Our silicon-to-cloud journey
Our acquisition of Thingstream in 2020 and full ownership of Sapcorda in 2021 were strategic milestones along our unique silicon-to-cloud journey. A journey that actually began in 1997.
What began with modules for integrating various chips into a fully functional assembly in 1997 progressed when we integrated radios and signal processing in 2002 into our own chips then moved on to single die chipsets in 2007. The introduction of augmentation services in 2008 took us further, and in 2018 we achieved chip-to-cloud solution capabilities.
By embedding the latest hardware and services on our own silicon, we are making it easier for our customers to bring their products quickly and cost-effectively to market and offer them comprehensive IoT solutions that enhance and boost their business models.
As we create value for our customers, we create value for our shareholders with the additional IoT-as-a-service recurring revenue stream. As soon as customers activate their devices with our hardware and services, we will also have a much longer and more sustainable relationship with them as a service provider.
Technology leadership built over decades
Solving our customers’ problems inside their devices
Many of the developments and the evolution we are seeing right now are happening via our Thingstream IoT service delivery platform. With u-blox hardware already carrying the required firmware, our customers don’t have to develop software ordo any additional programming. Our customers can now solve problems relating to connectivity, security, location, augmentation, and software maintenance inside their devices via our Thingstream platform quickly and cost effectively.
The acquisition of Sapcorda and the Safe Position Augmentation for Real-Time Navigation (SPARTN) Global Navigation Satellite System (GNSS)correction industry standard expands u‑blox’s suite of location services, assistance data, and communication service offerings. In addition, full ownership of Sapcorda enables u‑blox to serve customers more efficiently, reducing implementation time to market and simplifying the integration process for customers.
“Solutions customers tend to be loyal and drive a recurring revenue model that continues over the module’s lifespan and beyond with the next generation.”
Solutions activating new customers and driving recurring revenue
Our solutions offering has activated customers and areas of the market that we were not able to enter before. Potential customers needed value-added solutions and previously had to go elsewhere or develop these themselves. By partnering with u-blox, they can now focus on their business case, product development, and go-to-market while we take care of the positioning, connectivity, security, and communication aspects. Solutions customers tend to be loyal and drive a recurring revenue model that continues over the module’s lifespan and beyond with the next generation.
Working with “market shapers” and product architects
As a solutions provider, we are now talking with customers at a whole new organizational level. Previously we spoke with hardware engineers. Now we start our conversation with product architects and product marketeers and are delivering new solutions with market shaping companies across all our market sectors.
Market shapers are the trailblazers within IoT:
· Leading in their application space
· Highly skilled product development teams
· Limited wireless experience
· High useability expectations
· Looking to differentiate their product offering to a global customer base
Market shapers demand multiple core technology solutions delivering continuous innovation, high performance, and reliability from one company all well bundled in one solution package.
“Market shapers demand multiple core technology solutions, delivering continuous innovation, high performance, and reliability from one company all well bundled in one solution package.”
Consistent investment in our intellectual property for 15 years
Having invested CHF 1 billion in our core IP over the last 15 years, we have achieved a sustainable competitive advantage and created significant value with increasing margins over the lifetime of our products and solutions.
Long-term harvesting from our sustainable competitive advantage
Through our strategic and sustained investment in product platforms, we see a continuous return on our investment over a 9-year period and are achieving strong and long-lasting returns on R&D investment.
Billions of things waiting to be connected
Positioning and connectivity are essential elements for a smart connected world. Although digital transformation and urbanization have been driving growth within IoT for decades, we now see demographic and social change, combined with climate change and resource scarcity, causing market expansion as innovators look to solve many of the world’s complex challenges through IoT.
The density of IoT is increasing, as is our market share
We see several trends developing within our top markets. Namely: the scope of applications is increasing and enlarging our attainable markets, while the use cases have become diversified, demanding more sophisticated solutions with more functionalities, smaller footprints, and lower energy consumption. As IoT devices and applications expand within each of our key markets – so does our share of revenue.
“While most companies within the IoT industry work on mass production of components, u-blox has strategically positioned itself differently in the market with its silicon-to-cloud approach.”
Silicon-to-Cloud Revenue CAGR of 12.5%
Our silicon-to-cloud strategy has progressively driven our revenue CAGR to more than double the world semiconductor market CAGR over the same period, and helped us create value for our customers, shareholders, employees, partners, and the communities around the world within which we operate.
Compound Annual Growth Rate (CAGR)