The Transformative Power of M2M Wayne L. Ward Vice President, Emerging Solutions Group Sprint Nextel What Exactly Is M2M? M2M: (noun), ma·chine-to-ma·chine Pronunciation: \ muh-sheen \ too \ muh-sheen Definitions: 1: (M2M); a popular Norwegian pop band (#1 Wikipedia Search Result) 2: (M2M): (a) is about connecting people, devices and systems in new and transforming ways. Simply put, M2M is the automatic communications between devices without human intervention. (b) It often refers to a system of remote sensors, middleware, software and applications that is continuously transmitting data to a central system. 3:(M2M); (a) is an amazing growth opportunity transforming the way people and machines interoperate. (b) $$$ 2 © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. M2M & Why it Matters? • One of the fastest growing areas worldwide • Reliable, ubiquitous, and affordable wireless networks • Shrinking modules/devices at lower cost • Clear ROI for businesses • Minimal acquisition costs, minimal subsidies across equipment/network value chain 3 © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. How Big is the Opportunity? North American M2M connection revenue by application CAGR 2007-2014 = 24%. Source: ABI Research, 4Q/2009 72m M2M devices are expected to be connected in North America by 2014. Source; ABI Research, 4Q/2009 4 The number of activated emerging wireless devices, including smartphones, wireless CE, and enterprise M2M applications, will grow from 53.5m in 2008 to 268m by 2013. Source: nCode, 3/09 © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Drivers for Adopting M2M Fleet Management Smart Grid Regulatory Greater Efficiency • Business process efficiency • Energy efficiency • Regulatory compliance Down Economy 5 New Capabilities • New business models • Improved safety & security • Improved customer service Pay-as-you-drive Insurance Telehealth Asset Tracking Up Economy © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. M2M Spans Several Verticals & Industries Automation & Control ATM/POS 6 Fleet Utilities Telematics Digital Signage Security Vending Emergency Public Transport ConsumerConnected Devices Telemedicine © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. New Business Models are Evolving Application Example Business Model Details Pay-As-You-Drive Auto Insurance Now, insurers can write policies based on detailed, individual driver behavior instead of relying solely on actuary tables. Smart Grid Now, utilities can use Demand Response (DR) functionality to forgo expensive capital plant expenditures or spot market energy purchases. Content Delivery Now, e-book vendors can instantly and transparently deliver content to customers, without requiring a cellular subscription. Telehealth Now, health organizations that are paid on the basis of patient wellness can reduce care costs and improve results through remote patient monitoring. People Tracking Now, law enforcement can locate at-risk people (e.g. Alzheimer’s patients) any time, anywhere through cellular tracking/locating. 7 © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Key M2M Solutions Considerations Network Experience M2M/ Embedded Solutions Open Architecture Support Services 8 © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Killer 4G M2M Vertical Applications Digital Signage Remote Monitoring/Diagnostics Digital Surveillance (CCTV) Two-way Video Conferencing WiFi Enablement Asset Tracking GPS Tracking & Routing Passenger Interactive Monitors Infotainment Services 9 © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. New M2M Business Models are Changing the Way We Live and Work A New M2M Business Model • Dedicated Readers • Smartphones • Tablets STORE Publishers Wireless Transport • Notebooks &PCs Sprint has teamed with Skiff to deliver a new M2M business model focused on e-reading and the publishing industry. 11 © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. A New M2M Business Model The Continuous Improvement Process Driving event triggered by unusual force Behavior is monitored to verify change Event downloaded via Sprint Network Continuous Improvement Process Driver returns to the fleet using guidance DriveCam reviews & scores event High concern events assigned for coaching Staff coaches drivers when necessary A New M2M Business Model 13 © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization. Thank You! Your inspiration, made real. www.PowerYourIdeas.com/m2m © 2010 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.