Jan 31, 2013

Sierra Wireless reinforces its M2M strategy

I have been tracking corporate developments in the M2M market over the past few years. They are useful for performance benchmarking while also providing insights as to how companies are implementing strategy and committing to this market.

To date, every initiative has been expansionary involving a mix of acquisitions, distribution agreements, innovation and partnering. The divestiture by Sierra Wireless of its AirCard business, announced on 28 Jan 2013, therefore triggered something of a database classification challenge. In essence, the company sees a tremendous growth opportunity in the M2M market while also acknowledging that the data-card business is on the decline, especially as increasing numbers of Internet enabled devices already include ‘embedded mobile’. Sierra Wireless has therefore chosen to exit this business and to direct its investment capacity towards more promising M2M opportunities.

Jan 22, 2013

Building a "billion dollar" M2M business

Over the past 1-2 years, the concept of a “billion dollar” business has often arisen in my project related discussions concerning multi-national operators. Indeed, Matthew Key (Head of Telef√≥nica Digital) recently set a target of Eur.0.5-08bn (almost US$1 billion) for its M2M revenues by 2015. A billion matters in the frame of reference for most large operators because anything smaller often does not warrant management attention. This is understandably the case when resources are being requested of Group-level decision makers who have to weigh competing market opportunities.

So, what does a billion dollar business look like? How might an MNO reach this level of revenues within a 3-5 year interval of time? And, what are some of the business model implications for operators pursuing a “billion dollar” goal? 

Jan 8, 2013

M2M Corporate Initiatives 2012

Please check the Corporate Initiatives navigation tab for the most recent market developments  
2012 proved to be another strong year for the M2M/Connected Devices market with a significant rise in corporate business ventures. The nearly 100% increase in activity during 2012 – a total of 114 corporate events – easily surpasses the rate of market development in 2011 according to our database tracking M2M corporate ventures.

The two strategies showing the greatest amount of activity during 2012 were:
  • The creation of commercial partnerships across the M2M value chain to supply integrated M2M offerings to the market

  • Market entry and expansion initiatives by companies targeting new and different M2M segments.