Feb 14, 2013

M2M Platform Permutations

Ericsson’s 5 February announcement to supply its M2M Device Connection Platform (DCP) in support of XL Axiata in Indonesia has prompted this update to an earlier article on the competitive dynamics of international alliances and M2M platforms.

The DCP deal is something of a coup, providing Ericsson with a meaningful customer reference in the highest population country in South East Asia. The news announcement actually formalizes a business relationship that dates back to early 2012. In October 2012, both companies highlighted an achievement of 89,000 M2M connections. The pace of growth seems to have accelerated with XL Axiata’s M2M base reaching a total of 125,000 in the intervening months. The latest announcement provides some timely marketing collateral for Ericsson to use with mobile operators that cannot justify an investment in their own M2M platforms and the delegations of mobile-operator executives who will shortly be congregating at Mobile World Congress.

The move by XL Axiata is not unique in the market. Other mobile operators have partnered for M2M platform capabilities to handle large scale application opportunities using processes that are geared specifically to M2M operational needs and economics. AT&T was an early partner of Jasper Wireless, for example, while Everything Everywhere in the UK has been working with another platform provider, Transatel.

These developments and the changing competitive dynamics for M2M platforms will have far-reaching implications for all device vendors, service providers and users in the M2M eco-system.