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A Kindred Spirit and a Dose of Realism about M2M Market Dynamics

Posted by Norman Miglietta on 12/12/2012

If you wait long enough, eventually the Internet will show its value. (And no I don’t mean endless Gangnam Style tributes, but I digress).

In this case, I stumbled upon a thoughtful summation of the very real factors that are driving M2M success, written by a Christopher Rezendes, president of INEX Advisors. In full disclosure, I have not met nor have we ever worked with Chris and his firm, but after reading his take on the market, it is clear that he has his finger on the pulse of what’s really going on in the M2M eco-system and the enabling technology principles required for quality of service.

Chris offers a solid reality-check against the new and sometimes fanciful “Internet-of-Things” applications that pop up daily all over the Web. While it is logical to get excited about Twine, which promises to turn any object in your home into a web-connected, interactive “smart product,” or to revel in grandiose proclamations that the IoT could add between $10 trillion and $15 trillion to global GDP over the next 20 years, Rezendes begs for a much more tempered approach. In order for M2M and IoT markets to actually deliver more of their promise, we need instead to focus on executing a smaller set of physical, data link, access and transport challenges. (From the OSI model).

Makes sense to us. In fact, he echoes several of our long-held tenets:

  1. At its core, M2M is about collecting data from remote assets.
  2. This does not mean a surge in data. Instead, M2M’s purpose is to siphon out “exception” events.
  3. The Internet-of-Things is a misnomer. M2M is not a peer-to-peer service but, rather, each unattended mobile device acts as a client.

From there, Rezendes goes on to outline five “Killer Enablement Technologies” (a term I love!). The first two, Persistent Sockets and Resilient Networks, are absolutely imperative for application providers to “get right,” and represent essentially why KORE exists as a business.

At KORE, we devote a lot of attention to addressing lifecycle management issues for our customers, making sure their deployed “sockets” meet appropriate duty cycle, IP addressing requirements, form factors, power management, RF management and other criteria specific to the application. In other words, we want to ensure a customer’s devices are “persistent” how, where and for however long they are meant to be. I will state here again that persistent does not necessarily mean generating a lot of data traffic – devices can be programmed to provide a ‘heartbeat’ of data at regularly scheduled intervals. Exceptions excepted, of course.

On the network side, I’ll be blunt. In order for M2M to succeed and grow, MVNO aggregators like KORE are absolutely essential because only we can provide the multiple interconnections across multiple carriers and technologies to make the communication network truly “persistent” and “resilient.” We believe we take resiliency to the next level, to “network pervasiveness,” with multiple connections, fully redundant data centers and several back-up systems in place to cover primary or even secondary failures. M2M simply cannot be allowed to go down; in fact, it could become an even more important means of communication during uncontrolled events such as Hurricane Sandy or Irene last year.

So while at KORE we continue our mission to pave the way for M2M growth, it is always refreshing to come across like-minded experts who have the courage to look past the hype cycle of new and promising technology, and focus instead on the less sexy factors that will actually deliver on the promise. Thank you, Mr. Rezendes, for offering a refreshing perspective.

By Stein Soelberg, Director of Marketing

Stein leads a team whose responsibility is to own the branding, advertising, customer engagement, loyalty, partnership and public relations initiatives designed to propel KORE into the 21st century. With over 15 years of technology marketing experience in the business to business software, Internet services and telecommunications industries, Stein brings a proven track record of launching successful MVNOs and building those brands into leaders.


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