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M2M Journal 2017

The M2M Journal is a magazine that focuses on M2M (Machine-to-Machine communication) and IoT (Internet of Things) worldwide. Our readers are businesses in the M2M/IoT community, such as wholesalers and users of M2M/IoT solutions. The content includes: theoretical foundations, new products and processes, reference projects and services, information from the M2M Alliance and the M2M/IoT community, corporate presentations, and opinions from M2M/IoT experts.

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M2M Journal 2017

  2. 2. M2M JOURNAL OCTOBER 2017 2 Elevator service from thyssenkrupp People want to move safely and efficiently wherever they go. In order to make this a reality, our commitment is to always be there to secure the reliability of mobility equipment, ensuring it provides each passenger with the best travel experience possible. Our 24,000+ technicians are highly trained and empowered by innovations such as mixed reality devices and MAX, the industry’s first predictive maintenance solution, enabling them to serve as reliable partners for the big challenges and the little details. Find out more at: Always there
  3. 3. M2M JOURNAL OCTOBER 2017 3 Dear readers, dear participants of the 2017th M2M Summit, For one day, the experts from academia, indus- try and politics are settle together to discuss the latest trends in M2M and IoT connectivity. This time we meet in the LANXESS arena in Cologne at our joint event with the StartupCon. For us, the M2M Alliance as the co-orga- nizer of the show, there is good reason for a joint event. In the first place there will be more than 5.000 visitors from a wide range of industries. Furthermore, we introduce parallel conference tracks to show all the variety of M2M technology. What happened since last years’ M2M Summit? Numerous projects in industry and academia have been completed, showing the full potentials of M2M connectivity. LPWA technology, called the new dimension of IoT, is in the main focus. Everyone is talking about those wireless pro- tocols, boosting the number of connected devices towards the magic number of 50 billion. Which of the numerous standards is the right one for your next M2M/IoT project? A dedicated roadmap for the future is still missing. I am sure the experts on stage are happy to guide you through the jungle. Enjoy more than thirty talks about our core topics M2M Connectivity, Smart Factory, Standardization, Data Security, Big Data and Connected Living. Learn how the rise of the machines will affect your life today and in the future! That is our headline for this year. To be honest, a block- buster movie with an Austrian actor was also on my mind at first. But we are not here to draw a gloomy future with robots threaten our lives. The promise is that the tech- nology will benefit us all. Higher productivity in industry makes lot size one has become the norm. Our modern logistics as a complex and fragile system are based on millions of connected devices. Looking at the mass market of smart home appliances, one could hardly imagine a world without our voice service friend from the black tube, shipped in less than a day, of course. And only if you have one dot in each room you might name your home a smart home. What is the right amount of connectivity we need in our modern life? For me, every new technology, product or service which saves time during the day is a good one. Here is my favorite, I hardly can wait for real autonomous driving. Think about the total amount of time and its value we will save in a world of interconnected devices. And what to do with the extra time? I suggest we let the machines do the extra job and spend more time with our families, the most powerful (private) network in the world. And of course, take some of your time to visit a high class conference, to meet colleagues and to absorb all the latest trends in our M2M/IoT domain. A warm welcome to the 11th M2M Summit. Enjoy the show and dive into the fascinating world of connectivity. In the name of all M2M Alliance board members I wish you fruitful discussions, all the best and a nice stay in the beautiful city of Cologne. Sincerely yours DR. ANDREAS FINK 1ST CHAIRMAN OF THE M2M ALLIANCE E.V. RISE OF THE MACHINES – POWERED BY M2M/IOT CONNECTIVITY M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION
  4. 4. M2M JOURNAL OCTOBER 2017 4 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION The digital transformation is profoundly changing our bu- sinesses and our economy. The lines between what used to be clearly separated sectors are disappearing and new value chains emerging. Digitisation is giving rise to new business models that nobody could have thought of only a few years ago. In Germany, we have coined the expressi- on “Industrie 4.0” to describe this process – and to illustra- te the fact that this development amounts to no less than a fourth industrial revolution. Within Industrie 4.0, M2M solutions play a very important role. With ever greater numbers of machines and devices communicating with one another autonomously, there are ever greater amounts of data. This data can be used to underpin new business models and to develop bespoke customer solutions. M2M solutions can also help improve manufacturing processes as real time data gives compa- nies greater flexibility than ever when it comes to respon- ding to change quickly. For our country to be able to harness the full potential promised by the digital transformation, we need to create the best possible framework for this. How can we establish uniform standards? How can we guarantee high levels of data security? And how can we take the public on board? These are only some of the questions that need answe- ring. We are in the fortunate position to have the M2M Summit, a well-established industry event that provides us with a platform for discussing these questions The M2M Summit brings together experts and users from many different countries. This is exactly what we need in order to be able to press ahead with the digital transformation. It is for the same reason that I gladly accepted the invitation to serve as patron of this event. I was pleased to see that the M2M Summit is taking place in conjunction with this year’s StartupCon in Cologne. I am convinced that dialogue between well-established companies and start-ups is essential when it comes to forging our digital future. We also need to cooperate across borders. Geographical distances and borders will increasingly lose importance in an interconnected world. For this reason, it is good that the M2M Summit also fosters international dialogue. May all of the participants of the 11th M2M Summit 2017 find this event productive and informative, and may your work be successful. BRIGITTE ZYPRIES FEDERAL MINISTER FOR ECONOMIC AFFAIRS AND ENERGY FOR THE SPECIAL EDITION OF THE M2M JOURNAL FOR THE 11TH M2M SUMMIT 2017 MESSAGE OF GREETING BY BRIGITTE ZYPRIES
  7. 7. M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION 7 12:40 HOW INDUSTRY 4.0 DRIVES THE REQUIREMENT FOR A HYBRID CLOUD AND EDGE ARCHITECTURE Bernd Groß, Cumulocity 13:00  COFFEE BREAK AND EXHIBITION 13:30 KEYNOTE: PREDICTIVE MAINTENANCE Andreas Schierenbeck, thyssenkrupp Elevator SESSION 5: BIG DATA 14:00 SAY »HELLO« TO WATSON ON THE SHOP FLOOR Thorsten Schröer, IBM 14:20 CLOUD HMI - MONITORING, CONTROL AND ANALYZING FROM REMOTE Matthias Kolmer, Thomas Hepp, Mirasoft 14:40 YOU NEED A DIGITAL PLATFORM TO TURN DATA INTO FUTURE REVENUES Oliver Edinger, Software AG 15:00 COFFEE BREAK EXHIBITION 15:30 DATA-DRIVEN VALUE GENERATION. IS IT POSSIBLE? Tiemo v. Hinckeldey, mm1 Consulting Management PartG 15:50 PANEL DISCUSSION Big Data Analytics and Cloud Platforms, Helmut Schnierle, Telefónica Germany Stefan Hoppe, OPC Foundation Paul Haigh, Vodafone Group Bernd Groß, Cumulocity 16:30 COFFEE BREAK EXHIBITION SESSION 6: CONNECTED LIVING 17:00 SMART LIVING @ HOME – INSIGHTS, TECHNOLOGIES AND USER-CENTRIC SOLUTIONS FROM FUJISAWA AND FUTURE LIVING BERLIN Dr. Benedict C. Doepfer, Panasonic Deutschland 17:20 DIGITALISATION OF BUILDING AND ARTIFICIAL INTELLIGENCE Dr. Alexander Granderath, ISS Facility Services 17:40 QUANTIFIED SELF AND THE SOCIAL INTERNET OF THINGS Werner Keil, Creative Arts Technologies 18:00 SUMMARY OF THE DAY 12:40 SUSTAINABLE BUSINESS ADVANTAGE Dr. Holger Kramer, Acando 6TH M2M ALLIANCE ACADEMIC DAY 14:10 WELCOME AND MODERATION Prof. Dr. Axel Sikora, Offenburg University of Applied Sciences 14:20 SMART SERVICE POWER – IOT-ASSISTED, AGE-APPROPRIATE LIVING Dr. Bettina Horster, Vivai Software AG 14:40 NON-DISRUPTIVE EVALUATION KIT FOR IN- DUSTRY 4.0 FOR SMALL- AND MEDIUM-SIZE ENTERPRISES (NIKI 4.0) Sascha Alpers, FZI Forschungszentrum Informatik 15:30 RESILIENT CONNECTIVITY FOR INDUSTRIAL IOT: HOW SENSOR PLATFORMS BECOME REALT TIME AND ULTRA LOW POWER Dr. Tolgay Ungan, endiio GmbH 15:50 COMPLETELY WIRELESS REAL-TIME SENSORS FOR SMART FACTORY APPLICATIONS Andreas Hennig, Fraunhofer Institut für Mikroelektronische Schaltungen und Systeme 16:10 STADTLÄRM – A DISTRIBUTED URBAN NOISE MONITORING SYSTEM Tino Hutschenreuther, IMMS Institut für Mikroelektronik- und Mechatronik-Systeme gemeinnützige GmbH 17:00 USING BLOCKCHAIN-TECHNOLOGIES FOR FACTORY AUTOMATION Simon Wieninger, FIR e. V., RWTH Aachen 17:20 MOBILE EDGE COMPUTING Dr. Torsten Musiol, CEO MECSware GmbH 17:40 SUMMARY OF THE ACADEMIC DAY Prof. Dr. Axel Sikora, Offenburg University of Applied Sciences M2M JOURNAL OCTOBER 2017
  8. 8. M2M JOURNAL OCTOBER 2017 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION8 »MAX – the industry’s first predictive maintenance solution for elevators.«
  9. 9. M2M JOURNAL OCTOBER 2017 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION 9 AT FIRST GLANCE, IT SEEMS SENSIBLE. WHY WASTE YOUR EFFORTS TRYING TO ALTER SOMETHING THAT ALREADY DOES THE JOB? However, in a world of fast-paced technical innovation, old adages like this have no place. For anyone looking to deliver maximum customer value and be at the forefront of their field, complacency encouraged by an »if it isn’t broken, don’t fix it« attitude will leave them behind. Tech leader Microsoft is a great example of this. The com- pany has consistently looked to improve on products that customers were otherwise happy with. The Windows XP operating system was hailed as one of the most robust and effective since the launch of personal computers; but Microsoft continued to build new systems that could integrate more effectively with modern technologies. As good as it was, Windows XP would not have sat as well with modern tablets and laptops. It wasn’t broken, but Microsoft still sought to build on it, to ensure their offering provided as much value to their customers as possible. At thyssenkrupp Elevator, we’ve ingrained this attitude towards innovation into our business, working on the basis of »it isn’t broken, but how can we be better prepared to fix it?« In 2015, we teamed up with Microsoft to improve elevators that are, for all intents and purposes, functioning at the status quo. Together, we developed MAX – the in- dustry’s first predictive maintenance solution for elevators. With MAX, we go beyond simple remote monitoring and into the realm of predictive and pre-emptive maintenan- ce, allowing us to forecast when an elevator component will need repairing, based on real-time data collection. For our customers, this fixing of what isn’t broken will mean a reduction of downtime – less waiting around in the lobby due to an out-or-service elevator, fewer inci- dents of having to take the stairs due to unscheduled maintenance visits, and better planning when a visit is needed. For our technicians, the relationship with their customer moves from being a reactive one to a proactive, more positive one. The data collected through the over 110,000 elevators connected with MAX has also given us what is the industry’s first and largest data-based knowledge pool on elevators, and with M2M learning, MAX’s capabilities will just keep on improving.  SO WHY DID WE DO THIS? Because whilst previous approaches got the job done, we knew that elevator service could be done much better. The pursuit of improved customer satisfaction, and inno- vation to meet that goal, requires us to look at the status quo and see how we can elevate it. As of October 2017, we have connected over 100,000 units globally, compri- sing 10% of our global maintenance portfolio. In parallel, we are also working on offering MAX for escalators and third-party elevators as well, ensuring our customers can benefit from maximum uptime regardless of whether they use a thyssenkrupp elevator or not. And we continue to up the ante –steadily incorporating the use of Microsoft’s HoloLens in our field operations to allow our technicians to work hands-free while on the job, and teaming up with logistics automation company Tele- Retail to test delivery robots for elevator maintenance. In a world as fast-paced and demanding as ours, it’s not enough to settle for being reactive. Always looking for ways to improve and bring value to our customers in everything we do – that’s our approach to make sure that long before it’s broken, we’re fixing it. ANDREAS SCHIERENBECK CEO THYSSENKRUPP ELEVATOR THERE’S A COMMON ENGLISH PROVERB THAT GOES: »IF IT ISN’T BROKEN, DON’T FIX IT«. IT MEANS TO AVOID SPENDING TIME AND EFFORT ATTEMPTING TO CORRECT, FIX, OR IMPROVE THAT WHICH IS ALREADY GOOD OR OPERATING AT THE STATUS QUO. THERE’S A HIDDEN LAYER TO THE PHRASE, IMPLYING THAT ATTEMPTING CHANGE CAN OFTEN BE RISKY AND MIGHT EVEN BACKFIRE. IF IT ISN’T BROKEN … FIX IT. THYSSENKRUPP
  10. 10. M2M JOURNAL OCTOBER 2017 10 Sensing the world without batteries NOVEL WIRELESS COMMUNICATIONS TECHNOLOGY FOR INDUSTRY 4.0 APPLICATIONS FROM ENDIIO INNSBRUCK / FREIBURG, October 4, 2017. Digitalization in the industry and production progresses is proceeding. In particular, the success related to sensors, intelligent networks and data analysis. With innovative sensors or ac- tuators, monitoring in production and intralogistics can be better realized. endiio already implements these appro- aches in product carriers for intelligent factories. Several companies such as TE Conncectivity, BB Thermo-Technik GmbH and Digiraster have successfully integrated endiio technology in their products. The advantages of this technology include: it is wireless, robust, secure, 100% accessible, energy-efficient and operates without Batteries. In addition, endiio technology allows the customers to be able to expand and extend their system easily and flexibly in the future. Endiio technology is capable of operating up to 10,000 times more efficiently than all conventional communicati- on solutions in a real-time mode due to a completely new wireless technology. The wireless module is available as a certified IoT solution for both OEM systems and as part of endiio evaluation board. It can also be part of a modular system for the implementation of multi-shaped IoT appli- cations and enables fast and cost-efficient integration into a wide range of products and solutions. In addition, endiio offers a complete IoT solution from wireless module to the cloud. For implementing new IoT solutions, the company is committed to partner with developers and OEMs to bring cost-effective and fastest innovative products into the market and as well to improve the existing solutions. RELIABLE, SECURE AND ENERGY-EFFICIENT ENDIIO M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION
  11. 11. M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION 11 M2M JOURNAL OCTOBER 2017 your desired text and logo to create an individual name badge! This application is already pre-installed. All neces- sary accessories from battery holder to lanyard and clip are part of the kit’s content. GET TO MARKET FASTER The new phyNODE-ePaper 2 is the latest addition to the Phytec solutions for industrial IoT, including transmitter modules as well as gateway solutions and evaluation boards. The phyWAVE System on Chip product family transmits data from sensors, actuators and complete devices and machines to the web. This SoC solution costs less than 10 Euro at volume. phyGATE is Phytec’s lineup of IoT gateway devices, based on the phyBOARD Single Board Computers and ready to use in industrial applica- tions. phyWAVE and phyGATE both support BLE (Bluetoo- th Low Energy) as well as any IEEE 802.15.4 protocol at 2,4 GHz bands. PHYTEC: CONNECTED DEVICES FOR INDUSTRIAL APPLICATIONS Phytec embedded components enable industrial pro- ducts to start full speed into the Internet of Things. IoT technology is not unknown territory for the leading German embedded component supplier, but rather the natural outcome of over 25 years of engaging in develop- ment and providing solutions in the embedded processor, networking and M2M space. The company’s customers benefit from the off-shelf solutions that offer certifications such as radio licenses, compatibility and series tests. BRAND NEW TO PHYTEC’S IOT PORTFOLIO AND INTRODUCED AT THE M2M SUMMIT 2017: THE PHYTEC PHYNODE-EPAPER 2 WITH PHYWA- VE-KW41Z MODULE. This IoT evaluation kit includes a number of sensors, such as air-moisture and temperature, light and proximity sensor and a digital gas sensor to monitor air quality. It is equipped with a slot for Arduino shields – and therewith allows integrating further functionalities from additio- nal sensors to network connectivity. With the specifically developed phyNODE App, available at Google Play Store, all data can be collected to Android devices via BLE 4.2. Pre-installed application: individual name badge The phyNODE app can also be used to transfer data to the ePaper included with the IoT kit: Just type in and send IoT-Kit with Sensors, ePaper and Android App: PHYTEC phyNODE-ePaper 2 SENSORS, EPAPER AND APP – COME PLAY WITH ME! PHYTEC
  12. 12. M2M JOURNAL OCTOBER 2017 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION12 M2M AND IOT ARE NOT ONLY CHANGING THE ICT INDUSTRY, BUT ARE ALSO ENABLING NEW BUSI- NESS MODELS IN ALMOST ALL SECTORS OF THE ECONOMY. THE M2M ALLIANCE PROVIDES COM- PANIES AND STARTUPS A PLATFORM TO SUPPORT INNOVATIVE M2M SOLUTIONS. M2M technology and the Internet of Things are important business fields for both start-ups and corporate compa- nies. The M2M Summit, Europe‘s largest M2M Conference and Exhibition with Academic Day takes place on 11 Oc- tober 2017 in the LANXESS Arena in Cologne. On 80,000 square meters visitors will get an overview of the latest M2M and IoT developments. A topic on the M2M Summit will also be the new LPWA technology. Joachim Dressler, M2M Alliance Board Member Finance and VP EMEA/LATAM Sales at Sierra Wireless was ready for an interview: IoT and M2M applications that require low data rates, re- quire long battery life, cost-optimized, or operate in remo- te and inaccessible locations. They are easy to implement and extremely useful for a number of vertical markets such as manufacturing, wearables, utilities or transporta- tion. Analysts expect up to five billion LPWA connections in 2020. As early as 2018, about one billion US dollars are expected to be generated. What exactly is LPWA? The term LPWA includes standardized cellular technolo- gies such as LTE-NB1/M1 as well as proprietary wireless technologies such as LoRa or Sigfox. LPWA solutions are complementary to short-range technologies such as Bluetooth, Bluetooth Low Energy, WiFi or Zigbee. LPWA networks support devices that require lower mobility, low power consumption, high range, low cost, and security. Depending on the LPWA technology, these advantages are combined differently. Among other things, it depends on the specific application, which variant is most suitable. Is it already foreseeable which LPWA technology will prevail? At the moment there is no clear answer to the ques- tion, which technology will be implemented. No less than seven different technologies will be discussed. The benefits and success of LPWA technologies are certainly undisputed. In the end, however, some will only serve niche markets with limited applications. A decision for a LPWA – THE NEW DIMENSION FOR IOT »LPWA makes the next big leap into the Internet of Things and thus into an even more connected world,« says Joachim Dressler, Board Member Finance of the M2M Alliance. The Internet of Things is constantly evolving. The latest keyword is called Low-Power Wide-Area, LPWA. What is the technology suited for? Low-power wide-area technologies enable the next big leap into the Internet of Things and thus into an even more interconnected world. LPWA networks are ideal for
  13. 13. M2M JOURNAL OCTOBER 2017 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION 13 technology requires careful consideration in order to avoid making a mistake. Which technology is the most approp- riate option depends ultimately on the respective project. There are also good reasons for licensed technologies such as LTE-M1, LTE-NB1, or ECS-GSM-IOT in combination with one of the many global carrier networks, such as a private network based on RMPA, Sigfox or LoRa technology. That is why we have prepared a neutral overview of the indivi- dual technologies that can be found on the M2M Alliance website. Can you give a concrete application example how LPWA can be used? The number of regions suffering from chronic water de- ficiency is growing strongly. The United Nations assumes that in the year 2025 1.8 billion people will have to live with water scarcity. Smart water management solutions that use the Internet of Things can help to counteract this trend. It allows resources to be monitored, as well as the production, storage, transport and use of drinking water. For example, sensors in water pipes can help to locate blockages, leaks or pipe breaks more precisely and more quickly. Sewage sensors that detect bacteria and viruses could help prevent epidemics. Effective water and sewage M E S S T E C H N I K G M B H PHYTEC MESSTECHNIK GMBH +49 (0) 6131 / 9221-32 Scalable solutions for IIoT ...lead the way with our expertise! M.Eng. John Smith Research Development We‘re at your side — just give us a call or visit management in both urban and rural areas has never been more important than today. One does not even have to think about developing countries. Smart water manage- ment based on LPWA technology can make a big difference here. Here, for example, the advantages of optimized power management and deep coverage are utilized. Why is the market not further developed so far, although it would be possible from the technical point of view? Historic 2G technology is neither network-optimized nor the modules are energy-saving. Current 3G or 4G mo- dules have been developed to support high-bandwidth applications. This can sometimes even stream HD videos. However, many IoT solutions only need to transfer small amounts of data. Thus, the previously common wireless modules always have a disadvantage. Here, new LPWA technologies make much more sense, which can also be tailored to the application. In the future, thanks to LPWA, more utilities and other industries will put their trust in the Internet of Things. LPWA‘s network expansion is progressing faster than any prior technology introducti- on - but it also takes time to provide stable commercial services..
  14. 14. M2M JOURNAL OCTOBER 2017 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION14 dback. Digital prototyping and maker thinking can help facilitate initial steps when it comes to translating digital product ideas into software. DIGITAL PROTOTYPING codecentric Digitization Labs makes prototyping digital. From the very first day, we implement your ideas and help you validate them both internally and on the market. Any insights gained are immediately incorporated into the further development of the product – without tedi- ous planning or detailed requirements. The Black Frame, codecentric’s think tank, stands for Maker Thinking, i.e. vision transformation, digital empowerment, and 360° prototyping. NILS WLOKA  AGILE PRINCIPAL CONSULTANT DR. DIANA KUPFER  COMMUNITY MANAGER, CODECENTRIC AG PROTOTYPING AND MAKER THINKING AS KEYS TO SUCCESSFUL DIGITIZATION Digitization is neither a myth nor empty buzzword bingo. It radically transforms and disrupts our economy, and virtually no industry remains unaffected by it – be it logi- stics, automotive, healthcare, tourism, insurance compa- nies, the financial sector or public administration. Digitization is all about leveraging the power of advancing technology to develop new, previously unimaginable, so- lutions for old and new problems. For product managers who are keen to develop an excellent digital product, this is both a curse and a blessing: On the one hand, there are no limits to their imagination. On the other hand, it is no longer possible to pin down the characteristics of a marketable product. Successful solutions can no longer be designed, they must be discovered. Business models always need to adapt and evolve conti- nuously. What is different with digitization, though, is that many complex factors are involved: Changing customer expectations and needs, fast and highly available tech- nologies as well as an ambitious startup community are increasingly challenging classic business models. Yet this is a revolution from which everyone can emerge as a winner – by minimizing the time between idea and fee- STOP DESIGNING, START DISCOVERING! CODECENTRIC FIND OUT MORE AT: WWW.CODECENTRIC.DE/DIGITIZATION-LABS AND WWW.THEBLACKFRAME.COM/ RESPECTIVELY, OR FEEL FREE TO GET IN TOUCH: NILS.WLOKA@CODECENTRIC.DE
  15. 15. M2M JOURNAL OCTOBER 2017 15 NARROW BAND IOT AND LTE CAT M1 ARE LEADING THE WAY LPWA technologies are starting to play the leading role in IoT connectivity. Nonetheless, they still vary in terms of the provided network coverage, data rate, current consump- tion, safety/security, scalability, and interoperability. When selecting the right technology for the job, it is essential to consider the exact requirements of the respective applica- tion in advance. Whatever the project, ideal modules are always available from Rutronik and the German wireless experts also help customers choose the correct solution. SIGFOX AND LORA Generally speaking, a distinction is made between licen- sed and unlicensed technologies. The best known unlicen- sed ones are SigFox and LoRa. Besides many other things, they offer a cost advantage: The modules are cheaper and do without a SIM card, meaning there are no additional costs for managing and replacing it. Their biggest short- coming however is the still incomplete infrastructure. As a result, only licensed technologies are applicable for appli- cations that demand blanket coverage and a reliable wire- less connection. By utilizing the mobile network, they offer better scalability, service quality, and security features. NARROW BAND IOT (NBIOT OR CAT NB1) In terms of the two licensed LPWAN standards, NBIoT and Cat M1, NBIoT offers the lowest transmission rate: For downloads and uploads it is below 250kbps and 20kbps respectively. The bandwidth is 200kHz. NBIoT is therefore basically intended for stationary applications with particu- larly high energy efficiency requirements. Network operators in Europe and Asia are busy promo- ting the NBIoT standard; Deutsche Telekom is rolling out extensive network coverage in Germany and across Europe. In the USA, the emphasis is on Cat M1, while both standards are supported in Canada and Australia. For instance, Telit offers the NE910C1 module for NBIoT applications. It combines top level energy efficiency with particularly reliable network coverage, even in buildings. It is therefore ideal for smart metering, security, point of sale, and medical applications. Due to its xE910 form factor (28x28mm2), it can be used easily to replace other modules with the same form factor in existing applica- tions. Moreover, thanks to its even smaller xE866 form factor (19x15mm2), the NE866B1 module from Telit is the perfect choice for very small devices. LTE CATEGORY M1 (IN SHORT CAT M1 OR LTE-M) With up to 1Mbps, the Cat M1 standard offers a higher data transmission rate than NBIoT. In contrast to NBIoT, Cat M1 also supports Voice over LTE (VoLTE) for appli- cations with voice transmission. Handover from one cell to the next also makes it ideal for cellular and mobile applications such as telematics and fleet management solutions. In addition, Telit offers IoT modules for Cat M1. The ME910C1 and the ME866A1 have the same form factors as the NBIoT modules. Dependent on the country and the supported wireless technology, the appropriate module can thus be applied in a device without the need for a costly redesign. ANJA SCHAAL, PRODUCT SALES MANAGER, RUTRONIK ELEKTRONISCHE BAUELEMENTE GMBH RUTRONIK LOW POWER WIDE AREA NETWORKS M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION
  16. 16. M2M JOURNAL OCTOBER 2017 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION16 MACHINE 3MACHINE 1 MACHINE 2 CELL 2CELL 1 Fieldbus Level Machine Parts Network Control Level Machine Network Control Level Cell Network MES Level Company Network Enterprise Level Cloud FLC VO FLC VO D M D M FLC VO FLC D M D M D M FC HM TODAY’S DEVICES AND MACHINES PRODUCE HIGH- VALUE DATA. FOR EXAMPLE, A PRODUCTION MACHINE LOGS AT WHICH TIME IT IS USED. HOWEVER, THE AVAI- LABLE DATA ONLY BECOMES VIABLE IF IT CAN BE PRO- CESSED AND USED TO IMPROVE A PRODUCT, TO OFFER A SERVICE, OR TO REDUCE THE COSTS. FOR EXAMPLE, KNOWING THE UTILIZATION OF PRODUCTION SYSTEMS CAN BE USED FOR OFFERING OVERCAPACITIES OF THE PROCUTION SYSTEM TO OTHER PARTIES. CURRENTLY, THE VALUE OF THE AVAILABLE DATA IS LOST AS THE DATA IS LOCKED WITHIN ITS SOURCE. Communication enables remote accessing to and proces- sing of the data. Internet-based smart services enable new business cases, like production as a service, which mine the value of the available data. A prerequisite for smart services is that devices, machines, and smart services exchange data in a secure way. Otherwise, data, machines, and devices might get compromised or the value of the data is monetarized by external parties. Device and machine builders must ensure the data inte- grity and the data confidentially. Furthermore, they must guarantee that the sovereignty of the data remains to the data owner. Currently, many devices and machine builders struggling with these security challenges. Thereby, they give away the ability to use the data to improve their own products, services, and to reduce their costs. Nevertheless, the information to build secure solutions already exists within the M2M Alliance and the OPC Foundation (OPCF). For this reason, the M2M OPCF user group has been founded in order to document and spread best practices for building secure communication solutions and smart services based on device and machine data. COMPANIES BEHIND Ascolab · Beckhoff · Cumulocity · DSInteroperability exceet Secure Solutions · Fraunhofer Fokus · Fraunhofer IEM · Hochschule Offenburg · M2M Alliance e.V. Microsoft · Sparhawksoftware · Telefoncia 1. INTRODUCTION Today’s devices and machines produce high-value data. For example, a production machine logs at which time it is used. However, the available data only becomes viable if it can be processed and used to improve a product, to offer a service, or to reduce the costs. For example, kno- wing the utilization of production systems can be used for offering overcapacity of the production system to other parties. Currently, the value of the available data is lost as the data is locked within its source. Communication enables remote accessing to and processing of the data. Internet-based smart services enable new business cases, like production as a service, which mine the value of the available data. A prerequisite for smart services is that devices, machines, and smart services exchange data in a secure way. Otherwise, data, machines, and devices might be compromised. Date may be eaves- dropped, and the value of the information might be monetarized by malevolent parties. Fig. 1 shows a typical use case for a connec- ted factory. OPC UA is the choice for a secure solution of this use case, so that device and machine builders can ensure the data integ- rity and the data confidentially. Furthermore, they must guarantee that the sovereignty of the data remains to the data owner. Current- THE M2M OPC FOUNDATION USER GROUP FOR BUILDING SECURE COMMUNICATION SOLUTIONS AND SMART SERVICES BASED ON DEVICE AND MACHINE DATA OPC FOUNDATION FIGURE 1: CONNECTED FACTORY
  17. 17. M2M JOURNAL OCTOBER 2017 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION 17 ly, many devices and machi- ne builders are struggling with these security chal- lenges. Thereby, they give away the ability to use the data securely to improve or extend their own products and services or to reduce their operational costs. For this reason and ba- sed on their expertise, the M2M Alliance OPC Foundation security user group was founded in order to document and inform about best practices for secure communication solutions and smart services based on device and machine data. This article gives a condensed overview of the recommen- ded security measures, which are used in »best practice« installations. 2. OPC UA SECURITY MODEL Security is an elementary requirement for OPC UA and it is therefore integrated into the architecture. UA security mechanisms are based on a detailed analysis of security threats. UA security deals with authentication of users and UA applications, integrity and confidentiality of the exchanged messages, and the validation of function profiles. UA Security complements the preexisting security infrastructure within a company. Fig. 2 shows the scalable UA security concept. It consists of the three levels: user security, application security, and transport security. The mechanisms of UA user level security grant access for a specific user and its role while setting up a new session. UA application level security is also part of the communica- tion session and includes the exchange of digitally signed X.509 certificates. Application instance certificates that are exchanged during Secure Channel establishment are used to authenticate an application. The supported UA security profile that can be certified by the OPC Foundation defines, which security mechanisms a UA application supports. Transport level security can be used to sign and encrypt each message during a communication session. Signing ensures the message integrity and encryption prevents eavesdropping. The UA security mechanisms are realized as part of the UA stacks, i.e., they belong to the software package prepared by the OPC Foundation, so that the UA applications just have to use it. 3. OPC UA SECURITY ARCHITECTURE The OPC UA security architecture addresses the following concepts: • It envisages trusted information following the so called CIA triad: • Confidentiality by encrypting messages on the transport layer • Integrity by signing messages on the transport layer • Availability by restricting the message size and returning no security related codes • It provides access control with the help of an AAA Framework: • Authentication by username and password or X.509 certificate on the application layer • Authorization to read, write values of a node or to browse the information model based on the access rights of the information model, access rights of the user or of the user‘s role • Accounting by generating audit events for security related operations However, the following concepts are outside scope of the OPC UA security architecture: • organizational issues, like security training of personnel, security lifecycles and policies or how to handle physical access. OPC UA does not replace the information security management system (ISM) that the ISO 27001 defines. OPC UA security aspects should be used to implement security in depth. • user and role authentication and authorization management Nevertheless, UA can be integrated with existing concepts, like Kerberos, OAuth2, or JSON Web Token by using claims-based authentication. Secure Communication Using OPC UA for the IoT CONTACT CHAIRMEN: UWE POHLMANN (FRAUNHOFER IEM) UWE.POHLMANN@IEM.FRAUNHOFER.DE ARTEM YUSHEV (HOCHSCHULE OFFENBURG), ARTEM.YUSHEV@HS-OFFENBURG.DE OPC FOUNDATION: STEFAN HOPPE (OPCF) STEFAN.HOPPE@OPCFOUNDATION.ORG M2M ALLIANCE: PROF. AXEL SIKORA, (M2M ALLIANCE E.V.) AXEL.SIKORA@HS-OFFENBURG.DE CLIENT PLATFORM Client Application Server Application UA Session UA Session Platform communication (TLS 1.2) Platform communication (TLS 1.2) SERVER PLATFORM OPC UA Security Architecture User Security Security Application Security Transport FIGURE 2: SCALABLE SECURITY CONCEPT user security token Authentication of client, server, messages signed encrypted
  18. 18. M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION18 ABOUT THE M2M ALLIANCE M2M/IoT technology is moving at an unprecedented pace. It is therefo- re important to join forces and create uniform structures. As the largest association for the M2M/ IoT sector, the M2M Alliance is considered the platform and voice for providers and users of M2M/IoT solutions. The primary objective of the M2M Alliance is to promote M2M/IoT techno- logies and solutions. The M2M Alliance actively advocates for the economic interests of its members, and promotes cooperation and the exchange of experiences among the various sectors and companies. The M2M Alliance represents the interests of the M2M/IoT industry by cre- ating better general conditions for attractive and lucrative M2M solutions through the constant dialogue with industry, RD and policy makers. The promotion of uniform and cross-industry standards forms an important cor- nerstone for creating a future-proof foundation for new products and inno- vations. As an independent industry association, the M2M Alliance supports its members in the growing M2M/IoT market in finding ideal partners in the fields of hardware, software, integration and consulting. With the M2M Summit, the M2M Alliance offers its members a unique platform to exchange ideas with each other, and to present themselves to market leaders and expert visitors from around the world. Workshops and developer forums give participants the opportunity to learn about the latest developments while also building contacts for generating new product and business ideas. Through their active participation in the M2M Summit, members are able to purposefully manage the public perception of their products and solutions. M2M Alliance members are informed about the latest developments and important changes in all relevant sectors through the M2M Journal, a news- letter and their internet presence as well as social media channels. The M2M Alliance also supports its members through targeted public rela- tions in order to promote a better understanding and greater acceptance of M2M/IoT solutions. The target groups for this are primarily decision makers and opinion leaders in business, research and the political arena. Due to the growing connection of devices to the internet, the importance of M2M communication in the daily lives of millions of people will play an increasingly important role. OFFICE M2M ALLIANCE E.V.   OFFICE@M2M-ALLIANCE.DE  WWW.M2M-ALLIANCE.COM M2M JOURNAL OCTOBER 2017
  19. 19. 19 BENEFITS OF YOUR MEMBERSHIP M2M JOURNAL OCTOBER 2017 M2M ALLIANCE   ENABLING DIGITAL TRANSFORMATION ― The M2M Alliance is your platform for business, communication and networking surrounding M2M/IoT technology ― As a member your company is present and can present itself optimally in a targeted manner ― Present yourself at the »M2M Summit« – Conference and Exhibition of the M2M/IoT industry ― Meet specialists, enlarge your contacts, utilize the community ― Take advantage of the opportunity to influence policy and the formulation of guidelines and standards ― Achieve a competitive edge through international networking activities in a future market ― The M2M Alliance supports you with working groups (e.g. OPC Foundation for standardization and security) ― The M2M Alliance allows you to be heard before EU or government bodies, such as public consultations of the EU concerning the »Internet of Things« ― We encourage and support national members’ M2M Meetups ― Stay up-to-date through regular newsletters ― Use of the advertising and presentation opportunities in the newsletter ― The Board speaks on behalf of the M2M Alliance at relevant events and consists of a huge top level M2M/IoT speaker network ― Distribution of information on relevant topics through our presence in the social networks of Xing, Linkedin and Twitter ― Preferential speaker slot at the Summit ― Reach new customers through promoting member news in newsletter (10.000 contacts), on website and social media channels (twitter 9.000 follower), Media Partner, Partner Events EDITORIAL NOTES M2M JOURNAL The M2M Journal is a magazine that focuses on M2M (Machine-to-Machine communication) and IoT (Internet of Things) worldwide. Our readers are businesses in the M2M/IoT community, such as wholesalers and users of M2M/IoT solutions. The content includes: theoretical foundations, new products and processes, reference projects and services, information from the M2M Alliance and the M2M/IoT community, corporate presentations, and opinions from M2M/IoT experts. DISTRIBUTION This journal is published in English. It can be ordered free of charge. Order the M2M Journal by e-mail from The M2M Journal is posted as a Portable Document Format (PDF)-File at EDITOR M2M Alliance e.V. · Speditionstr. 15a · 40221 Düsseldorf, Germany · Phone: +49 211 54761580 · E-mail: · Web: EXECUTIVE BOARD Dr. Andreas Fink, Elektro Fink Schaltanlagenbau (1st chairman), Helmut Schnierle, Telefónica Germany (2nd chairman), Robert Jänisch, IOX LAB (Innovation), Joachim Dressler, Sierra Wireless ltd. (Treasurer) EDITORIAL OFFICE: M2M Alliance e.V. · PICTURE CREDITS: M2M Alliance e.V. and specified companies · LAYOUT AND DESIGN: Dennis Melskotte – Konzeption, Grafik; YEAR OF RELEASE: OCTOBER 2017
  20. 20. Low Cost. Low Energy. Global. Wireless Connectivity for the IoT