We have been talking about the march of machine-to-machine communications for some time in Comms Dealer, but few resellers have got to grips with the technology. Anton Le Saux hopes all this will change now that O2 has launched its M2M channel programme.
In simple terms, M2M (machine to machine) means connecting devices wirelessly without human intervention. Just imagine a vending machine sited in a sports centre being able to inform its maintenance team that it only has five Mars bars left and six Topics, but dozens of cereal bars. Oh, and its coin box is almost full too. That's not only vital knowledge for maintenance units, but it's also important information for the vending company's marketing and finance teams. Add increased consumer acceptance of digital connectivity to the equation and M2M represents a plethora of opportunities for resellers to sell this new technology across an array of vertical markets, and potentially gain up to a decade of recurring customer revenues.
According to Le Saux, we are on the cusp of this new dawn in communications services which intelligent reseller businesses should be able to profit from, immensely. "In the future we will truly live in a connected world - our lives, homes and cities," he said. "Everything will be connected in an Internet-like way, providing us with valuable information and making people's lives better."
The 65,000 dollar question for channel players is how to get a stake in this gold rush. O2 believes it has stolen a march on rivals on the back of its existing partnerships and support infrastructure. "O2 has always recognised the value in channel and building great partnerships in mobile and mobile data. It is the relationships that have been built with partners that have enabled us to become the market leader and first choice for channel business," argues Le Saux.
"Given the size of the future M2M opportunity and the market potential, it is clear to O2 that in order to be able to realise our full potential we will need to make use of our expertise in partnering and building new channel relationships as well as expanding on our existing channels. We have recognised that we will have to deliver dedicated resources to help both new and existing partners understand the M2M opportunity and reshape their business models in order to ensure they maximise the potential."
So what M2M products do resellers actually get from O2 to sell on to customers and what are the key benefits? "We have a number of bespoke vertical solutions that partners can take to market but the core offer is M2M connectivity," explained Le Saux. "This comes in the form of a standard UK unmanaged SIM solution that offers small data packages at competitive pricing and a managed global SIM solution that offers the partner or customer a fully managed proposition with full UK network roaming and roaming within specific European countries. All of these are available at a wholesale level so our partners can re-bill and package along with their existing voice and data solutions.
"A large percentage of business users would benefit from some form of M2M solution in their business whether it be asset or vehicle tracking, monitoring of devices or machines or simple security solutions. At some point someone will be speaking to these businesses about M2M. In our view it would be better for the partner, the customer and the network if these conversations were taking place with the same company that supplies their existing communication needs. Our objective is to build a channel that has the capability and access to do this."
Le Saux confirmed that O2 already has some M2M partners but there is a big gap for new partners to fill who can choose to have a first or second tier relationship with them. "We understand that there will be a lot of interest in our propositions and not all partners will have the desire or ability to maintain a direct relationship with the network," he added. "As such, we have a number of channel Managed Service Providers that are primed and ready to work with these partners to ensure they have the right solutions and support mechanism in place to win business. All are experienced in the M2M market place and will offer the support and assistance needed for a new partner. We are prepared to sit down with each potential partner and assess the size, scale and value of each opportunity so that we can evaluate if we have the synergy and capability to do something direct, or if it would be better suited sitting with a Managed Service Provider.
"We will be delivering a channel programme that will offer marketing advice and support as well as bid support and sales support. We have some really compelling vertical solutions that our team will help partners sell as well as a number of technical architects that are on hand to help with the more bespoke bids."
M2M technology can be quite complex and Le Saux stressed that new partners will have to have the desire and ability to adapt to the new M2M market place, but there could be big rewards for the early adopters in some 'highly connected' vertical markets. The biggest verticals currently in the market by number of connections are Transport (vehicle and trailer tracking, infotainment and Pay How You Drive Insurance); Security (alarms, CCTV); Energy (mainly metering and related smart home services); Retail (point of sale); and Communications (either as backhaul or for resilience). In addition there are some large data services using M2M such as security, digital signage and content streaming.
"Some of these services can be active for up to 10 years," said Le Saux. "Churn in M2M is much lower than in mobile comms which can help both us and our partners build really sustainable business models. We are keen to talk to partners that have the vision to see what is coming down the line and the contacts within their base to be able to secure new revenue streams before the competition comes knocking. Having been to Comms Vision for the past four years, I have seen some of the best resellers in the world in their chosen fields. I would expect that the top 20 per cent or 30 per cent of the resellers that attend this event would be on my list of partner to speak to directly."
Although M2M is seen as a sunrise technology it has been around for some time and O2 already has an established foothold in the sector. "We have been successful in this market for over 10 years and in the last year have won two of the biggest M2M deals in the market," commented Le Saux. "O2 is one of the top 20 most recognised brands in the UK but this is backed up by our £1 billion-plus network investment, our award winning service, dedicated teams and proven partnership capability. O2 and its parent Telefonica already has over seven million dedicated M2M connections across the planet and has been recognised as an industry leader by independent market analysts."
Le Saux believes this experience will help resellers address M2M opportunities. "We have experienced key wins in all of the verticals within the market place, we can supply resource and information to partners that highlights what has been successful and why," he said. "We are committed to working with partners to not only uncover these opportunities but to help them build a proposal to deliver a solution and manage it in life. Our managed platform gives partner access to everything they would need to offer world class support to their customers. The ongoing support from my team and our support teams will allow partners to address the needs within their base and deliver against them."
Le Saux is urging resellers to get involved soon before the market becomes too crowded. "Now is the ideal time to get involved because this market is just starting to accelerate," he said. "Many will remember when mobile started to go mass market - well this is now happening in M2M. This is a great chance for resellers to get involved early and gain share before M2M becomes really competitive. There is a demand for M2M services and it's a great chance to revisit both existing and old comms customers with a new, fresh story.
"In short, we believe that with the right support resellers can really accelerate their businesses, and naturally we believe that O2 are best placed to help them achieve this growth. No one else is as well placed and we've already delivered a number of early successes, so I would urge resellers to come and speak to us if you are up for the challenge." •
Channel pedigree and experience
Anton Le Saux is heading up the new M2M channel team and knows the channel well having been previously Head of Indirect Sales at O2. He outlined the team that will help resellers address M2M opportunities. "I have an existing sales manager and account management team that will continue to manage the existing M2M partners. Along with this we have three new dedicated partner acquisition and support people, namely Simon Boyd, Mike Steed and Shaun Clark, whose key objective is to identify partner opportunities, hand hold through a defined on-boarding process and support the ongoing management of the relationship.
"We also have a desk-based sales support manager, Victoria Johnson, who will help to manage the smaller partner opportunities, as well as a new dedicated Commercial Bid Manager, Helen Roberts, who will be on hand to help partners pull professional and exciting bids together in order to secure business. Alongside my own direct team we have a marketing team, operations team, product and solutions team as well as a dedicated finance team that are all also on hand to ensure the partner relationship is a successful one."
Did you know?
• At least 24 billion devices will be connected globally by 2020 with a potential for 50 billion
• M2M is estimated to be a $1.2 trillion opportunity
• The overall market is growing circa 25 per cent year on year