Internet based machine to machine apps on the way

Within the next five years, internet traffic from machine to machine interaction is expected overtake traffic from traditional browser-based applications, a report by Deloitte Research claims.

The report, titled "Machine-to-machine e-Business: Information Systems Meet Electric Systems" suggests internet-based machine to machine communications using devices such as mobile phones and vending machines, will be the next big wave in communications.

The report is the first in a series of e-business research papers Deloitte Research will be releasing each month under the name, e-Views.

Ken McElhinney, e-Business specialist from Deloitte Consulting Australia, said there were already examples of machine interaction using internet technology. In Australia, some vending machines have already been allocated IP addresses and automatically alert suppliers when new stock is needed and in Europe, telecommunication providers are developing digital certificate applications using mobile phones and personal digital assistants (PDAs), he said.

"The point is that people have been talking about machine to machine interaction, but we are now at a point, where combined with artificial intelligence, processing power and the proliferation of the internet, that makes it a financial reality."

McElhinney said the high cost of establishing private communication systems was prohibiting development of machine to machine applications.

McElhinney warned companies to be aware of the opportunities the internet creates in a non-PC environment.

"[Companies] need to include that in e-commerce strategies, or [they] may be missing out," he said.

Industries most likely to benefit from machine to machine interaction include distribution organisations and utilities, McElhinney said.

The report is the first in a series of e-business research papers Deloitte Research will be releasing each month under the name, e-Views.

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