M2M FEATURE

September 06, 2011

ITEXPO West Interview: Trends in M2M Applications

Market evolution has been apparent in the telecommunications space and as trends continue to emerge, opportunities are ready for companies taking the lead. To get an inside look at these trends and how they are affecting the industry, TMCnet’s Rich Tehrani recently spoke with Mike Sapien, Principal Analyst-Enterprise Practice, at Ovum. Sapien highlighted three major trends: mobility in a number of dimensions; increased network intelligence; and a new consumption model that provides for both former hosting and new cloud service. As for the next disruptive force, the two major forces will be the combination of business and personal applications within the workforce and the movement of services into cloud architecture.

Sapien also noted that cloud services have changed and combined vendors, while radically changed revenue models are forcing new collaborations. As for client requests, they are most often asking for services that cross IT and Telecom to create needed services. As for universal solutions in social media, Sapien anticipates there will be a push for dual personal devices to support personal and business use. When asked about the product mix consuming bandwidth in the future, Sapien believes it will be predominately data traffic with voice relegated to low bandwidth. As for Google+, Sapien believes it will have great initial interest and followers before fading like other Google social media experiments of the past.

When asked about mobility, Sapien noted that new corporate policies will have to support an environment of no home, no office. As for the mobile operating system war, he anticipates the war will predominately be between iPhone and Android for the next five years. He believes HTML5 will be a low game changer. At the upcoming ITEXPO West event, Sapien is excited to see how service providers will move towards mobility and cloud services. He will share major trends, developments and adoption of M2M applications.

Their entire conversation follows:

1.          How has your market evolved over the past year and what trends have fueled those changes?

The major trends are 1) mobility in many dimensions – mobility devices, enterprise bring your own device and enhanced mobility of many services and applications; 2) Increased intelligence in the networks which enhances the support for applications and horizontal features (e.g. security) that support business and consumer applications; 3) New consumption model which includes the former hosting services and new cloud service model which will drive both consumer and business service adoption.

2.          What do you see as the next disruptive force in technology and how will it impact your market or business?

There are two major forces -- one is the combination of business and personal applications within the workforce and 2) the movement of many services into cloud architecture as it is forcing a new business model that is changing technology companies and service providers of all kinds. 

3.          How has the acceptance and adoption of the cloud model influenced your development cycle and process?

Cloud services has changed and combined vendors as well as radically changed revenue models forcing vendors and service providers to collaborate and compete at the same time in many markets and services.

4.          What is the most common request you are seeing from your customers? How is your company addressing these demands?

Our clients are asking for services that cross IT and Telecom which is forcing our company to create services that can address both technology worlds and create the combined offer to address this demand.

5.          There has been talk of Facebook coming into the mobile marketplace with its own devices, and LinkedIn just rolled out a new HTML5 mobile app. Do you expect we will see a push towards universal solutions or customized mobile devices as we move forward in social media?

I see a push for dual persona devices that support personal and business use so that all users can dictate their use of social networks, business and personal applications including other social media and some private corporate social applications.

6.         Besides phone calls, mobile is now sharing bandwidth with video and machines. What do you predict will be the mix of traffic in the future?

The mix will become predominately data traffic with voice relegated to low bandwidth and flat rate pricing. Data will be usage based and voice will be flat rated in the future. In many cases, voice will just be one of the many applications riding the data traffic which may lead to mobile devices (beyond phones) that support only data services.

7.         Will Google+ become bigger than Facebook and Twitter? Why or why not?

Google+ will have great initial interest, gain some followers and then fade away as one of the other great Google experiments of the past. But I also see Twitter’s interest decreasing over time as many different applications provide similar features that become more mainstream.

8.         As businesses continue their move toward virtual workforces, how are you meeting the need for increased mobility?  What barriers are keeping others from adopting mobile strategies?

It is all about new corporate policies that have to support the “NOHO” (No Office, Home Office) environment of most people in the workforce who are going to demand working anywhere and not having a main location of work at all but also being able to work from home or any remote location. Work will become a ‘state of mind.’

9.        How do you see the mobile operating system war (iPhone vs. Android vs. RIM vs. WM7 vs. HTML5) playing out?

I see this being predominately a war between iPhone and Android for the next 5 years; anything can happen after that. RIM will always have a smaller following but not fade away and HTML5 may become one of the emerging OS developments but it will take three years for any major acceptance.

10.         Is HTML5 the game changer many predict it will be?

If there is a rating of high, medium and low game changer, it will be a low game changer but create increased flexibility to many applications.

11.        What are you most looking forward to at ITEXPO West in Austin? What do you see as being the biggest trends at the show?

In general, I am looking to see how the service providers are moving towards mobility and cloud services; and also looking the early adoption of cloud services and key adoption requirements or learnings.

12.              What issues will you be addressing during your ITEXPO session and why should attendees be sure to attend?

I am planning to share the major trends, developments and adoption of M2M applications with a focus on the variety for operator strategies in provides these applications and services. This will include the horizontal and vertical nature of the services as well as the complex ecosystem that had to be managed to provide these applications. It is not as simple as selling one network service or device to one customer any more.

The M2M Evolution Conference will be collocated with ITEXPO West, the world’s premier IP communications event, to be held Sept. 13-15  at the Austin Convention Center in Austin, TX.  M2M Evolution will include a series of analyst insight, case studies, and roundtable discussions and will show attendees how to exploit this technology to minimize destruction, fraud and theft across all vertical markets.  Don’t wait. Register now

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Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Rich Steeves


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