I recently listened to a review of market data regarding Machine to Machine (M2M) communications today by TBR .  I am interested in this aspect of advanced communications as I believe that relevant applications will rely more heavily on M2M to create sustained and ongoing value.

The information shared today was encouraging.  Large Wireless providers in the US are getting more engaged in M2M and are having success in both consumer and business applications.  There is a movement to create eco-systems as well as engaging in Joint Ventures.

This does not mean that things are going exceptionally well.  Complexity of the solutions, issues of sourcing devices, determining payment/revenue models and understanding which wireless network is to be used are all large-scale inhibitors/factors to success.

To me, the top priority is to figure out a better revenue/payment model.  Figure this out and everyone will sort out the other complex problems very quickly.  So the question then becomes – how?

There are many business models that can be employed; my personal preference is an abundance approach.  If all parties take a reasonable share of the revenue and work to grow the revenue stream, then everyone wins.  This means sharing of revenue information, taking only your rightful share and ensuring that everyone gets in on the action.  Given the advances in analytics, this shouldn’t be too hard to accomplish.

The complexity of the overall solution is great enough that trust needs to be well embedded in the eco-system for success. Anything other than that will create an enormous system of distrust and will inhibit progress.

Advertisements