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April 27, 2012

SAP Initiates Machine-to-Machine Thought Leadership Program, Releases Two Reports

By Rajani Baburajan, TMCnet Contributor

SAP (News - Alert) announced the launch of new machine-to-machine (M2M) resource center as part of its M2M thought leadership program.


SAP commissioned the EIU and Informa Telecoms & Media (News - Alert) to conduct independent researches to support the program. The research captures key insights into the efforts adopted by major companies to apply and monetize M2M communications.

The EIU report, "Rise of the machines: Moving from hype to reality in the burgeoning market for machine-to-machine communication," examines the business models behind successful M2M applications. It is prepared on the basis of in-depth interviews with 18 companies from multiple industries, including automotive, healthcare and energy.

"M2M is beginning to fulfill its promise, with several successful applications already in the field," said Jason Sumner, senior editor, EIU. "The next step is to create a platform for innovation by standardizing technologies, forming partnerships within the industry and demonstrating the benefits to consumers."

The Informa report, "M2M Communications, Turning Potential into Profit," showed that there is no such thing as a "typical" M2M deal, tariff or profit margin. According to the report, developing a sustainable M2M strategy requires looking beyond a service connectivity role to provide differentiated and value-added services (VAS). The report was based on more than 250 M2M telecommunications industry stakeholders from 50 countries. 

"M2M service providers are at a fork in the road: either be excellent at delivering M2M data or at interpreting what the data means," said Camille Mendler, principal analyst, Informa. "We believe that long-term profitability lies in offering more than data transport."

M2M is slated to change the way critical services are delivered over the next decade. The industry faces several challenges though, including technical complexity, regulatory hurdles and a fragmented ecosystem that will need to be overcome in order to open the way for innovative products and services.

The upcoming CTIA Wireless (News - Alert) May 8-10, 2012 will host a number of panels dedicated to M2M. Beecham Research recently announced its founder and other executives from the global M2M market will participate in the M2M Zone (News - Alert) at CTIA Wireless at the Morial Convention Center in New Orleans, LA. Beecham Research is regarded as the only global consulting and research firm focusing exclusively on the worldwide and rapidly growing M2M market.




Edited by Braden Becker



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