European M2M service providers add intelligence capabilities to offerings
The entry of new wholesale providers into the machine-to-machine communications market in Europe is prompting Tier 1 service providers to add intelligence capabilities to their offerings, observed Frost & Sullivan analyst Yiru Zhong.
"Because intelligence has different meanings and value to different customers, Frost & Sullivan expects an M2M telco market leader to emerge by tailoring a menu of M2M intelligence for a broad spectrum of customers, including small and medium-sized enterprises, and by offering both communication and computing capabilities to simplify customers' M2M adoption processes," Zhong said.
Zhong expects the European M2M market to be strong in the near term. In 2011, the number of connected devices grew 60 percent, according to Frost & Sullivan figures cited by RCR Wireless.
To distinguish itself in the M2M space, Deutsche Telekom has set up an M2M Marketplace that promotes a technology and user-agnostic trading market to bring buyers and sellers together.
DT's M2M Marketplace provides a virtual market in which sellers of M2M devices, products, technology, and services meet buyers of IT products to improve productivity, reduce downtime or increase stock availability. DT aims to simplify vendors' application development and buyers' search and selection processes, and to capture a fraction of M2M revenue through this facilitation.
"DT's M2M Marketplace mirrors the Amazon model by serving hard-to-reach customers. A wide range of buyers and sellers can trade on DT's Marketplace--where DT provides the necessary back-office and infrastructure to ensure that sellers' products, technologies, solutions, and services work in buyers' environments," explained Zhong.
Other European telecom providers, such as Telefonica/O2, Orange Business Services, or Vodafone Global Enterprises, are also working on their M2M strategies, he related.
"The battle for M2M revenue is not fought only in pure M2M connections and communications services; it is increasingly fought at the M2M data level, which is still in its infancy," concluded Zhong.