VDC Research: Most Companies Lack a Clear M2M Strategy

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Results of Recent Research Study Shows Large Gap Between M2M Plans and Actions

VDC Research, M2M Research for a Connected World

Although 73% of OEMs in our survey reported that M2M is increasingly cited by management as critical to their future success, development costs and questions about ROI are the biggest challenge facing their overall M2M efforts.

VDC Research (VDC), a leading M2M market intelligence firm that provides technology suppliers, product managers and engineering leaders with research-driven insights to help guide their product development and technology strategies, today unveiled highlights of recent research on the challenges and opportunities resulting from M2M. VDC’s global study surveyed leading OEMs across a wide cross-section of industries to gain deep insights into their M2M strategies.

Before discussing highlights of this study, VDC’s Vice President of M2M and Embedded Systems research, Chris Rommel made the following comment, “Although 73% of OEMs in our survey reported that M2M is increasingly cited by management as critical to their future success, development costs and questions about ROI are the biggest challenge facing their overall M2M efforts. While our research shows that many organizations are messaging around M2M as an important strategic initiative, a majority of them have not defined an M2M strategy for their business. The business opportunity for vendors focused on this opportunity is truly staggering, and we have just scratched the surface with current deployments. Similarly, the opportunity for OEMs to leverage M2M to drive new revenue and transform their business is almost wholly untapped as well.”

Highlights from our Voice of the Customer Series: M2M Communications – Connecting Next Generation Devices, Requirements and Deployment Options include:

  •     Perceived cost-based pressures and an inability to define ROI are limiting the ability of engineers to add the capabilities that will meet tomorrow’s M2M requirements.
  •     As IT architectures and strategies shift, M2M components must adapt. When organizations move their infrastructure to the cloud, network paths for M2M will need to change.
  •     As M2M deployments scale up, so too must the processing power of the connected device. Multiple M2M-related factors will increase the load on the embedded processors that power many M2M applications.
  •     Network performance can make or break M2M deployments. M2M applications like remote control and support will significantly increase network traffic, creating real performance challenges for OEMs and their customers.

ABOUT VDC RESEARCH
VDC Research is the leading M2M market intelligence firm that provides engineering leaders and technology suppliers with research-driven insights to help guide their product development and technology strategies. Based on a unique blend of quantitative and qualitative analysis that offer granularity and breadth of coverage, VDC is organized around four practice areas, each with its own focused area of coverage. Together, they enable a unique 360-degree perspective of the opportunities and challenges resulting from The Internet of Things and M2M.
VDC Research has been conducting research and analysis of the global M2M market for more than two decades. Born out of its embedded engineering research practice, VDC Research surveys and interacts with thousands of engineers from all vertical markets including industrial automation, retail, manufacturing and medical devices, to gain insight into their project requirements, solution selection criteria, preferences and trends. For more information visit: http://www.vdcresearch.com

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Ellen Slaby
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