Today’s headlines are about the joint venture between Walters & Shutwell Inc. and Hendrix Business Systems, Inc.
They don’t sell M2M devices and are small comparing with telecom giants. But one doesn’t need to be big in order to matter. The ultimate goal of a company is to make profit and the users need only one thing: customer service. Just that. While the big wolves are fighting for market shares, smaller companies are happy with less. Instead of investing hundreds of billions with ARPUs of $250/yr/user for 100 million user base and a potential gain of $25 billion, the small sharks are winning more like 50 million. This suffices for their business.
It is now official: the new joint venture will benefit from past experience and excel in their area of expertise: data management. The small companies are starting to see the huge potential of M2M. The telecom masters may have the upper hand in gathering raw data. They are the exclusive link that allows to retrieve information. How to store it, how to use it, how to exploit this new asset, that is a different story. The small companies have an important word to say.
I picked up the two companies not because they are important, but because they aren’t. However, they are a typical specimen of the IT services market. The fusion of services is a must for their survive when facing ever increasing challenges. The M2M is not about big companies. The list of hundred billion dollar businesses fits on one page, if one neglects financial services. at a comfortable font size of 14, the list is easy to parse. What matters is the 3 billion user base of mobile phones customers and the projected equivalent of IoT devices. The most important aspect is not the bandwidth. M2M is designed to work at law speeds, infrequently, on a per-need basis. The single most important fact about M2M is how to store data and what to do with it.
To answer to the first question, one should consider the alternatives: data warehouses, cloud, bid data and the relational model. Additional solutions might arise need that be. The second question is more interesting, because it opens new markets, for the small companies. There will be an increasing need for data crunchers. This is where companies like Hendrix Managed Services will play an important role.
Finally, M2M is about ETL. The sensors will Extract raw data. The mobile networks will convey it. The service companies will help the players to Transform raw data into relevant information. The cycle will end with the Loading of information in DSS systems. I leave this part to the salespeople.