16th - Mar - 2017
Why the programmable SIM will boost the M2M ‘Internet of Things’ (IoT) market
IoT is transforming the everyday physical objects that surround us into an ecosystem of connected devices. Everything is fair game, from fridges to parking spaces as the IoT connects more and more every day things, simplifying our lives, saving us time and money.
Analyst firm IHS, forecasts that the IoT market will grow from an installed base of 15.4 billion devices in 2015 to 30.7 billion devices in 2020 and 75.4 billion in 2025.
Whilst it is connected consumer devices like fridges and toothbrushes that have captured much of the media attention, the growth drivers behind these statistics will come from business models based on M2M IoT.
Areas like remote monitoring and service management where real-time machine data will help businesses derive efficiencies, optimise supply chains, diagnose or even anticipate mechanical or electrical failure or save energy, is where the real, long-term value will be delivered.
And this part of the IoT ecosystem received a significant boost when the GSMA announced its embedded SIM specification allowing remote, over-the-air provisioning of machine-to-machine (M2M) devices, enabling mobile networks, with more robust SLAs to become networks for IoT delivery – cellular IoT.
Yet, delivering cellular IoT is hamstrung by the complexity of managing interconnect operator agreements and roaming costs. That is an operational problem if you are an enterprise that is producing something that is shipped internationally across geographic borders or depends on the free movement – a vehicle for example. Potentially multiple SIM cards (and multiple operator agreements) are required.
Late last year CLX fully launched its own programmable SIM solution. The business logic is straightforward. CLX has built a tier 1 infrastructure on a carrier-grade platform that connects to more than 200 of the largest mobile network operators worldwide.
In effect CLX aggregates its existing operator agreements to provide a single point of access for IoT connectivity – the CLX reprogrammable SIM. And with the capability of remotely updating the SIM, over-the-air, with a new identity, enterprise customers need only insert the physical SIM card into an IoT device once, as the network operator is dynamically changed according to location and the best current network based on coverage or cost.
Reprogrammable SIMs are the on-ramp for cellular IoT, enabling new business models in multiple areas of services and manufacturing that implicitly make sense, because they help optimize these services and drive down costs.
Want to find out more about IoT – download our new whitepaper.
Author: Rob Malcolm, VP Marketing & Online Sales at CLX Communications.