M2M describes the interaction of physical machines. In almost all M2M scenarios, the machines are equipped with sensors – i.e. devices that can collect some type of input from their physical environment. Having collected this information, those machines have the ability to respond to it in a specific way and communicate what’s happening to other devices.

Examples include predictive maintenance, whereby sensors on industrial equipment can identify and report faults. Depending on the capabilities of the device or cloud-based software application, a follow-up action, such as scheduling a repair or ordering a replacement component, can be taken.

Asset tracking is another popular use case. Armed with a combination of GPS and environmental sensors, you can use M2M tech to monitor both the exact location and the physical condition of items on the move.

For businesses, some of the biggest advantages of M2M include the ability to both measure and boost productivity, reduce inefficiency, and get an early ‘heads up’ on potential risks and problems.

M2M SIMs look exactly like SIMs for mobile phones. Both types of SIM enable devices to connect to a cellular network. However, they differ in terms of services.

The profile on a mobile phone SIM enables the device to handle internet access, voice calls and SMS texts. An M2M device doesn’t need calling voice capabilities except in a few cases. SMS is not uncommon in M2M use-cases but the primary service enabled by M2M SIMs is data and is usually provided as part of a managed service that provides privacy and security as opposed to regular internet access provided by mobile phone SIMs.

An example of a managed service is data aggregation across lots of SIMs. This allows data to be shared across all your M2M devices. So, in simple terms, if one device happens to be using a lot of data, while another one isn’t as active, they both use data from the same pot. This can go a long way in helping you control your data spend.