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What is the difference between IoT and M2M connectivity?

You may have heard the terms IoT and M2M and these may seem, at first glance, to represent the same type of connectivity but there are some key differences. In this article we look at the differences and look at the typical types of applications for each type of connectivity.

Before we explore what differentiates these terms, let’s look at each of these terms in a little more detail.

Internet of Things (IoT)

This type of connectivity represents an ecosystem of devices, often referred to as ‘things’, which communicate with each other using the internet. These devices utilise sensors, actuators, and connectivity technology to exchange data seamlessly. IoT enables central control, data analytics, and informed decision-making across a wide range of domains.

Examples of IoT applications include smart home devices (like thermostats and doorbells), industrial sensors, EV chargers and connected vehicles.

Machine to Machine (M2M)

This type of connectivity refers to direct communication between two or more machines. Unlike IoT, M2M doesn’t rely on internet connectivity; instead, it uses wired or wireless mechanisms.

M2M applications include security systems, tracking devices, manufacturing processes and facility management. Think of cash machines communicating with host processors to process transactions—this is a classic M2M example.

Key differences between IoT and M2M

Scope

IoT has a broader scope, connecting countless devices across various domains.
M2M has a more limited scope, focusing on specific applications.

Internet dependency

IoT devices rely on internet connectivity for data exchange.
M2M devices communicate directly without internet connectivity.

Communication protocol

IoT uses internet protocols (HTTP, FTP, etc.).
M2M relies on traditional communication technologies.

Data sharing

IoT shares data across applications for user experience improvement.
M2M shares data only between communicating parties.

Business type

IoT serves both B2B (business-to-business) and B2C (business-to-consumer) sectors.
M2M primarily focuses on B2B applications.

API support

IoT supports open APIs for integrations.
M2M lacks open API support.

Centric approach

IoT emphasises information and service-centric approaches.
M2M is more communication and device centric.

Scalability 

IoT is highly scalable due to IP-based networks.
M2M scalability is more limited.

Computer systems

IoT involves both hardware and software.
M2M is predominantly hardware-based.

Summary

While IoT and M2M share similarities, they serve different purposes. IoT leverages internet connectivity for widespread data exchange, while M2M focuses on direct communication between machines. Both play critical roles in our connected world, shaping the future of technology and business.

Here at Fidelity Group we are experts in IoT technology and management, offering our clients both national and global connectivity solutions but also access to our leading management platform, vM2M.

VM2M is the only platform with 24/7 online quoting, ordering and management.

To talk to one of our experts today and find more out about our leading solutions please go to our Contact Us page.

Or to get started with IoT why not take advantage of our FREE IoT Starter Pack?

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