This slideshow was presented by Syed Zaeem Hosain (“Z”), CTO, Aeris at MobileCON, CTIA 2015.

1. You Sold Your First 1,000 Devices?
Now What?
September 09, 2015
MobileCON, CTIA 2015
Syed Zaeem Hosain (“Z”), CTO, Aeris Communications, Inc.
Syed.Hosain@aeris.net | @aerisCTO

2. 2© 2015 Aeris Communications, Inc. All Rights Reserved.
§ Who is Aeris
§ The “Growth Stall”
§ IoT Products Life-Cycle
§ A Look Into The Future
Topics

3. 3© 2015 Aeris Communications, Inc. All Rights Reserved.
About Aeris
Overview
Company:
• M2M / IoT services
• HQ in Silicon Valley, CA
• Services since mid-1990’s
Our Customers:
• Enterprises deploying M2M
• Connectivity to / from Devices
• Analytics à
business actions
Solutions
• Optimized M2M / IoT platform
• Connectivity to Application
enablement
• Neo™ –
Rapid M2M deployment
The Numbers:
• Global M2M / IoT services,
CDMA, GSM, and LTE
• 99.995% infrastructure reliability
• 350 Million+ messages per day

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§ Multi-technology services for M2M / IoT
Aeris Markets & Services
Global solution
Markets
• Healthcare
• Telematics
• Consumer Auto
• Monitoring &
Control
• Point of Sale
• Utilities
Platform
• Application enablement
• Connectivity enablement
• Provisioning / Activation
• Real-time information
• Alerts & alarms
• Billing & reporting
• Acct-level NOC support
• Device/IP session control
• Data & voice connectivity
Cellular
• Global services
• 500+ carriers
• 2G / 3G CDMA &
GSM
• 4G LTE

5. 5© 2015 Aeris Communications, Inc. All Rights Reserved.
The Aeris IoT Platform
Full solution stack for M2M and IoT applications

6. 6© 2015 Aeris Communications, Inc. All Rights Reserved.
§ Many companies “stall” after deploying X units …
– “X”: hundreds to a few thousand devices …
– … occasionally, tens of thousands of devices
§ Why? … outcome is not totally surprising
– Initial systems & processes reaching capacity
– Cost of operation is higher than expected
– Smaller companies & startups are resource-constrained
– Learning from mistakes taking time & effort to resolve
– Generating end-user bills & invoices at scale isn’t easy
§ Key Issue
– Planning for growth was secondary to getting product launched!
The “Growth Stall”
“We will cross that bridge when we get to it”

7. 7© 2015 Aeris Communications, Inc. All Rights Reserved.
IoT Products Life Cycle
Choices for successful applications
EOL
• Plan up-front
• Remove units
• Re-use #’s
Operate
• Manage units
• Bill customers
• Update app
Scale
• Manufacture
• Provision
• Test (on-air)
Develop
• Buy vs. Build
• Certification
• Select network
à Successful applications plan for entire life-cycle

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Development / Deployment
Planning for scale is key to growth
BillAnalyzeOperateInstallMakeDesign
à Successful applications plan for growth …
… as early as possible!

9. 9© 2015 Aeris Communications, Inc. All Rights Reserved.
Designing the IoT Application
What are the design factors that need to be considered?

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Design Factors to Consider
Details could be critical to product success
• Does the device need to work for long periods?
• How large a battery might it need? Rechargeable?Power
• What sensors are available for the measured data?
• Is the cost of the sensor(s) sufficiently low?Sensors
• Where is the data being sent from? Home? Outside?
• Is the technology / transport appropriate for the use-cases?Connectivity
• Do the product components require special miniaturization?
• What impact does this have on design and manufacturing?Size
• Is the device protected from being compromised?
• Is the application purpose life-threatening if compromised?Security
• Where is the data being sent and to whom?
• Who has access to the data (device, transport, destination)?Privacy
• Is the data transient or stored for later access and analysis?
• What data analytics support is needed?Analytics
• What features are needed for deployment?
• Can the software and features be updated later / remotely?Features

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STAND-ALONE
Certified communications equipment
EMBEDDED MODEM
Pre-certified carrier cards
MODULE
Pre-certified radio modules
CHIPSET
Cellular radios and components
TIME TO MARKET
Cellular Hardware Design
Time to Market and Level of Integration depends on choice of radio

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Making the Devices
What are the manufacturing factors that need to be considered

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Manufacturing Factors to Consider
Details could be critical to scaling growth
• Can the manufacturer assist with design issues?
• Do they have engineering skills to assist on “designing for manufacturability”?Good Partners
• Does size reduction drive component costs too high?
• Are there multiple sources for the components?Component Cost
• Does the production process require new technology?
• Does the new technology impact the yield too much?Technology
• Will the design require special manufacturing equipment?
• Does the device form-factor require unusual “touch”?Form-Factors
• If product is successful, can the manufacturer scale production rapidly?
• Will production scaling needs impact quality?Scaling
• Are there materials in the device that require complex supply chains?
• What impact does this have on production times and cost?Materials
• Does the manufacturing process yield good product quality?
• Is the manufacturer able to enhance the yield over time?Yield
• Can test failures be reworked with sufficient quality?
• Will field failures be easily repairable by the manufacturer?Rework
• Are there any unique test requirements for the device?
• Will the testing catch real-world use case faults?Testing

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Installs Are Challenging
OEM installations generally easier – controlled at factory
Installation outsourcing services are available
• If not installed by the end-user
Requires documentation and training
• Mistakes by installers are tough to debug
Post-installation end-to-end testing is key
• KISS … “push test button” à “green light” à done!
Beware inaccessible devices
• Leads to high cost of replacement and repair

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Managing Operational Reliability & Scale
OEM installations generally easier – controlled at factory
Redundancy required for growth
• For connectivity, and application data servers
Devices in the field may retry excessively
• Accurate timed transmissions can overwhelm servers
24 / 7 system uptime is essential
• Devices may expect timely responses
Automation is key to scaling growth
• Manually provisioning large volumes not possible

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PARTNER
Outsource: off-the-shelf solutions
and/or design services
BUY
Incorporate pre-certified
embedded components
BUILD
Design from the ground up
Buy vs. Build … Data & Systems
Find the right partners when resource constrained

17. 17© 2015 Aeris Communications, Inc. All Rights Reserved.
Receiving & Analyzing the Data
Big Data analytics and services for scaling
Rapid analysis of data often required
• Near real-time analysis and actions may be essential
Actions are end-purposes of applications
• Filtering / processing data at servers common today
Transport & processing costs may become high
• Filter / process “at the edge” – with configurable devices
Data analytics for alerts and actions
• Careful of automated responses – provide oversight

18. 18© 2015 Aeris Communications, Inc. All Rights Reserved.
Billing End-Users
Key to generate and scale revenue
Timely invoicing critical for funding growth
• Common growth stall issue for many companies
Scaling units in billing systems is critical
• Existing systems may not be adequate for M2M / IoT
Automation of billing functions is key
• Service providers can provide sufficient information
Outsourcing billing services available
• Enables companies to manage growth

19. 19© 2015 Aeris Communications, Inc. All Rights Reserved.
§ 2010: IBM (describing their Rational software design)
– “A World with 1 Trillion Connected Devices” by 2015
§ 2011: Ericsson CEO Hans Vestberg
– “50 Billion Connected Devices” by 2020
§ 2013: ABI Research report
– “30 Billion” by 2020
§ 2013: Morgan Stanley report
– “75 Billion Devices Connected … IoT” by 2020
§ 2014: Intel infographic
– “31 billion devices connected to Internet” by 2020
§ 2014: ABI Research report
– “41 billion active wireless connected devices” by 2020
The Predictions Are Staggering
Numbers over the years remains high
Source: Intel

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Impact of One of the Predictions
Data growth leading to storage and processing concerns
Cellular M2M / IoT data increasing
• M2M devices average: 2 MBytes / month
• USA: 15 M devices (8% of all M2M): 30 TBytes / month
With 50 Billion IoT devices by 2020
• Number of cellular devices (at 5%): 2.5 Billion
• Total data (at 4 MBytes / month) : 10,000,000 TBytes /
month
Even with more conservative estimates
• Transmissions & data haystacks are enormous
• à greater emphasis on “processing at the edge”

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§ Faster pace than cellphones … > 4X in five years
Total Cellular M2M Connections
World-wide growth in number of units
Source: Harbor Research, 2013

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Cellular M2M Device & Traffic Growth
Device Type
Mobile Devices,
2013-2018 CAGR
Mobile Data Traffic,
2013-2018 CAGR
Smartphone 18% 63%
Tablet 41% 87%
Laptop 13% 30%
M2M Module 43% 113%
Source: Cisco VNI Mobile 2014

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Summary
Exciting times ahead
Avoiding the “Growth Stall” is possible
• Plan before systems get max’ed – tougher when busy
Automate everything
• Processes, systems, support … “no hands” approach
M2M and IoT is the next Big Thing
• Even conservative projections are enormous
Global industry and market
• Applications are quite similar everywhere

24. Thank you!
Syed.Hosain@aeris.net
§ +1 (408) 557-1905, twitter: @AerisCTO, blog: www.aeris.com/blog