What is Verizon Thinking: $3.4 billion spent in IOT the Past Two Months. Ouch!

About three years ago, #Verizon shocked the world when it announced it was acquiring #Hughestelematics for $612 million. Many speculated it was to bolster their OEM telematics practice. Some speculated it was to block competing carriers from partnering with Hughes. But at the end of the day, when the dust had settled, #NetworkFleet had emerged as Verizon’s branded go-to offering for small to medium fleets. Early on, as Verizon’s sales teams positioned Network Fleet as their lead solution, many Verizon telematics partners became upset at Verizon for having entered the competitive world of Software-as-a-Service ( #SaaS ) solutions. Network Fleet positioned Verizon to gain traction and capture software recurring revenues normally reserved for those participating “up the stack”. But as time wore on, many realized Network Fleet customers were smaller fleet operators, and while Verizon improved its position in Fleet Management, it wasn’t a formidable competitor to solutions like #Omnitracs, #Fleetmatics or #PeopleNet targeting large scale fleets. And in time, the uproar died down and things went back to business as usual for Verizon and the rest of the ecosystem…until a little over a month ago.

http://www.iotevolutionworld.com/smart-transport/articles/424547-what-verizon-thinking-34-billion-spent-iot-past.htm

Verizon eyes automotive technology market, could spur other deals

#Verizon Communications Inc's recent purchases of two vehicle tracking firms could spark more deals as the No. 1 wireless provider and rival #AT&T see fleet management as a source of growth, analysts said. Faced with a saturated wireless market, several telecom companies are looking beyond their main phone business for ways to extract more value from existing networks. Just last month, Verizon bought #Yahoo for $4.8 billion, diving into digital media and advertising. But Verizon also recently acquired privately held connected-vehicle technology firm Telogis for an undisclosed sum and said it would buy GPS vehicle tracking company #Fleetmatics Group Plc for $2.4 billion. Telecom providers are moving towards acquiring "eyeballs or a fleet of people" that can use applications built on top of the wireless network, said Richard McBee, chief executive officer of Canadian communications technology company Mitel Networks Corp. The fleet and mobile workforce management business connects fleet vehicles to the wireless network and collects data, like driver behavior, to manage vehicles and workers. The business delivers a source of recurring subscription-based revenue from clients such as large logistics companies and local delivery services.

http://mobile.reuters.com/article/idUSKCN10K23Q

Why Verizon Made Another Acquisition to Bolster Its Internet of Things Business

#Verizon snapped up trucking tracker #Fleetmatics Group for $2.4 billion in cash on Monday, the carrier’s second deal in recent weeks to bolster its small but fast growing business of connecting smart devices and sensors to cloud software over wireless networks. Fleetmatics was one of the few public cloud-software companies to show consistent growth in revenue and profits at the same time. Its services to track trucks to improve safety and performance as well as providing scheduling and dispatching apps have been in high demand in an industry that typically moves slowly on new technology. The purchase comes just a month after Verizon bought startup Telogis, which also offers fleet-tracking cloud software and has partnerships with truck makers like General Motors, Mack, and Hino.

http://fortune.com/2016/08/01/verizon-acquires-fleetmatics/