IoT road map and strategic implications for industry stakeholders

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1 IoT road map and strategic implications for industry stakeholders ETSI onem2m Workshop Presentation Ken Figueredo 9 December 2015

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3 Introduction Ken Figueredo Business consultant, focused on the connected devices market since 2008 Advised on the GSMA s new markets strategy (Connected Living market development campaign) Background in business consultancy and innovation via mobile telecoms Today s presentation draws on IoT market insights from some of my current projects onem2m Ecosystem Accelerator : working with a group of companies to promote onem2m amongst commercial audiences IoT strategy and implementation projects involving three multi country, mobile operators

4 Where are the growth opportunities in the M2M/IoT market? 1. Move up the value chain 2. Expand footprint via more connectivity technologies (e.g. LPWA, Wi Fi, Bluetooth etc.) M2M/IoT Applications Application Enablement 3. New business opportunities from interoperability across application silos Managed Network Devices & Modules

5 Moving up the value chain: a 20x revenue growth potential Percentage Distribution of IoT application Revenues M2M/IoT Applications Application Enablement Managed Enabling platform service revenues IoT Application Revenues ~80% ~15% Application Enablement Platforms (AEP) Connected Device Platforms (CDP) Network Network access and connectivity revenues ~5% SOURCE: Verizon, internet of things/

6 Some of the leading edge telcos are moving right up the value chain and experimenting with end to end application offers (examples) SOURCES: Company presentations at industry events (Industrial Internet Consortium conference, IoT Week Korea 2015) and press publications

Support for new connectivity technologies: lower, per subscription revenues by at least 20x PER DEVICE CONNECTIVITY PRICING TREND Mobile connectivity ~Eur24/ year SigFox connectivity ~Eur1.2/ year 2.

7 Support for new connectivity technologies: lower, per subscription revenues by at least 20x PER DEVICE CONNECTIVITY PRICING TREND Mobile connectivity ~Eur24/ year SigFox connectivity ~Eur1.2/ year 2. Expand footprint via more connectivity technologies (e.g. LPWA, Wi Fi, Bluetooth etc.) strategies/sigfox plans global iot network/d/d id/ Network Devices & Modules

8 Interoperability opportunities account for 40% of the value of the IoT opportunity (i.e. a 1.4x multiplier on silo applications) Illustrative Industry Initiatives M2M/IoT Applications Device clouds & data exchanges Application Enablement HyperCAT onem2m Managed Network Google Thread OIC Allseen Alliance SOURCE: McKinsey Global Institute, The Internet of Things: Mapping the Value Beyond the Hype (June 2015)

(per application) 1. Move up the value chain ~0.05x (per device) 2.

9 Businesses will follow multi step strategies to capitalize on different value drivers (what s optimal) REVENUE IMPACTS OF DIFFERENT GROWTH STRATEGIES ~20x (per application) 1. Move up the value chain ~0.05x (per device) 2. Expand connectivity footprint ~1.4x (per application) 3. Interoperability opportunities

10 Where does onem2m fit in relation to cross industry efforts? IoT Applications M2M/IoT Application Enablers (Horizontal Platforms) > > > > > Requirements Specifications Standards Industrial Internet Consortium (IIC) Allseen Alliance Open Interconnect Consortium (OIC) HTTPS, JSON, REST Test & Certification IIC Test Beds onem2m (industry standard) Market Development HyperCAT Commercial Incubation Company Trials FiWARE (reference platform) Management Networking LoRAWAN Thread Group LoRA

11 Strategic implications for onem2m Need to progress from standards to (many) visible commercial offers standards are good but users are looking for commercial solutions No single company can address all IoT service enabler requirements; an open eco system will be key for the commercial market onem2m device vendors depend on platform service providers and vice versa Value added service providers depend on host platforms and devices to manage Learn from strategic growth avenues to plan onem2m standards road map Address opportunities and requirements higher up the value chain Interoperability applies to different layers of the value chain Plan ahead for high volume, very low cost economics

12 Issues for industry stakeholders.. Hardware vendors will you build a platform or partner with platform providers? MNOs how best to deal with the risk of disintermediation? Platform service providers how to attract device vendors plug in services and application developers? Enterprise users what are the financial alternatives of a proprietary vs. standards approach? Do industry incumbents want to create value organically or acquiring externally (data exchanges, analytics as a service etc.)?

13 Thank you and please stay in touch Ken Figueredo with mobile.com newsletter and market insights

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