SIMPLIFYING M2M5 Ways Decrease the Cost and Complexity

of Deploying M2M Solutions

October 3, 2012

David KalbAT&TDirector of M2M Business Development

2

Worldwide M2M Module Shipments

ABI Research, 09/2011, “Cellular Machine-to-Machine (M2M) Markets”

2010 2011 2012 2013 2014 20150

20

40

60

80

100

120

33.942.5

53.9

67.9

82.6

101.5

“There are more machines than there are people in the world. Someday they’ll all be connected to the internet.”

International Telecommunications Union“Internet of Things” Report - 2005

“Today we have an M2M Supply Chain Mess”Yankee Group

M2M: Unlimited Opportunity / Immense Complexity

M2M Success faces numerous challenges

What’s the best way to configure & activate devices?

How can I maximize battery

life?

How can we optimize the

payload?What regulatory certifications do I

need?

Can I have a rugged device that is also

lightweight?

Can I finance the hardware?

How do I manage support?

Can I get an affordable wireless

plan?

How do I protect my data?

How will we ship / track hardware?

What about international

coverage?

How will I handle billing?

What if something isn’t working?

Can I integrate into our legacy and ERP

systems?

How do I manage my devices over the air?

5

Evolution of Wireless M2M Solution

Today• Revenue growth;

customer satisfaction

• Increased functionality & data, proactive processes

• Multi-country

Yesterday• Cost reduction;

reactive

• Low data usage, limited functions

• Local or national focus

Tomorrow• New revenue

streams

• Business Intelligence for automated self-healing’ processes

• Fully integrated global solutions

M2M Solution Stack

Applications

Hardware

Platforms

Connectivity

Infrastructure

Prof Svcs

Managed Svcs

SIM provisioning, Billing, Troubleshooting

Application / Device Management

Packaged M2M Application Solutions

Custom Applications, ERP/CRM Applications

Cloud Infrastructure

Data Centers, Back-end Systems, Cloud Computing

Wireless, Wireline,Satellite, WiFi, Zigbee, etc.

Chipsets, Modules, Sensors, Environmental Specs, Certifications: FCC, PTCRB, carrier, industry (i.e. HIPPA)

Consulting, App Development, Integration, Deployment

Lifecycle and deployment services, help desk

7

1. Cloud Based M2M Services2. M2M Service Delivery Platform3. M2M Application Platforms4. Global M2M Service Offerings5. Vertical M2M Solutions

Simplifying M2M5 ways decrease the Cost and complexity

of deploying M2M solutions

1. Cloud Based M2M SolutionsImprove Productivity• Real time collaboration across employees,

partners, customers• Requirements for applications to work

across devices

Reduce Cost• Low storage and server

utilization in non-peak periods• Desire to pivot from

Capex to Opex

Remove Complexity• Simplification due to limited IT staff down

market• End-to-end ownership vs. multi-vendor

service integrations

Demand to mobilize and virtualize assets, applications and activities

• Off-premise• On-demand• Easy to Use

• Device Agnostic• Tiered Support• Manage “Big Data”

CapabilitiesWhy Important?• Pre-built Service Delivery platform specialized for m2m• Features added based on customer demands in agile development• Turnkey Business Management, Operations, Support • Service Provisioning

• Subscription Mgmt• Billing• Service Geography• Business Models• SIM Management• Channel Management• Customer Support• Cost Management• Diagnostics• Fraud Management• Analytics• Order Management• Inventory

Management

2. M2M Service Delivery Platform

3. M2M Application Platform

Challenges of a global M2M deployment:• Assembling and managing the best solution partners (hardware, software, systems)• Integrating a global product, including hardware, software, network• Deploying and managing solution

in multiple regions• Real-time management of network

performance globally• Cost controls and alarms for

data usage by roaming devices• Provisioning in real time• Tracking and managing multi-protocol or

multi-frequency SIMs• Technical support

4. Global M2M Service Offerings

One SIM With Global Roaming Coverage• Single global encrypted GSM

SIM

• Unified billing and a single rate plan for digital data services

• Global diagnostics and device monitoring

• Lowest-cost data routing with roaming permissions controls

• Usage alarms

• Powerful reporting tools

Axeda

Forrester Research, Inc., “M2M Connectivity Helps Telcos Offset Declining Traditional Services”, November, 2011

5) M2M Vertical SolutionsTransportation, retail, asset management, and utilities/energy

Emerging market opportunities include healthcare, security/surveillance, and

consumer products

Forrester Research, Inc., “M2M Connectivity Helps Telcos Offset Declining Traditional Services”, November, 2011

AT&T M2M Capabilities10-year history with Over 13M connected devices under management

• Architectural Design Services• Application Development• Deployment & Managed Services• Lifecycle Management

• Packaged M2M Solutions• Developer Kits• Reference Frameworks• Strategic Ecosystem Partners

• AT&T Control Center Powered by Jasper

• AT&T M2M Application Platform Powered By Axeda

• Global SIM• 200+ Countries• Global SMS• Location Based Services

• 1000+ Certified Devices• Device Innovation Labs• 3G Modules

Professional Services

Devices

Applications

Platform

Network