Internet of Things: Improving quality of life
Our hyperconnected world is fueling the creation of an Internet of Things that will bring devices, systems and people closer together. Service providers have assets that can help them lead this revolution in Machine-to-Machine (M2M) and Machine-to-Machine-to-Human (M2M2H) communications. Their contributions will help drive growth and development that will improve our quality of life.
Expected to connect 15 billion devices by 2015, the Internet of Things demands a new approach to communications business models, operations and technologies. Success will come from sharing information, ideas and resources across ecosystems, markets and value chains. By securely exposing valued assets to trusted partners, service providers can take steps toward realizing the potential of a connected world.
A vision for a connected society
The Internet of Things can create a safer, greener, healthier society by:
- Enriching life with more intelligent connections between devices and people
- Applying information and communication technologies (ICT) to mitigate the impacts of rapid urbanization
- Rethinking how we manage local and regional growth
- Reducing energy consumption in a dramatic way1
Learn more in the Internet of Things Knowledge Center.
1 Steinart, K. et al., “Making cities smart and sustainable”, Chapter 4, “Global Innovation Index 2011: Accelerating Growth and Development”, Dutta, Soumitra (Editor), pp. 87-96, Published by INSEAD, June 2011. (http://www.globalinnovationindex.org)
Making room for M2M
Internet of Things applications will create new demands and challenges. Some will require high bandwidth, real-time communications or reliability
in remote locations. Others will encourage human interaction by combining personal value with enhanced privacy and safety. Together, these applications
will generate traffic and transactions that
compete for bandwidth and priority.
Service providers are already building and supporting M2M applications for vertical industries. Several key factors are driving development:
- Widespread use of wireless networks
- Reduced communications costs
- IP networks and cloud-based applications that ease solution development
- Industry regulations that demand automated remote monitoring
Generating new opportunities from connected devices
Service providers’ current role in M2M communications is to supply wholesale accounts, SIM cards, data rates and billing plans. They are connection
providers, excluded from service development and delivery.
Times are changing. Service providers can use lower-cost M2M devices, widespread connectivity and applications market growth to monetize
their assets and strengthen their position in the M2M value chain. The Internet of Things will connect billions of devices and create virtually limitless
opportunities for application, service and solution innovation.
Evolving toward the Internet of Things
The next generation of Internet-based M2M applications will identify and include many more objects. With the Internet of Things, businesses and consumers will be able to encode any object and follow its movement anywhere.
Consumers have already embraced connected and GPS-enabled tracking devices. The rail industry is using M2M applications to enable its assets to interact wirelessly. The importance of M2M grows with each new application and user.
Focusing on the customer
To earn widespread support, M2M applications will need to meet expectations relative to simplicity, quality, privacy and security. Service providers can address these expectations by making customer experience transformation (CXT) a central part of their M2M business. A customer-first approach can help service providers meet demand for real-time functionality, performance and connectivity.
Generating new revenue streams
Service providers have network assets, cloud capabilities and expertise in communications. They also have deep customer knowledge and expertise in device management. By leveraging the unique intelligence in their networks and combining it with effective BSS/OSS applications, service providers can expand their M2M capabilities and grow their service revenue.
The first to launch innovative M2M connectivity services will have the best chance to succeed. Service providers can enter the M2M market by collaborating with third-party application providers to create vertical market solutions. With an agile cloud-based M2M strategy, service providers can adapt to new trends and tap the revenue potential of the mass market.
Building Toward the Future
Alcatel-Lucent is committed to realizing the potential of a connected society. We offer communications solutions, experience and expertise that can address a wide range of M2M applications, including smart grids and CXT.
As founders of the ngConnect program, Alcatel-Lucent offers a unique opportunity to expose M2M assets to the ecosystem of developers and to tap into the true spirit of innovation only possible with cross-industry collaboration.
Our solutions and strategies can help service providers adapt their operations and business strategies to capture emerging M2M opportunities. For example:
- Our application enablement strategy can help service providers extend their application-based business models to M2M by giving developers access to device-based services.
- Our High Leverage Network™ architecture can help service providers extract more value from the network and turn the challenges of M2M into growth opportunities for long-term business success.
- Our CXT solutions can help service providers improve the customer experience by using M2M technologies to deliver more intelligent technical support.
- Our network- and application-aware solution elements can help service providers manage high M2M traffic volumes more efficiently.
Visit the Internet of Things Knowledge Center to learn more about how Alcatel-Lucent can help you address the challenges and reap the rewards of the M2M market.