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AEPs, CDPs Boost M2M Software Platform Revenue

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October 18, 2012

AEPs, CDPs Boost M2M Software Platform Revenue

By Mini Swamy, TMCnet Contributor

The M2M market is set to boom and revenue is projected to grow to $3.85 billion by 2017. Application Enablement Platforms (AEP) and Connected Device Platforms (CDP) currently dominating the M2M market can take credit for that.

According to a report from ABI Research (News - Alert), both these platforms are quickly becoming critical parts of the M2M ecosystem. But what is it that makes AEPs and CDPs so significant?

In a low ARPU market, this is important as AEPs reduce the time it takes to develop M2M applications, extend application reach, and enable less expensive application development as well as remote device management, while CDPs automate the management of M2M module connectivity.

In addition, CDPs can integrate into existing business support systems and operations support systems, and are capable of providing real-time charging and policy control.

Thus, both these platforms are a critical part of the M2M market.

“AEP and CDP platforms intend to provide more ‘horizontal’ capabilities that will expand the supplier base, end-user markets and ultimately facilitate a more connected planet,” said Dan Shey (News - Alert), M2M practice director at ABI Research.

Emphasizing the important role that operators are likely to play in driving the M2M market forward, Craig Foster observed that operators, particularly in North America and Western Europe, are currently placed strongly in the CDP market, many with self-built CDPs.

Given that the AEP market is potentially a more lucrative part of the M2M value chain, the report indicated that operators were just making the effort to move into the AEP market.

Operator growth, however, goes beyond establishing a position in these two markets. According to Foster, “it also means building roaming alliances and partnerships with other operators for their international customers.”

If these projections hold true, the M2M market for these two platforms has a bright future and operators will not complain of the lack of competition or of revenue.

Edited by Braden Becker

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