Groundbreaking new rSIM® technology offers ‘always on’ connectivity.
2 SIMs in 1 – effectively upgrades a Single SIM device to Dual SIM.
Significantly improved up-time set to revolutionise mobile connectivity for IoT devices, minimising the impact of lost connection.
Deutsche Telekom IoT and Tele2 IoT announced as first connectivity partners.
World leading SIM manufacturer secured as technology provider to lead on manufacturing and supporting SIM services.
Worldwide patents further strengthen the innovation and ambition.

A new intelligent SIM card that promises to radically improve network connectivity for IoT devices and mobile internet has been launched today in partnership with global operators Deutsche Telekom IoT and Tele2 IoT.

The rSIM® (Resilient SIM) uses new patented technology to check its own network connectivity and switch providers automatically when disruptions occur, minimising the chances of the SIM and the device becoming disconnected during outages. With two independent mobile operator profiles stored on the single SIM card, rSIM significantly reduces the risk of outages by switching to a backup mobile operator profile if an outage is detected. The SIM offers two levels of resilience, enabling seamless roaming outside of a device’s home country as well as a proactive solution for uninterrupted internet access. The intelligence is brought to life in a new Connectivity Management Platform, where customers can see real-time connection tests from every SIM no matter which mobile operator profile it is connected to.

Deutsche Telekom IoT and Tele2 IoT will act as rSIM’s first connectivity partners, providing independent operator profiles from within their group to deliver true resilience to a global audience.

rSIM will combine best in-class SIM innovation with patented technology to help mobile operators better serve customers. A global SIM technology provider will lead on the product build and manufacture, as well as providing supporting SIM systems that allow rSIMs to be updated over the air. As part of this they will prioritise GSMA compliance to optimise device and operator compatibility.

The launch of rSIM follows on from a series of notable and high-profile network outages. As Mobile Network Operators (MNOs) invest in upgrading their core networks away from 2G and 3G, to 4G and 5G, periods of unplanned downtime have become more prevalent. A recent outage in Australia left customers disconnected and, in some cases, in life-critical positions. A 12-hour network outage in November 2023 affected over 10 million individuals, resulting in a collapse in the Australian health service and shutting down entire train networks. rSIM provides a real-time solution to mitigate critical connectivity outages and the disruption associated with them.

Richard Cunliffe, Director of Product and Innovation, rSIM, says: “There were around 2 billion cellular IoT connections in 2023, growing to around 7 billion in 2033. As more industries become dependent on IoT, mobile network outages are becoming more commonplace, as more devices connect to them. This increased disruption is affecting all industries, but the biggest impact is seen in critical sectors where lives and infrastructure are at risk, for example in Telecare and Critical National Infrastructure (CNI). Working with our best-in-class global partners on the development, build and rollout of rSIM, our innovative dual SIM, dual core approach will provide a solution which both monitors disruptions and reacts to them at speed.”

rSIM’s innovative approach to standards compliance ensures its adaptability alongside evolving GSMA standards. This will include the development of a version compatible with SGP.32 standards in 2025, which are integral to eSIM remote provisioning for IoT devices, particularly those with network or user interface limitations.

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More than 60 percent of the electricity customers in EU27+3 had a smart meter at the end of 2023.

The market is set for stable growth with a total of more than 88 million smart electricity meters forecasted to be deployed across the region from 2024–2028. This was among other things concluded in the latest comprehensive study of the European smart metering market from the leading IoT analyst firm Berg Insight, which has closely tracked the development on this market since the company’s founding in 2004.

At the end of 2023, the EU27+3 region was home to more than 186 million smart electricity meters. Growing at a steady CAGR north of 6.1 percent, the installed base of smart electricity meters is expected to reach a penetration rate of 78 percent by 2028, driven by second-generation rollouts in countries such as the UK, Italy, Spain and Sweden alongside first-generation projects in Germany, Poland and Greece. The smart gas metering market is also set for robust growth in the EU27+3 region where the installed base of devices is forecasted to increase from 56 million units in 2023 to around 78 million units by 2028.

The composition of smart electricity shipment volumes is anticipated to change in two important ways, indicating a focus shift away from Western European markets which have historically been at the forefront in terms of smart metering deployments.

“Firstly, first-generation electricity meter shipment volumes will account for 67 percent of total shipment volumes throughout the forecast period, as second-generation rollouts in Western Europe are by now either in their final stages or fully completed. Secondly, the share of first-generation shipment volumes to countries located in the CEE and SEE regions will increase from 50 percent in 2022 to 80 percent in 2028,” said Mattias Carlsson, IoT Analyst at Berg Insight.

In the last years, the smart metering market has also undergone a shift related to the type of communications technologies being used for data exchange with the utility’s back office. Standalone wireless connectivity options have grown considerably in popularity in the past years and will account for between 55–65 percent of annual shipment volumes throughout the forecast period.

Mr. Carlsson concluded:

“Most of the growth is attributable to 3GPP-based LPWA connectivity options, which are now available in most European markets. Annual shipments of NB-IoT and LTE-M electricity meters are forecasted to be at a level of 3.5–4.0 million per year during the forecast period.”

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Ness Digital Engineering (Ness), a global full-lifecycle digital services transformation company and a subsidiary of KKR, and Zinnov, a global management and strategy consulting firm, jointly launched a comprehensive study titled “Harnessing the Power of Generative AI (GenAI) in Transforming Software Engineering Productivity.”

While productivity is a known outcome of GenAI initiatives, this study measures the actual productivity gains resulting from deploying GenAI at an engineering level. It is uniquely framed to help CTOs, CIOs, and CPOs understand the technology and psychological drivers of engineering productivity and the long-term ramifications on both business and organizational design.

Utilizing Ness’s proprietary platform Matrix to collect data, the study engaged 100+ software engineers across use cases and development settings and in-depth analysis of engineers’ real-world experiences in live engineering environments.

The study revealed that Generative AI implementation not only increases productivity but also allows for deeply assisted context, enabling companies to globalize work frictionlessly. The implication of this is not just better business outcomes but an entirely transformed organizational design. Other key observations that emerged were:

70% Reduction in Task Completion Time for Existing Code Updates: Engineers witnessed maximum impact when utilizing existing codebase functions, leading to reduced development cycle time.
48% Reduction in Task Completion Time for Senior Engineers: Senior engineers witnessed reduced task completion time and found themselves using their time to plan better and assist junior engineers.
~10% Reduction in High Code Complexity Tasks: Generative AI enables engineers to navigate complex coding scenarios with increased efficiency, contributing to faster and more accurate resolutions.
70% Improved Engagement: By simplifying tasks and fostering a more collaborative and dynamic work environment, Generative AI plays a pivotal role in creating a positive and fulfilling professional experience.

This shift challenges traditional organizational structures by focusing more on expertise and efficiencies that will be assisted by technology but controlled and decided by people. This will mean a new kind of workforce – where domain expertise and problem-solving capabilities will preside over technology skills.

Ranjit Tinaikar, CEO, Ness Digital Engineering, said, “GenAI stands poised to transform the software development landscape by offering substantial productivity enhancements and expediting innovation cycles, ultimately accelerating time to market. However, its potential could be hindered if narrowly perceived as a mere code generation tool, a misconception prevalent in the software development realm. To fully harness the power of GenAI, we collaborated with Zinnov to understand the impact of GenAI on software development and its nuances. The study serves as a guide on the impact of GenAI on product development process, organization structures, employee engagement, learning, and development.”

Speaking about the study, Pari Natarajan, CEO, Zinnov, said, “Generative AI is now integrated into software engineering workflows across many organizations, aiding in tasks like generating test cases, refactoring code, and identifying innovation opportunities. This study validates the belief that Generative AI complements rather than dictates workflows, facilitating frictionless knowledge sharing and unlocking the true value of globalization. This has led to increased confidence among CTOs and CIOs in distributing development teams globally, with minimal impact on productivity. Additionally, the widespread use of Generative AI has boosted employee morale, surpassing productivity gains. While the potential of Generative AI is vast, limitations primarily stem from hardware costs, energy consumption, and regulatory constraints.”

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Asimily’s “IoT Device Security in 2024: The High Cost of Doing Nothing” report identifies today’s IoT threat landscape as enterprises across industries implement and scale connected devices

Asimily, a leading Internet of Things (IoT) risk management platform, today announced the availability of a new report: IoT Device Security in 2024: The High Cost of Doing Nothing.

The comprehensive report—available for free download here—highlights emerging IoT device security trends and challenges.

Enterprises continue to embrace IoT strategies to streamline operations, boost efficiency, and improve customer experiences. From hospitals to manufacturers to public sector agencies, IoT device fleets are critical for meeting these modernization goals. However, the acceleration in connected device deployment opens new windows for cybercriminals and exposes networks to potential breaches. This report addresses the growing challenge of securing IoT devices and explores the consequences for businesses neglecting sufficient cyber resilience. It also provides valuable guidance for implementing a comprehensive approach to mitigating IoT-related cyberattack risks.

Among the key findings and analysis included in the new report:

Breach tactics continue evolving: Cybercriminals seeking confidential proprietary data to sell for financial gain look for and infiltrate vulnerable and often-unsecured IoT devices to establish initial access to an enterprise’s network. That tactic supports ransomware attacks as well, with criminals gaining access via IoT endpoints, encrypting data, and extorting ransoms. In other cases, nation-state-sponsored groups are motivated to shut down or disrupt the services of their targets. A common tactic is harvesting vast fleets of vulnerable IoT devices to create botnets and utilize them to conduct DDoS attacks. Attackers also know they can rely on unresolved legacy vulnerabilities, as 34 of the 39 most-used IoT exploits have been present in devices for at least three years.

Routers are the most targeted IoT devices, accounting for 75% of all IoT infections. Hackers exploit routers as a stepping stone to access other connected devices within a network. Security cameras and IP cameras are the second most targeted devices, making up 15% of all attacks. Other commonly targeted devices include digital signage, media players, digital video recorders, printers, and smart lighting. The report also highlights the especially consequential risks associated with specialized industry equipment—including devices critical to patient care in healthcare (including blood glucose monitors and pacemakers), real-time monitoring devices in manufacturing, and water quality sensors in municipalities.

Cyber insurers are capping payouts. Cybersecurity insurance is becoming more expensive and difficult to obtain as cyberattacks become more common. More insurers are now requiring businesses to have strong IoT security and risk management in place to qualify for coverage—and increasingly denying or capping coverage for those that do not meet certain thresholds. Among the reasons why cyber insurers deny coverage, a lack of security protocols is the most common, at 43%. Not following compliance procedures accounts for 33% of coverage denials. Even if insured, though, reputational damage remains a risk: 80% of a business’s customers will defect if they do not believe their data is secure.

Manufacturing is now the top target: Cybercriminals are increasingly focusing their attention on the manufacturing, finance, and energy industries. Retail, education, healthcare, and government organizations remain popular targets, while media and transportation have been de-emphasized over the past couple of years.

“Vulnerable IoT devices continue to be a glaring cybersecurity weak spot for many, many enterprises,” said Kenan Frager, VP of Marketing, Asimily. “In the rush to absorb all of the business benefits these devices deliver, sufficient security—and the impact that security has on the broader network—is too often left unchecked.”

“Regardless of industry, an attack on IoT infrastructure can and will result in operational downtime, loss of IP, loss of revenue, and reputational harm. Regulatory compliance adds another layer of pressure, with steep fines and sanctions looming for breaches that affect HIPAA, PCI DSS, NIST, SOC 2, and other increasingly stringent mandates.”

“There’s a clear and urgent need for more businesses to prioritize a more thorough risk management strategy capable of handling the unique challenges of the IoT,” said Shankar Somasundaram, CEO, Asimily.

“While organizations often struggle with the sheer volume of vulnerabilities in their IoT device fleets, crafting effective risk KPIs and deploying tools to gain visibility into device behavior empowers them to prioritize and apply targeted fixes. This approach, coupled with a deeper understanding of attacker behavior, enables teams to distinguish between immediate threats, manageable risks, and non-existent dangers. The right strategy equips organizations to focus efforts where they matter most, maximizing their resources while ensuring the security of their IoT ecosystem at scale.”

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The combination of generative AI (GenAI) and the Internet of Things (IoT) holds the potential to reshape the future of technology and drive unprecedented innovation.

GenAI promises to revolutionize the IoT ecosystem by enhancing security, personalization, anomaly detection, on-device machine learning, and network management.

As these areas continue to evolve, businesses and individuals are ready to benefit from the innovative applications of GenAI. In this article, we’ll explore the many ways GenAI is beginning to transform the IoT landscape and examine the future possibilities of this powerful alliance.

Creating Synthetic Data for Machine Learning

One of the main challenges in developing machine learning models for IoT devices revolves around collecting and labeling massive amounts of data. However, GenAI solves this problem by creating synthetic data to train these models.

This synthetic data can be used to simulate a variety of scenarios, including machine failures. For example, a manufacturing company can use GenAI to create synthetic data that represents different machine failure scenarios. The company can then use this data to train machine learning models to anticipate potential problems in advance, enabling predictive maintenance.

Crafting Personalized Experiences

GenAI enables IoT devices to deliver personalized experiences to users by leveraging its ability to generate new and original content. Smart home systems can use GenAI algorithms to create personalized lighting and temperature settings for individual users, enhancing comfort and convenience.

And wearable devices can use GenAI to offer tailored workout recommendations based on an individual’s fitness goals and preferences. By leveraging user data from surveys, interactions, and sensor inputs, GenAI can create unique and personalized experiences tailored to the specific needs of each user.

Improving Anomaly Detection

Anomaly detection is key to ensuring the reliability and security of IoT networks. GenAI has the ability to greatly improve anomaly detection by creating synthetic data that accurately simulates normal operating conditions. By training machine learning models on this synthetic data, IoT devices can effectively identify and flag irregular events in real time.

For example, an operator of a power grid can use GenAI to generate synthetic data that mirrors typical power consumption patterns. The power grid operator can then use that data to train a machine learning model that can detect sudden spikes or irregularities in power consumption, enabling the operator to take proactive measures to prevent potential failures or security breaches.

Enabling On-Device Machine Learning

The combination of GenAI and IoT introduces exciting prospects for on-device machine learning. GenAI tackles the issue of limited computing resources in IoT devices by creating smaller and more effective machine learning models.

Anomaly detection models, for instance, can be optimized and implemented directly on IoT devices, enabling real-time analysis and decision-making without depending on cloud resources. This reduces latency as well as strengthens data privacy and security by reducing the need to send data to external servers.

Automating Network Management

Managing large-scale IoT networks requires intelligent automation. GenAI can be instrumental in automating different areas of network management, including configuring devices and optimizing network traffic. With its generative abilities, GenAI can automatically set up new devices as they join the network, simplifying the onboarding process.

Additionally, GenAI can enhance network traffic by intelligently directing data through the most efficient routes, reducing latency and maximizing the use of available bandwidth. This automation lessens the workload of network administrators and boosts the performance and efficiency of the network.

Potential Future IoT Applications

As GenAI continues to evolve, the possibilities for its integration with IoT are endless. Some potential applications include:

Creating New Types of IoT Devices: GenAI can facilitate the development of innovative IoT devices, such as smart assistants with natural language processing capabilities. These devices will be able to understand and respond to human commands and queries, revolutionizing the way we interact with technology.

Enhancing User Interactions: GenAI can enable new ways to interact with IoT devices, including gesture recognition and voice commands. This will make technology more intuitive and accessible, improving the user experience.

Improving Security and Reliability: GenAI can assist in developing advanced security measures for IoT networks, effectively mitigating cyber threats and ensuring data privacy. By generating synthetic data to train anomaly detection models, GenAI can help identify and prevent security breaches in real-time.

Democratizing IoT Access: GenAI has the potential to help bridge the digital divide by making IoT devices more affordable and accessible and allow more people to benefit from the advantages of intelligent connectivity. Democratizing IoT access will allow businesses and individuals to take advantage of IoT technologies for various applications and industries.

Conclusion

The integration of GenAI and IoT has the potential to totally transform how we interact with and benefit from intelligent connectivity. By leveraging GenAI, businesses and individuals can unlock a wide array of applications, ranging from improved anomaly detection and personalized experiences to on-device machine learning and network management automation.

As the field continues to evolve, it’s vital that we embrace the possibilities presented by GenAI and explore its potential to transform IoT. The future of GenAI in IoT is bright, promising a new era of intelligent connectivity and unprecedented opportunities for innovation.

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LoRaWAN Network Operator Netmore Group, announces global expansion through the acquisition of Senet, Inc.

This acquisition positions the combined entity as the leading platform and most customer-centric partner for IoT B2B-deployments at scale.

The acquisition of LoRaWAN operator and cloud-based network management platform provider Senet immediately establishes Netmore with carrier grade network in the US, adding to its strong position operating carrier grade networks throughout the European and global IoT markets. Senet brings nearly 10 years of LoRaWAN technology development, a portfolio of public and private network offerings, integrations with several terrestrial and satellite networks, and a synergy with Netmore Group across large-scale commercial markets, including utilities, energy, enterprise, and asset tracking/logistics.

Adding to its growing footprint throughout 11 European markets, Netmore is now positioned to deliver best-of-breed connectivity services, network infrastructure management, network and device monitoring and management, radio planning, maintenance, and customer support globally.

The combined company will start with over one million connected devices under direct management and a large contracted backlog, including one of the largest global installed bases of water utility AMI networks and contracted smart meters. Additionally, Senet has momentum in the building monitoring, track and trace, natural gas safety, and operator enablement markets, which complement existing Netmore market penetration and offers new opportunities for significant multi-protocol end-device connection growth across geographies.

Senet will continue operations as Senet, a Netmore Company from its headquarters location in Portsmouth, New Hampshire, ensuring the continuity of regional sales, service delivery, and customer success. This structure also recognizes the strong brand Senet has created as a prominent provider of LoRaWAN network services, while establishing a better, stronger Netmore Group with the resources and strategic focus to grow a global business.

‘Accomplish More with Less’ Mission and Growth Strategy

Netmore’s mission to advance sustainable business practices through robust and reliable infrastructure is being executed against a strategy focused on building a world leading IoT connectivity company and the largest global LoRaWAN/IoT ecosystem. Delivering a future-proof network developed for optimal IoT connectivity and removing barriers to entry, including fragmented solution offerings, cost, and scale are fundamental to the company’s ‘Accomplish More with Less’ commitment to its customers.

In addition, with wireless technology playing a key role in transitioning to a green economy, the company is creating the global IoT network for energy efficiency, natural resource conservation, and contributions to net zero CO2 emission goals. For example, IoT network connectivity provided by the company is a key enabler for water utilities to address +25% water loss due to leakages in EU and the US. Similarly, cost and energy savings of 15-20% can be achieved in buildings by using LoRaWAN connectivity and sensors while simultaneously improving indoor climate. This focus enables customers to be more competitive and environmentally responsible, resulting in a significant and transformative impact on business and society.

“I am thrilled to announce this acquisition which reflects our ongoing commitment to become the world’s leading provider of global carrier-grade IoT connectivity. The acquisition of Senet is a very important step in Netmore’s expansion plan. After our build out of LoRaWAN in Europe, now covering 11 countries, this expansion into the US is a pivotal part of our growth strategy and aligned with our commitment to the deployment of infrastructure needed to support global business automation and sustainability initiatives. This acquisition brings together highly complementary teams, technology, and operations that position Netmore to create even more value for our customers, employees, and shareholders as we become the driving force behind the next stage of market growth,” says Ove Anebygd, CEO Netmore Group AB

“A fragmented IoT connectivity market is beginning to consolidate. Netmore, Senet investors, and leadership view the timing of this strategic acquisition as an opportunity to establish a dominant market leadership position. Now, more than ever, we are positioned to engage and execute with technology leaders, solution providers, integrators, and channel partners to drive innovation into the market and accelerate the adoption of LoRaWAN technology across markets. Our long-term commitment remains firmly rooted in delivering innovative products and exceeding customer expectations with best-in-class customer support, while building and maintaining strong relationships with the customers, partners, and suppliers across the markets we serve,” says Bruce Chatterley, CEO, Senet, Inc.

Purpose-Driven Investors

With backing from financially strong and long-term purpose-driven investors Polar Structure AB, a major shareholder in Netmore, and Fisk Ventures, a leading investor in Senet, the organization is poised to capitalize on new opportunities and drive growth for years to come.

“As majority owner and green transition partner, we are proud of our key investment in Netmore. Through our continued investments, we are determined to develop the leading IoT network for critical assets in society to become sustainable at scale. A sustainable asset is a connected asset. Our long-term ownership structure accelerates modern infrastructure development, enabling resource efficiency across sectors. It’s rewarding to be a part of this journey of transformation and growth with Netmore,” says Tobias Emanuelsson, CEO of Polar Structure AB.

“We are excited about the growth of digital transformation driven by the promise of IoT. Following recent growth in demand from the energy, utility, and enterprise sectors, the timing of this venture is strategically aligned with the next phase of the market’s evolution and creates new opportunities for customers around the world. We look forward to the ongoing innovation and ecosystem leadership to be delivered by the combined Senet and Netmore organization,” says Stephen Rose, Managing Director of Fisk Ventures.

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The Mobile Satellite Services Association (MSSA) has a vision of integrating terrestrial and non-terrestrial network (NTN) services to deliver scalable, sustainable, and affordable connectivity to any device, anytime, anywhere
Enables over 100 MHz of standards-based, interoperable L- and S-band spectrum for D2D across multiple MSS networks globally

Viasat, Inc., Terrestar Solutions, Ligado Networks, Omnispace and Al Yah Satellite Communications Company PJSC (Yahsat) today announced the Mobile Satellite Services Association (MSSA).

MSSA will bring significant scale and choice to promote and advance the emerging Direct-to-Device (D2D) ecosystem.

MSSA seeks to develop a global ecosystem utilizing over 100 MHz of L- and S-band spectrum already allocated and licensed for mobile satellite services (MSS), which is well-suited for integration into a broad range of mobile devices. The non-profit industry association intends to align with 3rd Generation Partnership Project (3GPP) standards to extend terrestrial mobile coverage for both Mobile Network Operator (MNO) and Over-the-Top (OTT) internet services.

MSS licensed spectrum advantages include: enabling existing space networks to immediately offer Narrowband Internet of Things (NB-IoT) services, an existing international regulatory framework, no interference with terrestrial networks, and more spectrum to advance 5G New Radio (5G-NR) services. MSS spectrum enables all MNOs to offer space/terrestrial integration in their entire service area without having to sacrifice terrestrial spectrum.

By aligning their expertise, along with other ecosystem partners, the founding members support integrating terrestrial and non-terrestrial networks (NTNs) to deliver scalable, sustainable and affordable connectivity to any device, anytime, anywhere. Emerging D2D services can expand connectivity and enable competition across multiple large and diverse segments, including cellular, industrial, government, agriculture, automotive and others. The Association will foster a D2D ecosystem of solutions providers including terrestrial mobile and satellite operators, OEMs, infrastructure, chip vendors, and others.

“Integrating satellite connectivity into consumer mobile devices is a transformative opportunity for the satellite industry. As a coalition of leaders with a unified voice, MSSA will be a driving force in making this new marketplace a reality, while respecting the rights of nations to meaningfully engage and retain sovereignty in a rapidly growing space economy,” said Mark Dankberg, Chairman of MSSA, and Chairman and CEO of Viasat.

“The Association will help create opportunities to scale NTN systems via open, standards-based solutions for D2D and IoT. We believe this can be done while preserving critical MSS aviation and maritime safety services and by expanding the markets supporting diverse users through substantial improvements in speed, bandwidth, availability, interoperability and affordability.”

MSSA is focused on achieving the following fundamental goals:

Unlocking interoperable architectures and standards for use in multi-orbit satellite systems, ground infrastructure and end user equipment
Enhancing seamless global roaming between terrestrial and multi-orbit satellite networks through the development of recommended specifications
Achieving scale through improved coordination and cooperation mechanisms among MSS operators to maximize the utility of over 100 MHz of already available and licensed global MSS spectrum in nations desiring advanced NTN services
Maximizing scarce multi-orbit space and spectrum resources and employing sustainable network design and operation to enable affordable advanced NTN services
Advocating for policies, laws and regulations, including those related to rational, efficient, safe and sustainable uses of spectrum and orbits, and where appropriate, objective and quantitative metrics regarding all objects in orbit around Earth
Providing a neutral forum for coordination of 3GPP NTN and other international standards activities
Supporting the integration of space networks into national telecommunications infrastructure via trusted local partners and within sovereign regulatory and national security frameworks
Supporting mechanisms for individual nations to participate in the new space economy via open standards and architectures, and via the space networks supported by MSSA

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IoT Analytics published an analysis based on the “IoT Commercialization & Business Model Adoption Report 2024” report highlighting 8 insights from OEMs with business models that are considered more successful.

Key insights:

Many equipment manufacturers (OEMs) have significantly advanced their IoT strategies, introducing innovative software and services, and revamping their business models. This evolution has enabled some to expand their IoT deployments to millions of devices successfully.
Connected products are now the norm – It is expected that by 2026 more than 50% of products sold by OEMs will be IoT connected.
IoT Analytics’ 206-page IoT Commercialization & Business Model Adoption Report 2024 delves into OEMs’ approaches to IoT business models. It highlights key factors that distinguish the more successful OEMs from less successful ones, such as acting on customer equipment usage behavior.

Key quotes:

Knud Lasse Lueth, CEO at IoT Analytics, remarks: “Our 2024 IoT Commercialization & Business Model Adoption Report, reveals pivotal insights into what differentiates successful IoT implementations among OEMs. A standout finding is the projection that over 50% of products sold by OEMs will be IoT-connected by 2026. The report also highlights the significance of leveraging customer equipment usage data as a cornerstone for innovation, enabling OEMs to offer tailored solutions that significantly enhance customer experiences and operational efficiencies. This report is a clarion call to OEMs everywhere: the path to IoT success is through deep customer insights and innovative business models. It takes years to get there but early innovators show that the journey is worth it.”

Dimitris Paraskevopoulos, Senior Analyst at IoT Analytics, adds that “From the question of ‘Should I build connected IoT products?’ in 2014 to ‘How should I build my (next) smart connected products?’ in 2024, the shift in OEMs’ approach to IoT is evident. With over 16 billion active connected IoT devices globally, the transformation is not just about sales or specific partnerships. It’s about understanding customer behavior, analyzing it, and better serving their current and future needs.”

How to create a successful IoT business model

Less than 10 years ago, in November 2014, Michael Porter (one of the world’s most influential management thinkers and professor at Harvard Business School) and Jim Heppelman (former CEO at PTC) published a widely recognized article in Harvard Business Review titled “How Smart, Connected Products Are Transforming Competition.” In it, they argued that IoT-connected products would alter traditional industry structures, business models, and the nature of competition in many industries.

While the change has not been as quick as expected, 10 years later, we do have over 16 billion active connected IoT devices globally as of 2023, including consumer devices (e.g., smart homes and watches) and enterprise equipment (e.g., connected factory machinery, electrical equipment, and commercial vehicles). Most large OEMs have a connected product roadmap and, with it, a software and servitization strategy.

In 2014, when the article came out, many OEMs that IoT Analytics spoke with asked, “Should I also build connected IoT products?” This has since dramatically shifted; now, in 2024, the questions OEMs are asking are, “How should I build my (next) smart connected products?” and related to that, “What should the business model look like?”

Prominent examples of OEMs that have innovated their business model and subsequently scaled to hundreds of thousands or even millions of connected devices at this point include:

BMW, with over 20 million connected vehicles on the road worldwide.
John Deere, with over 500,000 connected agriculture- and construction-industry machines in the field.
Schindler, with over 500,000 connected elevators around the world.

Even smaller OEMs are reaching impressive numbers with their connected devices. Take the example of Italy-based professional kitchen machinery manufacturer UNOX, a company with approximately 1,200 employees. Unox started its connected product proof-of-concept stage in 2015 and has since connected more than 30,000 ovens and introduced new revenue streams with it.

There are thousands of other examples of smart product/IoT business models that are scaling to these numbers of connected devices, and the resulting business implications should not be taken lightly—they are often core to the company strategy. Take, for example, US machinery giant Caterpillar, which has set a target of $28 billion in service sales by 2026. The data coming from smart connected IoT trucks, excavators, and wheel loaders play a crucial role in achieving that target.

“Our confidence is increasing that we will achieve our $28 billion services target by 2026. Through tools like the new Cat® Central and SIS2GO apps and insights from data on our more than 1.4 million connected assets, we are creating a superior customer experience as we help customers minimize downtime, improve utilization and extend product life.” – Jim Umpleby, Chairman and CEO at Caterpillar (2022)

In our research for the 206-page IoT Commercialization & Business Model Adoption Report 2024 (published February 2024), we looked at 100 OEMs like Caterpillar to understand: What are the takeaways and best practices these companies have developed as they are scaling their connected products to the thousands or millions?

The data are based on surveys with participants from these OEMs who have knowledge of and can speak to their respective OEM’s IoT business model.

Components of a successful IoT implementation

There are many tradeoffs when bringing a smart connected product to market, for example:

Which features should we focus on developing?
Do we monetizethe hardware, the software, a service, or the data? Or perhaps a combination of those?
Do we charge once, monthly, or perhaps even per usage (pay-per-use)?
Do we offer some features for free?
Do we source the tech stack via an external vendor, develop it in-house, or find an open-source solution?

The report provides answers and viewpoints on each of these tradeoffs and highlights which IoT business models are considered to be more successful. This article does not go into the same depth as the report, but it highlights 8 insights that were uncovered during the analysis.

We split our analysis of IoT business models into 4 parts:

1. Making the case for connected equipment (e.g., determining the revenue contribution, outlining key benefits, and highlighting key beneficiaries of connected equipment)
2. Developing the IoT product (e.g., budgeting, sourcing parts, time to market, and developing the features)
3. Developing the business model (e.g., market positioning, key use cases/features, value chain, and revenue model)
4. Commercializing the IoT product (e.g., determining ways to monetize, developing measures to drive adoption)

1. Making the case for connected equipment

Insight 1: 40% of products sold by OEMs are connected.

The survey participants reported that, on average, connected products accounted for 40% of the product mix that was sold in 2023. The participants expect this average to rise to 54% by 2026, though OEMs in APAC are already seeing over 50% of products sold being connected.

Machinery OEMs and electrical equipment makers were the forerunners in this regard as of Q4 2023. However, respondents from OEMs in other major industries are expected to see their connected products take more of the share of the total products sold over the next three years and match those two industries. For example, according to the survey participants, ~34% of products sold by automotive OEMs in 2023 were connected. But by 2026, the participants from that industry expect that the share of connected products for their OEMs will reach 54%, the biggest expected increase among other major industries.

Insight 2: Gaining deep insights into customer usage is the single most valuable feature of connected products.

The research found signs that the core value of connected devices is to drive OEMs and customers closer together. 67% of the survey participants reported that generating deep insights into customer usage of their products and services is either extremely or very useful for their organization—the highest ranked in terms of benefits from connected products. Second to this was better management of customer needs, which 61% of OEMs reported as extremely or very useful.

However, it is not simply about sales or focusing on specific partnerships. Instead, companies find this information more valuable because they can understand customer behavior, analyze it, see how their product is broadly used, and better serve their current and future customers.

“What is happening on a single press might not be valid on a global scale. Machine data helps us to understand what is going on for certain press formats or applications. Since we have all the data from the market now, we do see regional shifts and shifts in applications. That helps us focus our company on what is most important for our customers.” – Thomas Göcke, head of digitalization, König & Bauer

2. Developing the IoT product

Insight 3: OEMs need 41 months to bring their connected products to market.

The research found that the survey participants’ OEMs average 41 months from project kick-off to their first sale (time to market), with 43% of them reporting time to market taking more than 45 months to reach their first sale. Participants in the automotive industry reported the slowest overall time-to-market, with an average of 53 months from project start to the first paying customer. Meanwhile, participants from electrical equipment OEMs reported the fastest, with an average of 33 months.

Insight 4: Microsoft, Cisco, and AWS are the three most mentioned vendors across the tech stack

According to the survey participants, OEMs appear to frequently outsource aspects of their tech stack. 150 unique vendors were mentioned by the 100 OEMs surveyed for this research. The top outsourced parts of the tech stack include connectivity services (e.g., cellular services), connectivity hardware (e.g., modems and gateways), and cloud-based applications.

The most mentioned vendors that the survey participants reported are Microsoft (mentioned in all 12 tech stack categories that we queried), AWS (mentioned in 11 out of the 12 categories), and Cisco (mentioned in 10 out of the 12 categories).

3. Developing the business model

Insight 5: Successful OEMs help their customers optimize workflows.

61% of survey participants from successful companies—those with an amortization time of 24 months or less for their connected product—shared that workflow optimization was crucial or of high value for their customers, while only 21% of less successful companies stated the same—a 40 percentage point gap. This gap, the largest when looking at how successful and less successful OEMs assess the value of the software or service to their customers, reflects that successful OEMs help their customers optimize their workflow.

A notable example of this from the report is German industrial machine manufacturing company Trumpf. Its Oseon software is a workflow optimization tool for sheet metal processors, with features including digital order management, traceability of materials and stock, and optimization of the overall order flow. Trumpf designed Oseon to help improve each step of the sheet metal production process across the workflow of the average sheet metal processor.

Insight 6: Upselling software based on customer usage is the most successful business model innovation.

When it comes to business innovations, OEMs have several options to explore and try, as shown in the preceding table. However, the best-performing innovation, according to the survey participants, is upselling software/services based on actual product usage, where OEMs observe customer product usage and offer relative add-ons. Of the 67 respondents who said their OEM tried this innovation, 60 (or 90%) of them shared that it was successful.

The most tried innovation is offering specific performance guarantees to the customers (e.g., specific uptime guarantees). This also had the second highest success rate at 59%; however, it also comes with more risk, as OEMs must be ready to stand by the promise and be prepared to address issues quickly.

4. Commercializing the IoT product

Insight 7: IT and data security concerns have not left the customers’ minds.

According to the survey participants, on average, the three biggest concerns/roadblocks that customers report when adopting new IoT-based digital services and software are:

#1: IT/data security concerns
#2: issues with integrating the product into legacy systems
#3: lack of budget

Most notable in this statistic is that IT and data security concerns remained the top roadblock since 2020, when IoT Analytics last released a report on IoT business models for OEMs. These concerns are understandable since high-profile security breaches in connected products can remain fresh in the minds of many. For example, in 2021, hackers gained access to over 150,000 cameras produced by US-based building security solutions vendor Verkada, compromising customer data and giving video access to hospitals, jails, schools, and even Tesla cars.

Insight 8: Privacy and regulations are hindering the abilities of OEMs.

Along with customer concerns related to security, regulations aimed at protecting customer data and cyber security standards appear to be hampering European OEMs’ ability to make the most of their connected products. According to the survey respondents, on average, 71% of European OEMs felt that privacy and security laws were limiting their ability to make the most of their connected product solutions. Europe was the only region to increase in this regard from similar research in 2020; North America and Asia decreased by 22% and 18%, respectively, though 56% of North American OEMs expressed feeling similar limitations.

As this sentiment of hindrance by North American OEMs decreased, it is notable that 59% of North American OEMs stated that they own the data generated by their customers, surpassing both European and Asian OEMs by 17 percentage points. That said, 72% of North American OEMs reported that the customer has a say in whether the generated data is shared with the OEM.

Analyst takeaways and outlook

Since Michael Porter and Jim Heppelman’s paper in 2014, most OEMs have developed a business model strategy, finding what works best for them and their products. However, now that OEMs are looking to scale, adapting their existing business models to this growth presents new challenges.

The research in the IoT Commercialization & Business Model Adoption Report 2024 shows many successful commercialization models are scaling, but it shows a fair share of non-successful ones as well. A key question from this is, “Why are some connected IoT product OEMs more successful than others?”

Overall, it appears to come down to OEMs putting the focus squarely on the customer—but behind the scenes, this is more complex than it sounds. While many OEMs claim that they are getting better at putting themselves in their customers’ shoes, there is clearly still room for improvement. The IoT Analytics’ team, for example, struggled to find a good set of OEM webpages that have a clear and well-articulated IoT value proposition that is geared toward real-world customer problems.

Another struggle for OEMs is making the revenue from connected products meaningful. With some equipment costing hundreds of thousands of dollars and the related software available for only a fraction of that cost, many OEMs still struggle to make the business of connected products meaningful enough to the company’s top and bottom line.

One approach to addressing this is the equipment-as-a-service model. Of the various innovative business models in the IoT Commercialization & Business Model Adoption Report 2024, this model is the most innovative and, in turn, the most complex. It is designed around charging for either some or all of the equipment based on usage.

Of the various innovative business models in the IoT Commercialization & Business Model Adoption Report 2024, EaaS is the most innovative and, in turn, the most complex. It is designed around charging for either some or all of the equipment based on usage.

What it means for OEMs

7 key questions that OEM executives should ask themselves based on the insights in this article:

1. Using IoT for customer-centricity: How well do we understand our customers’ usage of our products, and are we leveraging this data to enhance their experience and address their specific needs?

2. Offering workflow optimization: In what ways can our IoT products help customers optimize their workflow, and are we communicating this value effectively in our sales and marketing efforts?

3. Business model innovation: How can we innovate our business model, perhaps through upselling based on customer usage or offering performance guarantees, to enhance profitability and customer satisfaction?

4. Pricing and monetization strategy: What is the most effective pricing strategy for our IoT products? Should we consider a pay-per-use model, subscription-based services, or a combination of different pricing models?

5. Security and privacy concerns: How are we addressing IT and data security concerns in our IoT products, and are we compliant with the latest privacy and cybersecurity regulations, especially in different geographical markets? Can we prove this to our customers and communicate it effectively?

6. Equipment-as-a-Service (EaaS) model: Could the EaaS model be applicable to our products, and how can we structure it to provide clear value propositions and strong customer service?

7. Scaling challenges: As we scale, what are the key challenges we need to prepare for, particularly in terms of adapting our business model and maintaining a customer-focused approach?

The post How to create a successful IoT business model – Insights from successful OEMs appeared first on IoT Business News.

CSL, Critical IoT Connectivity experts, announce the launch of CSL Satellite.

CSL Satellite provides Critical Connectivity to remote or challenging environments, where mobile or fixed broadband options are unavailable or unreliable.

This resilient, encrypted Critical Connectivity is provided via Starlink’s constellation of low Earth orbit (LEO) satellites, along with CSL’s managed service which includes 24/7 support. As a result, CSL Satellite ensures better coverage and increased resilience for both land and maritime applications.

CSL’s low-cost coverage can be deployed with ease, allowing customers to get set up online as quickly as possible.

They offer three service plans:

Permanent Fixed – Available for static site installs. This plan is ideal for premises in the retail and hospitality industry.
Movable Fixed – Available for customers who require a terminal that will be moved between fixed addresses. This plan is ideal for use cases such as pop-up shops.
Mobile – Available for mobile assets such as light and heavy-duty commercial vehicles, rail and maritime.

CSL’s Head of Product, Andy Bromley, commented:

“CSL has been an industry leader in providing Critical Connectivity to worldwide, leading brands for over 25 years. Adding satellite technology to its portfolio ensures they can deliver a truly global offering, both on land and for maritime applications.”

The post Introducing CSL Satellite – Critical IoT Connectivity appeared first on IoT Business News.