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Bamboo rides surge of M2M channel interest

The channel is showing an increasing interest in M2M with one of the providers of the technology witnessing strong growth

Machine to machine (M2M) might still be a concept largely at the buzzword stage but the channel is moving quickly to make sure it has an option in that space.

The experience of managed services player Bamboo Technology Group seems to indicate that resellers are keen to make sure they do not miss the boat on M2M with the firm reporting strong interest in its solution in that space.

At the start of this year Bamboo started to make its M2M SIMs, which are powered by Telefonica, available in the channel and since then it has seen an average 31% growth month-on-mont with connections and a 71% increase in data volumes.

“Our M2M channel has been a resounding success in the short time since its launch. Despite being a relatively new technology for the channel, the reaction from resellers at this early stage is very encouraging,” said Lorrin White, managing director of Bamboo.

White said that with resellers being able to offer data on a pence-per-kiobyte basis one of the main hurdles stopping adoption had been overcome.

“The barriers to wide-scale M2M adoption have generally been one of two things; customers either struggling to conceive where M2M can deliver its own unique value in place of a regular cellular or fixed line connection, or resellers being convinced of the long-term profitability and viability of M2M even at a small scale. We believe we have been able to address both of these concerns," said White.

“On the reseller side, by offering M2M SIMs on a wholesale pence-per-kilobyte basis we have significantly lowered the entrance fee for this market. This has given our partners the flexibility to build their own bundles so they can succeed with customers of all sizes, from heavy data users to those that use very little data at all," said White.

Research from Analysys Mason looking at the prospects for the M2M market concluded that although the majority of business will be with enterprise customers the volume of sales into the SME market will grow ferom 8% worldwide in 2013 to 11% a decade later.

Back in 2014 Ovum looked at the potential of the market and forecast a trebling of revenues between 2012 and 18 and also urged vendors to develop more channel relationships.

“For telcos there are really two opportunities: to stand back and provide the connectivity for M2M services, or to roll up their sleeves and get involved with the end-to-end provision of solutions," said Jeremy Green, principal analyst, Industry Communications and Broadband at Ovum.

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