What is the Internet of Things?
In my recent blogs, I have spoken deeply at a high level about what’s to come for both M2M and IoT. Many of my readers have asked for a better definition of how it can be used in the new world of wireless and cases which will improve Quality of Service (QoS), Quality of Life (QoL) and Quality of Experience (QoE). I refer to this as the QoSLE model of the 21 century.
So, let me begin with, what is Internet of Things (IoE)?
As simply as possible, this is bi-directional information flow for both messaging and control. It goes across sensors and devices, data and connectivity and finally people and processes. The combination of all these components into one ecosystem is called IoT, and it can be applied to many vertical industries such as energy, smart cities, financials, nuclear power plants, oil and gas exploration and many others in coming years.
In fact, this topic is so complicated with its massive implications on network and devices that people in the industry have tried to find different definitions for IoT. For example, some people confuse it with M2M since they are pretty much saying same thing -- it's a collection of sensors and devices along with data transport on wireless and wired networks that needs to be delivered to servers, databases and processes so we can move from analog processes to digital ones. But generally, it is nothing but the use of data by businesses, systems and people to make informed decisions in real time (knowledge mining) and that can be accomplished with M2M based technologies. That is pretty much encompass the full definition of IoT/M2M.
M2M/IoT consists of a world of connected devices. I can reference many cases but will pinpoint just a handful being considered for M2M/IoT. Below, I break it down to 4 quadrants:
- Devices
- Locations
- Applications Group
- Service Sectors
For example, at the first layer, I consider sensors built into devices as part of the M2M connected model along with GPS for Location Aware Services. The Application group can be categorized into public, private and hybrid and service sectors encompass IT and networks. For each layer of above 4 quadrants, I could write a book with hundreds of used cases which I explained above. In future blogs, I will try to break down each quadrant and discuss in more detail tens of used cases which can generate major RoI (Return on Investment) across the globe for each company, thus providing better service capability to ultimate consumers worldwide.
The main question for CXOs is why deploy an M2M Application? What is the RoI and how can it impact my bottom line in revenue, expense, margin, earning per share and finally free cash flow? First and foremost is the competitive nature of the wireless world; not only are MNOs in the driver's seat to deliver these services, but other companies such as Google and many others, including start-ups, want to increase revenue per user given the saturation of smart and normal cell phones across the globe.
Today, we have more cell-based phone devices than toothbrushes worldwide. The penetration may be reaching an asymptote but growth is stronger than ever for applications of any IP-based device. In addition, businesses want to reduce costs and complexity in order to optimize better profit. There is nothing else I can think to drive better use of deploying M2M-based applications across corporate enterprise and service provider markets worldwide.
So, what does it make to make this massive eco system to work flawlessly? I believe it will be 5-10 years before that ecosystem is fully established, but I can break it down to four categories that needs to work together like a harmony symphony in order to make this dream realized at its maximum potential.
- Government Regulations
- Laws driving implementation
- Industry requirements
- Greater Efficiency
- Reduced Operational Costs
- Increase Average Revenue Per User (ARPU)
- Best in Class in Cost, Capability and Cycle Time
- Optimize Revenue and Costs Per Employee
- Deliver Best in Class Cycle time for Service Delivery
- Reduced Complexity of Operations and Networks
- Consistent Control
- Predictive Visibility
- Early Insight into any Problems – in essence, real time predictive network dashboard
- See Patterns and Opportunities
- Competitive Features
- Meet Customer Requirements
- Avoid Losing Market Share
- Manage Churn Rate Efficiently
I believe developing and deploying an application using M2M model requires massive effort and needs the total weight of industry, from government to private to service providers and vendors supporting and selling these solutions in the future.
In addition, we are moving toward a world of sensors in the coming years at an aggressive pace. Although there are many sensors available to gather information as basic parameters, one can categorize this into the following categories:
- Alarms
- Automobiles
- Human Body - Proactive
- Human Body - Preventative
- Human Body - Predictive
- Flow
- Temperature
- Gas and Electric Meters
- Humidity
- Motion Position
These sensors are the foundation of devices which need to be mapped into digital processes and, ultimately, used as the magnificent structure and strategy driving M2M worldwide.
In M2M application categories, it is all about devices installed on moving objects, physically move during operation and easily traverse multiple devices across multiple boundaries. For fixed location applications, it includes devices installed at a single location and often driven in a single service boundary.
For Physically Mobile Applications, it includes:
- Natural for Wireless Networks
- Common Cellular and Satellite Solutions
- WAN and Mobility Management Solutions
For Fixed Location Applications, it includes:
- Wired Networks in most cases, though wireless can also be used
- Hybrid: WiFi, LTE, LTE-A, 5G, etc., with WANs
For Connectivity, it includes:
- Wired (Ethernet, Cable, IP Circuits)
- Short Range (Bluetooth, WIFI, ZIGBEE, 6LoWPAN, Free Space Optics)
- Medium Range (Cellular, Unlicensed, White Space, Line of Sight Microwave Technologies)
- Long Range (Satellite and LoS Communications)
If one looks at total cellular M2M connections, it is indeed faster paced than cellular phones and is projected to grow at least 8X in the next 6 years, driven mainly by North America, Europe, Asia Pacific and Rest of World (RoW), in sequential order. Another interesting statistic is LTE will finally ramp up in 2017, with an estimated 2B devices alone by year's end 2017. By the end of this year, we are expected to reach 2% of connections, 4 percent by 2015 and nearly 10% by then end of 2018.
I truly see exciting times ahead and best is yet to come for:
- IoT Experiencing Tremendous Growth
- Business Reasons Drive IoT Transformation
- Innovation of Technologies Transporting M2M Data
- Technology Choice Depends on Application
- LTE Acceleration Worldwide by 2017
- 5G wireless in 2020 with 50B devices connected to the internet, accounting for 25% of M2M penetration
I personally predict by the end of 2025, we will have 250B devices (50% of M2M connected), 1T devices by 2030 (75% of M2M connection) and finally 10T devices connected by the 2040 timeframe (100% M2M connection). Clearly, this is just a rough estimate based on current projections yet dependent upon many factors, but setting a goal and striving to achieve it can be accomplished by bringing even more focus from every segment of industry, from both government to private markets, is key.
Dr. Eslambolchi
Photo: Eugenio Marongiu / shutterstock
