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Unit-2
IoT to M2M : A Basic Perspective.
Introduction, Some Definitions, M2M Value Chains, IoT Value Chains, An emerging
industrial structure for IoT, The international driven global value chain and global
information monopolies.
IoT to M2M : An Architectural Overview.
Building an architecture, Main design principles and needed capabilities, An IoT
architecture outline, standards considerations.
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About M2M (Machine to Machine):
● Machine-to-Machine (M2M) refers to networking of machines (or devices)
for the purpose of remote monitoring and control and data exchange.
● An M2M area network comprises machines (or M2M nodes) which have
embedded hardware modules for sensing, actuation and communication.
● Various communication protocols can be used for M2M local area networks
such as ZigBee, Bluetooth, ModBus, M-Bus, Wireless M-Bus, Power Line
Communication (PLC), 6LoWPAN, IEEE 802.15.4, etc.
● The communication network provides connectivity to remote M2M area
networks.
● The communication network can use either wired or wireless networks
(IP-based).
● While the M2M area networks use either proprietary or non-IP based
communication protocols, the communication network uses IP-based
networks.
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IoT to M2M : A Basic Perspective.

Introduction:
● M2M, or machine-to-machine, is a direct communication between devices
using wired or wireless communication channels.
● M2M refers to the interaction of two or more devices/machines that are
connected to each other.
● These devices capture data and share with other connected devices,
creating an intelligent network of things or systems. Devices could be
sensors, actuators, embedded systems or other connected elements.
● M2M technology could be present in our homes, offices, shopping
malls and other places. Controlling electrical appliances like bulbs and fans
using RF or Bluetooth from your smartphone is a simple example of M2M
applications at home. Here, the electrical appliance and your smartphone
are the two machines interacting with each other.
● The Internet of Things (IoT) is the network of physical devices embedded
with sensors, software and electronics, enabling these devices to
communicate with each other and exchange data over a computer
network. The things in the IoT refer to hardware devices uniquely
identifiable through a network platform within the Internet infrastructure.
● M2M and the IoT are two of the technologies that form the basis of the
new world.

Difference between IoT and M2M:

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Communication Protocols:
● M2M and IoT can differ in how the communication between the machines
or devices happens.
● M2M uses either proprietary or non-IP based communication protocols for
communication within the M2M area networks.
Machines in M2M and Things in IoT:
● The "Things" in IoT refers to physical objects that have unique identifiers
and can sense and communicate with their external environment (and user
applications) or their internal physical states.
● M2M systems, in contrast to IoT, typically have homogeneous machine
types within an M2M area network.
Hardware Vs Software Emphasis:
● While the emphasis of M2M is more on hardware with embedded modules,
the emphasis of IoT is more on software.
Data Collection and Analysis:
● M2M data is collected in point solutions and often in on-premises storage
infrastructure.
Applications:
● M2M data is collected in point solutions and can be accessed by
on-premises applications such as diagnosis applications, service
management applications, and on-premise enterprise applications.
● IoT data is collected in the cloud and can be accessed by cloud applications
such as analytics applications, enterprise applications, remote diagnosis and
management applications, etc.
Software Defined Networking (SDN):
● Software-Defined Networking (SDN) is a networking architecture that
separates the control plane from the data plane and centralizes the network
controller.
● In the conventional network architecture the control plane and data plane
are coupled. Following are the limitations of the conventional network
architecture.
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○ Complex Network devices: Due to the complexity of conventional

network devices, making changes in the networks to meet the
dynamic traffic patterns has become increasingly difficult.
○ Management Overhead: It is very difficult to manage multiple
network devices and interfaces from multiple vendors. Upgrading the
network requires configuration changes in multiple devices (switches,
routers, firewalls, etc.)
○ Limited Scalability: IoT applications hosted in the cloud are
distributed across multiple virtual machines. Such computing
environments require highly scalable and easy to manage network
architectures with minimal manual configurations, which is very
difficult in the conventional network.
● SDN attempts to create network architectures that are simpler, inexpensive,
scalable, agile and easy to manage. The following figure shows the SDN
architecture.
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Key Elements of SDN are as follows:

● Centralized Network Controller:
○ With decoupled control and data planes and centralized network
controller, the network administrators can rapidly configure the
network.
● Programmable Open APIs:
○ SDN architecture supports programmable open APIs for interface
between the SDN application and control layers (Northbound
interface). With these APIs various network services can be
implemented, such as routing, Quality of Service (QoS), access
control, etc.
○ A northbound interface is an application programming interface (API)
or protocol that allows a lower-level network component to
communicate with a higher-level or more central component
● Standard Communication Interface (OpenFlow):
○ OpenFlow, is defined by the ONF (Open Network Foundation), which
is a broadly accepted SDN protocol for the Southbound interface.
○ A southbound interface allows a higher-level component to send
commands to lower-level network components.
Network Function Virtualization:
● Network Function Virtualization (NFV) is a technology that leverages
virtualization to consolidate the heterogeneous network devices onto
industry standard high volume servers, switches and storage.
● NFV is complementary to SDN as NFV can provide the infrastructure on
which SDN can run.
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Key Elements of NFV (Network Function Virtualization)

● Virtualized Network Function (VNF):
○ VNF is a software implementation of a network function which is
capable of running over the NFV Infrastructure (NFVI)
● NFV Infrastructure (NFVI):
○ NFVI includes compute, network and storage resources that are
virtualized.
● NFV Management and Orchestration:
○ NFV Management and Orchestration focuses on all
virtualization-specific management tasks and covers the
orchestration and life-cycle management of physical and/or software
resources that support the infrastructure virtualization, and the
life-cycle management of VNFs.
NFV Use Case (For Home Network)
NFV can be used to virtualize the Home Gateway. The NFV infrastructure in the
cloud hosts a virtualized Home Gateway. The virtualized gateway provides private
IP addresses to the devices in the home. The virtualized gateway also connects to
network services such as VoIP and IPTV.
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M2M Some Definitions:

Wikipedia: Machine to machine refers to technology that allowed both wireless
and wired systems to communicate with other devices of the same type.
Digi: Machine to Machine (M2M) technology allows organizations to gather data
from the edge of the enterprise and apply it in a way that positively impacts the
business.
Orange: exchange the information between machines that are established
between the central control system (server) and any type of equipment, through
one or several communication networks.

M2M Value Chains:

A value chain describes the full range of activities that firms and workers perform
to bring a product from its conception to end use and beyond, including design,
production, marketing, distribution, and support to the final consumer.

1. Inputs: Inputs are the base raw ingredients that are turned into a product.
Example: Cocoa beans for the manufacture of chocolate.
M2M Example: Data from an M2M device that will be turned into a piece of
information.
2. Production / Manufacture: Production / Manufacture refers to the process
that the raw inputs are put through to become part of a value chain.
Example: Cocoa beans may be dried and separated before being
transported to overseas markets.
M2M Example: Data from an M2M, needs to be verified and tagged for
provenance.
3. Processing: Processing refers to the process whereby a product is prepared
for sale.
Example: Cocoa beans may now be made into cocoa powder, ready for use
in chocolate bars.
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M2M Example: M2M refers to aggregation of multiple data sources to

create an information component something that is ready to be combined
with other data sets to make it useful for corporate decision making.
4. Packaging: Packaging refers to the process whereby a product can be
branded as would be recognizable to end-user consumers.
Example: A chocolate bar would now be ready to eat and have a red
wrapper with the words “KitKat” on it.
M2M Example: M2M data will have to be combined with other information
from internal corporate databases, for example, to see whether the data
received requires any action. This data would be recognizable to the end
users that need to use the information, either in the form of visualizations,
or an Excel spreadsheet.
5. Distribution / Marketing: This process refers to the channels to market for
products.
Example: A chocolate bar may be sold at a supermarket, a kiosk, or even
online.
M2M Example: Will have produced an Information Product that can be
used to create new knowledge within a corporate environment examples
include more detailed scheduling of maintenance based on real-world
information or improved product design due to feedback from the M2M
solution.
IoT Value Chains:
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1. Inputs: Significantly more inputs than for an M2M solution.

Devices/Sensors: Data from devices and sensors is used to provide a
different and much broader marketplace than M2M does.
Open Data: A piece of data is open if anyone is free to use, reuse and
redistribute.
For example, city maps, provided by organizations such as Ordnance Survey.
OSS / BSS: The operational support system / Business support system,
closed information marketplaces that allow operators to deliver services to
enterprises. For example, Phone usage data.
Corporate Databases: Companies of a certain size generally have multiple
corporate databases covering various functions, including supply chain
management, payroll, accounting. As the use of devices and sensors
increases, these databases will be connected to this data to create new
information sources and new knowledge.
2. Production / Manufacture: Process will need to include tagging and linking
of relevant data items in order to provide provenance and traceability
across the information value chain.
Asset Information: Asset information may include data such as temperature
over time of container during transit or air quality during a particular
month.
Open Data Sets: Maps, Rail Timetables, or demographics about a certain
area in a country or city.
Network Information: GPS Data, services accessed via the mobile network.
Corporate Information: The current state of demand for a particular product
in the supply chain at a particular moment in time.
3. Processing: The data from the various inputs from the production and
manufacture stage are combined together to create information.
4. Packaging: The packaging section of the information value chain creates
information components. These components could be produced as charts
or other traditional methods of communicating information to end users.
5. Distribution / Marketing: The final stage of the Information Value chain is
the creation of an Information Product.
Information products for improving internal decision making: These
information products are the results of either detailed information analysis
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that allows better decisions to be made during various internal corporate

processes, or they enable the creation of previously unavailable knowledge
about a company’s product, strategy, or internal processes.
Information products for resale to other economic actors: These
information products have high value for other economic actors and can be
sold to them.

The Information Driven Global Value Chain (I-GVC):

Inputs:
Sensors and RFID devices are working as inputs to the I-GVC through the
capture and transmission of data necessary for the development of
information products.
Smart phones have also been developed that allow mobile devices to
interact with sensors and RFID.
End-users:
End-users that choose to use and participate within the digital world are
now deeply embedded into the very process of production.
Production:
Data Factories: Data factories are those entities that produce data in digital
forms for use in other parts of the I-GVC.
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Service providers/data wholesaler: Service Providers and Data wholesalers

are those entities that collect data from various sources worldwide, and
through the creation of massive databases, use it to either improve their
own information products or sell information products in various forms.
Example: Twitter, Facebook, Google.
Intermediaries:
In the emerging industrial structure of the I-GVC, there is a need for
intermediaries that handle several aspects of the production of information
products.
The development of databases such as the ones created by Google,
Facebook, and Twitter may therefore require the creation of entities that
are able to protect individuals’ privacy rights in relevant regional settings.
Intermediary is to reduce transaction costs associated with the
establishment of a market for many different companies to participate in.
Resellers:
Resellers are those entities that combine inputs from several different
intermediaries, combine it together, analyze, and sell it to either end-users
or to corporate entities.

M2M to IoT: An Architectural Overview

Building an architecture:
Architecture refers to the description of the main conceptual elements, the
actual elements of a target system, how they relate to each other, and
principles for the design of the architecture. The applied architecture is
then the blueprint used to develop the actual system solution.
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Main design principles and needed capabilities:

A number of design principles and guidelines are identified, and so is a set
of requirements. Finally, the architecture itself contains a set of key
functional capabilities. IoT-A is referred to as the Architectural Reference
Model (ARM).
The vision of IoT-A is to establish a means to achieve a high degree of
interoperability between different IoT solutions at the different system
levels of communication, service, and information.

The following capabilities are expected by the IoT-A.

1. IoT architecture should be open, service-oriented, secure, and offer
trust.
2. Design for reuse of deployed IoT resources across application
domains.
3. Design for a set of support services that provide open service-oriented
capabilities and can be used for application development and
execution.
4. Design for different abstraction levels that hide underlying
complexities and heterogeneities.
5. Design for sensing and actors taking on different roles of providing and
using services across different business domains and value chains.
6. Design for ensuring trust, security, and privacy.
7. Design for scalability, performance, and effectiveness.
8. Design for simplicity of management.
9. Design for different service delivery models.
10. Design for lifecycle support.
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An IoT Architecture Outline:

Asset Layer
Real world objects and entities Vehicles, Home, Human, Buildings, etc.
that are subject to being
monitored and controlled.

Assets may be instrumented RFID (Radio Frequency Identification),

with embedded technologies. Barcodes, QR (Quick Response) codes.

Communication Layer
LAN Local Area Network

WAN Wide Area Network

- Wired
- Wireless
- Private / Public.

WPANs Wireless Personal Area Network

- Fitness
- Health Care

HAN and BAN Home and Building Area Network

- Automation and control applications.

NAN Neighborhood Area Network

- Distribution of a Smart Electricity Grid
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V2V Vehicle to Vehicle Network

- Collision avoidance

ZigBee Protocol Stack for Home Automation

- Exchanging service operations using
HTTP as the means for communication.

Service Support Layer

Support services can provide Location Based Service (LBS) and GIS
uniform handling of the (Geographic Information System)
underlying devices and
networks, thus hiding
complexities in the
communications and resource
layers.

Data and Information Layer

To capture knowledge and provide advanced control logic support.

Data from open ended array of - Smart metering in Smart Grid

various applications - Vehicle Tracking
- Building Automation

Business Operation data - CRM (Customer Relationship

Management)
- ERP (Enterprise Resource Planning)
- BSS (Business Support System)

Management
Deals with management of - Management of devices
various parts of the system - Communications Networks
solution related to its - General IT infrastructure
operation, maintenance,
administration and
provisioning.

Security
Security is about protection of - Trust and identity management
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the system, its information and - Authentication

services from external threats - Authorization
or any other harm.

Data and Services

Data and service processing can be done in a very distributed fashion and at
different levels of complexity.
Tasks may include, basic event filtering and simpler aggregation (such as
averaging), Contextual metadata (Location and temporal information added to
the sensor readings)
Standards Considerations:
3GPP: The 3rd Generation Partnership Project (3GPP) unites seven
telecommunications standard development organizations (ARIB, ATIS, CCSA, ETSI,
TSDSI, TTA, TTC), known as “Organizational Partners” and provides their members
with a stable environment to produce the Reports and Specifications that define
3GPP technologies.
oneM2M: oneM2M is a global community that develops IoT standards to enable
interoperable, secure, and simple-to-deploy services for the IoT ecosystem.
oneM2M standards are open, accessible and internationally recognized.
ZigBee: Zigbee is an IEEE 802.15.4-based specification for a suite of high-level
communication protocols used to create personal area networks with small,
low-power digital radios, such as for home automation, medical device data
collection, and other low-power low-bandwidth needs, designed for small scale
projects which need wireless connection. Hence, Zigbee is a low-power, low data
rate, and close proximity (i.e., personal area) wireless ad hoc network.
ITU: The International Telecommunication Union is a specialized agency of the
United Nations responsible for many matters related to information and
communication technologies.
ETSI (European Telecommunications Standards Institute): It provides members
with an open, inclusive and collaborative environment. This environment supports
the timely development, ratification and testing of globally applicable standards
for ICT-enabled systems, applications and services.
CENELEC (The European Committee for Electrotechnical Standardization): It is
responsible for European standardization in the area of electrical engineering.
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Question Bank (Unit-2)

Que 1: Answer the following (one Mark Questions)-

1. M2M stands for________________ (Ans: Machine to Machine)

2. What full form of PLC? Ans: Power Line Communication
3. Zigbee can be used for the M2M _________ network.
4. The M2M nodes within one network cannot communicate with nodes in an
external network. T/F
5. M2M nodes can communicate with _________ protocol in M2M gateway.
6. The analytics component analyzes the data and stores the results in the
________.
7. _____, Internet and computing infrastructure & applications are basic IoT
components.
8. What is the use of SDN?
9. Give full-form of NFV.
10.Give full-form of QoS.

Que 2: Answer the following (2 marks questions) – 10 marks

1. List two components of M2M system architecture.

2. List two protocols used in the M2M area network.
3. List any two IoT devices used in home automation.
4. List any two hardware used in conventional network architecture.
5. List any two vital elements of SDN.

Que 3: Answer the following (3 marks questions) -15 marks

1. Draw the block diagram of an M2M system architecture.

2. Draw the block diagram of an M2M gateway.
3. List three essential components of IoT.
4. List any three components of the home network.
5. List three services used for connecting virtualized gateway
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Que 4: Answer the following (5 marks questions).

1. Explain the difference between machines in M2M and things in IoT.

2. Describe the use of SDN for various levels of IoT?
3. Describe the use of NFV for virtualizing IoT devices.
4. Differentiate between SDN and NFV.
5. How do data collection and analysis approaches differ in M2M and IoT?

Que 5: Answer the following (5 marks questions)

1. Draw the block diagram of conventional home network architecture and
explain it.
2. Explain IoT architecture outline with block diagram.
3. Explain the IoT value chain with a diagram.
OR
Explain how data is driven in an IoT system for decision making as a value
chain?