© 2014 oneM2M

HOW STANDARDIZATION ENABLESTHE NEXT INTERNET EVOLUTION

Marc JadoulStrategic Marketing Director, Alcatel-Lucent

marc.jadoul@alcatel-lucent.comoneM2M www.oneM2M.org

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About this webinar

First in a series of 4 webcasts, introducing oneM2M, the global standards initiative for Machine to Machine communications and the Internet of Things

Today: part 1, looking at M2M business opportunities, challenges and drivers for standardization.

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The next step in internet evolution

Source: Alcatel-Lucent

Pre-internet

Internet ofCONTENT

Internet ofSERVICES

Internet ofPEOPLE

Internet ofTHINGS

+ IPnetworks

+ IT platforms& services

+ devices & apps

+ sensors,more devices& tags,big data

“SOCIALMEDIA”“WEB 2.0”“WWW”

“HUMANTO

HUMAN”

•Fixed &mobiletelephony•SMS

•e-mail• Information•Entertainment•…

•e-productivity•e-commerce•…

•Skype•Facebook•YouTube•…

• Identification, tracking, monitoring, metering, …•Automation, actuation,

payment, …•…

“MACHINETO

MACHINE”

+ ambientcontext, data semantics

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Topping Gartner’s hype cycleInternet of ThingsInternet of Things

Source: Gartner, July 2014

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The IOT is going to be big (though nobody really knows how big…)

28.1 BILLION“UNITS” IN 2020

26 BILLION“UNITS” BY 2020

$7.1 TRILLION GLOBAL SOLUTION REVENUES BY 2020

$300 BILLION SERVICES REVENUES

IN 2020

$1.9 TRILLION GLOBAL ECONOMIC

VALUE IN 2020Source: IDC, May 2014 Source: Gartner, March 2014

25 BILLIONM2M “CONNECTIONS”

BY 2022

$1.2 TRILLION GLOBAL OPPORTUNIY

BY 2022

OF WHICH

2.6 BILLIONARE CELLULAR

Source: Machina Research, January 2013

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When communications, IT and CE industries meet

BIGDATA

M2MCOMMUNICATIONS IT

ENABLED

COMMSENABLED

CEENABLED

Source: Alcatel-Lucent

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Why now?Lower hardware costs and ubiquitous mobile accessenabling more intelligence and seamless connectivity

Proliferation of mobile devices and M2M endpointscreating a customer base for deploying new applications

Abundance of data and informationcombined with a growing understanding of how collec-tive data can be used to add greater efficiency to our lives

Network operators, enterprises, utility

providers and public administrations

are transforming the way they interact

with their customers, suppliers and partners

Consumers and business users looking for new

services and applicationsto enrich the way they

live, work, commute, shop and care for their

community and environment

M2M standardization addressing the need for end-to-end architecture, security and interoperability, facilitating applications development, and global services rollout

IOT

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A long tong tail of applications

# Applications

#Assets perApplication

“KILLER” APPS

THE LONG TAIL

SEGMENT/INDUSTRY/BUSINESS SPECIFIC

Source: Alcatel-Lucent

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Where is M2M used today?

Source: TechRepublic & ZDnet, 2013

0% 10% 20% 30% 40% 50%

Percentage of organizations using M2M now or implementing in 12 months (n=98)

Energy (smart metering, wireless grid, etc.)

IT & Network monitoring (traffic monitoring, endpoint mngmnt, etc.)

Automotive, transportation & logistics (vehicle telematics, fleet & asset tracking, etc.)

Health care (patient monitoring, drug interaction detection, etc.)

Facility management (HVAC, security, lighting, access, etc.)

Manufacturing & industrial (plant monitoring, process control, etc.)

Retail (RFID inventory tracking, POS kiosks, vending unit monitoring, etc.)

Consumer products (fitness monitors, personal navigation, networked digital photo frames, etc.)

48.0%

46.9%

43.9%

31.6%

28.6%

26.5%

24.5%

21.4%

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Businesses say it’s about developing new opportunities

Source: TechRepublic & ZDnet, 2013

New business opportunities

Faster response times

Enhance existing products/services

Cost savings

Expand cellular coverage

Not important … … … Very important

Percentage of organizations using or planning to use M2M (n=98)

Regulatory compliance

Risk mitigation

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

42.0%29.5%22.5%11.4%4.5%

35.3%31.8%18.8%9.4%4.7%

34.5%34.5%17.2%9.2%4.6%

27.6%20.7%27.6%16.1%8.0%

14.6%18.0%25.8%21.3%20.1%

13.6%12.5%26.1%25.0%22.7%

11.4%30.7%27.3%20.5%10.2%

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End-to-end network view

sensors

devices & gateways

connectivity, onboarding, AAA,

management, security, …

application creation

& analytics

“ANY APP”

“ANY NETWORK”

“ANY DEVICE”

Source: Alcatel-Lucent

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A fragmented ecosystem

Based upon: Matt Turk, Sutian Dong, FirstMark Capital, 2013

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Current state of affairs

… a key challenge for the industry remains the complexity of developing, deploying, and managing M2M applications ... This is a challenge both for mobile network operators that are trying to offer profitable services tailored to the M2M market, as well as for application developers and service providers that are trying to reduce costs, speed time to market, and simplify robust application deployments.

For many years M2M was held back by the lack of a low cost, global access medium, the fragmented nature of the ecosystem, the lack of any single killer application driving demand and the complex nature of M2M solutions leading to high-cost development and systems integration.

To date, the machine connectivity (M2M) and smart systems opportunity has largely been comprised of “simple” remote services applications and related tracking/location services….. future technology development will be focused on collaboration between devices, people and systems, but will require new technology and architecture.

The IoT lacks a common set of standards and technologies that would allow for compatibility and ease-of-use. There are currently few standards (or regulations) for what is needed to run an IoT device. Consortia that group together global industrial, tech, and electronics companies are involved in an effort to standardize the IoT and solve the most pressing security concerns.

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Why standardization is needed

Improved Functionality-Cost-Quality (FCQ) tradeoffs

More partnering choices and opportunities for M2M/IOT industry stakeholders

Enhanced experience through security, interoperability, device management and interaction with underlying networks

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Improved Functionality-Cost-Quality (FCQ)

• Anticipate massive growth in devices, applications, traffic and profile/usage data; reduce signalling overhead

• Develop a ‘horizontal’ M2M platform, scalable by design• Improve end-to-end product quality• Optimized network use, performance & traffic volumes• Fascilitate sourcing, development, integration and

monetizatation of M2M solutions & components• Reduce investments, time-to-market and onboarding

costs of new devices and applications• Efficient administration and management

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Partnering choices and opportunities

• More suppliers to source M2M solution components from• More providers who can develop and integrate M2M

solutions and applications• Partnering with other stakeholders to store, discover,

access, exchange and share data and content• Partnering with wireline and wireless service providers

and extract more value from underlying networks• Cross-vendor device configuration and management

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Enhanced experience

• Abstract devices and applications from underlying access networks and technologies

• Interoperability between devices, platforms, data formats, protocols and applications

• Remote provisioning, control, management and billing of devices and applications; lightweight protocols for minimal power consumption

• Deal with small power, memory and processor footprints• Privacy, security & access control; authentication,

authorization, encryption, data protection, …

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Introducing the oneM2M partnership

In July 2012, seven of the world’s leading ICT Standards Development Organizations launched the global oneM2M partnership to: • Cooperate in the production of globally applicable, access-

independent M2M Service Layer specifications, including Technical Specifications and Technical Reports

• Ensure the most efficient deployment of M2M communi-cations systems

www.oneM2M.org

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Partners and members

Partner SDOs:•ARIB (Japan)•ATIS (N-America)•CCSA (China)•ETSI (Europe)•TIA (N-America)•TTA (Korea)•TTC (Japan)

Industry consortia:•Broadband Forum (BBF)•Continua Health Alliance •Home Gateway Initiative (HGI)•New Generation M2M Consortium (Japan)•Open Mobile Alliance (OMA)

+ over 200 service providers, industry, government, university, research, … members

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oneM2M provides …• A common set of Service Layer capabilities• Access independent view of end-to-end services• Open/standard interfaces, APIs and protocols• Security, privacy, and charging aspects• Reachability and discovery of applications• Interoperability, test and conformance specs• Identification & naming of devices and

applications• Management aspects (including remote

management of entities)

First set of specifications delivered in August 2014will be live demonstrated at the oneM2M showcase event, December 9 at ETSI

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Join us for the next webinar

30 October 2014 at 1PM EDT = 5PM UTC

“Taking a look inside oneM2M” by Nicolas Damour

Senior Manager for Business and Innovation Development at Sierra Wireless

http://www.onem2m.org/btchannel.cfm

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Join us at the oneM2M showcase event

9 December 2014, Sophia-Antipolis, France (free of charge, but online registration is required)

• OneM2M project partners, rationale and goals• OneM2M Service Layer Specification release• Showcase demos that demonstrate oneM2M “live"

http://www.onem2m.org/Showcase

Followed by the ETSI M2M workshop.

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Thank You!

Q&A