M2M - The gateway to a new world of business opportunities

M2M (which stands for machine-to-machine, man-to-machine and machine-to-man,) combines telecommunication and information technology to automate processes, to integrate all company assets with its IT system, and to create value-added services.

It allows a simple way to use wireless data as a link between systems, remote devices or locations and individuals. This link is typically used for collecting information, setting parameters, sending / receiving indications of unusual situations or taking care of on-line transactions on countless machines such as elevators, vending machines, automatic metering, you name it.

As a result, your business becomes more effective. Customer service is improved, and practically limitless opportunities are created. New M2M applications are continuously emerging, and they may serve almost any business area and physical environment. It is fair to say that only imagination limits applications. For example, here is a list of the areas in which M2M applications can demonstrate concrete business potential: Telemetry, Telematics / in-vehicle applications, Public traffic services, Industrial applications, Security and surveillance, Sales & payments, Fleet management, Telemedicine and Public services.

For example, the Nokia platform consists of two elements - gateway software and a connectivity terminal. The Nokia M2M Gateway bridges the GSM or other telecom network and the Internet. It provides wireless connection establishment and protocol translation between applications located in the company server and in compatible remote devices. The terminal consists of a GSM engine, SIM-card reader, application interface, integrated antenna, external antenna connector and power interface.

Characteristics of M2M solutions
The M2M business is about creating solutions aimed at improving existing business or creating new opportunities. It combines telecommunication and information technology to automate processes, to integrate all company assets with its IT system, and to create value-added services to be used by the employees or customers of a company.

M2M solutions are often vertical applications tailored to serve the specific needs of one company or corporate body. The ultimate goal is to increase the performance and competitiveness of the company and that may be achieved through increased efficiency or better service, and although some of the M2M solutions are internal to a company and focus is on improving processes, an ever-growing number also aim to serve the customer base of the company. As solutions should be designed to grow along with the company and its needs, technology development or changes in the business environment may create a need to introduce new applications or services.

It is because of the dynamic nature of M2M solutions that they should not be seen as narrow vertical applications, isolated from the external world, but rather as a tool to integrate devices, applications, people and companies to become interactive parts of the mobile information society.

M2M business opportunities
The obvious beneficiaries of M2M applications are corporate bodies, the customers of M2M solutions. Companies are constantly looking for new ways to increase efficiency, cut costs and improve customer service to gain a competitive edge in their core business. The possibilities raised by M2M solutions are already widely recognised in several industries. When competition in the traditional business area is getting more intense and eating into profits, expanding the business - for example, in terms of service provision -- with the help of an M2M solution may be the way to maintain profitability.

Corporate Sector
An M2M solution integrates all the assets of a company in one complete system, including those in the field and even around the world. Labour costs can be minimised, the amount of
downtime can be minimised or even eliminated, and the risk of fraud can be diminished. Many businesses will find that M2M provides the way to make their operations more profitable than ever before, because these solutions both improve competitiveness and enable them to focus on core business development. Thus there are plenty of untapped business opportunities for providers that understand these needs and are able to offer turnkey M2M solutions for the corporate sector.

An effective example of M2M implementation, in this sector, comes in the form of Axeda Systems Inc, a provider of Device Relationship Management (DRM) software and services formed from the union of eMation and RAVISENT Technologies. They announced a collaboration with Nokia, to deliver solutions with Universal Wireless Connectivity™. This, in turn, brought together the Nokia M2M Platform and the Axeda Device Relationship Management System. The combined solution enabled businesses in multiple markets to offer automated monitoring, management, service and re-supply of remote and mobile devices via wireless communications and the Internet.

Cellular operators
With the voice market saturating and competition in the cellular business tightening up, cellular operators are looking for new revenue streams. For an operator, M2M solutions provide a new, appealing opportunity to strengthen its position in the profitable corporate sector and to expand its business scope towards providing total solutions.

From the operator's point of view, the M2M business case is ideal in many ways. The traffic can often be concentrated in the off-peak hours to balance capacity utilisation, and much of the traffic flow is predictable. With M2M solutions it is possible to expand the customer base to new segments, and win all cellular traffic of new clients by bundling traditional telecoms services with company-specific solutions. Furthermore, M2M makes it possible to generate significant additional revenues with a minimum of initial investment. The first movers have already shown that a clear strategic focus and competence development in M2M business will be generously rewarded.

Service providers
Service providers play a critical role in developing and expanding the M2M business and their significance will only increase with the growing demand for M2M solutions. The business scope of an M2M service provider may vary considerably. Probably the best known business model is that of an ASP (application service provider), which manages and hosts software
on a basis of renting or leasing it to companies wishing to minimise the cost of their IT resources and equipment. In addition, M2M service provision may include application
development, system integration, MVNO (mobile virtual network operator) activity or content provision, or a combination of any of these. M2M service provision is an outstanding business opportunity for existing ASPs that may use M2M services in expanding their portfolio for existing customers or to penetrate new businesses.

Optimum technology for M2M solutions - GSM
It is obvious that solution functionality and user experience are the things that really matter to M2M customers; they simply do not want to be concerned with the underlying technologies, therefore it has become evident that, where available, GSM is most often the optimum technology for M2M solutions. A working example of this effective partnership comes in the shape of KONE, one of the world's leading elevator and escalator companies - who teamed up with Nokia to develop a wireless voice and data technology system for improving the reliability and safety of elevators and escalators. This application, based on GSM technology, is used globally in KONE escalators and elevators for remote monitoring and emergency telephone communication.

GSM is a global, proven system with considerable benefits compared to other technologies. The history of openness and thorough standardisation of GSM enable the functionality and user experience creation of truly global M2M solutions. The GSM market has faced huge growth during the past decade and the trend is continuing. Consequently, the prices of GSM technology and communication are decreasing, benefiting M2M solutions from the beginning. However, the most important thing in GSM technology is that it enables M2M business entry now. GSM is also rapidly becoming the world's most popular 3G evolutionary route and advanced solutions may be created today based on existing technology, and these solutions and services will create an easy evolution path to 3G business.