Talk between machines is getting louder

M2M or machine to machine refers to data communications between machines. To a large degree, the term has started to be used more to describe the communications between machines over a wireless link - in other words, wireless telemetry.

The most important wireless networks for M2M are the public mobile networks, which increasingly are putting focus on M2M as an area to grow subscriptions volumes.

Wireless M2M can also operate over private radio and RF networks as well as satellite and short-range wireless technologies.

The wireless market has grown strongly in recent years with many previous blockers to growth being overcome. Data tariffs from mobile and satellite operators have dropped dramatically, as have module prices, making mass rollout of M2M more financially viable.

Networks have evolved to offer TCP/IP connectivity with increasing data throughput, improved coverage and simpler interfacing to office-based systems.

There is also a growing understanding of the need for integration of the whole M2M environment comprising hardware, software, network and service, rather than a focus on individual areas. The key pieces of a typical M2M system will include:

• Hardware - a device or group of devices capable of replying to requests for data contained within those devices or capable of transmitting data contained within those devices autonomously;

• Network - a communications link to connect the device or group of devices to a computer server or another device. In wireless M2M, this is typically a mobile/3G connection but can be via satellite or other RF system;

• Management software - increasingly a connected device platform is included to manage the communications link (service activations, provisioning, usage controls, fraud management, cost management etc);

• Application software - a software agent, process or interface by which the collected data is stored, analysed, reported and actioned.

In the Australian environment, many opportunities exist for rollout of M2M solutions. Markets where major expansion is expected include metering (electricity, gas, water), environmental monitoring, security monitoring, asset tracking and payment systems.

A new market for M2M is developing in mobile health with growing discussion in government and the community on how to deliver services to an ageing population given our already stretched hospitals.

There is also a growing demand coming from the industrial/SCADA market where wireless M2M is being seen as a viable method to connect remote assets to industrial systems.

Forecasters have historically been too optimistic on the speed of rollout of M2M solutions with blockers slowing down what would seem to be obvious needs for M2M solutions.

Even with these blockers starting to be removed, it is important to recognise that rollouts have other factors slowing rollout, with simple consideration such as financial budgets, and time/resources to physically install solutions being major factors.

Even here, delays are being removed. In the rollout of smart meters, companies such as UXC have entered the market to provide a pool of skilled resources able to install large volumes of meters quickly.

Financiers are also starting to look at financing arrangement over the life of an M2M solution to simplify funding arrangements.

For local M2M participants there are many opportunities to capture business. One driver is our unique 3G rollout timetable with 3G networks replacing GSM and providing better coverage and faster data throughputs.

This has created local demand for 3G applications ahead of such development overseas. For companies looking at export opportunities, getting 3G M2M products to market now can open doors to export opportunities in the future.

Companies like Netcomm and ResMed have recognised the opportunity and already secured major export sales of products similar to those developed for the home M2M market.

The distances we deal with in Australia are also driving remote M2M application development locally and areas such as environmental and water monitoring can become major local and export markets for the M2M community.