Company Trend Analysis - Hutchison Focuses On Global IoT Market - MAY 2017


BMI View: The partnership between Hutchison's Hue and Cisco Jasper confirms and reinforces many of our views on the IoT market. We also highlight that the evolution and the maturity of IoT markets mirror what has been happening in the retail segment, as operators first widen and then deepen with more sophisticated products and services.

Hue, the Hutchison Group's wholesale arm providing MVNO and Internet of Things (IoT) solutions, has agreed a partnership with Cisco Jasper, supporting enterprise customers as they look to enter the IoT market. The deal confirms three of our long-term views, and one of our IoT key themes for 2017, regarding: the primacy of enterprise solutions, the need for partnerships and cooperation, and the global scale of the IoT market (see ' Key Issues From MWC16: IoT ' , February 29 2016 & ' IoT Key Themes 2017 - Enterprise Drives Focus On Cost Cutting ' , January 31 2017).

The deal would provide enterprises with a solution combining Hutchison's connectivity with Cisco Jasper's Control Centre, its cloud platform managing all IoT devices. This highlights the importance of services, as opposed to pure connectivity, when it comes to offering IoT solutions, and convincing enterprise customers to sign up. The combination of the two companies' solutions provides a much stronger product, and one neither would have been able to provide on its own, unless they were prepared to incur much higher costs developing their own solutions. But the global aspect of the deal is the most interesting, as it highlights that Hutchison is looking to leverage its international footprint, with presence in 12 markets, and focusing on companies operating across borders. The ability to provide a single solution to companies present in different countries, and as such simplifying the entire process, is a major advantage for Hue and Jasper, but they will face competition in what remains a nascent market, from for instance Nokia and its WING (worldwide IoT network grid) solution.

Europe Provides IoT Opportunites
M2M Connections Y-o-y Growth (%), 2014-2015
Source: BMI

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