As connected devices grow more complex, chipmakers like Nordic Semiconductor are moving from just selling silicon to selling complete services. Nordic’s recent acquisition of Memfault reflects this shift in the internet of things (IoT) as companies race to own full IoT lifecycle products — from chip to cloud.
The acquisition of Memfault — described by Vegard Wollan, CEO of Nordic Semiconductor, as a strategic choice, not a necessity — accelerates Nordic’s ambitions to become the connectivity hub inside next-generation internet of things (IoT) devices.
Specifically, the deal strengthens its offerings in:
- Bluetooth
- Wi-Fi
- Cellular IoT hardware
- Over-the-air infrastructure
- Cloud-based lifecycle management
“By owning these pieces, we can obviously optimize and integrate them seamlessly together,” Wollan said. “Our belief is that by being the connectivity hub of our customers’ products — whether it’s a wearable or in the industrial IoT—we are the center point of the communication.”
Wollan added this so-called “heart of IoT” is currently up for grabs and ultimately its acquisition of Memfault will better position it for growth in the segment.
Why it is needed
In addition to complexity rising in the IoT segment, lifetime management is becoming more important. Wollan said over the last decade over-the-air updates are becoming a critical component in device longevity. This is also due to the complexity and ever-changing needs of the software in these devices.
“We do see software complexity increasingly rapidly,” Wollan said. “There are no companies developing their software in its final state in the first releases of products anymore.”
That means that over-the-air updates are even more important for monitoring of:
- Data observation
- Data gathering
- Data mining
- Chip intelligence
And these capabilities become even more apparent with the chip-to-cloud offerings, he added.
While the company said its transition is complete from a chip provider to a total solutions vendor, plans are always changing as technology evolves and customer demands shift.
“The journey never ends,” Wollan said. “New additions, new features, new functionality” will always mean there is room for more developments in products either through acquisitions or in-house engineering.
Future of IoT is in space
Wollen pointed to the next bastion of IoT connectivity being linked to satellite communications (SATCOM), which is gaining traction in the industrial IoT space.
With the 2G turn off coming soon and situations where cellular signals are weak or without coverage altogether, SATCOM is the logical next step for the industrial IoT and data gathering sectors.
“We see tailwinds in this sector and fueling further adoption in the industrial IoT space,” Wollan said.
Some applications where SATCOM and industrial IoT could see future use is in asset and other logistical tracking.
“There are many instances where you are outside the cellular range,” Wollan said. “So typically, [cellular] is used as the main roamer and then you use satellite communication as your back solution as you’re coming out of coverage.”
Another potential use case is in infrastructure sensors and monitoring systems where a location has no coverage but the need to transmit data is critical. This could be a “tremendous opportunity,” Wollan said.
