How STANDARDIZATION ENABLES THE NEXT INTERNET EVOLUTION

1. How STANDARDIZATION ENABLESTHE NEXT INTERNET EVOLUTION Marc Jadoul Strategic Marketing Director, Alcatel-Lucent marc.jadoul@alcatel-lucent.com oneM2Mwww.oneM2M.org

2. About this webinar First in a series of 4 webcasts, introducing oneM2M, the global standards initiative for Machine to Machine communications and the Internet of Things Today: part 1, looking at M2M business opportunities, challenges and drivers for standardization.

3. The next step in internet evolution Pre-internet Internet ofCONTENT Internet ofSERVICES Internet ofPEOPLE Internet ofTHINGS “HUMAN TO HUMAN” “MACHINE TO MACHINE” “SOCIAL MEDIA” “WWW” “WEB 2.0” • Fixed &mobiletelephony • SMS • e-mail • Information • Entertainment • … • e-productivity • e-commerce • … • Skype • Facebook • YouTube • … • Identification, tracking, monitoring, metering, … • Automation, actuation, payment, … • … + IPnetworks + IT platforms& services + devices & apps + sensors, more devices& tags,big data + ambient context, data semantics Source: Alcatel-Lucent

4. Topping Gartner’s hype cycle Internet of Things Source: Gartner, July 2014

5. The IOT is going to be big (though nobody really knows how big…) 28.1 BILLION“UNITS” IN 2020 26 BILLION“UNITS” BY 2020 25 BILLIONM2M “CONNECTIONS” BY 2022 $7.1 TRILLION GLOBAL SOLUTION REVENUES BY 2020 $300 BILLION SERVICES REVENUES IN 2020 OF WHICH 2.6 BILLIONARE CELLULAR $1.9 TRILLION GLOBAL ECONOMICVALUE IN 2020 $1.2 TRILLION GLOBAL OPPORTUNIY BY 2022 Source: Machina Research, January 2013 Source: IDC, May 2014 Source: Gartner, March 2014

6. When communications, IT and CE industries meet COMMSENABLED BIGDATA M2MCOMMUNICATIONS ITENABLED CEENABLED Source: Alcatel-Lucent

7. Why now? Lower hardware costs and ubiquitous mobile access enabling more intelligence and seamless connectivity Proliferation of mobile devicesand M2M endpoints creating a customer base for deploying new applications Consumers and business users looking for new services and applications to enrich the way they live, work, commute, shop and care for their community and environment IOT Abundance of dataand information combined with a growing understanding of how collec-tive data can be used to add greater efficiency to our lives Network operators, enterprises, utility providers and public administrations are transforming the way they interactwith their customers, suppliers and partners M2M standardization addressing the need for end-to-end architecture, security and interoperability, facilitating applications development, and global services rollout

8. A long tong tail of applications #Assets perApplication “KILLER” APPS SEGMENT/INDUSTRY/BUSINESS SPECIFIC THE LONG TAIL # Applications Source: Alcatel-Lucent

9. Where is M2M used today? Energy (smart metering, wireless grid, etc.) 48.0% IT & Network monitoring (traffic monitoring, endpoint mngmnt, etc.) 46.9% Automotive, transportation & logistics (vehicle telematics, fleet & asset tracking, etc.) 43.9% Health care (patient monitoring, drug interaction detection, etc.) 31.6% Facility management (HVAC, security, lighting, access, etc.) 28.6% Manufacturing & industrial (plant monitoring, process control, etc.) 26.5% Retail (RFID inventory tracking, POS kiosks, vending unit monitoring, etc.) 24.5% Consumer products (fitness monitors, personal navigation, networked digital photo frames, etc.) 21.4% 0% 10% 20% 30% 40% 50% Percentage of organizations using M2M now or implementing in 12 months (n=98) Source: TechRepublic & ZDnet, 2013

10. Businesses say it’s about developing new opportunities New business opportunities 42.0% 4.5% 11.4% 22.5% 29.5% Faster response times 31.8% 4.7% 9.4% 18.8% 35.3% 34.5% 34.5% 4.6% 9.2% 17.2% Enhance existing products/services Cost savings 20.7% 27.6% 16.1% 8.0% 27.6% Expand cellular coverage 14.6% 18.0% 21.3% 20.1% 25.8% Regulatory compliance 12.5% 13.6% 25.0% 22.7% 26.1% Risk mitigation 11.4% 30.7% 27.3% 10.2% 20.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Percentage of organizations using or planning to use M2M (n=98) Not important … … … Very important Source: TechRepublic & ZDnet, 2013

11. End-to-end network view application creation& analytics connectivity, onboarding, AAA, management, security, … “ANY APP” “ANY NETWORK” “ANY DEVICE” devices & gateways sensors Source: Alcatel-Lucent

12. A fragmented ecosystem Based upon: Matt Turk, Sutian Dong, FirstMark Capital, 2013

13. Current state of affairs The IoT lacks a common set of standards and technologies that would allow for compatibility and ease-of-use. There are currently few standards (or regulations) for what is needed to run an IoT device. Consortia that group together global industrial, tech, and electronics companies are involved in an effort to standardize the IoT and solve the most pressing security concerns.  To date, the machine connectivity (M2M) and smart systems opportunity has largely been comprised of “simple” remote services applications and related tracking/location services….. future technology development will be focused on collaboration between devices, people and systems, but will require new technology and architecture. … a key challenge for the industry remains the complexity of developing, deploying, and managing M2M applications... This is a challenge both for mobile network operators that are trying to offer profitable services tailored to the M2M market, as well as for application developers and service providers that are trying to reduce costs, speed time to market, and simplify robust application deployments. For many years M2M was held back by the lack of a low cost, global access medium, the fragmented nature of the ecosystem, the lack of any single killer application driving demand and the complex nature of M2M solutions leading to high-cost development and systems integration.

14. Why standardization is needed • Improved Functionality-Cost-Quality (FCQ) tradeoffs More partnering choices and opportunities for M2M/IOT industry stakeholders • Enhanced experience through security, interoperability, device management and interaction with underlying networks

15. Improved Functionality-Cost-Quality (FCQ) • Anticipate massive growth in devices, applications, traffic and profile/usage data; reduce signalling overhead • Develop a ‘horizontal’ M2M platform, scalable by design • Improve end-to-end product quality • Optimized network use, performance & traffic volumes • Fascilitate sourcing, development, integration and monetizatation of M2M solutions & components • Reduce investments, time-to-market and onboarding costs of new devices and applications • Efficient administration and management

16. Partnering choices and opportunities • More suppliers to source M2M solution components from • More providers who can develop and integrate M2M solutions and applications • Partnering with other stakeholders to store, discover, access, exchange and share data and content • Partnering with wireline and wireless service providers and extract more value from underlying networks • Cross-vendor device configuration and management

17. Enhanced experience • Abstract devices and applications from underlying access networks and technologies • Interoperability between devices, platforms, data formats, protocols and applications • Remote provisioning, control, management and billing of devices and applications; lightweight protocols for minimal power consumption • Deal with small power, memory and processor footprints • Privacy, security & access control; authentication, authorization, encryption, data protection, …

18. Introducing the oneM2M partnership In July 2012, seven of the world’s leading ICT Standards Development Organizations launched the global oneM2M partnership to: • Cooperate in the production of globally applicable, access-independent M2M Service Layer specifications, including Technical Specifications and Technical Reports • Ensure the most efficient deployment of M2M communi-cations systems www.oneM2M.org

19. Partners and members Industry consortia: • Broadband Forum (BBF) • Continua Health Alliance • Home Gateway Initiative (HGI) • New Generation M2M Consortium (Japan) • Open Mobile Alliance (OMA) Partner SDOs: • ARIB (Japan) • ATIS (N-America) • CCSA (China) • ETSI (Europe) • TIA (N-America) • TTA (Korea) • TTC (Japan) + over 200 service providers, industry, government, university, research, … members

20. oneM2M provides … • A common set of Service Layer capabilities • Access independent view of end-to-end services • Open/standard interfaces, APIs and protocols • Security, privacy, and charging aspects • Reachability and discovery of applications • Interoperability, test and conformance specs • Identification & naming of devices and applications • Management aspects (including remote management of entities) First set of specifications delivered in August 2014 will be live demonstrated at the oneM2M showcase event, December 9 at ETSI

21. Join us for the next webinar 30 October 2014 at 1PM EDT = 5PM UTC “Taking a look inside oneM2M” by Nicolas Damour Senior Manager for Business and Innovation Development at Sierra Wireless http://www.onem2m.org/btchannel.cfm

22. Join us at the oneM2M showcase event 9 December 2014, Sophia-Antipolis, France(free of charge, but online registration is required) • OneM2M project partners, rationale and goals • OneM2M Service Layer Specification release • Showcase demos that demonstrate oneM2M “live" http://www.onem2m.org/Showcase Followed by the ETSI M2M workshop.

23. Thank You! Q&A