1. Managing theInternet ofthings M2M Solutions for Communications ServiceProviders Business white paper

2. Table of contents 4 Executive summary 4 Understanding the potential of connecteddevices 5 Key verticals as natural candidates for M2M solutions 6 HP M2M Solution for service providers 7 HP M2M Innovation 8 HP and M2M standards 8 An M2M solution that puts you ahead ofthe curve 3. Machine to Machine (M2M) Machines with embedded network communications technology that monitor and control through communication with backend systems 4. 4 Executive summary Billions of connected devices start to be deployed in the world with e-readers, smart meters and connected cars, tracking devices on containers, health monitoring, wearable, home appliances, building infrastructure monitoring, bridge or dam surveillance, environment sensors, and so on. Sensor technology is becoming smaller and smaller; more and more sensitive and accelerometers are now inserted on chipsets. Communication protocols, especially wireless, have also developed in many directions to enable very diverse scenarios from low bandwidth, low power to high bandwidth, more energy consuming technologies. Machine to Machine (M2M) is a broad domain if we include Radio Frequency Identification (RFID) tags and consumer electronics and a fast growing business. Communication technology, wired with broadband and powerline, wireless with PAN, LAN and WAN, and wireline and wireless WAN devices represents about 40percent of overall M2M revenues. According to the independent wireless analyst firm, Berg Insight, the number of cellular network connections (wireless WAN) worldwide used for M2M communication was 47.7 million in 2008.1 The company forecasts that the number of M2M connections will grow to 187 million by 2014. Which represent an opportunity of more than $50 billion USD for communications service providers alone in 2015, according to Harbor.2 All those devices need to be connected to the network, authenticated, provisioned, and monitored. Data needs to be collected, analyzed, stored, secured, dispatched, presented, or leveraged by some sort of applications or end users. Protocols are still proprietary; heterogeneous. The device manufacturer market is very fragmented. Applications are very diverse. Mass market solutions appear in some verticals, but many unique implementations remain necessary in certain domains. The opportunity is huge for new solutions, new services that combine connectivity, data and service management, and ecosystem management. Service providers are uniquely positioned to serve this market and deliver federated, trusted, and flexible environments for device and application vendors to collaborate and deliver these future solutions. Combining its communication, IT, and services skills, with its vertical domain expertise, HP has implemented an M2M solution that packages critical components required to speed up deployment of service provider M2M infrastructure. This solution is based on proven HP products and delivered by HP M2M Services practice teams, combining Communication, IT, and Vertical Service Consultant Principals. Understanding the potential of connecteddevices Besides PC and mobile phones, a number of other devices have started to leverage wireless technology, particularly wireless WAN, to interact with some remote applications. Fleet Management solutions and other tracking and tracing applications have started to develop. Mobile World Congress 2012 was all about M2M. GSMA conducted a study with Machine Research and published a forecast of $4.5trillionUSD by 2020 for the connected devices market; $2.5trillionUSD of this would come from sale of connected devices and services, and half of it goes to operators. BMW, Nissan, Porsche, Ford, and other Connected car demos proved that more and more vehicles are now shipped with embedded SIM. Fords CEO even predicted that by 20172025 cars will drive without human intervention. Something that is relayed by ETSI ITS standard group. Regarding Healthcare, Orange, Etisalat, and Qualcomm to name a few, presented mhealthcare solutions for remote patient monitoring or baby birth mobile assistance.3 Connected home was also a hot subject with Vodafone, AT&T, and KT; and different vendors showing sensors, gateways, and smart applications to control temperature, humidity, access, or devices in the home or in buildings. Alliances are being formed between operators: Telefonica and China Unicom, Orange and Sprint , and so on. These initiatives have shown an inflection point in the industry where volumes and complexity underscored the need for a more structured and consolidated approach with some processes and solutions that would guarantee some quality of service. Service providers have clearly seen the opportunity to leverage their infrastructure and capabilities to become a key player in that space, beyond the opportunity to sell M2M SIM cards with an average ARPU of $5 USD. AT&T, KPN, Rogers, Telcel/America Movil, and Jasper Wireless began work on the creation of an M2M Web presence, to serve as a hub for developers in the field of M2M communication electronics. Vodafone, Verizon Wireless and nPhase announced a strategic alliance, which will provide global M2M solutions that offer clients an easy way to roll out M2M solutions across Europe and the US. More and more CSPs build solutions and business units to focus on this market. 1 Source: The Global Wireless M2M Market4th Edition, Berg Insight, April 2012 2 Source: Creative M2M Partnerships Drive New Value For Wireless Carriers White Paper, Harbor Research, Inc., March 2011 3 Bill Ford Jr., Ford Executive Chairman, key note session at The GSMA Mobile World Congress and Mobile World Live, February 2012. mobileworldlive.com/mwc12-ford M2M Will Extend to an Enormous Device Population* 1+ Trillion RFID/Sensors RFID/Sensors include: Location Humidity Temperature Vibration Liquid Weight etc. *Forecast of installed base, 2010 Source: Focal Point Group Info Devices include: Mobile Phones, PDAs, Web Tablets, etc. 300 Million Personal Computers 500 Billion Microprocessors Processors include: 464+ bit, etc 2 Billion Smart Devices Smart Devices include: Appliances Machinery Vehicles Building Equipment etc. 1 Billion Info Devices 5. 5 If we look at the value chain to deliver M2M solutions, there are a number of components and players including chipset vendors, sensor manufacturers, device vendors, communication providers, application developers, content providers, application service providers, and so on. Service providers have different options open to them, to play in this business. Communications service providers: They can be a pure communications vendor and provide embedded SIM cards, with or without roaming included. M2M SIM cards are shipped to the device manufacturer and embedded, or sometimes, sealed in the device. The device is then sold at a predefined price. A communication fee is then charged either as an extra monthly fee for communications, or via a revenue-sharing model with the device vendor. The Kindle and other e-readers that come with embedded SIM cards are examples where consumers pay for the reader and then for each download. An agreement and revenuesharing model is in place between the service provider and the device vendor. The same applies for embedded SIM cards in cars, and other machines. Chipset Vendor Device SIM Vendor Communication Service Provider Application Service Provider Retail Vendor Application Developer Content Provider End User Third Party Device SIM Vendors: They can provide a device, most likely as a bundle with an embedded SIM card and other embedded sensors and capability, different form factor, with an Software Development Kit (SDK); and offer this to developers as a trusted, certified solution. Developers can then integrate that device in their solution and write applications for specific markets. Application Service Providers: They can offer a backend hosted environment, M2M management platform, that will manage M2M devicesCollect data over secured connectivity, Monitor, Report, Alert, Provision, and offer XML and SOAP APIs to device vendor and application developers. Application Developer Federators: They can offer a hosted environment where device vendors meet application developers and build an ecosystem of M2M solution providers, while exposing their application programming interfaces (APIs), and promoting their M2M SIM cards. This model makes sense if service providers can leverage that activity to upsell communication or broader services. Content Providers: They can offer information or capabilities via APIs: location, subscriber information, SMS, charging via XML, or SOAP API. M2M vendors use these APIs in their applications, and revenue-sharing is applied each time those services are invoked by the end user. M2M Solution Providers: They can also offer complete endtoend solutions, from devices with embedded SIM to applications and sell packages, to end-users directly. This business is interesting to enterprise and consumer markets where service providers are particularly well positioned. Depending on their size and their position in their market, or more globally, they will choose different strategies. Key verticals as natural candidates for M2M solutions M2M is typically segmented in five to six categories: Telematics, Smart meters, Telehealth, Home security, Retail, Environment Monitoring. Among different market segments that plan to leverage connected devices, Utility, Automotive, and Healthcare are definitely the key verticals looking at M2M today. Utility is stimulated by smart grid initiatives; some being sponsored by the government as in the US with investment plans, or as in Europe, with institutions where regulation enforces some deployment timeline. In 2009, 76 million smart meters have been deployed and this number is forecast to grow to 212 million by 2014, according to ABI Research.4 Smart meters are typically gas or electricity meters installed in homes or buildings. They come with some connectivity; typically zigbee or power line, and connect to a concentrator that uses an embedded SIM card to communicate with back-end systems. Smart meters need to be configured to transmit certain data at certain times, and concentrators need also to be provisioned to have up to date communication software to transmit that data to the back end system. A number of vendors have started to position themselves in this market with smart meters and concentrators. Service providers offer embedded SIM cards, and utilities perform trials and deployments of the solution. Many countries have engaged Smart Meter projects, some face investment issues given the estimated cost of such deployments is around $250 USD per meter; however, as volume increases and deregulation invites multiple players to deploy such solutions, service providers begin to have a bigger role to playoffering more services as weve already seen or becoming an aggregator for multiple vendors. Beyond Smart Meters, other extensions are starting to appear with Smart Plugs and Home Energy Management, for instance. Even more vendors, even more devices to manage, real time alerts, remote control often from mobile phonesmany requirements that position service providers well. 4 Source: Smart meters for smart grids, ABI Research, January 2010 76 million smart meters were deployed in 2009; 212 million forecast by2014 6. 6 Automotive is a heavy user of technology with sensors, electronic, and navigation systems. Recently, weve seen some new regulations. Emergency call, ecall (3GPP TR 22.967). GM OnStar is one of the largest projects in this area with over 10 million connections deployed for in-vehicle safety. Europe is enforcing car manufacturers to provide ecall with connectivity either via embedded SIM cards, or interaction with end-user mobile phones. Ecall is expected to save 2,500 lives per year in the EU. Electric cars are stimulating the market with battery remote monitoring or real-time charging station availability information. Many other value added services are emerging such as car maintenance, navigation system updates, entertainment update and download, fleet management, and so on. Market estimates are that more than 50 percent of cars and vehicles will be connected by 2015. Service providers have already began providing embedded SIM cards, but so far mainly for high-end cars. They have also started to implement ecall in their infrastructure to handle those calls with high priority and route them to proper Public Safety Answering Point (PSAP) Support Centers. But, they can expand their role towards back-end systems, value added applications, and include those cars that do not come with embedded devices. Internet Voice call Data message (e.g. SMS) In-vehicle sensor/s CAN bus Telematics Control Unit GSM cellular network PSTN or IP network Call center/ PSAP Emergency serviceTCUCrash sensor Healthcare is a big market, Over a billion dollars in IT each year. The worldwide market for mobile health revenue will top $23 billion USD by 2017.5 With aging population in developed countries80million people aged over 65 in western Europe by 2014there is heightened cost pressures on social security. The need for preventative healthcare and healthcare at home is growing. In developing countries, it is estimated that 50 percent or more of the population does not have access to healthcare. E-health and M-health can contribute hugely. Governments are engaging in that direction but security concerns, regulation, institutions inevitably slow the process down. Electronic Health Records (EHR) and Digital Hospital with communication between doctors and hospitals is currently being deployed. Some other solutions are appearing that equip doctors with mobile devices, allowing access to patient records, or mobile health monitoring devices. Video solutions are also very popular. Sensors with video cameras allow experts to view, or assist surgery via remote viewing. At the same time, private healthcare and wellness are making progress in the area of diabetes and cardio-monitoring devices for instance. Solutions with devices in the hands of a patient at home and applications in a healthcare back-end system for diagnostics and advice are beginning to appear, as are mobile applications to remotely track the health of senior citizens. Service providers are starting to offer secured communications infrastructure to carry confidential patient data or video. SIM cards are also embedded in remote healthcare monitoring devices, and this could extend to more applications with partners targeting other areas, such as wellness. HP M2M Solution for service providers HPs M2M Solution offering covers a broad spectrum of service provider responsibility in this value chain: Connectivity and Communication, Data and Service Management, and EcosystemManagement. Communication includes Device Management, SIM management and Self Care Portal, Device HLR for authentication, security and location, USSD & SMS Gateway, And can go up to dedicated M2M communication infrastructure (MVNO model) Data and Service Management addresses data collection, aggregation, correlation, repository, provisioning and control as well as monitoring, quality of service and usage tracking without forgetting Authorization, authentication and security. As traffic grows, big data analytics becomes critical and HP is best positioned with solutions leveraging HP Vertica real time analytics. Ecosystem Management is API exposure, policy management, access control, partner management, development portal, revenue management, application store, and cloud services. The HP Solution is delivered in Utility, Healthcare and Automobile by a combination of HP Communications Consultants and with HPVertical Consultants, with expertise in each vertical industry. For Utility, HP has built a prepackaged solutionthe HP Utility Center solution for meter data and service management. The HPsolution is vendor-agnostic and can scale considerably to enable service providers to provide this capability to multiple utilities in a country or across geographies. The solution can be modular and expand towards device management, analytics, Customer Relationship Management (CRM) or billing. 5 Source: Touching Lives through mHealth: Assessment of the Global Market Opportunity, Groupe Speciale Mobile Association (GSMA), February 2012 7. 7 For Automotive, HP combines assets and capabilities acquired in Automotive with the deployment of some of the most advanced connected car solutions in the market today. With Communications and Media Solutions assets, HP offers a rich solution that covers communication, data and service management, ecosystem management, and automotive specific capabilities. For Healthcare, HP combines its proven digital hospital offering with its Communications and Media Solution assets, to expand IT healthcare solutions towards telehealth and M-health. This M2M solution is relevant and applicable to other M2M segments, such as home management, point of sales, or tracking and tracing solutionslike container tracking for instance. HP is unique in that it can deliver complete solutions with optimized hardware, proven software, and experienced services. Combining network and IT expertise with skills of dedicated practice teams across the vertical industries of: Utility, Health, Automotive, and Telecom; HP is the vendor that can offer robust M2M solutions with scalability and integration within Service Provider and other industry vertical environments. HP M2M Innovation HP is currently investigating a number of areas that will contribute to M2M, including high sensitive sensors, scalability of monitoring systems, analytics and security. Central Nervous System for the Earth: HP Labs is developing a network of tiny, low-cost, tough, and highly sensitive detectors that will make life more convenient and safer today, while laying the groundwork for worldwide awareness tomorrow. This is called Central Nervous System for the Earth (CeNSE). This highly sensitive accelerometer can detect a 10 femtometer change in the position of its center chip. Thats less than one billionth the width of a human hair. As a result, it can measure changes to acceleration in the micro-gravity range. Thats about 1,000 times more sensitive than accelerometers used in a Wii, an iPhone, or an automobiles airbag system. Scalability of monitoring systems: With billions of objects, 1000 sensors on a bridge just like the Golden Gate, smart meters with smart plugs in large numbers of homes, and other places, monitoring systems have to deal with larger and larger numbers of elements to model, monitor, detect alerts, and display. HP is conducting important research to expand current capabilities of relational database-based applications, to improve scalability and response time. Analytics: M2M machines communicate with back-end systems and send data, and most often raw data. The number of devices and amount of data constitute huge data stores that need to be analyzed by back end systems to provide relevant information to theapplications. HP is building a future analytics system to deliver new ways to leverage data across different formats and business disciplines, enabling faster, better-informed decision making. 8. Get connected hp.com/go/getconnected Get the insider view on tech trends, support alerts, and HP solutions. Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. 4AA4-1638ENW, Created May 2012 HP and M2M standards HP is actively driving M2M service platform standards proposals through the influencers groups below: HP Chairs the M2M Focus group for Alliance for Telecommunications Industry Specialists (ATIS) HP is a delegation member of a working-group of other industry Service Delivery Operations to create a global M2M standards body. The objective is to create partnership projects like: 3GPP or 3GPP2. HP recently hosted the ETSI M2M standards version 1 meeting in Grenoble(November 2011) An M2M solution that puts you ahead ofthe curve Are you looking to zoom ahead on the road of opportunities for innovative solutions and services that combine connectivity, data and service management, and ecosystem management? Collaborate with HP to deliver these future solutions using M2M machines with embedded network communications for devices and applications. Leverage our combination of communication, IT, and service skills, with our vertical domain expertise; visit: hp.com/cms