As we hurtle towards MobileCON 2013, it is fitting and perhaps expected to see that Intel has thrown its hat into the Internet-of-Things ring by revealing a new set of processors specifically designed for connected devices. What’s a bit mysterious to us, however, is that Intel pegs the potential of the Internet of Things largely to industrial efficiency gains. While it is true that M2M-driven industrial cost controls and waste prevention applications can result in billions of dollars in savings, we at KORE are taking a slightly different perspective on the M2M value proposition: It is evolving from a story of operational optimization to one of revenue generation for adopters.
What I mean by this is that companies are discovering new and unique ways to use M2M modules to differentiate their product offerings. The classic example is that of John Deere’s Ag Management product suite, which transforms the company from one that simply sells tractors to one that helps its customers better manage their farms via connected applications for precise field preparation, seeding, fertilizing and harvesting. This also, of course, provides Deere with an instant and ongoing new revenue stream.
Another example is Rolls Royce, which does not sell jet engines today so much as it sells “engine hours” to the airlines. The entire business model has changed from a manufacture-and-sell enterprise to one where the Company captures ongoing service and maintenance revenue on every engine in the field. And Rolls Royce customers most likely view it as value-added benefit to them, as they are able to shift the engine expenses from capex to opex. Such is all made possible by granular, ubiquitously connected M2M-technology keeping Rolls Royce technicians and business managers informed of functionality on a day-to-day, minute-by-minute basis.
Granted, much of the growth here is being driven by niche applications segments to be sure. Not everyone needs a field harvester or a jet engine. Rather, the big takeaway is that device costs, development resources and airtime costs are reining inwards; businesses are more willing to take the leap on unproven ideas because the path to ROI is just not as steep.
For our part, KORE President and COO Alex Brisbourne will again take the MobileCON stage on Oct. 17 in the “mHealth Gets Real,” to discuss how this key growth market is embodying the move toward new revenue streams with M2M. The session will break down a number of mHealth applications that are now online, from remote imaging to emergency services and chronic disease management, and examine what’s working and where improvements can still be made. Attendees can also expect to learn about how the transition to 4G networks will bolster the mHealth market and perhaps spawn entirely new business models.
Finally, KORE has some significant network announcements planned for the show. We have already made LTE connectivity available for high-bandwidth M2M devices across North America; expect a number of additional coverage expansions on the International front.
Please be sure to check back here after MobileCON for our report as to whether the market is waking up to the new revenue opportunities made possible by M2M.
by Alex Brisbourne, President and COO
As the president and chief operating officer of KORE, Alex has over 20 years of experience in the networking and telecommunications industry, in Europe, North America and Asia. His expertise and areas of concentration center around wireless, enterprise and fixed line services. In his current role at KORE, he continually strives to improve company growth, by ensuring the M2M marketplace and KORE customers are well served by members of the KORE team worldwide.