Telecom managers need to prepare for big changes in the mobile-to-mobile (M2M) communication space. According to market research firm Technavio, adoption of M2M cloud-based platforms is fueling massive growth in cellular and M2M connections. Technavio predicted that the cellular M2M connections and the services market will grow at a compound annual growth rate of 31.77 percent and 28.47 percent, respectively, through 2019.
Technavio analysts conducted in-depth analysis of the impact of market drivers, challenges and trends. According to the report, some of the key market drivers are:
- High Adoption of Cellular M2M among Enterprises and Consumers
- Increased Demand for Cellular M2M Modules among Enterprises
- Increased Use of M2M Services in Automotive Sector
- Increased Use of M2M Services for POS (point-of-sale) Payments
- Adoption of M2M Cloud-based Platforms
- Increased Use of M2M in Healthcare Industry
- Increased Use of M2M Services in Big Data Analytics
Regardless of how accurate the predictions turn out to be, the trends are clear. Enterprises need to prepare for big changes in their network infrastructure, new consumption patterns, and massive growth. This will require a shift from the view that telecom budgets can always be cut, to a new view where budgets are allocated funds for growth. While M2M uses less bandwidth and its costs are lower than employees’ use of smartphones, this shift will require a significant increase in telecom budgets.
In addition, enterprises will need new services, as there will be new hardware, apps and telecom services introduced for the new M2M world. Telecom managers will face new challenges in tracking telecom assets, and will have needs for new reporting that Telecom Expense Management (TEM) programs will provide to deal with the revolution in mobility.
Automation will be more critical than ever in this new world of high volume, low cost consumption.
Finally, telecom managers need to be wary of always sticking to the traditional ways of viewing the areas that they are responsible for overseeing. While there will be changes that make these areas seem unfamiliar, the traditional role of expense management will be more important than ever.