Communications service providers (CSPs) looking to position themselves as important players in the M2M (machine-to-machine) value chain are finding it's not necessarily straightforward, according to the findings of a new Heavy Reading report.
To drive new revenues from the M2M sector, CSPs are finding they will have to update their back office systems, such as billing, to meet the demands of the M2M sector's flexible pricing models, such as tiered models and volume-based plans.
First, though, the CSPs need to decide whether to implement a "service provider" or "service enabler" strategy. Both require an underlying platform that is able to provide asset management and transactional insight that supports innovative and aggressive business models. Hence, the deployed platform needs to be capable of not only securely managing data captured from M2M assets, but also transforming that data into relevant, actionable information that can be used to monetize M2M activities.
CSPs must use a next-generation application enablement platform (AEP) that is data-centric to make it simple for application developers to collect, store and mine the data for critical business insights. Any data collected could also be securely published to applications and third parties. M2M application developers can leverage data management components and standardized APIs, resulting in a significant reduction in application development time and cost with increased scalability, reliability and flexibility.
Such an enablement platform would allow CSPs to become solution enablers across a number of verticals, providing economies of scale, increasing the service provider's role in the M2M value chain and effectively monetizing core assets.
These topics are analyzed in the latest Heavy Reading Service Provider IT Insider, "Operational Infrastructure for Value-Based M2M Business Models," which discusses the emergence of M2M solutions, the increased importance of data and how service providers can strengthen their role in the M2M value chain.
— Sarah Wallace, Analyst, Heavy Reading Service Provider IT Insider
Operational Infrastructure for Value-Based M2M Business Models, a 13-page report in PDF format, is available as part of an annual subscription (6 bimonthly issues) to Heavy Reading Service Provider IT Insider, priced at $1,595. Individual reports are available for $900.