Strategists in a wide range of network service providers have finally awakened to the fact that we have entered a new era of connectivity. However, M2M solutions are very complex and often require many players to perform diverse roles. Carriers that choose to go at it alone will have a hard time building market development momentum in the M2M arena.
Cellular network operators, and their counterparts in the IT infrastructure arena, have historically operated within well-established business models that reflected a distinct set of competencies. These models have been honed over many years. Because of this, the question of how each of these traditional categories of players fits into a new end-toend business model for the M2M arena is still unclear. This has led many participants – particularly the cellular network players – to adopt a passive wait-and-see approach, thereby leaving the potential of M2M relatively underexplored.
The cellular M2M opportunity is rapidly evolving ultimately causing a blurring between these legacy business models forcing carriers and other supplier groups to re-think their strategies.