Guest Column | March 12, 2009

Learn Cellular M2M Basics

Written by: Dean Fledderjohn

Machine-to-machine (M2M) has gained attention and traction for its ability to help businesses increase efficiency and improve productivity while reducing operating costs. If your enterprise is one of the many interested in implementing M2M, there is an array of different technologies to choose from such as cellular, WiFi, RFID (radio frequency identification), ZigBee, and more.

WHY USE CELLULAR?

Cellular M2M provides the ability to connect diverse devices and applications by enabling fixed assets, such as electric meters, or mobile assets, such as fleet vehicles. Cellular M2M is the best option to connect assets over great distances using already established, robust, and proven networks. Also, cellular technology is effective across widely varied industries because it's easy to integrate and cost effective to deploy. The world faces one of the toughest economic environments it's seen in generations, and the need for cellular M2M technology and its benefits has never been greater. While many industries are feeling the effects of the global recession, the wireless M2M industry is steady and growing. Harbor Research estimates that in a five-year span, wireless M2M connections will increase from 73 million units in 2008 to 430 million units in 2013. The M2M industry has emerged as a vital segment for the wireless industry and as a catalyst for growth for end users.

If you're unfamiliar with cellular M2M, the technology can seem confusing and complex. It need not be. Implementing cellular M2M technology involves equipping machines with cellular embedded modules (i.e. the engine of a cell phone) and allowing those machines to securely communicate information vital to your business. It cuts the communication process to save time, money, and valuable resources. For instance, utility companies simplify billing procedures by enabling gas, electric, and water meters with cellular M2M technology, which communicates usage data in real time. With fewer trips to check meters, less gasoline burned, and less wear-and-tear on the roads, cellular M2M is lightening the environmental impact of businesses.

M2M technology is used for a wide range of solutions including fleet management, point of sale (POS), vending, tracking and tracing, alarm and security, automotive, and emergency calls. Even patients under a physician's care are safer and healthier when their heart monitoring device or insulin pump can immediately call the doctor when readings hit the danger zone.

In addition to cellular M2M's ability to improve the bottom line and keep businesses running smoothly, several important market trends are hastening M2M's growth. Even the most remote or mobile implementations can provide real-time, uninterrupted communication ability with 24/7 M2M benefits. As the handset market has become saturated, carriers are now more engaged with growing the M2M space by offering attractive pricing packages that increase ROI for adopters. New programs such as Verizon's open development initiative (ODI) make it easier to develop and obtain approval for specialty wireless device use on its network. Aeris recently launched AerCommand, new patent pending technology that's fueling growth in the utilities space. AerCommand enables smart metering solutions with broadcast paging features at a fraction of the cost of traditional solutions.

Finally, technological evolution of wireless M2M modules is enabling more sophisticated solutions with enhanced features and services, further driving adoption. For instance, extended temperature ranges for modules means implementations can be used in the most extreme conditions. Global positioning systems (GPS) and geofencing capabilities are becoming more important for navigation and fleet management, remote machinery maintenance, as well as tracking and tracing.

KNOW THE SIX C's TO SUCCESSFUL M2M ADOPTION

As you begin planning your solution and evaluating technologies and service providers, consider the six C's for successful M2M adoptions. The six C's will help you realize the best ROI.

Choose The Right Tech Team
Building a team of trusted, experienced technology partners that offer exceptional engineering and customer support is the most important step in achieving your M2M goals. Make certain your system integrator has experience designing cellular solutions for your vertical industry. If you're pioneering new ground, look for related experience. In addition to your system integration partner, module and component suppliers as well as wireless carriers have a wealth of knowledge about the complexities of wireless design and engineering. Development partners provide vital engineering support and helpful advice on which component parts and models will provide the best engineering outcome and best overall price.

Consider All Possibilities
Excitement about solving one particular business challenge turns a blind eye toward a solution's full potential. Once a solution plan is established, make sure to validate its value to all stakeholders. Before jumping into feature specifications and systems design with an integrator, consider the needs of the entire enterprise team — from management to field service technicians to repair and delivery professions. It's easier to design and implement one solution that meets all needs than it is to implement several solutions, which require software fixes and upgrades to work together effectively. If you think you need an additional feature down the road, be sure to include the infrastructure to support future evolution. It's important to choose technology and modules that will be supported over the life of your deployed application. Otherwise, have a forward and backward compatible component in case your component goes out of production.

Consider Coverage And Carriers
Ultimately, your unique application will dictate which technology, coverage footprint, and network speeds are optimal for the success of your project. For example, fleet management and asset tracking solutions require WAN coverage with national providers such as Verizon, Aeris, or Sprint. Ask your preferred carrier about flexible pricing programs for M2M deployments. As networks have evolved and bandwidth expanded, carriers are in a good position to offer economical pricing specifically geared for M2M solutions, which use the networks efficiently.

Choose A Module That Stands The Test Of Time
A wireless module is the engine of any cellular M2M solution, and it's crucial to select a high-quality, market proven device with an expected long life. Our experience has shown that using unproven modules and components can lead to costly, potentially deal-killing delays. Market leading, field proven modules hasten to market for system integrators which ultimately increase ROI.

Control Costs
Cellular M2M modules are typically one of the costlier hardware components of wireless M2M solutions. They are generally priced by volume meaning device costs on larger projects are lower than on smaller deployments. Yet, as the wireless M2M market has expanded, large module providers are able to leverage economies of scale to drive device costs down across the board from data-only devices to more sophisticated devices with multiple features. Carrier service costs over long deployment time can end up being the largest overall cost of the application, so it's important to understand the differences between the carriers. CDMA (code-division multiple access) operators offer higher data rates, and they offer lower monthly plan pricing for most applications. But when considering the cost of your module and M2M solution, look beyond the price tag and carefully consider the features enabled by different modules. The general rule of thumb is that solutions should last a minimum of five years. If you think you'll need a feature in the future, make sure the device you select today supports it. Otherwise, factor replacement costs into your deployment up front.

Certifications Are Crucial
Testing and certification can be one of the most painful, costly, and time-consuming aspects of M2M deployment. It's crucial to choose a module from a reputable manufacturer with an established track record for achieving certifications as well as strong carriers relationships. For specialty M2M devices, insist on integrating a module that has achieved carrier pre-approval to shorten the time to market and accelerate ROI. If you need to deploy your solution quickly, consider working with an aggregator who uses pre-certified devices or purchase a pre-certified turnkey solution.

Dean can be reached at dfledderjohn@yahoo.com.