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M2M software platform pushes out self-built solutions

Posted: 30 May 2012 ?? ?Print Version ?Bookmark and Share

Keywords:M2M? cellular M2M? application enablement platforms?

ABI Research projects application enablement platforms (AEPs) will take over connected device platforms (CDPs) as the cellular machine-to-machine (M2M) market grows. From about 110 million cumulative connections globally in 2011, the analyst sees an increase to 453 million cumulative connections by 2017.

The complexity of developing, deploying, and managing M2M applications over the cellular network will drive this shift. "This is a challenge both for mobile network operators (MNOs) that are trying to offer profitable services tailored to the M2M market, as well as for application developers and service providers that are trying to reduce costs, speed time to market, and simplify robust application deployments," said practice director Sam Lucero.

While CDPs enable the cost-effective deployment and management of M2M connections over cellular networks, AEPs enable quicker and less expensive application development as well as granular remote device management.

Several large MNOs have self-built their own CDPs, including AT&T, Vodafone, and Telefonica, among others. However, merchant market CDPs, such as those offered by Jasper Wireless, Ericsson, NEC, NSN, and others will increasingly become the primary option for MNOs newly entering the market, as well as a second and complementary option for MNOs that already have self-built CDPs deployed. "Core CDP functionality is going to become an increasingly commoditized aspect of the network, better left to third parties that can amortize development costs across multiple MNO customers," said Lucero.

The more nascent, and smaller, AEP market will grow quickly as application developers seek to offload core functionality, such as data normalization, data modeling, and providing a rules engine, onto third-party platforms, rather than developing the application on a completely customized basis. Leading "pure-play" AEP vendors include Axeda and ILS Technology. According to Lucero, "The AEP market is set to grow from about $168.9 million in 2011 to nearly $1.72 billion in 2017."

- Julien Happich
??EE Times





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