin, Vice President Global Utilities atClarity, commented: “Singapore’s IES Pilot willhelp provide customers with greater reliability,choice and control over their electricityconsumption. This flexibility will enable otherglobal markets and jurisdictions ... to deal withthe many new and significant real-time, two-waychallenges that lie ahead on the journey towardssmarter networks, including having a standard-based solution to manage the communicationsbetween customers’ homes and appliances andutility grids across any last mile solution”.

Singapore implements Phase 1 of EMA’sIntelligent Energy System pilot project

Bob Darwin,Clarity: A unified,standards-basedhead-endsolution tosupport multiplemeter vendorsand last miletechnologies


M2M STANDARDISATION

The applications run on proprietary “middleware”platforms: middleware is needed to replicate thefunctionality of cellular networks, for exampleactivating the SIMs. You can think of middleware asthe glue that binds everything together.

This indicates that there is a big gap to bridge whenenterprises want to bring M2M in from the cold andenable the applications to be an integral part of theenvironment. It can be done: engineers are cleverpeople, but it’s not easy so it costs and up till now theinvestment could only be justified in a relatively limitednumber of cases.

‘When’ was italicized here because that developmentis needed in the current timeframe and now it can berealised. ETSI has made significant progress on thestandards front and there is industry-wide agreementon a high-level M2M architecture and servicecapabilities (see figure 1).

The enterprise environmentMainstream processes like CRM and ERP were originallycreated as silo-type solutions that ran on dedicatedservers. In recent years they have been distributedacross multiple servers in centralised data centres.

This development involved a decomposition processwhereby the applications were divided intocomponents. It was done in order to obtain moreefficient use of computing resources and to facilitatethe development of new applications. Cloudcomputing is the popular term for this development.

M2M solutions also run in stand-alone silos that reflectthe needs of various industry sectors. This verticalstructure is inefficient because the same wheel isreinvented for different pipes. And it’s a barrierbecause now those business processes employ ahorizontal model, which has a common systemarchitecture that enables component sharing. Thismeans that it will be even harder to bring M2M intothe mainstream environment, hence the need tochange the model.

The inflection pointThe inflection point will come when the newarchitecture is implemented. The timetable is uncertain:it always is with significant ICT developments, but it’sgoing to happen because of the developments thatare taking place in the enterprise space.

Without standards M2M will never realise its fullpotential. But this will take time because the valuechain is fragmented and a typical solution will involvefour or five vendors and every link in the chain has anagenda. In addition, M2M represents an industry thatis broad and deep, which makes it hard to determinewhich standards are applicable without any delimitation.

"The need for a middleware layer in the M2M marketis vital for the continued rapid development of themarket and for the emergence of a truly usefulInternet of Things," says Robin Duke-Woolley, CEO ofBeecham Research, a UK-based analyst firmspecialising in M2M markets worldwide.

M2M has been and continues to be a success story. Shipments of modules increased duringthe economic recession and growth could be higher than 20% this year. So why should theindustry inflect — change direction? As Bob Emmerson writes, growth is healthy, but thesolutions are not standards-based, which means that they stand apart from the regular ICTenvironment.

M2M’s change of direction

“So what happens

to the MVNOs: the

vendors of those

proprietary

platforms?”

The author isBob Emmerson,a freelancewriter focusingon InformationandCommunicationsTechnology

"As the market moves forward, interoperabilitybetween M2M service enablement platforms willbecome increasingly necessary. At the same time,these platforms themselves will be required in order toadequately manage the huge number of connecteddevices there will be in the installed base," he says.

The new M2M environment The M2M silo model is not an efficient way tocommunicate and it’s also a barrier to furtherdevelopment. Integration is also required becauseenterprises are mobilising the employee side of theirbusiness processes, for example enabling access toback office databases via smartphones. When M2Mapplications are integrated, when the applicationsbecome part of the ICT environment, databases areautomatically updated with real-time informationcoming from the sector-specific applications, therebycomplementing the manual process and leveragingyour investments.

As shown here, the new high-level architecture, whichis based on the existing communications standards offlat, all-IP next-gen networks, has extended M2Mcapabilities in the core networks as well as a separatedevice domain. The M2M service capabilities provide:functions that can be shared by different applications(the cloud model); exposure of functionality via openinterfaces; use of core network functionality; andsimplified, optimised application development anddeployment.

The new environment will, therefore, allow M2Mapplications to migrate from the current vertical modeland adopt the horizontal cloud-computing model oftoday’s enterprise environment, thereby facilitatingintegration with mainstream business processes.When that happens we can start talking about a newM2M environment that will dovetail with that of cloudcomputing.

Figure 1. New M2M architecture is based on ETSIstandards

Impact on the value chainThat was a very quick take on tomorrow’s, integratedenvironment. Quick because the really interestingdevelopment that will accelerate M2M’s momentum isthe new device domain.

The devices can connect directly to the networkdomain and they continue to perform procedures suchas registration and authentication, but they can alsoemploy the service capabilities of the network.Alternatively, the devices can connect to the networkvia the gateway, which provides the same procedureson behalf of the devices. The gateway is, therefore, astandards-based M2M platform and eventually it willreplace today’s proprietary middleware products.

This development will allow application developers toleverage the functionality of intelligent wirelessmodules, in other words their ability to process data atthe device level, and in turn this will accelerate thedeployment of applications that run in the devicedomain over a local M2M area network. In thisscenario the wide area core network would only beused to transmit information to a central facility sothat it could be displayed, such as on a web portal.

Winners and losersThe device domain is particularly good news formodule vendors. The gateway concept is able tounleash the power of advanced processors such as thequad-band ARM9, which is embedded in Telit’sGE863-PRO3 wireless module.

More local processing equates to less network traffic,but the telcos will respond. Via alliances andacquisitions they have moved up the value chain,moved on from being a bit pipe. Implementing thenew architecture should be relatively easy since it issimilar to that of next-generation cellular networks.

In April this year Ericsson acquired TelenorConnexion’s M2M platform. Under the terms of thedeal, 11 employees will transfer to Ericsson to work onits Device Connection Platform, which was designedto help mobile network operators offer M2M servicesto their enterprise customers.

This is a ‘wheels within wheels’ development, but thetake-home message is the enhanced ability of theleading NEP (network equipment provider) to facilitatethe deployment of M2M functionality in cellularnetworks. Telenor will be the first customer on thisplatform.

Robert Brunbäck, Telenor’s Head of Product andMarket Strategy: “This is a strategic move for us,allowing larger economies of scale for the basicconnectivity services and increased focus on newvalue-adding and customised services for our globalcustomers.”

So what happens to the MVNOs: the vendors of thoseproprietary platforms? Hard to say, but they were amajor player in the creation of the market, which meansthat they have a lot of experience, partners and customers.One would assume that they would migrate to thenew architecture. What counts are the applications.


M2M Jargon Buster

CRM: CustomerRelationship Management

ERP: Enterprise ResourcePlanning

ICT: Information &CommunicationTechnology

SIM: Subscriber IdentityModule

M2M Applications

M2M Service Capabilities

M2M Gateway

Access Network

Core Network

M2M Devices

M2M LAN


M2M JargonBuster

AMR = AutomaticMeter Reader

Despite their low profile, meters are set to becomea core facilitator of the machine-to-machine (M2M)revolution. Meters of yesteryear, capable of onlyreporting limited statistics, are now being replacedwith smart meters that enable two-waycommunication, real-time data collection, andpower quality monitoring.

Smart meters will also promote a new era of energymanagement services. According to the EuropeanSmart Metering Alliance, “smart metering isdesigned to provide utility customers informationon a real-time basis about their domestic energyconsumption. This information includes data onhow much gas and electricity they are consuming,how much it is costing them and what impact theirconsumption is having on greenhouse gasemissions.” The ability to package this informationwith energy management services will allowcustomers to significantly cut their energy use.

US leads smart meter growthThe smart metering phenomenon is global in scale,but is progressing regionally at varying rates.Activity in North America has moved quickly,buoyed by US$3.4 billion in stimulus fundsintroduced by the United States government in2009. Nearly 61 million electricity meter contractstotaling $4.0 billion have been announced in theUS, 75% of which have come from the 50 largestutilities. In coming years, smart metering activity inthe US will shift to smaller investor-owned utilitiesand cooperatives. Overall, an additional 75 millionAmerican homes and buildings will require meter

upgrades over the next 10 years.

Going forward, the majority of smart meteringactivity will take place outside the US. From 2011-2013, Europe will be a hotbed for smart metercontract awards as countries and utilities seek tocomply with the 20/20/20 initiatives. France willlook to install 40 million gas and electric smartmeters. For Spain, the UK, and Germany, this figurewill be 25, 26, and 31 million respectively. In total,it’s expected that over $8.1 billion in smart metercontracts will be awarded in Europe by 2015.

New global marketsDeveloping countries are also implementing smartmetering initiatives. In October of 2009, Brazilannounced a 10-year timeline to deploy 63 millionsmart meters. China, meanwhile, plans to deploy326 million meters of the automatic meter reading(AMR) variety, and has suggested that smart metersmay be installed to take advantage of synergieswith the country’s upcoming smart grid.

Looking to the future, the installation of smart metersand smart grid infrastructure will play a crucial rolein the deployment of energy management services.With the proper guidelines and programmes inplace, services like Demand Response could evolvefrom a roughly $1.0 billion market to an industrythat generates tens of billions yearly by 2025. Beyondthe financial opportunities, the combination ofsmart meters, smart grids, and energy managementservices may finally be enough to realise the visionof “intelligent energy use” globally.

When considering critical drivers of the movement towarda connected world, it’s unlikely that most people would

identify electric, water, and gas meters as important devices.As Mark Ritorto writes, homeowners rarely interact with their

meters, while managers of large facilities usually review thedevices infrequently, being mainly focused on analysing usage data.

Meters get smarteracross the globe

MARKET WATCH: SMART METERS

The author,Mark Ritorto, isPresident andFounder ofInfinite Research,a US-basedtechnologymarket researchfirm that coversM2M andconnecteddevices. Theirclients includeglobal companiesinterested inunderstandingthe shift to aninternet-connected world.

“…over $8.1 billion in smart meter contracts will be

awarded in Europe by 2015.”

On 3 February 2011, the Internet AssignedNumbers Agency (IANA) announced the allocationof the remaining five blocks of IPv4 addresses toeach regional internet registry (RIR). The RIRs areresponsible for the registration and assignment ofIP addresses in their region.

IANA’s announcement meant that the world’s IPv4resource had reached 0% and that once theseaddresses are allocated to the RIRs’ members, onlyIPv6 addresses will be available. This raises apotential problem for the M2M industry, which isreliant on the availability of IP addresses to connectdevices to the network.

There are around 4.2 billion (or 232) IPv4 addressesin existence; in comparison the number of IPv6addresses available is 2128, a number so large it ishoped we will never face exhaustion again. Theissue everyone faces is that IPv4 and IPv6 are notcompatible. Therefore, it will be necessary to dualstack, running IPv4 and IPv6 at the same time, toensure that users can access all content and deviceson the internet.

The aim should now be to drive the adoption ofnative IPv6 networks, allowing a host of newbenefits and a wide range of future applications toservice providers and users. These include:

• Ubiquitous access enabling better remote monitoring

• Improved security via packet encryption which is vital for transfer of sensitive data

• Cheaper and more reliable real-time applications

• Plug and play provision to be included as part of standard specifications, which will improve consumer adoption of IPv6 devices.

IPv6 also opens up a whole range of applications tothe M2M industry a lot sooner than expected.Devices that before would not have been deemednecessary to have an IP address, due to limitedresource, can be allocated with one with littleconsideration. Compatible devices will range fromthe work PC to the home refrigerator, and fromsecurity systems to automotive vehicles.

IPv6 implementation should be a focus for allbusinesses, especially in the communicationsindustry where service offerings rely on a stable andsecure internet. There has been a reluctance toadopt IPv6 due to the perceived cost ofdeployment. However, the cost of waiting will befar higher. The key steps to IPv6 adoption are:• Carry out an audit of equipment/software to see

how it supports IP addresses and how it will support IPv6 in the future

• Upgrade equipment • Provide full staff training before going live• Rewrite any of your own applications that store

IP addresses to be IPv6 compatible• Organise IPv6 connectivity and address space• Ensure that your current ISP supports IPv6. If not

you will need to get a new supplier.

Only once all of these things are in place can IPv6be implemented. The opportunities that IPv6 bringsto M2M communications will help drive theindustry into the future, the challenge now is tomake sure you’re not left behind.

Every device or piece of equipment that communicates via the internet requires an individualnumerical label, an Internet Protocol (IP) address. IP addresses are available in two versions,IPv4 and IPv6. To date, the majority of devices have been connected to the internet using anIPv4 address. In future new devices will need to connect to the network using IPv6.

Based inAmsterdam,the RIPE NCC isan independent, not-for-profit membershiporganisation thatsupports the internet’sinfrastructure throughtechnical co-ordination inits service region. It is theRegional Internet Registry(RIR) providing itsmembers with globalinternet resources andrelated services (IPv4,IPv6 and AS Numberresources).

IPv6

The author isAxel Pawlik,ManagingDirector of theRIPE NCC


M2M: How IPv6 will take connection to a new level


BILLING FOR SMART SERVICES

Dynamic Energy Billing allows for newpersonalised offers and service bundlesThe times when energy suppliers could attractcustomers by offering just one tariff or a tariff withtwo different options are long gone. As the energymarket becomes more and more competitive,suppliers need to offer attractive, new services andtariffs. To enable these offerings, real-time chargingand billing is needed. Now, as Orga Systems writes,flexible tariff configuration can be achieved in realtime by a centralised rating engine.

Dynamic energy billing enhances energy efficiencyand helps reducing CO2 emissions. With real-timebased energy billing solutions, energy providers canefficiently cope with the challenges that renewableenergies from volatile sources bring into the business.

Flexible tariff configuration allows them to offerpre-paid, time-of-use or critical-peak pricing. Theseconfiguration and simulation features have toprovide easy to use means to launch new offersand service bundles – a key benefit also for theconsumer, who can constantly monitor andtherefore easily lower the energy consumption tosave money.

One interesting aspect of machine-to-machine(M2M) communication is smart metering of multi-utilities. Taking into account that leading analystspredict strong growth for M2M connections, thetopic becomes even more attractive. Some predictthat wireless M2M connections will reach 294.1million in 2015 (Source: Berg Insight, February2011). This would represent 4% of total cellularconnections worldwide. Furthermore, the numberof M2M connections may rise to 2.1 billion in

2020. Taking these impressive figures into account,operators face major challenges in sales, marketingand converging OSS/BSS (operations & businesssupport systems) for M2M services.

Automation and large scale arekey for profitable businessMany operators have realised the revenueopportunities for M2M business. Taking a look attoday’s margins for this business, it becomesobvious that it will be a tough task to realiseprofitable margins for these M2M services.

To act profitably, operators need to offerconnections on a high volume basis bundled withdedicated managed service offerings. Moreover,they need to dramatically reduce their costs forenabling these M2M services. Orga Systemsenables MNOs to optimize their service innovationor diversification, based on its real-time convergentcharging and billing solutions.

Operators need to automate device support forcustomers in markets like smart grids, energy,transportation telematics or healthcare. This is theonly way to reduce provisioning as well as customersupport costs and enable profitable M2M business.While monthly revenues for dedicatedtransportation telematics services are not that low,areas with the highest growth rates like smartmetering generate extremely low average revenuesper user (ARPUs). Real-time capabilities are thecommon basis to promote profitable M2Mbusiness. For the utility market, an easy integrationinto existing meter data management and utilityCIS systems based on standard interfaces needs tobe ensured.

Energy providers are facing numerous billing and charging challenges. In increasinglycompetitive energy markets, providers need to offer pre-paid and post-paid billing,timed tariffs, and load-sensitive pricing (for example, in cold weather). Variableenergy supplies from renewable sources also add some uncertainty to energy pricing,and providers (as well as consumers) can make the most of fluctuating markets ifthey can offer variable pricing. How well are today’s energy providers meeting thesechallenges?

Flexibility is the key tosmart energy billing

EXPERT OPINION

“E.Cockpit …

reflects current

consumption

values, energy

costs and prices on

request.”


Enhance energy efficiencyby dynamic billingUsing configurable projection time and consideringexternal events such as weather forecasts(wind/sunshine) make personalised tariffs matchperfectly. This is designed to change theconsumers’ usage behaviour and to enableintelligent home automation services. As the energysector is becoming more and more competitive,energy retailers need to offer attractive new tariffsand services. Orga Systems’ flexible tariffconfiguration and simulation features provide easyto use means to launch these offers and servicebundles. The support of standard interfaces allowsfor easy integration into existing meter datamanagement and utility CIS (customer informationsystems).

By dynamically adjusting the tariff to the consumer,consumption can be stimulated. This can avoidnegative pricing or grid congestion in highthroughput periods when using energy fromvolatile renewable energy sources. Demand-sideenergy management will become an easy taskwhile also meeting regulatory requirements.

Real-time processing of load and price signalsbetween multiple providers, users and devices isrequired to ensure accurate prices. Orga Systems

enables dynamic pricing for volatile renewableenergy, which is configurable by a centralised ratingengine.

Dynamic pricing and integration of valueadded services for satisfied customersSpecial requirements have to be met in order tocope with the increasing percentage of renewableenergy from volatile sources. Demand can bestimulated by lowering the current selling price toavoid negative pricing or grid congestion in phasesof high throughout. This can trigger the storage ofenergy or temporarily activate variable loads in thehousehold.

A key benefit of Orga Systems’ Dynamic EnergyBilling solution is the flexible configuration oftariffs, reflecting time-of-use or critical-peakpricing. For energy customers a new mobileapplication “E.Cockpit” is offered. The applicationreflects current consumption values, energy costsand prices on request.

In addition to consumption and cost projections,monthly billing and pre-paid energy are supportedby the solution. This means consumers canconstantly monitor and, therefore, easily lower theirconsumption while the energy provider is able toattract new customers by innovative tariff plans.

To offer attractive, new services and tariffs real-time charging and billing is needed

“The changes to the energyindustry are like none we have everseen before, and the demands onutility billing systems will beenormous. Not only will utilities befaced with dealing with massiveamounts of data, but customers willstart to demand personalised billingcontracts, not only on when theyuse energy, but what type of energy

they subscribe to,” says Stefan Engelhardt, Head ofthe Utilities Industry Business Unit (IBU) at SAP.

Eva Heumann, Head of Corporate CommunicationGlobal at Orga Systems in Germany, believes thatone of the greatest challenges faced by the utilitycompanies is the integration of dynamic energybilling into their current models. She states that thesupport of standard interfaces has to allow for easyassimilation with both existing meter datamanagement and utility customer informationsystems (CIS). For billing providers, the challenge isto address the processing of load and price signals– between the multiple providers, users and devicesrequired to ensure accurate pricing – if they are tobe able to cope with dynamic energy billingeffectively, all in real time.

Flexibility can help retain 15% of customersIn highly competitive markets, such as Ireland orthe UK, utilities which don’t take steps to adjusttheir pricing mechanisms and introduce morecreative billing may lose up to 15% of theircustomers to competitors that are. SEDC is arepresentative industry group dedicated topromoting the requirements of demand-sideprogrammes in the European electricity markets.Speaking with M2M Now from Helsinki, JessicaStrömbäck, Executive Director of Smart EnergyDemand Coalition (SEDC) says: “Perhaps oneoff-putting element is the learning curve that theutilities will need to go through in terms of

implementation, delivery and customer service. Yet,in time, this cost will not only level out, it willdecrease and bring profitability.”

The most industrious markets on a global scaleregarding smart energy billing and consumptionare: California, which has been the most active fora while on the residential front; followed by theUK; Texas and New York, which are making wavesthrough demand-response for the commercial andindustrial sectors; Queensland and Victoria inAustralia; and South Korea, which has a vastbudget to roll out its smart grid. The UK is currentlythe most active market in Europe where thegovernment has regulated that utilities must notonly use end consumer offerings to lowerconsumption, they must prove that they are doingso, providing the perfect storm for billing suppliers.

Interactive customer controlisn’t an overnight switchAndy Corkhill, Director EMEA, Utilities MarketStrategy & Business Development at Convergys,says that smart metering is not an overnightrevolution but that it will unfold in stages – not atthe flick of a switch – and perhaps in ways that fewanticipate. Companies must identify, develop andnurture a smart metering strategy that will providethe flexibility to adapt to whatever the future mayhold and provide consumers with an improvedexperience and access to key information.

According to Martin Pollock, Director, SiemensMetering Services: “Presently, there is no means


BILLING

Rising competition in the energy sector meansthat utility companies are looking to offer moreflexibility in tariff innovation and increase thelevels of customer interaction and consumptioncontrol. M2M Now investigates some of theissues and opportunities regarding flexibility insmart energy billing.

StefanEngelhardt, SAP:Customers willdemandpersonalisedbilling contracts

Eva Heumann,Orga Systems:Challenge ofintegratingdynamic energybilling

The author,GeorginaElrington, is anindependenttelecoms writer

JessicaStrömbäck,SEDC: Utilitiesmust go throughan implementationlearning curve

Andy Corkhill,Convergys: Smartmetering is not anovernightrevolution

Flexibility in smartutility billing


for a utility to send any kind of signal to itscustomers to advise them on how to use energymore wisely. The feedback loop betweenconsumption and billing is far too long for anysensible action to be taken, no matter how wellbills are itemised. Smart metering can tighten thisup so that consumers can get more or lessimmediate feedback to relate behaviour to cost.”

“Utility companies need to find ways ofcommunicating with customers, helping themvisualise and understand a household’s energyconsumption. They should be encouraging theirconsumers to interact with this data, remotelymonitoring and controlling consumption, allowingthem to feel that the control is in their hands,rather than in the hands of their service providers.Ultimately, providing quick and cost-efficient waysfor the average family to begin assessing theirlifestyle choices can have a huge impact on theirlong-term energy use and annual bills, as well astheir long-term engagement with such a system,”says David Rimmer, Business DevelopmentManager, Intamac Systems Ltd.

Krzysztof Kwiatkowski, BSS Product Manager atComarch SA, indicates that flexible billing, as apart of smart metering, may enable utilities tointroduce dynamic pricing for differentiated

peak/off-peak or weekend/week- or weather-related price plans, as well as bundles with cross-utility discounts including electricity, water and gas.

He also suggests that after deregulation, the utilitylandscape may become more similar to the telcoworld and says; “If we see dynamic pricing intelecoms as an interesting trend in some regions(prices depend on the cell load), why not havesimilar pricing in electricity?”

However, most existing utility legacy billing systemsare not currently flexible enough to allow for theprovision of new products, or for providing suchcross-utility discounts, and this is why many utilitycompanies are now looking at billing providers withexperience in telecoms as potential suppliers.

Yet while a telecoms billing system for utilities maybe able to deliver a required level of flexibility, itmay not be able to provide enough support forutility-specific business models, as it requiresexperience in a rather different domain.Kwiatkowski also believes that integration withlegacy ERP systems can be challenging from thetechnical and political perspective.

Doug Zone, Chief Technology Officer at MetraTechCorp says that for the customer, control (especiallywhile interacting with dynamic prices) is one of thecornerstones of smart billing. He also identifiesother options that utility companies could offer tomake billing more flexible, namely:• Transparency, the ability to see exactly how,

when and for how much energy is being used; • Real-time information, allowing users to react

to higher prices; and • Two-sided information, allowing bills to

manage money going both ways as suppliers and users interchange, which will become a dominant theme as the alternative energy market evolves.

He adds: “Smart metering re-empowers the serviceprovider with more creative price structures; andthe consumer with the ability to design how theyconsume and what they can sell back into the grid.

“With power comes the perception that it may beabused or need to be controlled. To this extentregulation may become more evident than everbefore. Nevertheless, with smart billing, there aremore possibilities to create an open market forenergy and, as such, the chance to direct regulationaway from managing utilities to ensuring that itreally runs like a market,” concludes Zone.

“Most existing utility legacy billing systems are not flexible enough

to allow for the provision of new products, or cross-utility discounts.”

Martin Pollock,Siemens MeteringServices: No wayto advisecustomers onusing energymore wisely

David Rimmer,Intamac Systems:Help customersunderstand theirenergyconsumption

KrzysztofKwiatkowski,Comarch:Differentiatedoff-peak, weekendor weather-related pricing

Doug Zone,MetraTech: Smartmetering re-empowers theservice provider


TELIT’S MOTOROL A M2M ACQUISITION

Q: Mr. Cats, recent acquisitions in the M2Mmarket have been different from your purchaseof the Motorola M2M product line in March.What issues are you seeking to address with thismove, and how does your acquisition changethe position of Telit in the M2M market?

A: A common pattern of many acquisitions is thatlarge companies take over smaller firms in order tobuild up a new business segment. Telit’s acquisitionof the Motorola M2M product line is different sincewe are not establishing a new business segment, butare staying focused on the ones we already have.

The deal will increase our resources and will enableus to grow and improve our market position.

In addition, it will have a very positive effect on ourrevenue and accelerates our quest to becomemarket leader. With the integration of Motorola’sM2M product line we will strengthen our position asa serious and competitive player in the market.

This step fits perfectly in our long-term marketleadership approach. We combine strong organicgrowth with strategic acquisitions which align ourportfolio, strengthen our R&D power, generatefinancial synergies and have positive impact on ourcustomer relations.

Q: Machine-to-machine communication is onemega trend of the 21st century. In particular,such fast growing markets need a high level ofR&D (research & development). Does this dealenhance your R&D capacities and if so, how?

A: That is true. M2M is a mega trend andcustomers are always searching for the best andmost innovative solutions for their devices. In orderto fulfil our customers’ needs and to be up-to-dateor even ahead of time R&D has always been acornerstone of our company.

Telit already has a high level of expertise in its R&Dcentres in Trieste, Sardinia and Seoul as well as in the

short range centre in Sophia Antipolis in France.Moreover, the recent acquisition enables us todouble our R&D efforts in Israel. Meanwhile, 80people are working in the office there and it isbecoming our fifth R&D centre.

We will continuously increase our R&D efforts inIsrael and in all our other research centres. Telit feelswell prepared to support and accelerate the rapidgrowth in the M2M market by delivering thecutting-edge technology and premium supportneeded to create innovative solutions.

Q: What about the Motorola staff joiningTelit?

A: In the past, we were already looking out forqualified experts to join Telit. But it was hard to findexactly the expertise that we needed. With theacquisition we are more than happy to welcomeabout 40 employees from Motorola to our Telitfamily and I’m seriously impressed about theirsignificant skills, high motivation and great spirit –this is what we were looking for.

On the sales and marketing side we also have greatexperts in Europe, the Americas and in the Far Eastjoining our team. It is our ambition to make thischange as easy for them as we can. After visiting ournew employees in most places in the world, I can saythat they already feel comfortable at the Telitorganisation. I’m sure within the next weeks we willgrow together perfectly. In my eyes the acquisitionwas also on the human resource side, a perfectmatch. That is quite promising for the future.

Q: Another important aspect is the handlingof the Motorola clients and products. Will Telitcontinue with the Motorola products and willyou provide the sort of support the Motorolaclients need?

A: Telit will support all previous Motorolacustomers from its local offices worldwide. Weguarantee excellent technical, sales and other

Oozi Cats, CEO of Telit Wireless Solutions, tells Robin Duke-Woolleyabout the acquisition of Motorola’s M2M business.

‘A perfect match’

SPONSORED FEATURE

Oozi Cats, CEO of Telit Wireless SolutionsOozi Cats founded the high level communications engineering and distribution company DaiTelecom Ltd in Israel in 2000. In 2002 his company took over Telit in Italy to establish aworldwide acting organisation. His experiences as CEO and management knowledgehave helped to turn Telit into a global player in the M2M market. Headed by Mr. Catsas CEO, Telit was listed in the London Stock Exchange in April 2005.

“Continuity of

product availability

is the most

important factor in

customer retention

in the M2M

market.”


supports. The focus on service for all our customersis one of our company’s foundations and this issomething we hold on to.

Another keystone, and one of Telit’s unique sellingpoints (USPs) since its inception, is in a way thenever-ending life of our products. We are aware thatthe continuity of product availability is the mostimportant factor in customer retention in the M2Mmarket.

Compatibility, family concept, pin-to-pin and easymigration are our keywords. Therefore, all existingMotorola and Telit products will be maintained andavailable as originally planned by the separateentities. We have been very successful with our USPin the past and have no intention to change thissuccessful strategy now, which helped us to becomethe third largest company in the M2M market.

Q: When do you expect the Motorola deal tobe earnings-enhancing for Telit? And whatimpact will the acquisition have on Telit’sfinancial position?

A: Well, the deal was made in a very correctmanner. Therefore, I’m sure it will be enhancing interms of our Earnings Per Share in the first year ofthe ownership. We expect to cross the US$200million threshold this year.

Overall, we have raised enough money to supportthis deal and thanks to our 20% market share now,

we also have the potential for future deals. We willprobably show significant improving in our net cashposition. Right after this deal, all things considered,our EBIT and EBITA numbers will increaserespectively. I think all together in every parameter,this deal is a great step for Telit.

Q: It seems that the recent acquisition willstrengthen Telit’s position within the highlycompetitive M2M market. What are yourambitions for the business for the coming years?

A: In 2010 we announced that our revenueshowed 48% organic growth, and this is animpressive number compared to the growth of thewhole M2M market which is less than 20%. Wekeep gaining market share, we keep growing. Thatalready shows our strong position in the market.And I’m confident that in 2011 we will be able toreach the same results in the organic side of thebusiness.

Telit is an extremely focused player that already hasthe capacity to provide wireless technologies forM2M activities such as cellular GSM/GPRS, EDGE,UMTS/WEDGE/ HSDPA, CDMA, and short rangeZigBee, wireless M-Bus and other Short-Range RFM2M modules for all its customers.

The Motorola acquisition is a perfect match for Telitand our expanding strategy. With that we received agood, stable product portfolio as well as greatcustomers, some of them leaders in their market.This enables us to enhance the Telit product line andto offer our overall service to our new customers.With the great workforce that joined Telit as well,we will be able to power up our R&D, sales andmarketing business once more. We are on our wayto become the M2M market leader in the nearfuture and this is what we are aiming for.

SPONSORED FEATURE

Robin Duke-WoolleyCEO of BeechamResearchFounder and CEO ofBeecham Research Ltd,a technology analystand consulting firmbased in London andCambridge, UK andalso located in Boston,MA and Bonn,Germany. BeechamResearch specialises inthe M2M marketworldwide coveringboth business andconsumer relatedapplications andservices in nine keysectors - Buildings,Energy/Utilities,Consumer/Home,Healthcare, Industrial,Transportation, Retail,Security/Public Safetyand IT/Networks.


DIARY

M2M Forum5 May, 2011NH Fiera Hotel, Milan, Italy www.b2match.eu/m2m2011

Smart Metering Central & Eastern Europe17-18 May, 2011Warsaw Marriott Hotel, Polandwww.smartmetering.eu/cee/

TIA 201117-20 May, 2011Gaylord Texan Hotel, Grapevine, Texas, USAwww.tia2011.org

Connectivity Week23-26 May, 2011Santa Clara Convention Center, California, USAwww.connectivityweek.com

Connected Home Global Summit24-26 May, 2011 Jumeriah Carlton Tower, London, UKwww.avrenevents.com

Smart Metering, London2-3 June, 2011 Millennium Gloucester Hotel, London, UKwww.smartmetering.eu/uk

M2M Forum Europe 6-9 June, 2011Chelsea Football Club, London, UKwww.m2mforumeurope.com

Mobile Health Summit6-9 June, 2011Cape Town, South Africawww.mobilehealthsummit.com

IPv6 World Congress14-15 June, 2011 The Thistle Hotel, Marble Arch, London, UKwww.ipv6event.com/

SIMposium28-29 June, 2011Maritim Pro Arte Hotel, Berlin, Germanywww.simposiumglobal.com

Grid Week12-15 September,2011Walter E Washington Convention Center,Washington DC, USA www.gridweek.com/2011

M2M Evolution Conference13-15 September, 2011Austin Convention Center, Texas, USA www.m2m.tmcnet.com/conference

Smart Homes4-6 October, 2011Amsterdam RAI International Exhibition Center,Netherlands www.bvents.com./event/394089-smart-home

Metering Europe4-6 October, 2011Amsterdam RAI International Exhibition Center,Netherlands www.bvents.com/event/394088-metering-billing-cru-europe

M2M Zone at CTIA11-13 October, 2011 San Diego Convention Center, California, USAwww.ctiashow.com

Connected Home USA 201115-16 November, 2011www.avrenevents.com

Event DiaryDon’t forget to add the followingevents to your organiser. As M2M Nowis Official Media Partner for most ofthese events, we look forward toseeing you there. Grid Week, Washington D.C.

If ABI Research’s findings are correct (that the marketwill grow to 225 million connected devices by 2014),then fixed and wireless operators are going to have toadapt their networks to a new scale of user demands.They will need new measures of security, flexibilityand scale.

Bridgewater Systems announced in Barcelona thatsince 2010 its systems are now managing more than10 million connected devices offering a range ofmachine-to-machine (M2M) applications. The US-based software vendor securely manages M2Mconnections on 3G and 4G networks using intelligentbroadband controls such as device service control,dynamic policy control, and device identitymanagement. In the coming months the companyparticularly expects to see new opportunities in areassuch as smart grid services, automotive, retail,telemetry and public safety.

According to Shira Levine, Directing Analyst, Next GenOSS and Policy, Infonetics Research, M2Mtransaction growth, “... will drive investment insolutions that can support the high volume microtransactions associated with M2M traffic. Intelligent,real-time policy control solutions that are capable of

supporting that transaction volume will becomeincreasingly important, as will subscriber and deviceidentity management capabilities that allow the operatorto identify and track the data sent between devices.”

So, what are the industry metrics that guide JasperWireless, whose platform has been enabling networkoperators to service the M2M market since 2004?

Based in Sunnyvale, California, Jasper Wireless hasbeen working with operators worldwide whosecustomers demand traditional M2M applications likefleet management, vehicle telematics, smart grid andasset monitoring. Today, as Macario Namie, thecompany’s Senior Director of Marketing, told M2MNow: “There’s much analysis of metering andindustrial automation, but no analysts are coveringM2M in consumer electronics. Our own metrics saythat this might reach 90 million devices in 2013, with40 million in traditional M2M.

“The market is starting in the US and there are bigopportunities in healthcare. In Europe, the addressablemarket is 250 million people who could use cardiacmonitoring, or a system for diabetic care. It couldreally help hospitals and we’ve seen initiatives in

M2M on everyone’s lips in Barcelona

Thad Dupper,EvolvingSystems: Serviceproviders mustact now


Plenty of research stats were issued at Mobile World Congress in Barcelona to support theidea that we are at a tipping point in the global growth of machine-to-machine (M2M) dataservices. With 60,000 visitors and exhibitors making this the largest ever GSMA Congress,Jeremy Cowan found that all kinds of companies were eager to stress their M2M and smart,connected devices credentials.

MOBILE WORLD CONGRESS REVIEW

Europe as well as the US, for example with Philips inthe Netherlands and Germany. The challenge is toembed connectivity in the device itself – it’s not goodfor the elderly to rely on Bluetooth as has been thecase,” said Namie.

Bursty or thirsty?As Ann Hatchell, Bridgewater’s Director of Solutions &Channel Marketing, says: “From a control planeperspective, M2M services and devices have uniquerequirements and therefore pose a whole host of newchallenges for operators. Some devices are ‘bursty’:they transmit large amounts of data intermittently andoften require their bandwidth to be given top priority,as in the case of many public safety applications.

“Others are ‘thirsty’: they transmit small amounts ofdata continuously and typically require the volume ofdata transmitted to be metered, as in the case ofsmart meters transmitting status data,” says Hatchell.The software vendor believes that M2M serviceproviders need to:

• Create extensive security – service providers must be able to match device ID with associated network credentials, plus detect and report on misbehaving devices

• Limit control to active devices – providers need dynamic policies that maintain network integrity by creating rolling transmissions based on time of day, day of week rules. Examples range from low-priority maintenance data flows depending on the time of day, through to high-priority bandwidth with SLAs to meet public safety demands.

• Offer flexible billing models (see separate articles, pages 16-19) – offer plans based on data usage, the number of connections or different bandwidth requirements

• Manage scale and performance – to meet the forecast growth in M2M demand for millions of connected devices.

To help the market swallow all the new informationemerging on M2M, Bridgewater has created an

Intelligent Broadband Controls Cookbook. Thissuggests six ingredients for an M2M recipe:• Service controller: For complex, multi-level,

multi-factor device authentication to protectdevice identity

• Proxy engine: This authenticates and authorises requests to third party servers and device management platforms

• Comprehensive accounting: Detailed records enable flexible billing models for multiple devices and bandwidths, and provide a revenue audit trail

• Policy controller (PCRF): To provide real-time bandwidth prioritisation and metering of network resource usage per device

• Subscriber data broker: This models device entitlements including security keys and certificates

• Transaction support: Bridgewater’s scalable system already supports millions of M2M transactions.

Smart servicesScalability is also behind the introduction of Ericsson’snew Smart Services Router (SSR). It scales in severalways, offering: multi-application processing (videocacheing, mobile gateway, business & residentialservices); scalability in subscribers, signalling and thenumber of applications; and upgradable capacity (a 16Tbps system with 400 Gbps full-duplex slots).

The idea is that operators deploying the SSR will findnew revenue opportunities through rapid deployment,value–added services and user experienceoptimisation. They can also cut operational coststhrough consolidating functions, unifyingmanagement, and low energy consumption.

SIM storage and allocationFrance-based iQsim launched its Smart SIM Rack inBarcelona. This is a Virtual SIM Management platformdesigned for network QoS testing and M2Mdeployment validation. On a single ‘ready-to-go’ unitthe Smart SIM Rack offers SIM storage, SIM allocationcontrol and an advanced API to integrate with thirdparty applications.

iQsim’s Virtual SIM technology enables mobileterminals to be deployed SIM-less anywhere, whileSIM cards remain centrally stored in SIM racks. AnySIM card can be allocated on-demand to mobileterminals as if the SIM was locally inserted in theterminal.

iQsim’s CEO, Philippe Bessaguet, says: “Our Smart SIMRack includes a complete API which enables mobilenetwork operators to properly integrate Virtual SIMManagement with their test servers. Our API offersdevice management, SIM allocation and price plancontrol: these functionalities are key for an MNO toperform appropriate tests with appropriate SIM cardsand then guarantee QoS (quality of service) to theircustomers.”

The Smart SIM Rack stores and centralises SIM cards.With the IRON technology included, it can alsomanage SIM control and allocation manually,automatically or through the XML API.


“Intelligent, real-time

policy control

solutions ... will

become increasingly

important, as will

subscriber and device

identity management

capabilities.”

- Shira Levine,

Infonetics Research

Ann Hatchell ofBridgewater:Uniquerequirements ofM2M services

Macario Namie,Jasper Wireless:Opportunities inhealthcare

PhilippeBessaguet,iQsim: VirtualSIMmanagementplatform

MOBILE WORLD CONGRESS REVIEW


“With the Smart SIM Rack, we go one step further byproviding the capability to publish SIM managementand device management to upper application layers,”Bessaguet adds. The configuration is done through anintuitive web interface. The Smart SIM Rack can bepackaged with iQsim SIM Flex in order to bring VirtualSIM capabilities to any GSM devices such as sensors orprobes.

“The Smart SIM Rack is tailored to QoS and testmarkets. With our advanced API, we aim to developpartnerships with ISVs in order to bring an end-to-endtest solution to mobile operators,” says LaurentLhermitte, VP Sales & Marketing.

Of course, they’re not alone in this sector. JasperWireless’s Namie said: “We’ve provided dynamic SIMactivation for a year; through this we can profile theSIM provisioning. So, for example, if SIMs are made inAsia they’re tested there and shipped to Europe andthe vendor can activate them when they’re used forthe first time. It’s a better customer experience, notraining is needed for the call centre, and users don’thave to wait for the service to be delivered.”

Secure connectionM2M Now reported extensively in the January issue onEvolving Systems’ Dynamic SIM Allocation™ product(read the digital edition at www.m2mnow.biz ). NowEvolving Systems has launched its Intelligent M2MController™. Instead of provisioning M2M devices inthe traditional way and permanently tying upresources, the Intelligent M2M Controller allowsdevices to securely connect to the network and senddata only when required. The solution allowsoperators to reduce costs, protect their networks, andgrasp the growing opportunity in the M2M space.

"The M2M market is expected to ultimately becounted in billions, or even trillions, of M2M devicesand connections," says Thad Dupper, Chief ExecutiveOfficer at Evolving Systems. "And with rapid growthbeing forecast, service providers must act now to givethemselves the best chance of maximising profits andachieving significant market share."

The rise in M2M devices using wireless networks alsopresents service providers with a range of challenges.Existing systems and processes cannot efficientlyhandle these devices, known as infrequenttransmitters, which are low-powered and inexpensive,only sending small amounts of data, and connectingto the network intermittently.

In addition, the market is fragmented into a variety ofindustries, business models, devices and connectivityrequirements – so any solution needs to support awide array of use cases and applications.

Innovation award for M2MSierra Wireless, established in 1993, enjoyed abumper year in 2010. Turnover rose 24% to US$650million, on which they achieved a $22 million profit,says CTO, Philippe Guillemette.

But the good news went further, with EDMI and

Sierra Wireless being awarded the GSMA’s GlobalMobile Award for Best Mobile Innovation for Utilitiesat the 2011 Congress.

The EWM100 is an industrial-grade, M2Mcommunications system designed specifically for smartmetering applications. It aims to provide robustGSM/GPRS connectivity between a utility’s operationscentre and individual power meters in the field. Withsecure, real-time communications, utilities can managegrids more efficiently, remotely control services, andsupport in-home energy management applicationsthat empower consumers to change theirconsumption behaviour and lower their costs.

The award, judged by an independent panel ofindustry experts, chose EDMI’s EWM100 modem forsmart metering applications, which uses SierraWireless AirPrime embedded modules to providecellular communications. The jury described it as, “afantastic product concentrating on solving the issuespresented to utilities in gathering meter data usingwireless technology.”

As energy suppliers worldwide expand theirinvestments in smart metering technologies, systemsare needed to enhance energy distribution andoptimise legacy grids. By enabling end-to-end, two-way communications down to the individual powermeter, utilities can enhance electricity generation anddistribution, reduce peak consumption by shiftingdemand loads and, ultimately, create a ‘greener’ powergrid serving more customers with less energy supply.

Graeme Lees, EDMI’s Chief Operating Officer, says:“Cellular connectivity offers a compelling option forsmart metering communications infrastructures,enabling energy suppliers to radically reduceinstallation costs and implementation times.”

SaaS successThe M2M business has also been transformed forJasper Wireless over the last two years following theintroduction of their Software as a Service (SaaS)business model. “Before that,” says Macario Namie,“our business model was offering end-to-endsolutions for business customers. We also offeredcoverage and SIM cards. We believe that operatorsneed to keep relations with the OEMs andcommunication service providers.

“We might have competitors with parts of theplatform, such as the billing engine or SIMprovisioning, but there’s more competition at operatorlevel, for example with Telenor building their ownplatform to serve M2M in 2009. Operators know theyneed specific tools. They couldn’t spend lots of timeand money developing them.” He continues, “Theyare looking for a global solution and a strong saleschannel.”

“We offer a full set of features to help operatorsentice their customers to use self-care.” Namieconcludes, “It reduces operational costs and enablescustomers (M2M service providers) to deploy quicklyusing the same platform in different regions.”

“If we accept 50 billion

connected devices

(Ericsson’s 2010

forecast) then many

will not be connecting

regularly. We need

‘smartware’ to manage

the priority of data to

be sent. For a house

alarm you want

immediate

transmission, but

some energy billing

data can go

tomorrow.”

- Philippe Guillemette,

Sierra Wireless

M2M Jargon Buster

API = ApplicationProgramme Interface

ISV = IndependentSoftware Vendor

MNO/MVNO = Mobile(Virtual) NetworkOperator

QoS = Quality of Service

SIM = Subscriber IdentityModule

SLA = Service LevelAgreement

With a turnover in 2010 of US$180 millionand staff now totalling around 650 peopleworldwide, Minnesota-based DigiInternational (NASDAQ: DGII) has come along way since its inception in 1985. Thecompany, previously known as Digiboard,was initially focused on long serial cables

and ports connecting big servers, butbecame Ethernet- and internet-based

producing embedded modules.

But it’s real transformation,according to Joel K Young,Senior Vice President of R&Dand Chief Technology Officer,came in 2004/5 when thecompany began to transfer itsactivities into the wireless arena.Today, approaching 40 % of salesare wireless and the companyhas grown its revenues 20% peryear even in the tough times.The networks Digi supports nowrange from micromesh tocellular to satellite, but theyhave one thing in common;users need to control theirstatus.

“Devices may be remote or haveno power, but this is a goodopportunity for us. You can’talways call someone to re-bootthe doo-hickey, so we needed tocreate a platform to manageand control it. This is why we’veadded iDigi,” says Young.

Inexpensive?iDigiTM was launched over a yearago in the US, but is now beingpromoted hard in Europe. Itnow supports over 1 milliondevices, which means 2,000posts per second – to put it incontext, Twitter handles 600

posts per second and Facebook about 700 per second.

It’s designed to be an inexpensive platform that youcan pay as you grow, using the company’s tools andsoftware kits. How inexpensive, exactly? Well,‘transactions’ can be made for as little as US$0.15 per1000.

The company’s key push, says SVP of Sales andMarketing, Larry Kraft, is in the energy sector wherethey have noticed a lot of investment. But key verticalsinclude tank monitoring (for example in breweries),smart grids, irrigation control (for both golf andagriculture), industrial automation, medicine(managing care quality, equipment assets, tracingpatients, and checking drug libraries for usage,location and history), and managing the product linesin a well-known fast food restaurant chain (that we’vebeen asked not to name) to ensure food quality.

According to iDigi Solutions Architect, Jordan Husney,the platform provides connectivity, management,integration and scalability of gateways and devices.“It’s not in the cloud, nor a complete solution for anindustry vertical, and it’s not a server host.”

Three capabilitiesCTO, Joel Young described iDigi as “an M2Mmanagement cloud service platform, with threecapabilities. Connectivity for Digi and third partygateways over all network types; centralisedmanagement of gateways and end devices; and a webservices protocol for app integration.”

And the company have clear development objectivesfor it. Its scalability has already been tested to 4 millionconnected devices, but there are plans to take this to10 million. Similarly there are plans to double thecurrent total of 1 million connected gateways, and totreble the throughput of 3 billion messages permonth.

But Digi are clear that to do that they will need tocontinue to enhance delivery reliability, cuttingunplanned downtime from 100 to 10 minutes/year,and raising availability from 0.999 to 0.9995.

Beer, golf, good food – Need any more reasons tovalue wireless platforms?


One way of getting over Mobile World Congress in Barcelona, as Jeremy Cowan found, isto turn around and head straight out to Nice for Digi Europe’s Wireless Congress. M2MNow was the only English-language publication invited to attend an event aimed at DigiInternational’s European partners and users. We report from the Cote d’Azur on a busytwo-day schedule.

USER GROUP REVIEW

“But householders don’t know what to do. Thereare good initiatives that mean smart meters aregoing into every UK home by 2020.” This has onlyhappened, said Caiger-Smith, because of the carbonagenda, reducing consumption, not just cost. “Wepredict that in the next 2-5 years any failure (byutilities) to supply home energy monitoringequipment will cause customer churn.”

Now Digi International and their partners, GEO aredeveloping a real-time, web-based energymanagement system for European utilities. The newenergy consumption information and control systemis based on the iDigi platform and Digi X-Gridsolution, a system for extending the power gridbeyond the meter.

GEO designs and manufactures energy monitoringsystems for use in both the commercial anddomestic environment, with more than 1.2 millionenergy displays currently in the European market.GEO has collaborated with Digi before, notablyduring the development of npower’s micro-generation solution – part of npower’s smart energytrials. In 2010, GEO used Digi’s embedded modulesagain, this time as part of the pioneering Inov Gridproject with EDP in Portugal. The project is testing

GEO’s Solo in-home displays, which have beenintegrated with the Energy Box smart meter toprovide real-time information and consumptionawareness for the consumer.

Now GEO is partnering again with Digi in theEuropean smart metering market. GEO will have thesupport of the Digi X-Grid solution – a developmentpackage that includes Digi’s Smart Energy gateways,XBee ZigBee modules and adaptors, and the iDigiPlatform to provide secure, real-time access todevices within an extended grid infrastructure.

Patrick Caiger-Smith said: “Digi’s expertise in thefield of ZigBee wireless communications and itsinvestment into their web-based applicationframework, iDigi, make Digi our ideal partner in theenergy management space.”

Daniele Cognolato, Digi’s Smart Grid BusinessDevelopment Manager, added: “We are excited tobe working with GEO who are already anestablished leader in the European energymanagement market. Digi’s X-Grid platform willenable GEO to move from visual display devices tocomplete visualisation and control systems – arevolution in their aim of making energy visible.”

For the latest Newsand Blogs on theconnected world

bookmarkwww.m2mnow.biz

To see a recent smallscale M2M Case

Study go to http://stpaulcheeseshop.appspot.com

Turn to page 30 tofind out how M2Mwill improve your golf

M2M Now January - March 2011 27

Full energy management system created forEurope’s utilities by GEO and Digi InternationalSpeaking at the Congress in Nice, Patrick Caiger-Smith, CEO of Green Energy Options(GEO) of Cambridge, UK and Berlin, Germany, drew attention to current energy experiencein the UK: “Average UK income is £14,500 (€16,750) and the average annual energy billhas risen 50% in the last three years to £1,200 (€1,387) or 8% of average income.” So,perhaps it’s not surprising that he says over 90% of UK consumers have said they’reconcerned about their energy consumption.


“We predict thatin the next 2-5years any failure(by utilities) tosupply homeenergymonitoringequipment willcause customerchurn.”- Patrick Caiger-Smith, GEO

How iDigi might be used in tank monitoring, for example in a brewery.


NFC & M-COMMERCE

A survey conducted by Vanson Bourne* analysedthe attitudes of 1,000 UK consumers and 100marketing and IT directors at UK retail businessestowards mobile shopping, as well as the impact thatmobile devices are having on traditional shoppingmethods. The research showed that consumerswould welcome the convenience and potential costsavings of mobile commerce.

From the retailers’ viewpoint, 42% believe mobilecommerce is already affecting shopping behaviour atphysical retail locations, while 89% believe m-commerce will be as popular as e-commerce.However, despite this, fewer than one in five of theretailers surveyed reported having a mobile strategyfully in place, and almost a third have no plans toimplement one at all.

Gulf between demand and delivery“The aim of this study was to assess thepreparedness of UK retailers for mobile in relation toconsumer expectations and demands,” said DavidEads, Vice President of product marketing at Kony.“The results show a significant discrepancy betweenretailers’ anticipations of the impact of mobile andthe strategies that they currently have in place tofacilitate this demand. It is clear that mobile isalready affecting shopping habits and has thepotential to overtake e-commerce in the next fewyears.”

The shift towards mobile is happening in diverseways and across a number of different channels,with retailers currently placing different emphasis oneach area – 45% of retailers identified native mobileapplications as the most critical mobile commercechannel to their business, while 40% believe mobileweb is more important. SMS is clearly waning withjust 10% naming it as the most important channel.On average, retailers expect to spend 21% of theirbudget on the development and implementation ofa mobile strategy, but one in 10 retailers are alreadyinvesting 40-50% of their budget into mobile.

The research also demonstrated how the rapidfragmentation of the mobile market is leading toincreasingly varied consumer preferences anddemands. The consumers surveyed expressed a clearpreference for mobile during the decision makingprocess, with 60% claiming to use mobile internet tomake decisions in a store or while shopping online.Similarly, 40% use mobile applications to makeshopping decisions and 37% use a mixture of the two.While almost three quarters (74%) of retailers have apresence on the iPhone, 58% of consumers preferto shop and browse on other platforms, meaningthat by developing for just the iPhone, retailers areignoring a significant portion of their customer base.

“The discrepancy between what retailers know theyshould do and what they are actually doingdemonstrates how difficult it is to deliver mobileapplications across the wide variety of phones,tablets, and browsers,” continued Eads. “Companiesneed a partner to manage the mobile chaos so theycan focus on growing their business.

“Retailers are limiting themselves by only servingcustomers in a few channels. If retailers don’t servetheir customers, they will go somewhere else. Thedata clearly shows some retailers are investingsignificantly in this channel to win those customers.They will attract those customers. The only way toleapfrog the competition and ensure the success ofany mobile strategy is to provide customers with acomprehensive offering with those must-havemobile features and functions,” Eads added.

According to Mark Blowers, Practice Leader atOvum, "As customer experience differentiationgrows more important in the competitive retailenvironment, retailers should look at mobile, notonly as a sales channel but also as a vital tool forcustomer interaction in a complete multi-channelretail operation. When developing mobileapplication strategies, retailers must not think ofmobile as a silo but from the outset, integrate thechannel into the existing operation."

Kony Solutions, a California-based mobile application provider with big expansion plans inEurope, has announced the results of a study into the driving factors behind current mobilecommerce trends, and the likely impacts on users of connected devices. The study revealedthat 87% of retailers believe mobile commerce will impact shopping in the next two years, yetjust 16% have a mobile strategy in place.

Survey shows just 16% ofretailers are ready for consumerdemand for mobile commerce

David Eads:Deal with AT&Tto re-sell Konyplatform


NFC’s potentialFinally, the survey also explored the development ofNear Field Communication (NFC) technology,consumer attitudes towards mobile payments, andhow retailers plan to implement the technologywithin their stores. A total of 57% of retailerssurveyed are considering NFC technology as part oftheir overall mobile strategy, citing competitivepressures and customer demand as key drivers forthis decision. A quarter of shoppers already want touse their mobiles to pay for items in-store, asopposed to using cards or cash, despite lowconsumer awareness of NFC technology.

Consumers cite convenience (59%) as the reason forusing mobile payments. Security concerns (39%)remain a key reason why consumers say they don’twant to pay with mobile, suggesting a realopportunity for retailers to significantly increaseinterest in mobile payments by addressing theseconcerns and this lack of education since NFCprovides significant security advantages. NFC, saidEads, shares a password with the check-out readerfor only 3-5 seconds, and the device has to be within6cm of the Point of Sale (POS) reader, making it hardfor the transaction password to be intercepted.

Asked by M2M Now if Kony was adopting apartnership model to speed the roll-out of m-commerce systems, Eads replied: “Absolutely. We’vesigned a deal with AT&T to re-sell our platform, andhave recently hired a new vice president ofPartnerships & Alliances.”

Write Once, Run Everywhere The Kony Platform reportedly enables companies tooffer consumers and employees feature-rich mobileapplications in less time and at lower costs than anyother solution. Leveraging a “Write Once, RunEverywhere” definition, applications are designedand developed just once, in a device-agnosticmanner. Applications can then be deployed acrossmultiple channels, including native applications,device-optimised mobile web, SMS, web gadgets,kiosks, and tablets.

Kony claims that its platform thereby makes acompany’s mobile investment future-proof as itenables apps to be changed once for all channels,ensuring faster adoption of new operating systemsand standards as they are introduced, whileeliminating maintenance, upgrade and futuredevelopment costs. Applications on its platformreportedly run across all mobile systems on themarket today, including native apps for iPad, iPhone,Android, BlackBerry, Symbian, J2ME, WindowsPhone 7, and Palm devices.

The company’s customers in Europe already includeAXA Insurance, ABN bank, and an unnamedmajor bank in the UK. It also lists 35 Fortune 500

companies on its client roster, including UnitedAirlines and Toyota plus hotel and auto rentalcompanies.

* The Kony survey was conducted by Vanson Bournein March 2011

THE BACK PAGE

THE BACK PAGE

Golfers could soon find a round is more enjoyable iftheir club invests in a Course Management Unit(CMU) using radio communications, GPS tracking,web-based reporting and digital screens to track andmonitor players on the course.

Using Wood & Douglas’s CMU, golfers carry a wireless tokenthe size of a key fob, giving location updates on players,buggies or staff. The information is beamed live to the web,displaying the data on any internet-connected screen.

Clubs using the CMU can tackle slow play, offer relevantweather reports, and course information for guest players.Golfers can play when occupancy is low, cut delayed starts, andaccurately calculate the longest drive or nearest the pinmeasurements.

GOOD TIMES FOR...Faster, better golf


The last IPv4allocations have been

given to regional registriesby Europe’s IP address body.

"Internet engineers have beentalking about transitioning from IPv4 to

IPv6 for over 10 years now," explainsSebastien Lahtinen, Co-founder of

thinkbroadband.com, "but this is truly the beginning ofthe end for IPv4.”

Regional internet registries are now allocating their last IPv4blocks to network operators, and eventually the shortage ofIPv4 addresses will trickle down to end users. "If you think ofIPv4 addresses in terms of fuel for your car; then we've nowexhausted the under-sea oil reserves and the refineries will soon

produce their last barrels. Eventually the petrol stationforecourts will start to run dry.”

He says the good news is that most users won't really noticeany difference immediately because unlike fuel for your car, youdon't generally need new IP addresses to keep using yourinternet connection working. So, maybe that’s not the bestmetaphor then.

Anyway, the shortage of addresses will start to force serviceproviders to implement IPv6 in order to help grow theirbusiness. “However, like electric cars,” he said, doggedlypursuing the imagery, “it takes time for the supportinfrastructure to be in place before widespread adoption willensue. There are still many legacy devices that don't supportIPv6," concludes Lahtinen.

BAD TIMES FOR ...IPv4 and fuel metaphors

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