M2M usage in business almost doubles in one year: Vodafone

Many companies are still trying to find the benefits in adopting the latest in machine-to-machine (M2M) communication technology, yet those that do see significant returns of their investment, according to a new report from Vodafone Group PLC. The report, based on a survey of more than 600 executives and managers from 14 different countries in April and May, found that about one-fifth of the companies surveyed have not seriously considered M2M. The same proportion, 22 per cent, have already embraced the technology, and almost every one of those companies, 98 per cent, reported seeing a return on investment. In a similar study last year, 12 per cent reported using M2M. “This is an incredible growth opportunity for a growing variety of companies, large and small, who are both competitors and partners," telecom analyst Jeff Kagan said in a Thursday research note. For those companies that haven’t adopted M2M technology, not understanding the benefits is cited as the main barrier. For companies that use M2M, the top two reasons cited for embracing M2M are the opportunity for innovation — the main reason for companies with between 250 and 10,000 employees — and cost savings via automation, which was most popular for companies with more than 10,000 workers. “Many businesses are looking for ways to differentiate themselves and disrupt their markets through new ways of doing things,” the study said. “Many see M2M as an important tool to achieve that.” The report said more than half of the companies surveyed, 55 per cent, either were already using M2M or intend to within the next two years, while another 19 per cent plan to use M2M but don’t have a deadline. “While M2M is still in the very early stages, it will continue to grow rapidly," Kagan said in the note. “In fact, I see growth accelerating as we go through the next several years. As industry after industry gets involved, things could get quite crazy indeed.” The survey found that companies in the Americas and Europe are lagging behind, with only 17 and 21 per cent, respectively, using M2M solutions, compared with 27 per cent in the rest of the world. Yet within two years, according to the survey’s respondents, the numbers should even out at about 55 per cent in every region. “While plans can change, these statements of intent give us a useful forecast,” the report said. “As you’d expect, the rate of adoption levels off as penetration increases.” The report singled out China as one of the places where public-sector investment in M2M is growing quickly, with the country adopting M2M applications such as smart energy metering and smart-city technologies. M2M communications is considered the “plumbing” underpinning a future Internet of Things, the report said. Canada’s largest wireless carriers have each expressed interest in becoming M2M providers, although the actual size of the market has yet to be determined. — With reporting by Peter Henderson at phenderson@thewirereport.ca and editing by Derek Abma at dabma@thewirereport.ca

M2M usage in business almost doubles in one year: Vodafone

News | July 4, 2014

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M2M usage in business almost doubles in one year: Vodafone

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