Skip to main content

New Emerging Apps for Cloud-based Fleet Telematics

The legacy cloud-based services sector is mature. But it's still growing at a very rapid pace. ​ABI Research forecasts that the total number of Software-as-a-Service subscriber units will increase from 1.06 million at the end of 2012 to 16.8 million on a global basis by the end of 2018.

Telematics is currently a high-grow market segment. SaaS-based telematics services are defined as software-based telematics applications residing in the cloud -- in either a public or private cloud infrastructure.

It's where the intelligence or data processing essential to the functioning of the application is performed in the cloud, rather than by software and/or hardware residing locally in the commercial vehicle.

"SaaS cloud-based services offer many benefits for telematics services providers compared to the traditional platforms," said Gareth Owen, principal analyst at ABI Research.

For example, the platform is easily scalable and all IT services can be outsourced to the cloud provider which means that the telematics provider can focus on its core competence of developing telematics applications.

However, there are a number of potential issues and challenges, including data privacy and possible legal issues regarding data ownership. There are also security concerns as any over-the-air transmission of firmware updates could provide an opportunity for hackers to modify or disable customers’ operating systems or introduce malware.

"Virtually all of the major commercial fleet telematics providers have moved to some form of cloud-based system, and are offering SaaS-based services, although there are wide differences in the types of services offered by these companies," adds Owen.

As a result, a number of these companies are reporting an increase in higher-margin software revenues and a corresponding decrease in hardware revenues. However, most SaaS-based revenue lines include a hardware component in the monthly subscription fee although this is not normally broken down.

As with other cloud applications, fleet telematics systems must be designed from the outset with the cloud in mind and it is often difficult and not cost effective to port legacy systems (typically obtained through acquisition) over to the cloud.

Companies well positioned to benefit from the trend towards SaaS-based services include Fleetmatics, MiX Telematics, Telogis, and XRS.

Popular posts from this blog

How Data and Analytics Drive Business Growth

Senior executives in the world’s largest and most complex organizations will develop the insights required to achieve lasting Digital Transformation. Gartner has identified a model for digital business growth that binds together data, analytics, technology, and forward-looking transformation capabilities. The Gartner Research Board said that data and analytics (D&A) leaders are uniquely positioned to drive this strategic organizational change that will make their companies behave like 'digital native' leaders.  "The most advanced and successful D&A leaders are driving new opportunities to use digital capabilities – often data and analytics products – to capture value. Those opportunities should directly connect to the business priorities," said Mario Faria, vice president at Gartner . Digital Business Market Development At the same time, some leaders are using digital and D&A to create whole new business models. These leaders – which Gartner named the CxO

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

The Metaverse Raised Virtual Reality Interest

After years of slow growth and limited use cases, the Virtual Reality (VR) market is now forecast to grow significantly over the next five years. Consumer interest in VR games and media continues to grow after the COVID-19 pandemic accelerated activity. At the same time, the need for employee enablement and immersive content within the enterprise environment remains strong. According to the latest market study by ABI Research, over 90 million Head Mounted Display (HMD) shipments in 2027 will drive total VR market revenues to reach over $95 billion across hardware, software, and services. Virtual Reality Market Development "The virtual reality market is no stranger to false starts, with identifiable efforts in VR dating back to the 1980s and 1990s. While the technology never found purchase results, the increased capability of VR hardware combined with the demand for immersive content in numerous markets, presents a significant opportunity," says Eric Abbruzzese, research direc