Vertical Service Plan

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Vertical Service Plan

• Olivier Beaujard, Wavecom
• Dean Fledderjohn, Kyocera Wireless
• Martyn Leman, Comtech

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Vertical Service Plan
Olivier Beaujard Vice President of Marketing
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About Wavecom

• A leading supplier of wireless solutions for
  machine-to-machine, automotive and Mobile
  professional applications
• More than 20 million units sold
• More than 83 patents filed / More than 250 direct
  customers and distributors worldwide / Our own
  software for protocol stack for GSM, GPRS, EDGE,
  UMTS, and CDMA
• 2004 revenues of 151 million Euros / 300 people
  WW
• Listed on the NASDAQ and Euronext

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M2M Customers needs all along a project life
Selection of solutions Stage
Integration Deployment Stage
Operational Stage
Maintenance Stage

• Ease of use
• Pre-certified
• solution
• Technical support
• Vendors
• responsiveness
• Compatibility with
• existing IT systems

• Reduced complexity
• for accessing to the
• technology
• Cost competitiveness
• Field proven solutions
• End-to-end solutions
• Proven business cases
• and time-to-market

• System stability
• And reliability
• Predictability
• Support
• Contracts
• Network stability

• Easy to maintain
• / to repair
• Service
• Investment
• Protection

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Solving customers problemsits all it is about

• We bring our wireless expertise at the service
  of our customers all along the project life

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Vertical Service Plan

• Dean Fledderjohn
• GM - M2M Business Segment
• Kyocera Wireless Corp.

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Your Machines would like a word with you!
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Opportunities for Wide Area M2M

• Fleet Management
• Asset Tracking
• Utilities / AMR
• POTs Replacement - Lottery, ATM, etc.
• Remote Monitoring
• Barriers to Entry
• Coverage
• Cost of Device
• Cost of Service

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"Vertical Service Plan" Opportunities that
exist for companies to take advantage of
M2M-enabledservice.

• Martyn Leman
• Business Development Manager, Comtech
• www.comtechm2m.com

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ComtechMarket leading M2M Solutions Enabler

• Comtech empowers Solution Providers to
• Provide end-to-end communication for remote
  machines
• Deliver a managed services solution in their
  chosen market
• Focused on the M2M within any application
• Enables companies to focus on their core business
• Success lies at the business level
• Product-set designed for ease of adoption
• Key landmarks
• 2000 Released first end-to-end M2M system - early
  pioneer
• 2003 6 M2M related patents granted
• 2005 Major customers include Major partners
  include
• De Lotto Orange
• Camelot Sony Ericsson
• Bombardier Transportation

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AgendaSolutions that offer rapid adoption

• Traditional M2M model
• Comtech approach
• Where do you start?
• Out of the Box M2M solution
• Case example
• A new way forward
• Summary and close

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Business needs
Automated M2M Solution
Central Mobile Users (End User, OEM, 3rd
party, Service Provider etc)
End User Remote Site
Remote Machine

• End Users need a complete solution for their
  business
• Irrespective of the enabling M2M technology
• Albeit that many partners are often required
• Business needs rather than using technology for
  technology-sake
• Core business needs
• Reduce costs
• Increase revenues
• Deliver ongoing service
• Customer retention
• Return On Investment (ROI)

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Traditional M2M model
Management Application
Network
The Internet
M2M Hardware
M2M Middleware
M2M Services
Central Mobile Users (End User, OEM, 3rd
party, Service Provider etc)
End User Remote Site
Remote Machine

• Adjacent partnerships are required to provide a
  full solution
• OEMs
• I/O suppliers
• Terminal suppliers
• System Integrators
• Network Operators/Mobile Virtual Network
  Operators (MVNO)
• Software Enablers/IT Systems Integrators
• M2M Service Providers/Solution Providers

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Fundamental problems
Management Application
Network
The Internet
M2M Middleware
M2M Hardware
M2M Services
Central Mobile Users (End User, OEM, 3rd
party, Service Provider etc)
End User Remote Site
Remote Machine

• Core Problems
• Embedded world and IT world are different!
• Networks were designed for human users!
• How do you get a robust solution?
• Void between embedded and IT partners
• Infrastructure not design for machines
• End user just wants a solution from one provider!

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Typical Solution
Complete Solution Provider Manages Broad
Partnerships
Management Application
Network
The Internet
M2M Hardware
M2M Middleware
M2M Services
Central Mobile Users (Client, OEM, 3rd
party, Service Provider etc)
End Client Remote Site
Remote Machine

• Complete Solution Provider needs wide expertise
• The vertical application, by
• OEM
• Vertical Market Solution Provider
• Underlying M2M technology to bridge the
  Embedded/IT void
• Often out of necessity
• Often would prefer to focus on the Application
  and related services
• M2M adoption has therefore been slow

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Comtech's alternative approach
Wrap the end-to-end Communication Elements M2M
Within the application
Management Application
Network
The Internet
M2M Hardware
M2M Middleware
M2M Services
Central Mobile Users (Client, OEM, 3rd
party, Service Provider etc)
End Client Remote Site
Remote Machine

• Solution providers need application know how
• No longer need end-to-end communication know
  how!
• Robust solution
• Single enabler to bridge the end-to-end void
• Win-Win Partnership
• Building on core competencies
• Rapid time to market in migrating to service

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Avoid failure

• Complex solutions can lead to project failure
• Is the technology and business case fully
  understood?
• Technology looking for an application?
• Reduce risk - put the basic foundations in place.
• Management and customer buy in?
• Business case that identifies value?
• Understanding of the ROI?
• Clear requirements?
• Understanding of technology issues?
• Identification of lifetime partners to provide
  solutions?
• Enhancement to the business is key
• Rather than wholesale changes
• Projects can fail if a short term ROI (6-12 mth)
  not identified

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Strategic Approach
Keep it Simple So the benefits can be easily
understood
Adoption Phase
Volume Deployment Phase
Time to market, minimal investment risk key
where PROVING a business model
Higher integration, lower cost and optimum
functionality key where business model PROVEN
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µWEAVE service-based business
µWEAVE - M2M telemetry system out of the
box
GSM/ GPRS
The Internet
Central Mobile Users (Client, OEM, 3rd
party, Service Provider etc)
End Client Remote Site
Remote Machine

• µWEAVE
• Generic End-to-end platform for many applications
  (horizontal)

• Application tailored by OEM/VAR (vertical)
• Application hardware
• Central configuration

• Value Added Services
• OEM/VAR builds services into their chosen market

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µWEAVE Starter Kit

• Evaluate the Technology
• M2M out of the box
• M2M enable your applications
• Rapid technology evaluation
• Create a new business
• Its not just about technology!
• Service out of the box
• Identify and prove your M2M adoption business
  case
• Starter kit to create a new service-based
  business

Many companies have realized that for every
dollar of goods sold, there can be anywhere from
5 to 20 of associated services and follow-on
products, often at higher margins Harbor Research
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New start point to change business

• Blueprint for successful adoption
• Evaluation hours
• Demonstration days
• Deployment lt 8 weeks
• Minimal investment
• Configuration rather than design
• Prove business models fast enabling rapid rollout
• Fast ROI
• Service will change the landscape of markets
  forever
• Fundamentally different business proposition
• Create competitive advantage no going back!

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A new way forward

• The market now
• Easy solutions
• PC management
• On site
• Dedicated infrastructure
• FTP, SMS simple alarming
• Goods based sell
• Benefits
• Easy to do a demo and prove business model
• Less know how needed
• Problems
• A machine network!
• Price pressure
• Goods AND Components!

• The way forward
• Service
• Managed services
• Centralised via Internet
• Communication management
• Benefits
• Sell on business value
• Less price pressure
• On-going revenues
• Problems (until now)
• Application AND Communication know how needed!
• Adjacent partners need their mark-up!!

µWEAVE model frees companies to focus on value
added services in their market
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Summary

• Enabling Solution Providers across markets
• Communication for remote fixed and mobile
  machines
• Value added managed services
• M2M within any application
• Enabling companies to focus on individual core
  business
• Enhance business rapidly
• Through a service-based model
• Out of the box M2M

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