Proving the Business Case for the Internet of Things

Enterprises turn to M2M for competitive advantage: Infonetics Research

Iain Morris
February 15, 2014

Enterprises in the utility sector are increasingly turning to M2M services to “get a leg up on competition”, according to a new survey from Infonetics Research.

According to a new survey, the pursuit of competitive advantage is driving M2M adoption among enterprises in five key market segments, including automotive and logistics, utility, retail, healthcare and public safety and surveillance.

“So much of the discussion surrounding M2M has been focused on connections, but whether it is 20 billion, 30 billion, or 50 billion, there’s no question that number is going to be huge,” said Godfrey Chua, directing analyst for M2M and connected world at Infonetics Research. “What hasn’t been as clear is why this is happening. Why are enterprises buying M2M services?”

During the survey, Infonetics quizzed the enterprise users of M2M technology about their rationale for investing in these systems.

“The number-one factor is the never-ending pursuit of competitive advantage,” said Chua. “This speaks to the need for M2M services to deliver a strong business case.”

“As technologies continue to evolve and prices come down, enterprises will increasingly turn to M2M to lower operating costs, differentiate their brands, and create new revenue opportunities,” added Chua.

According to survey results, most enterprises expect their need for M2M services to increase over the coming year, validating assumptions made by top service providers – including Vodafone (Newbury, UK), AT&T (Dallas, TX, USA), Verizon (New York City, NY, USA), Orange (Paris, France) and Telefonica (Madrid, Spain) – that M2M will be a key growth area for their business.

Security also remains a top concern, along with regulatory issues and the complexity of M2M solutions themselves.

Infonetics Research says this underscores the need for customer education in these areas.

Among other findings are that network quality is the top criteria for M2M service provider selection, and that service providers who place a strong emphasis on network reliability have made significant progress in the M2M area.

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