Ericcson Buys Out Telenor Connexion; Gaining M2M Technology
Ericcson signed an agreement on Tuesday to acquire Telenor Connexion’s M2M platform (machine-to-machine), in hopes to gain more technology and insights in the booming sector. Although financial details are yet to be released, we know that eleven employees will be moving over to Ericsson from TC. The acquisition comes relatively soon after Ericsson’s Device Connection Platform launch, a service that is planned to be sold to telecom operators. In turn, this will set up M2M applications for their enterprise customers. The platform is sold as a cloud service and offers operators traditional cloud benefits of a low initial investment, coupled with a fast roll-out.
Ericsson’s buyout of Telenor Connexion will mark Ericsson’s first Device Connection Platform customer. M2M consists of machines communicating with each other over either a wired or wireless network. There are many uses for this technology, including smart meters, asset management, and connected vehicles. For example, a connected car could send information about the number of people in the vehicle to emergency respondents in the event of an accident.
M2M connections are a viable way for operators to make money, because operators seek to improve connectivity costs. The number of M2M devices is expected to increase from 62 million to 2.1 billion within the next ten years, according to Analysys Mason. With growth like this, it will sure to be one of the biggest sectors in the next decade. Check out Cisco’s video on M2M technology to learn more!