Machina Research Strategy Report

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1 Machina Research Strategy Report Machine-to-Machine (M2M) Communications Service Provider Benchmarking 2014 [Extract] Matt Hatton, Director Andy Castonguay, Principal Analyst June 2014 Note: This is an adapted and abridged extract from the Machina Research Report Machine-to- Machine (M2M) Communications Service Provider Benchmarking 2014, published in June This extract was reproduced for Vodafone, featuring the elements of the report that relate to Vodafone. Much of the profiling and analysis, including that relating to other CSPs, in the Executive Summary has been adapted, removed or anonymised.

2 Cellular M2M connections (million) 2 1 Executive Summary Vodafone retains #1 spot again in Machina Research s assessment of global M2M capabilities Scale, growth and customer wins are testament to its success and with the extra added bonus of the Project Spring funding to give it a further push we continue to expect them to be number one. SOBE initiative and the plans to license GDSP will give added impetus to Vodafone s M2M plans As last year, the analysis in the M2M CSP Benchmarking report is based on our assessment of six characteristics: the 6 P s: Pedigree, Platforms, Place, Partnership, Process and People. In this year s report we assessed the capabilities of fifteen CSPs: AT&T, Deutsche Telekom, Etisalat, KPN, NTT Docomo, Orange, SingTel, Sprint, Swisscom, Telefónica, Telekom Austria M2M, Telenor, Telia Sonera, Verizon and Vodafone. Based on this assessment, we ranked Vodafone as the CSP that will be best placed to profit from the growth in M2M in the coming years. Below is a summary of the findings of the analysis, with particular focus on Vodafone. The most basic measure of the Pedigree of a CSP is the number of current cellular M2M connections. In terms of raw numbers of connections (which is not necessarily the best guide to success ), Vodafone is the global market leader with almost 14 million connections. Figure 1-1: Cellular M2M connections by CSP for selected operators, [Source: operators, Machina Research estimates, 2014] In terms of growth, as illustrated in Figure 1-2, the weighted average across the fifteen CSPs profiled here is 27%, with Vodafone seeing the fastest growth at 54%.

3 3 Figure 1-2: M2M cellular connection growth [Source: operators and Machina Research estimates, 2014] 60% 50% 40% 30% 20% 10% 0% Of course connection numbers do not tell the whole story and it is only one indicator of likely future success. For this reason, Machina Research also examines numerous other characteristics of the CSPs M2M offerings to determine who we believe will be the most successful. M2M Platform capabilities are critically important for the profitability of a CSP s M2M operations. For a smaller operator, choosing a cloud-based platform such as Jasper Wireless or Ericsson s DCP gives advantages in terms of feature-set, and potentially access to a wider alliance of operators, bringing commercial advantages. However, this is at the expense of lack of control of the feature roadmap. For many CSPs this is a perfectly acceptable trade-off. For those with greater scale, such as Vodafone, it is possible to broadly match a market-leading feature-set while maintaining control. The key development that is imminent in this space is the decision by Vodafone to license the GDSP platform to third party CSPs. We also note another major platform development in the last year: a greater move into application enablement both through in-house development (e.g. Orange) or partnership (e.g. NTT Docomo and Verizon with ThingWorx). Place was easier to gauge, although there are some subtle nuances. Vodafone has the best global coverage overall, although the disposal of Verizon means it no longer has facilities-based presence in the US. However, the integration of the two offerings was always modest and we don t expect that it will have a negative impact. Other CSPs have historically struggled with global coverage but continue to press on with building global alliances. Machina Research notes four alliances that are significant: the M2M World Alliance, the Global M2M Association, Vodafone s Partner programme and the recently launched Bridge M2M Alliance. The last twelve months has seen a number of changes, and the next twelve months promise more. In particular, expansion of these alliances is creating some interesting bed-fellows, and potentially some conflict. So, with other operators looking to compete with Vodafone s scale by sealing alliances with other players it seems a sensible move for Vodafone to license the GDSP platform and build stronger relationships with other carriers around the world.

4 4 Partnerships and other forms of collaboration are critical to success in M2M. The key thing is not the number of partnerships, but the quality and relevance in terms of providing a complementary set of capabilities. CSPs are getting increasingly selective. The Process category focuses on the nitty-gritty of delivering end-to-end M2M solutions. While Vodafone lacks the in-house systems integration capabilities of some of its rivals, it has developed strong partnerships in this area. Also worthy of note is the SOBE offering that Vodafone launched this year, helping to streamline M2M deployments. In terms of People, most of the CSPs profiled have established dedicated M2M business units, which is clearly a necessity. However, Vodafone s stands out due to scale and the relative importance of the business unit within the overall enterprise line-of-business.

5 5 2 Scope Machina Research s M2M CSP Benchmarking Report provides our view on the likely long-term success of Communication Service Providers (CSPs) in the M2M market in terms of generating profit from M2M services. The focus is squarely on the expectation for future, rather than historic, success (although the latter may be an indicator of a predisposition to the former). There are two main reasons for examining the M2M capabilities of the CSPs. Firstly it can act as a guide to potential customers on which M2M service providers to shortlist. Enterprises looking to implement M2M will frequently be both implementing a complex solution for which they need expert help and making a long-term commitment. They require a high degree of certainty that they are making the right choice of CSP. Secondly, CSPs are constantly on the look-out for best practice in this developing market. Examining the capabilities of competitors is a good way to highlight areas for improvement. Machina Research analysed the CSPs on six criteria: Pedigree The experience that the CSP has in addressing the M2M market. This will often be vertical-specific. While historical success is no guarantee of what will happen in the future it does demonstrate a level of experience in delivering M2M services, which is frequently a very different proposition from traditional voice and data services. Platforms The software platform(s) that the CSP uses for supporting its M2M connections. Platform choices will often have implications for the efficiency with which a CSP can address the M2M opportunity, in particular in the provisioning and connection management process. Machina Research is planning to publish a Strategy Report focusing specifically on the Platforms space, examining the dynamics of this critical element of M2M. Place Where the CSP is well placed to provide services. This includes analysis of geographical footprint as well as horizontal partnerships with other CSPs in non-footprint markets. In the latter case, particular focus is given to the ability to provide an end-to-end service. It should be noted that a CSP s ability to generate profit from an M2M connection will be greater if that connection is supported via its own facilities-based footprint rather than through roaming agreements. Also included as a sub-set of this analysis is the availability of broadband (3G and 4G) wireless networks. With regard to network technology choice, the availability (or lack of it) of broadband networks will affect the ability of a CSP to address the needs of particular applications as efficiently as a rival may. It should be noted that there is a well-defined evolution path for most CSPs from 2G to 3G and LTE. Differences related to network deployment will only be highlighted where it differs substantially from the industry norm. Partnerships Partnering is critical for the success of M2M. The focus is on vertical partnering (i.e. tying up with other players in the value chain to provide a solution that meets the specific needs of the target market). Horizontal partnering (i.e. with other CSPs to provide the broadest footprint possible) is largely covered in the Place category. Process Examining a variety of processes involved in the supply of M2M services including application development, device certification, troubleshooting, SLAs, project

6 6 management/systems integration, and client support. All of these enable a CSP to deliver an appealing proposition to potential clients. Furthermore, the more value-add provided by the CSP, for instance in application support or systems integration, the larger its likely share of the revenue accruing from any given M2M connection. People Much of the success in M2M will depend on having the right personnel in the right place. This section examines the number of dedicated M2M professionals, the CSP s organisation and the fitness for purpose in addressing the M2M opportunity. This document is an extract of the full report, which features additional analysis of the overall M2M CSP landscape as well as profiles of fifteen CSPs: AT&T, Deutsche Telekom, Etisalat, KPN, NTT Docomo, Orange, SingTel, Sprint, Swisscom, Telefónica, Telekom Austria M2M, Telenor, Telia Sonera, Verizon and Vodafone. With these companies we cover the biggest global carriers as well as the most prominent regional M2M players. Each CSP is profiled in the same way as Vodafone, below. For more information on the full report visit

7 7 3 Communications Service Provider Profiles 3.1 Vodafone The last twelve months have seen substantial growth for Vodafone, with cellular M2M connections growing by more than 40%. At the same time it has embraced a number of new and exciting initiatives to further expand its position in the global market. The licensing of GDSP to non-vodafone carriers is probably the most eye-catching. The biggest news for Vodafone has been the sale of its 45% stake in Verizon Wireless, but we anticipate this will be overall net neutral, if not a little positive, for the Vodafone M2M business. That is notwithstanding the additional funds being made available by Project Spring. Table 3-1: SWOT for Vodafone in the M2M market [Source: Machina Research, 2014] Strengths Scale Vodafone is investing a substantial amount in developing its M2M capabilities. Footprint Vodafone has the largest global footprint, including representation in the US and large numbers of Partner operators in nonfootprint markets. Strong pedigree in supporting enterprise (bolstered by the C&W Worldwide acquisition). M2M team has strategic focus within Vodafone Group Enterprise. Ready-made framework for superior commercial roaming/wholesale arrangements with partner operators, which is likely to be complemented by the GDSP licensing arrangement. Opportunities Build on scale of operations to offer increasingly competitive and/or featurerich offering. Substantial investment from Project Spring. Large installed base of enterprise customers represents a cross-sell opportunity. Optimise a horizontal application development environment. Extend geographical coverage through GDSP licensing. Weaknesses Continuing rapid scaling up in M2M capabilities, and restructuring may result in growing pains Lack of systems integration capability Lack of geographical coverage with facilities-based footprint in the US since disposal of Verizon Wireless, although with new ability to strike deals with more appropriate 3GPP carriers AT&T and T-Mobile USA. Threats Potential friction with Partner operators and/or GDSP licensees over commercial terms. Growth of global alliances threatens Vodafone s existing lead in geographical coverage. Inability to secure appropriate partnership arrangements in the US.

8 Cellular M2M connections (m) Annual M2M connections growth Pedigree Vodafone reports M2M connections on a regular basis. This provides some reasonable certainty about how it is faring. At the end of March 2014 it had reached 16.2 million connections. In our analysis of other CSPs (most notably AT&T) we have explicitly distinguished between M2M versus ereaders (in the form particularly of Amazon s Kindle). Here we should do the same. Based on Machina Research s estimates of the number of Kindles connected by Vodafone, we believe that it has around 14.5 million connections that we would term M2M 1. As illustrated in Figure 3-1, annual growth has been a fairly consistent 45% for the last four years and very slightly lower when Kindles are excluded; a very strong performance. Figure 3-1: Vodafone M2M connections [Source: Machina Research, 2014] % 45% 40% 35% % 25% 20% 15% 10% 5% Kindles M2M % growth % growth M2M - Q Q Q Q % NB The split between M2M and Kindles in the chart above is based on Machina Research estimates. The total figure is from Vodafone. The growth seen in the last twelve months is attributed by Vodafone to a number of things: Big clients It secured some large global clients, e.g. Volkswagen, while existing large clients such as BMW continue to grow. Emerging markets It has stimulated growth in smaller markets, e.g. stolen vehicle recovery services in Africa, India for smart metering, connected car and track & trace, and some highly regulated markets in Central & Eastern Europe, such as a legal requirement in Hungary to connect all cash registers, which resulted in a market growth exceeding 100%. Connected products This ranges from the usage-based insurance product with AIG, to the connected ice cream cabinet. Vodafone provides the hardware, software and connectivity. Increasingly Vodafone is building on the capabilities from the C&W Worldwide acquisition to provide even more sophisticated solutions. 1 Machina Research does not consider ereaders or Tablets to meet our criteria of M2M.

9 9 Consumer-selected M2M Where previously M2M was largely B2B, Vodafone has diversified into more consumer-oriented spaces, such as tablets. The simple out-of-the-box experience (SOBE) initiative is aimed at providing consumer electronics devices with automatic connectivity and network localization (switching from a Vodafone Global SIM to a local carrier, with which the customer then agrees contract terms). It was deployed in six devices during 2013, including the Kindle Fire. As well as a growing customer base, Vodafone has also noted an uplift in like-for-like data traffic and ARPU. Devices are generating more traffic and more revenue as usage grows. Following the sale of Verizon Wireless in September 2013 (see Section below), Vodafone announced that it would reinvest some of the proceeds in a GBP7 billion capex plan called Project Spring. The company gave further details on how it would spend the money in its half-year result statement of November Although the bulk of the money has, as expected, been earmarked for network coverage and capacity improvements in Europe and the Asia-Pacific region, GBP0.5 billion is to be spent specifically on the Enterprise segment both to expand [Vodafone s] geographic coverage for [its] core enterprise business as well as its M2M solutions ( ). 2 Part of this funding will see GDSP rolled out globally (see Section below). The last twelve months has seen some great client wins. In March 2014, it secured the contract for connecting Volkswagen/Audi, and has recently secured deals with Fiat as well as a number of other OEMs that have yet to be made public. Vodafone claims that 50% of the car market in Europe (by production numbers) is using Vodafone connectivity, or will be. Other significant non-automotive wins include KONE in April 2014 for elevators, Astra Zeneca for cardiovascular patient monitoring in March 2014, and Keenan Systems for livestock management (August 2013). In August 2013 Vodafone cut a deal with HybridPayTech, a technology leader in the mobile payment space, which sees Vodafone provide connectivity for a new mobile payment service. The service allows businesses to equip mobile employees with smartphones or tablets that can securely process credit and debit card payments globally using Vodafone's network. The significance of this deal is that it is more than simply a standard M2M solution sale. In effect the HybridPayTech solution stitches together aspects of M2M, mobile enterprise application integration and plain old business mobile telephony. As such, this is an instance of M2M adding stickiness to a business telecoms relationship, and also opening up new revenues channels. It has been recognized for some time that there is little money to be made by mobile operators from simply providing M2M connectivity and, as a result, many mobile operators have looked to move up the value chain within the context of standalone M2M applications. What is interesting about the HybridPayTech announcement is that it potentially heralds the more widespread adoption of M2M strategies that are conceived within the context of wider business aims, as opposed to M2M being a standalone business line Platforms Vodafone launched its Global Data Services Platform (GDSP) in mid-2009, officially known as the Global M2M Platform. This connectivity management platform provides all the usual SIM 2 r2013/dl_halfyear2013.pdf

10 10 provisioning and management functionality. The persisting question with regard to GDSP is whether an in-house platform can provide all the required functionality and, particularly, has a strong development roadmap. For any CSP other than Vodafone, it may have been a problem. However Vodafone has the scale to justify continuing investment. Furthermore the fact that it s an in-house developed system means that it is fully under Vodafone s control. This allows for a degree more integration with the platform. It also provides more certainty. Unlike 3 rd party platforms it can t be sold to a competitor and Vodafone can allocate development resources exactly where it sees fit. As noted in Section above, Project Spring is providing additional funding for M2M. One major tenet of this is the licensing of GDSP to non-vodafone CSPs around the world. The intention is to support customers with GDSP in every country. Courtesy of the Datora acquisition (see Section 3.1.3, below) it has been rolled out in Brazil. Other countries, including Indonesia and Japan, are to follow during In some cases a fee will be charged, in others it will be free. The aim is not to generate revenue from software licenses, but to get as wide a distribution as possible, unlike the commercially licensed platforms such as Ericsson s DCP or Jasper s Control Center. Furthermore anyone adopting GDSP will naturally position themselves well to host localized connections from Vodafone s clients, although Vodafone s hope is that the operator would use GDSP for all domestic connections. Machina Research anticipates that this will be an appealing proposition for smaller CSPs, but many are likely to choose to adopt GDSP as a complement to one of the other platforms if possible. That way they maximize their potential opportunity for incoming connections. As an ostensibly free option, we can anticipate it being widely adopted, which will provide a competitive differentiator for Vodafone in some global contracts. Vodafone has worked with Accenture to make available a more standardized data reporting and application enablement platform. The foundations for this were laid with the full acquisition in November 2012 of Greek fleet management firm Zelitron (Vodafone previously owned 40%). Vodafone also holds a 20% stake in Device Insight, adding a device management element to the proposition. The result is an all-in-one M2M package for the remote monitoring and control of M2M enabled devices, combining three key elements: hardware, wireless network connectivity and application software. Vodafone s Remote Monitoring & Control Service (RMCS) is claimed to make it easier for companies to implement and integrate M2M solutions into their business processes. This is not a transformational announcement, but Vodafone has clearly recognized the level of fragmentation present in the M2M market. Bringing the RMCS platform solution to market is an attempt to standardize at least the infrastructure supporting these diverse applications. The aim is to scale and industrialise the application enablement element to provide standardized remote monitoring and control capabilities for any M2M device and to provide a tool set to simplify process integration Place Vodafone s European footprint is extensive through its own operating companies. The group is also strong in Africa through 65% owned Vodacom and has subsidiaries in Australia, India and New Zealand. As well as its own footprint of majority-owned network operators Vodafone has a network of Partner operators that it has built over the last ten years. It includes the likes of TDC Denmark, SFR in France, MTS in Russia and China Mobile. Today Vodafone has over 50 partner operators that are commercially and technically integrated.

11 11 In September 2013, Vodafone sold its stake in Verizon for USD130 billion. We do not believe that this move will have any significant immediate impact on either company s M2M offering, and may free Vodafone up to pursue opportunities and partnerships it may otherwise have been prohibited from 3. There has been speculation that the sale of the Verizon Wireless stake could be a precursor to a bid for Vodafone from AT&T, but thus far no such offer has been forthcoming. Elsewhere, in May 2014 Vodafone and French MNO SFR (in which Vodafone previously held a substantial minority stake) announced a four year renewal of their strategic alliance covering areas including M2M. Figure 3-2 below shows Vodafone s footprint, together with its Partner operators. Figure 3-2: Vodafone's global footprint [Source: Machina Research, 2014] In September 2013, Vodafone established a sales office in South Korea and entered the domestic Korean M2M market. Vodafone will provide global M2M services for Korean companies wanting to expand business overseas. It has been successful in a number of projects already, most notably with Hyundai. Machina Research has highlighted previously the benefits of selling to global exporters at source and we believe that this is a sensible and pragmatic move for Vodafone, and that it underlines its global ambitions. Vodafone has also extended this approach to China, having added a dedicated person in that market. Meanwhile, in South America, Vodafone has established an agreement with Datora Telecom to support the growing number of multinational businesses looking to extend a presence in Brazil. From August 2013, Datora Mobile rebranded to Vodafone Brasil. Datora itself has a dedicated M2M 3 For more detail on Machina Research s views on the disposal of Vodafone s 45% stake in Verizon, see Research Note Vodafone sells Verizon Wireless stake and maybe opens door for AT&T tie-up: the implications for M2M (September 2013).

12 12 unit and has installed more than 150,000 M2M connections on behalf of corporate customers. The Brazilian M2M market, due to regulatory factors, requires a local on-the-ground presence 4. As noted in Section above, the next twelve months will see a concerted effort to license GDSP to lots of other CSPs around the world. While this won t result in any additional Vodafone presence on the ground it will create a more global footprint. As well as the network coverage, Vodafone also has a very strong pedigree in supporting the large enterprise customers, such as Unilever. It will look to cross-sell M2M services into this existing base. In July 2012 the EU approved Vodafone s acquisition of Cable & Wireless Worldwide (CWW), a deal which was completed in August The acquisition of CWW is having a positive impact in a number of different ways. Firstly it provides support for alternative complementary access technologies, most notably fixed-line. Secondly it provides the wider support for global solutions, for instance through data center and fibre backhaul assets. Finally CWW is very strong in the enterprise market, giving Vodafone a new route to market for M2M service, plus it lends credibility to Vodafone s offers to big business Partnerships Vodafone has done a good job building their global partner programme to encompass aspects of the value chain in which the company is not naturally strong. This includes systems integrators such as Accenture and CGI, device manufacturers such as Cinterion, Novatel and Sierra Wireless, and various others including Wireless Logic and Orbcomm. This is in addition to the other strategic relationships mentioned in this profile such as with Zelitron and Device Insights and module manufacturer Netcomm Wireless Process Unlike some of its peers, Vodafone has no dedicated systems integration (SI) arm. However, it has built close relationships with the likes of Accenture, IBM and HP and believes that it has the flexibility to partner with the best-in-breed SI based on the country and sector. Despite this lack of specific SI capability, Vodafone has allocated a large amount of resource to project management including technical sales people working with the client to design solutions and make recommendations about specification. This includes local support and local touch-points. They are also increasingly focused on their M2M developer programme that went live in This increasing focus on products and solutions rather than connectivity is illustrated by examples presented in Section above. Last year Machina Research flagged the sale of pre-integrated M2M bundles as a differentiator for Vodafone. The benefit here was that clients can use Vodafone as a one-stop-shop for all of the M2M capabilities, with a single global contract with one point of contact. Vodafone has continued to build on this for standardised hardware terminals. It has established a strong relationship with module/device manufacturer Netcomm Wireless to provide integrated hardware. This standard form factor brings a benefit of scale and a consequent reduction in price. Of course this is not 4 For more details on Vodafone s deal with Datora and the challenges of M2M in Brazil, see Research Note Research Note - Overcoming the permanent roaming challenge for M2M: Vodafone deal with Datora shows one solution, while AT&T keeps its options open (September 2013)

13 13 applicable in all environments but certainly in industrial applications standard devices are perfectly serviceable, e.g. aircon, ATM, industrial. As noted in Section above, Vodafone has deployed euicc capability through its SOBE offering. In so doing it has built up additional knowledge of how to deal with the customer experience element of localization, as well as other challenges such as billing, pricing, and customer conversion. This experience will be valuable when replicating it in the automotive sector. Vodafone has also been working to streamline the application development environment (see Section 3.1.2, above) People Vodafone formed a dedicated M2M business unit in It has a team of 400 attributed to M2M worldwide, up from 350 twelve months ago. The team also takes advantage of local resources, e.g. national enterprise sales teams in its operating companies. Vodafone is also employing more people in non-footprint markets to address the global opportunity, such as China and Korea (see Section 3.1.3, above). Vodafone has allocated a large amount of resource to vertical-specific teams and has a lot of vertical specific experts. Typically this has involved hiring in vertical experts such as industrial automation expert from Siemens and automotive experts from the likes of Garmin and Denso. From 1 st January 2013 the Vodafone Enterprise business unit was restructured, forming the Group Enterprise Division. M2M is one business unit within the new structure, with M2M head Erik Brenneis reporting to Nick Jeffery, head of the overall enterprise unit.

14 14 4 Overview of Machina Research Advisory Services Machina Research is the world's leading provider of strategic advice on the newly emerging M2M, IoT and big data markets. The company is staffed by mobile industry veterans with the knowledge and understanding of these new market opportunities to help your company, whatever its requirements in this space. Machina Research supports its clients through an annual Advisory Service subscription consisting of the following elements: Forecast Database On-going access to this constantly updated forecast of the M2M and mobile broadband opportunity worldwide. Strategy Reports Six full-length reports per year focusing on the key themes in M2M/IoT such as operator best practice, software/middleware platforms, devices, value chain, channels to market or data analytics. Sector Updates Every year we publish a series of updates on each of the 60 applications in our 13 vertical sectors (e.g. automotive, healthcare and utilities). Research Notes 3 shorter reports per month examining key issues in the world of M2M. Strategy Sessions On site presentations. Analyst Inquiry Direct access to our analyst team. Previous publications Clients enjoy full access to our library of past publications. In addition to our Advisory Service, Machina Research frequently engages in custom research projects for our clients. Details of each of these elements is given in the sections below. 4.1 Forecast Database Machina Research s Forecast Database provide comprehensive forecasts of the M2M and mobile broadband market across each of thirteen Sectors as illustrated in Figure 4-1. Subscribers to the Machina Research Advisory Service receive full access to the output from the Forecast Database across all 13 sectors. These forecasts are complemented by qualitative analysis of the vertical sector in the form of Sector Reports.

15 15 Figure 4-1: Machina Research's thirteen Sectors The forecasts cover 201 individual countries and 6 regions and includes granular 10 year market forecasts for multiple Application Groups within each sector (e.g. within the healthcare sector, and as illustrated in Figure 4-2, it includes a breakdown by each of eight Application Groups each based on analysis of multiple Applications, for example the Assisted Living forecasts include consideration of five separate Applications). Another example is the Utilities Sector which is broken down into three Application Groups: smart meters, electric vehicle charging and transport & distribution management. Figure 4-2: Applications in the Healthcare sector Currently Machina Research s Forecast Database covers a total of 61 Application Groups individually, based on analysis of hundreds of Applications. The Forecast Database includes several million datapoints.

16 16 For each Application Group the forecast includes numbers of devices and numbers of connections and traffic with splits by technology (2G, 3G, 4G 5, short range, MAN, fixed WAN and satellite). We also forecast total revenue and include a break-out of mobile traffic revenue. For more detailed definition of the 13 Sectors and 60 Application Groups and definition of forecast metrics please refer to the Annexes at the end of this proposal. The Forecast Database is delivered in Excel format via a web interface. The Forecast Database is accessed via an online tool. Login details are available for any employee of our clients upon request. Figure 4-3 illustrates the tool. Figure 4-3: Forecast Database dashboard We also have a separate forecast of the potential for Low Power Wide Area network technologies which are available through a separate tool. For more information on the Forecast Database, visit here: 5 Note: Cellular traffic is not split by technology generation. Our forecasts include simple a total for cellular traffic for all generations.

17 Reports & Research Notes Our written deliverables come in two types: Reports and Research Notes Reports These are the backbone of Machina Research s work. There are three forms of publication: Strategy Reports: These reports analyse a specific issue within M2M markets in some detail. We will publish six Strategy Reports during 2014 on the subjects such as M2M software/middleware platforms, security and privacy, wearables and standards. Our annual M2M CSP Benchmarking Report is also counted as one of these Strategy Reports. Sector Updates: These provide qualitative and quantitative analysis of the emerging opportunity for machine-to-machine communications in each of our 13 sectors. They include analysis of the drivers and barriers and detailed analysis of each of the application groups in the sector. Global Forecast Report: Drawing on data from the Forecast Database this report examines the total market for global connectivity including detailed analysis of key growth applications, revenue opportunity and total addressable market. This report describes the total market opportunity for M2M Research Notes These are shorter reports (typically 1,500-2,500 words) that focus on a specific issue, company or application and examine it in greater detail. Also, the short-form report can be used to comment on important events as they occur, allowing our analysts to react quickly to a new development and quickly inform our clients of the implications. We publish, on average, 3 Research Notes per month, giving a total of 36 Research Notes over 12 months. 4.3 Library of previous publications All previous Machina Research publications are also available online via our website. 4.4 Strategy Briefings An opportunity for direct face-to-face interaction between the client and the Machina Research analysts. Typically a Strategy Briefing will involve a presentation at the client s premises on a theme agreed with the client within (or closely related to) the scope of existing research. Relevant travel costs will apply.

18 Analyst Enquiry Clients also get direct access to our analysts in the form of enquiries about the published materials and associated topics within M2M. You may want to request clarification on something within the report, ask for a brief update or pick our brains on any issue pertaining to M2M or mobile broadband. We provide clients with unlimited access to our analysts, up to a maximum of one hour per enquiry. We are happy to undertake more substantial enquiries as custom research. 4.6 Custom Research & Consulting Machina Research s analysts have a wealth of experience in client-specific consultancy and custom research. Typical work for clients may involve custom market sizing, competitor benchmarking, advice on market entry strategy, sales support, marketing/promotional activity, white papers or due diligence. Subscription clients are eligible to purchase our custom research and consulting services at discounted daily rates. For more information on Machina Research, visit our website at