Proving the Business Case for the Internet of Things

CeBIT 2014: Deutsche Telekom targets M2M growth in German SME market

Iain Morris

March 11, 2014

Deutsche Telekom is busy showing off its M2M expertise at this week’s CeBIT show in Hannover, Germany just days after unveiling plans for a restructuring of its IT business that will prioritize the sale of standardized M2M services, among other off-the-shelf IT products.

In a strategy update last week, chief executive Timotheus Hottges said the operator would also look to address opportunities in Germany’s small and medium-sized enterprise sector, with the aim of generating €600 million from the sale of IT products in this market between now and 2018.

Deutsche Telekom (Bonn, Germany) is looking to drum up SME interest in its M2M capabilities by demonstrating a end-to-end solution for real-time global tracking of vehicle fleets at the CeBIT show.

The operator says the service will allow transport and logistics companies to improve efficiency, service quality and customer satisfaction.

Customers are able to book the solution as a complete package – meaning Deutsche Telekom takes responsibility for all of the requisite hardware and software, providing connectivity services for a fixed price.

It adds that tracking solutions can also be used effectively when transporting containers.

“When end customers receive damaged solar modules, for example, in most cases the fault has not occurred during the production process,” said the operator in a statement. “About 80% of the modules are damaged during transport or installation.”

The operator’s M2M service can be used to track a container’s position, as well as the condition of goods, meaning suppliers can monitor their entire supply chain.

Last week, Deutsche Telekom reported a doubling in annual sales at its intelligent network solutions business – which provides M2M services in the automotive, energy and healthcare sectors – with revenues growing to €200 million in 2013 from €100 million the year before, but the operator’s aim is to make €1bn in this area in 2015.

Hoping to spur earnings growth at T-Systems – which books revenues from intelligent network solutions – Deutsche Telekom plans to restructure the IT unit to focus on the sale of standardized products, rather than bespoke services, in the areas of cloud, security, big data and M2M.

Deutsche Telekom is also reaching out to prospective M2M partners as part of its new “Steckerleiste” initiative.

Roughly translated as “plug in”, Steckerleiste is aimed at positioning Deutsche Telekom as the ideal connectivity partner, able to integrate third-party services within as little as three months.

In its strategy update, the operator cited its Qivicon ‘smart home’ program as an example of its activity in this area.
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