SAP today launched a new machine-to-machine (M2M) resource center with the Economist Intelligence Unit (EIU). The site features research and opinion from SAP, the EIU and other partners exploring successful M2M business models and scenarios.
M2M communication is slated to significantly impact the way critical services are delivered over the next decade. Significant barriers remain, including technical complexity, regulatory hurdles and a fragmented ecosystem that will need to be overcome in order to open the way for innovative products and services. In an effort to capture key insights into how the major players in this space plan to leverage and monetize M2M communication, SAP commissioned the EIU and Informa Telecoms & Media to conduct independent research.
The EIU report, “Rise of the machines: Moving from hype to reality in the burgeoning market for machine-to-machine communication,” is based on in-depth interviews with 18 companies from multiple industries, including automotive, healthcare and energy, and examines the business models behind successful M2M applications.
“M2M is beginning to fulfill its promise, with several successful applications already in the field,” said Jason Sumner, senior editor, EIU. “The next step is to create a platform for innovation by standardizing technologies, forming partnerships within the industry and demonstrating the benefits to consumers.”
The Informa report, “M2M Communications, Turning Potential into Profit,” surveyed more than 250 M2M telecommunications industry stakeholders from 50 countries. Results show that there is no such thing as a “typical” M2M deal, tariff or profit margin and that developing a sustainable M2M strategy requires looking beyond a service connectivity role to provide value-add, differentiated services.
“M2M service providers are at a fork in the road: either be excellent at delivering M2M data or at interpreting what the data means,” said Camille Mendler, principal analyst. Informa. “We believe that long-term profitability lies in offering more than data transport.”