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M2M/IoT Predictions for 2015 from Machina Research

Machina Research, the noted U.K.-based analysis firm covering machine-to-machine (M2M) communications, the Internet of Things (IoT)and Big Data, recently published its predictions for M2M/IoT in 2015. As youll see below, theyve covered a variety of areas, which we at Aeris are heartened to see apply to our strengths.

Some examples:

Enterprises will get cracking in IoT

Aeris also believes this is an area of growth and has focused on serving the market, including the segments of fleet telematics, healthcare, point of sale, and utilities.

Major OS vendors disrupt the connected car market

Aeris is a valued supplier to four automotive OEMs, including Hyundai and Honda. With Aeris, these OEMs have enhanced connectivity for the complete vehicle life cycle, from the manufacturing floor until the vehicle is destroyed, changing the business dynamics of their programs.

More productized offerings

Machina says, there will be many more platforms and solutions enabling out-of-the-box connected devices. Aeris is leading this trend with the release Neo, its online platform enabling prospective customers to purchase a connectivity solution in minutes, and have a fully functional solution within a day. This open and transparent online marketplace for IoT and M2M connectivity unleashes the massive potential of the Internet of Things by radically simplifying the development process, speeding time-to-market, and dramatically lowering costs by 50 percent or more.

These are some of the most important trends of 2015. Read on to see all of Machines predictions:

  1. Enterprises will get cracking in IoT. Right now enterprises are wondering what this IoT thing is. Next year the rubber hits the road. We will see a lot more commercial deployments of enterprise IoT. Theres a huge amount more interest from a diverse range of enterprises. Until now its been exploratory. In 2015 it becomes meaningful. For more information, see our Machina's newEnterprise IoT Research Stream.
  2. More productised offerings. There will be many more platforms and solutions enabling out-of-the-box connected devices. This area has been somewhat overlooked up until now, with everybody focusing on industrial/ application type platforms. Just enabling lots of same devices to communicate may be less glamourous, but the numbers involved are huge.
  3. More M&A. During 2014 weve seen a lot of interesting M&A, not least PTC acquiring Axeda, in addition to ThingWorx, as well as recent deals that saw Kore buy RACO Wireless, and Sierra Wireless buy Maingate. 2015 should see more of the same, particularly involving two types of companies. Data analytics providers will be increasingly appealing as companies seek to broaden their service offerings to include analytics capabilities. Meanwhile full service providers such as Numerex, Aeris Communications and Raco/Kore will become increasingly attractive acquisition targets. As the primary full-service M2M solution providers in the space, these mid-tier companies provide a crucial service path to enterprises looking to build and design IoT and M2M projects. 2015 will be the year of consolidation for these agile companies.
  4. Breakthroughs in smart city service deployments. 2015 will be the year when well see some real commercial success stories in smart cities, especially from services that save money. Street lighting is a good example because electricity consumption is a major part of the OPEX for the city. Machina Research's new Smart Cities Research Stream delves into this area in much more detail.
  5. Major OS vendors disrupt the connected car market. 2015 will be the year that one of the major OS players makes a disruptive intervention in the connected car market through an innovative after-market device and platform play. There are a number of interesting start-ups in this area with OBD-based propositions that are sound but sub-scale. Several look ripe for acquisition or emulation by the big boys.
  6. Mobile phone as the gateway for IoT. Machina Research had already highlighted the possibility back in the beginning of 2014 that the smartphone would be integral to IoT, when for example looking at iBeacons and wearables. What will become even more interesting is when data analytics uses the mobile phone as one of many processing platforms for geo-distributed analytics (which it will be able to, given the processors and memory).
  7. A year for avatars. This will be a very good year for avatars digital representations of things that are open to standards-based Web APIs, thereby obviating the need for app developers to engage with connectivity protocols. Machina Research published a Research Note on one such firm, Evrythng, last year.
  8. A crunch on regulation. Machina Research launched a service looking specifically at M2M & IoT Regulation in 2014 and its a critical area in 2015. Regulators are set to focus much more attention on M2M and IoT. This is both good and bad. There is a quicksand of regulatory uncertainty threatening to hold back M2M deployments, in particular around permanent roaming. Well also see more regulators wanting to adopt a nurturing approach to IoT. Machina Research will host a webinar on M2M and IoT Regulation on 20th January.
  9. Segmenting for success and identifying role in IoT. Its a function of the maturity of the sector that companies throughout the M2M and IoT value chain will increasingly realise that they cant sell everything to everyone. Everyone selling into this sector will become more discriminating. This means all players will need to better define their role in the Internet of Things.
  10. Privacy and security. Issues of privacy and security reach the top of the agenda. The complexity of IoT solutions will require a fresh way of thinking about security. Requirements will vary massively depending on the application, while the number of moving parts in any solution mean that there are a lot of potential weak links. Security will need to be considered on an end-to-end basis. Furthermore M2M and, particularly, IoT involve the widespread sharing of data. Understanding the dynamic and implications of all of that data sharing will be critical.