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Editorial from the March 2007 issue of Managing Automation

M2M Speeds Up

Posted on Wednesday, February 28, 2007 2:04:10 PM                                  Digg This Article   Add to Delicious

Abstract:Machine-to-machine device management is a game-changing technology that can give manufacturers a competitive edge through value-added services — some of which even become new sources of revenue.
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Imagine this: On a cold, dark, and rainy night, after a long day and an exhausting commute, you finally reach your exit off the highway. As you approach your neighborhood, you push a few buttons on a remote control affixed to the visor and the lights in your living room come on, the thermostat kicks on the heat, the alarm is deactivated, and, of course, the garage door opens so that you can pull right into your warm and welcoming home.

Sound like a dream? Well, it's real and it's affordable thanks to Lear Corp., a maker of car interior components which last year introduced the Lear Car2U Home Automation System (HAS), an inexpensive electronic module that uses wireless mesh network technology to control home devices. The technology is now offered as an option on several of General Motors' 2007 brands.

The Car2U Home Automation System might seem like just a fun consumer toy, but to Lear it is much more. It represents a chance for the company to open a new market, build its brand, and, most important, compete more effectively against market foes such as Johnson Controls.

"It was a commitment Lear made to get into the marketplace," says Jody Harwood, product manager for Lear Car2U HAS. "We were able to develop a product that is user-friendly with broader applications other than just opening up a garage door," he says.

Putting M2M to Work

Like Lear, every manufacturer is constantly on the lookout for technology that can give it a competitive edge through an additional value proposition, increased productivity, cost reduction, or perhaps a new revenue stream. And more and more manufacturers like Lear are seeking that boost from mesh networking and other wireless technologies that are part of a larger category dubbed M2M, or machine-to-machine. A collection of technologies including cellular, wireless local area networks, mesh networking, and data collection, M2M is increasingly being used by manufacturers interested in expanding or creating new service offerings and establishing brand loyalty. Beyond opening consumers' garage doors and heating up their homes, M2M technologies are being deployed to remotely track, diagnose, and even repair products in the field.

M2M is also sometimes referred to as machine-to-mobile and even man-to-machine. The variations on the definition are a reflection of the wide range of applications and solutions that are now available for asset management.

"The term M2M is pretty broad and can cover lots of different components. It is definitely confusing," says Walt Rossi, vice president of marketing for Questra Corp. The market stretches from mesh network players to middleware, hardware, software, and remote service applications. "They are all different from that standpoint, which is why the term M2M doesn't define a precise market. It's more the capability that a bunch of technologies can come together and provide," Rossi notes.

Nevertheless, it is an area of increasing interest. Many of the small players that started this market — such as Axeda Corp.; Questra Corp.; nPhase, LLC; and Sensicast Systems Inc., among others — are beginning to find themselves acquisition targets or in partnerships with high-profile investors. For example, in November, nPhase, a small M2M start-up that was spun out of an IT consulting firm and provides a way to monitor and manage dispersed assets, was acquired by QUALCOMM Inc., a provider of wireless communications products.

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