Dr. John L. Faessel
ON THE MARKET
Faessel Publishing L.L.C.
Commentary and Insights
A Breakthrough ‘Process’
as Big as the Internet. Maybe...*
more! It’s here: From knowing what happened to knowing what is
happening – at all times – and then automatically controlling mission
critical or asset protecting systems with that knowledge. It means, managing
virtually any asset from "anywhere-to-anywhere" in the world...
Solutions, Inc. (IMEK) OTCBB
Machine-to-Machine, and some experts suggest that the space could be bigger
than the internet.
* Clark Nguyen, Ph.D, is Professor, and a
Director of the Berkeley Sensor & Actuator Center, in the Department of
Electrical Engineering and Computer Sciences at the University of California at
Berkeley. Nguyen has told Forbes: “I like to be conservative about things, but
in a way [sensor networks] could be bigger than the Internet.''
M2M stands for machine-to-machine
communications: ubiquitous electronic devices can talk to each other
through wireless networks and, through the Internet, talk to people who can
control them. As more electronic devices become networked and empowered to talk
with each other, M2M will multiply exponentially and have the kind of
control over our lives we can't even imagine.
obstacles have kept M2M from performing as predicted.
been predicting that the M2M industry would grow in a near parabolic
trajectory, or follow the “hockey stick” curve,
meaning straight up for the last many years. Although the growth has been
impressive, why did it not track the parabolic curve they have predicted?
Up to now, the
deployment of M2M has been slowed due not to the lack of demand, but to the
fact that integrators and users had to unify all the complex building blocks
necessary to put together and operationalize an M2M system. (IMEK) understood this from
the beginning, and they have been working long and hard and spending a lot of
money to realize a plug and play "end-to-end" solution that works
right out of the box.
Plug in and Play, End-to-End Solution
brings to the table and the market is an "end-to-end” turnkey solution
that involves sensors, gauges, or meters wirelessly linked to a “gateway”
(similar to your base phone) and relayed through a world-wide network.
Then, any “event” that activates the sensor produces a message that is
automatically sent to inform whatever “party” (mobile device, manager, company)
that needs to know so that further action can be taken.
So If it
moves, grows, makes noise, leaks, or heats up (IMEK)’s end-to-end, plug
in-and-play, cellular enabled wireless sensing service is a one of a kind
solution that provides knowledge of what is happening at all times and
then automatically manages that “situation” with that knowledge.
“What we’re talking about with M2M is
little short of a second industrial revolution. The growth in connected devices
over the next ten years will fundamentally change the way we live and work.”
Matt Hatton, Machina
experts are estimating that M2M will grow 12-fold by the end of this decade
according to the latest industry report by Machina Research. At the end of
2010, M2M accounted for 2% of cellular connections. By 2020 this will reach
19%, or 2.3 billion connections.
generates revenue from two sources: 1. A one-time fixed price on each device
sold; and 2. A recurring monthly fee base on usage.
once installed the base-unit can transmit “additional” information and data
from other deployed disparate sensors of varied types in the local, e.g. CO2
sensors, panic notification or security applications that would bring added
revenue to (IMEK).
agreements of note include:
July 2011, (IMEK) and Monnit Corporation announced a
partnership that will enable them to offer the M2M market a plug-and-play,
end-to-end, cellular enabled wireless sensing solution using Monnit's wireless
sensors, Monnit’s web application, and (IMEK)’s M2M Cellular
with global connectivity. Users will benefit from a system that eliminates
development time and reduces installation to an absolute minimum.
projections are for hundreds of thousands of installation to be deployed over
the next two years. So, suppose for example that the monthly income is 200,000
X year one (1), 400,000 X year two (2) and that income is received every month.
If it is only a few dollars a month, the total is very impressive. This
multiplying effect of the recurring revenue model will yield very high and
escalating profit margins as we go out further in time.
October 2011, Metropolitan Industries Inc., the leading
sump pump manufacturer in the US, selected (IMEK)’s M2M's all-wireless,
web-based system to monitor its equipment and offer real-time preventive
measures to keep their product offering ahead of the pack.
Metropolitan chose (IMEK)’s M2M to monitor all sump pumps it sells in the
United States, it represents hundreds of thousands of installations a year,
according to IMEK’s 8-K filing with the SEC.
Metropolitan sells some 250,000 sump pump a year that it intends to monitor, so
multiply 250,000 by let’s say $3 every month for the first year, 500,000 the
second year and so on…..The same apply to every system installed.
also signed a manufacturing agreement with an important manufacturer of highly
complex circuits requiring high standards of quality and short manufacturing
announced that it has signed an exclusive license agreement with private
for the use of their entire global network for the Machine-to-Machine “M2M”
According to a
recent (12/12/2011) 8Kfiling, over the past six-months (IMEK) has been
travelling in North America to meet potential clients and has received orders
from two customers.
In Sum: Unknown and newly trading,
this micro cap (market-cap $11million) has
contracts in fist and is shepherded by an allied private company that knows the
space. (IMEK) is launching an innovative Machine-to-Machine total solution
disruptive to the existing market and value network displacing an earlier
technology. It enables remote access and control over targeted equipment and
services, as well as allowing monitoring, selective enabling, disabling, or any
other command. Commercial, industrial and residential consumer applications
abound for (IMEK). Imagine: passively managing and controlling just about, “you
name it” from anywhere—wirelessly.
and undiscovered (IMEK)’s end-to-end total solution brings a new and compelling
boarder dimension to the M2M space I would envision that a major player in
either the sensor or network sector would acquire them once they make inroads
in the market. Most, if not all, major control system manufacturers are
fast moving towards developing or buying the technology to implement this into
So what we
have here is a recurring revenue value proposition with an almost sure-shot
exit-strategy and it’s guided by savvy experience management who knows the
space. Revenues should build in orders of magnitude as the multiplier effect
takes hold. All things considered and with a tiny $11 million market-cap it’s a
compelling narrative with “multi-bag” potential. More on this exceptional
speculation in further reports.
Visit (IMEK)’s comprehensive website: http://www.imetrikm2m.com
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