Internet of Things
Building the business case for satellite IoT
The operational internet of things (IoT) market continues to expand as organisations across the world imagine an extraordinary range of opportunities to leverage sensor technology. Weather monitoring stations are transforming the efficiency and environmental performance of remote copper mines and helping farmers to safeguard crops and livestock in a changing climate. The shipping industry is improving cargo traceability to mitigate on-going disruption. Charities are monitoring water quality across Africa to ensure remote communities have reliable access to safe drinking water.
With the arrival of robust, proven, cost-effective satellite connection, the true potential of these IoT applications can be realised. With estimates suggesting there will be tens of millions of satellite IoT devices in use by 2030, access to reliable, global coverage is now enabling new opportunities for systems integrators (SIs) across the world.
It is now time for SIs to build a business case for satellite IoT, says Eric Ménard, vice president strategy and business, Astrocast.
S
atellite connectivity may have been available for years, but the market has been waiting for a satellite connection designed specifically for widescale IoT deployment. Many of the key target applications – from agriculture to supply chain – do not require the continuous or real-time communication associated with high-cost legacy satellite connectivity. These solutions play a critical role but they are too expensive and power hungry to support a compelling business case for most operational IoT deployments.
A farmer requires only daily or twice daily updates of cattle location to track herd health. A copper mine uses intermittent updates on the water table level to provide operational visibility and meet environmental regulation. A shipping line does not require real-time
32 October 2023
updates of the temperature of its containers. Transmitting data either once or twice a day – or taking multiple recordings which can be buffered and uploaded every 12 hours – is perfectly adequate.
The value of this data is significant – especially in areas such as shipping. The use of IoT sensors can ensure high value cargo, including pharmaceuticals, are kept at the right temperature and left untampered. Any deviation will prompt an alarm and allow remediation where possible, resulting in less wastage and better integrity.
Building confidence However, while the business case is compelling, such IoT operations are incredibly cost sensitive. When a deployment may extend to tens of thousands, even hundreds
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of thousands of devices, small differences in performance and lifetime will fundamentally change the return on investment (ROI). The business case becomes even more sensitive when extended to remote areas without terrestrial network coverage and require satellite connectivity. How can the sensors be deployed to remote locations cost effectively? What is the cost of satellite transmission? How long must the battery last on a sensor to ensure the ROI is not compromised? Plus, how can the data be collected and used to drive tangible commercial benefits?
Even before exploring the technology, SIs need robust due diligence to ensure confidence in the business credibility and model of the satellite provider. Ensuring excellent satellite coverage, including across international water, is essential. Business longevity is also
fundamental for deployments that could be in the field for a decade.
In addition to verifying strong financial credentials, it is also important to assess the billing model, contractual arrangements, warranties and support structure. Is the company committed to supporting its SIs not only in the prototyping and field-testing phase, but also through industrialisation, production and taking the solution to the market? Each stage of this process will raise new challenges. Having a partner in place with both the knowledge and commitment to overcome problems will transform the likelihood of commercial success.
Proof of concept Only once the foundations of a business
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