Aeris, a Santa Clara based machine-to-machine (M2M) communications technology supplier will be working alongside India-based services house Tech Mahindra  to develop an internet of things (IoT) service system for mobile carriers.

As per the Machina Research’s M2M forecast database, the net value of M2M and IoT services is set to top $120bn in 2015 and the compound annual growth rate is forecast at 23.5percent between now and 2020. 

Mohsen Mohseninia, vice-president of development, Aeris said with these figures it is only natural carriers are deducing that 2015 is the right time to commence on an IoT project.

Although, Mohseninia said firms are often challenged in this ambition by the fact the costs associated with setting up an IoT practice – particularly the costs of sourcing components from third-party suppliers – are extortionately high.“Every mobile carrier has an M2M practice, but they shy away from answering questions about profitability because they aren’t making any profit." he said.

Machina Research founder and CEO Matt Hatton said many carriers are to begin plans to tap into the growing IoT market, but they need a well-considered approach to “cogently and lucratively " addressing the market. 

“In particular IoT, compared to M2M, requires mobile network operators [MNOs] to tackle a broader range of issues, including more complex regulation and issues associated with data management."

To this end, Aeris – which got its start in the 1990s building alarm communications systems – and Tech Mahindra are to set up an IoT services platform called Jumpstart IoT. The platform will expand carrier service offerings to included packaged apps for key vertical systems, such as fleet and asset management, insurance and so on.

It will also include a locally deployed technology platform for delivering managed device connectivity services; specialized system operations and support services; go-to-market planning support services; and an internet-scale device data analytics infrastructure.