Carriers and the M2M Ecosystem

Carriers and the M2M Ecosystem

Eshwar Pittampalli, Ph.D. Director, Market Development Open Mobile Alliance (OMA)

CSPs in OMA (in alphabetical order)

M2M Ecosystem Players

Service distributors

Service providers

Connection providers

Application developer

Device vendors

Module vendors

Chipset vendors

Industry, Enterprises, Consumers

• Chipset vendors: e.g. Qualcomm, Infineon, Texas Instruments, ST Ericsson

• Module vendors: e.g. Telit, Centurion, Novatel, Sierra Wireless

• Device vendors: e.g. Electric meters

• (M2M) Service developers

• Connection providers

• Service providers

• Service distributors

What roles can the carriers fulfill in M2M?

Service distributors

Service providers

Connection providers

Application developer

Device vendors

Module vendors

Chipset vendors

Industry, Enterprises, Consumers

E2E System Integration/Deployment

Connection Only

Connection + Platform

Connection + Platform + M2M Service

The above scenarios are not exhaustive. For example, it is possible for a CSP to provide Connection plus M2M Service (w/o Platform).

Should carriers facilitate distribution beyond their footprint?

Yes – Global City

There are already Alliances to address this issue: Global M2M Association (Telecom Italia, Deutsche Telekom, Orange, Telia

Sonera)

M2M World Alliance (NTT DoCoMo, Etisalat, KPN, Rogers, SingTel, Telefonica, Telstra, and VimpelCom)

Dedicated business units to address M2M needs (Telefonica, Telecom Italia, etc.)

CSPs have services with global reach • Automotive and consumer electronics

• Some operators rely on their global network coverage with partner networks to fill in the gaps.

• Have partnerships with neighboring country CSPs

Which verticals depend most heavily on Carriers?

Some vertical industries that depend on Carriers are: Regulatory: emergency call, regulated games (Video lottery,

poker), electric/gas metering, etc.

Automotive: performance monitoring, maintenance, infotainment, remote assistance, emergency alerting i.e. as emergency in case of crash

Tracking: Shipment, Fleet

Smart Metering: Utilities - gas/electrical meters;

Healthcare: Legal compliance, Healthcare and technology providers partnerships

How should M2M ecosystem players work together to deliver full service strategies?

Carriers must develop Partner/Vendor partnerships to address niche markets (off-deck services)

Develop M2M standard compliant ecosystems (through SDP, PaaS layer, certification environment, etc.) to reduce the cost of development and foster execution

Exploit partnerships with government agencies (municipalities, districts) for smart-city services offerings

Support standardization initiatives (oneM2M, ETSI M2M, OMA) Service Layer/Network Layer/Device Layer

Summary

The M2M connectivity is not the only role CSPs can play. They can expand by leveraging their proven core competencies in areas such as: • Partnerships •Device compliance •Network deployment, commissioning and maintenance • End to end system integration •On-board/Off-board services offerings •NOC/Customer support

Thank You!

Hitachi Corporate Overview

8%

Information & Telecommunication Systems ($19.9B)Social Infrastructure& Industrial Systems

Power Systems

Global employees: 71,000

Major Customers & Partners:Hitachi, Ltd Revenues: US $112.2B Employees: 360,000 #3 Rank, Fortune Global 500

Electrical/Electronics companies #40 Rank Overall

US Patents Awarded 1465 patents in 2011, Rank #10

16%8% 11%

10%

7%

13%

7%8%

9%4%

7%

Digital Media& Consumer Products High Functional Materials

& Components

Other

Financial Services

Automotive Systems

Electronic Systems& Equipment

ConstructionMachinery

Components & Devices

Global employees: 71,000

Hitachi and M2M

Hitachi is an M2M “User”– Example: Hitachi Construction Machinery uses embedded devices, GPS, cellular and

analytics to track construction machinery assets, monitor usage, etc.

Hitachi is an M2M industry segment “Vertical Supplier” for the SmartGrid, eHealth, Connected Car/Telematics, Smart City, etc. (many others)– Hitachi Power provides generation, smart grid distribution and control systems– Hitachi Medical provides imaging, diagnostic, analysis, bioinformatics, HIS systems– Hitachi Automotive and Clarion provide automotive control systems and IVI systems

Hitachi is an M2M “System Integrator”– Hitachi Consulting provides SI design, implementation and project management

Hitachi provides M2M “IT Infrastructure”– Hitachi Data Systems provides storage, servers, virtualization, etc.

Hitachi provides “Telecom Systems” for Service Provider’s M2M Offerings– Hitachi Telecom provides LTE packet core, gateways and management systems for

SPs plus middleware enabling multiple M2M “applications” on the same embeddeddevice/gateway while abstracting complexities like Zwave, ZigBee, 6LoWPAN, etc.

– x

unusual, if not unique, in its scope related to M2M(just a few examples are highlighted)Hitachi is an M2M “User”

– Example: Hitachi Construction Machinery uses embedded devices, GPS, cellular andanalytics to track construction machinery assets, monitor usage, etc.

Hitachi is an M2M industry segment “Vertical Supplier” for the SmartGrid, eHealth, Connected Car/Telematics, Smart City, etc. (many others)– Hitachi Power provides generation, smart grid distribution and control systems– Hitachi Medical provides imaging, diagnostic, analysis, bioinformatics, HIS systems– Hitachi Automotive and Clarion provide automotive control systems and IVI systems

Hitachi is an M2M “System Integrator”– Hitachi Consulting provides SI design, implementation and project management

Hitachi provides M2M “IT Infrastructure”– Hitachi Data Systems provides storage, servers, virtualization, etc.

Hitachi provides “Telecom Systems” for Service Provider’s M2M Offerings– Hitachi Telecom provides LTE packet core, gateways and management systems for

SPs plus middleware enabling multiple M2M “applications” on the same embeddeddevice/gateway while abstracting complexities like Zwave, ZigBee, 6LoWPAN, etc.

– x

M2M Value Chain

ModuleMachine Network MiddlewareSystemIntegrator

ServiceProvider

End User

Service Providers

Middleware Providers

Application DevelopersSystem Integrators

Network Equipment Providers

Service Providers

Machine & DeviceManufacturers

Trust & Identity

Cyber Security

Source:

Current M2M Solutions

• Many industries are addressing M2M solutions and applications.– We’ve all seen the forecasts for billions, if not trillions of connected devices

• Current solutions are unique to each industry, and often evenunique across companies/systems in the same industry --- customhardware and software.

• Result: longer time to market; greater development costs andoperational expenses; and frequently inflexible, custom, tightly-coupled solutions.

• M2M services often rely upon telecom Service Providers forconnectivity between the myriad of devices in the field and theM2M application servers

• SPs are optimizing networks to effectively meet industry needs forM2M communications; some optimizations are standards-basedbut others are unique to a vertical/industry or SP’s implementation

• Many industries are addressing M2M solutions and applications.– We’ve all seen the forecasts for billions, if not trillions of connected devices

• Current solutions are unique to each industry, and often evenunique across companies/systems in the same industry --- customhardware and software.

• Result: longer time to market; greater development costs andoperational expenses; and frequently inflexible, custom, tightly-coupled solutions.

• M2M services often rely upon telecom Service Providers forconnectivity between the myriad of devices in the field and theM2M application servers

• SPs are optimizing networks to effectively meet industry needs forM2M communications; some optimizations are standards-basedbut others are unique to a vertical/industry or SP’s implementation

Strategic M2M OpportunityProprietary approaches to M2M cannot scale . . .

A Common Service layer will leverage core networkcapabilities and enable Service Providers to enhance

the overall M2M ecosystem.Common, cost-efficient, easily and widely available M2M Service Layer,

readily embedded within various hardware and software

oneM2M Chronology

• “Global Initiative” to consolidate Service Provider related standards forM2M started in May 2011 by seven leading regional telecom StandardsDevelopment Organizations (SDOs): ARIB and TTC (Japan), ATIS and TIA(North America), CCSA (China), ETSI (Europe), TTA (Korea)

• First meeting held in Seoul (July 2011). Subsequent meetings inWashington, DC (August), Berlin (December) and Tokyo (March 2012).

• Formal signing of a Partnership Agreement by seven SDOs and firstmeeting of the oneM2M Steering Committee held in Bellevue,Washington on July 24 – 26, 2012

• First meeting of Technical Plenary (TP) held in Nice, France in Sept 2012• TP #9 in Mobile, AL Beijing, China on February 17 – 21, 2014

– TP meetings occurring every 6 – 8 weeks

• Target release of first specification(s): 2Q 2014

• “Global Initiative” to consolidate Service Provider related standards forM2M started in May 2011 by seven leading regional telecom StandardsDevelopment Organizations (SDOs): ARIB and TTC (Japan), ATIS and TIA(North America), CCSA (China), ETSI (Europe), TTA (Korea)

• First meeting held in Seoul (July 2011). Subsequent meetings inWashington, DC (August), Berlin (December) and Tokyo (March 2012).

• Formal signing of a Partnership Agreement by seven SDOs and firstmeeting of the oneM2M Steering Committee held in Bellevue,Washington on July 24 – 26, 2012

• First meeting of Technical Plenary (TP) held in Nice, France in Sept 2012• TP #9 in Mobile, AL Beijing, China on February 17 – 21, 2014

– TP meetings occurring every 6 – 8 weeks

• Target release of first specification(s): 2Q 2014

Goals of oneM2M• Develop one globally agreed specification with initial focus on a common

Service Layer for Service Provider’s networks to provide services tocustomers and users of M2M applications

• Consolidate current M2M Service Layer standards activities into oneM2M• Identify a common Service Layer architecture and identify gaps where

existing standards do not fulfill the requirements and provide or initiatethe creation of specifications to fill these gaps

• Collaborate with wireless and wireline SDOs and fora responsible fordeveloping standards for Core and Access Networks

• Collaborate with SDOs and fora in charge of developing standards for theindustry segments (i.e. domain-specific) aspects of M2M applications

• Develop specifications that will help drive the industry towards a goal oflower operating expenses, lower capital expenses, faster time-to-market,and mass-market economies of scale

• Develop one globally agreed specification with initial focus on a commonService Layer for Service Provider’s networks to provide services tocustomers and users of M2M applications

• Consolidate current M2M Service Layer standards activities into oneM2M• Identify a common Service Layer architecture and identify gaps where

existing standards do not fulfill the requirements and provide or initiatethe creation of specifications to fill these gaps

• Collaborate with wireless and wireline SDOs and fora responsible fordeveloping standards for Core and Access Networks

• Collaborate with SDOs and fora in charge of developing standards for theindustry segments (i.e. domain-specific) aspects of M2M applications

• Develop specifications that will help drive the industry towards a goal oflower operating expenses, lower capital expenses, faster time-to-market,and mass-market economies of scale

Benefits of oneM2M

Monetize newservices

Reduce overalloperating and

capital expenses

Improve time-to-market

Enable mass-market economies

of scale

Deliver a high-quality userexperience

Commonservice layer

valued inexcess of $10

billion*

Leverage functionsand/or capabilities

common acrossmultiple M2M

applications

Enable supplierinteroperability

Deliver a high-quality userexperience

Integration ofservices and

applications acrossindustry segments

(reducefragmentation)

* Beecham

Scope of oneM2M• Use cases and requirements for a common set of Service Layer capabilities.• Service Layer aspects with high-level and detailed service architecture --

access agnostic view of end-to-end services:– Protocols/APIs/standard objects based on architecture (open interfaces, protocols);– Security and privacy aspects (authentication, encryption, integrity verification);– Reachability and discovery of applications;– Interoperability, including test and conformance specifications;– Collection of data for charging aspects (used for billing and statistical purposes);– Identification and naming of devices and applications;– Information models and data management; and– Management aspects (including remote management of entities)– Device abstraction

• Terminal/module issues and other issues not yet agreed to beincluded in the scope of work or may be for future work.

• Use cases and requirements for a common set of Service Layer capabilities.• Service Layer aspects with high-level and detailed service architecture --

access agnostic view of end-to-end services:– Protocols/APIs/standard objects based on architecture (open interfaces, protocols);– Security and privacy aspects (authentication, encryption, integrity verification);– Reachability and discovery of applications;– Interoperability, including test and conformance specifications;– Collection of data for charging aspects (used for billing and statistical purposes);– Identification and naming of devices and applications;– Information models and data management; and– Management aspects (including remote management of entities)– Device abstraction

• Terminal/module issues and other issues not yet agreed to beincluded in the scope of work or may be for future work.

Service Layer: Characteristics

Common Service Layer characteristics across all industry segments:

• Provisioning

• Device management

• Configuration management

• Firmware management

• Device application softwaremanagement

• Authentication and registration

• Device triggering

• Device communication

• Services (ex: location, messaging, etc.)

• Group management forcommunication

• QoS/SLAs

• Policy management

• Data processing and storage

• Notifications

• Diagnostics

• API management

• Billing

• Provisioning

• Device management

• Configuration management

• Firmware management

• Device application softwaremanagement

• Authentication and registration

• Device triggering

• Device communication

• Services (ex: location, messaging, etc.)

• Group management forcommunication

• QoS/SLAs

• Policy management

• Data processing and storage

• Notifications

• Diagnostics

• API management

• Billing

M2M Generic ArchitectureCo

mm

on fe

atur

es fo

rin

dust

ry se

gmen

ts

Common M2M Service Layer

M2M Applications

WANTransportNetwork

WANTransportNetwork

M2M SEN / LANM2M SEN / LAN

Gateway/APIs

Gateway/APIsGateway/APIs

Com

mon

feat

ures

for

indu

stry

segm

ents

WAN Technologies

SEN/LAN Technologies

WANTransportNetwork

WANTransportNetwork

M2M SEN / LAN

M2MPlatform

M2MDevices

End to End M2M Service

Access NetworkAccess Network

Participation in oneM2M• Organizations

– ICT/Telecom SDOs– Other standards and specifications setting organizations (especially industry segments)– Industry groups and associations– Specific technology organizations

• Individual Companies– Service Providers (e.g., M2M SPs, Telecom SPs, Service Layer SPs)– M2M service users (e.g., Utilities, Transportation, Health/Medical, Industrial, Retail, etc.)– Vendors (e.g., M2M Application Providers)

• Regional/National Governmental Entities• Current Membership:

– 180+ member companies (via one or more of the Type 1 Partners)

– Seven Type 1 Partners (original “founding” SDOs)– Three Type 2 Partners: Continua Health Alliance,

Home Gateway Initiative (HGI), Open Mobile Alliance (OMA)– Three Associate Members: MSIP (Korea), NIST, US DOT

• Organizations– ICT/Telecom SDOs– Other standards and specifications setting organizations (especially industry segments)– Industry groups and associations– Specific technology organizations

• Individual Companies– Service Providers (e.g., M2M SPs, Telecom SPs, Service Layer SPs)– M2M service users (e.g., Utilities, Transportation, Health/Medical, Industrial, Retail, etc.)– Vendors (e.g., M2M Application Providers)

• Regional/National Governmental Entities• Current Membership:

– 180+ member companies (via one or more of the Type 1 Partners)

– Seven Type 1 Partners (original “founding” SDOs)– Three Type 2 Partners: Continua Health Alliance,

Home Gateway Initiative (HGI), Open Mobile Alliance (OMA)– Three Associate Members: MSIP (Korea), NIST, US DOT

David FooteCTO, Hitachi CTAVice-Chair, oneM2M Steering Committeedavid.foote@hitachi-cta.com