What Is Data Pooling?

18.01.2022
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Quick definition: For consumer phones data pool contracts provide an amount of data that can be shared between different devices (e.g. tablet and phones, family members or employees of a corporation). This is particularly useful because of the combination of different phone plans into one - which simplifies billing and evens out different data consumption of the different devices.

In the Internet of Things, data pooling allows manufacturers to have a data allowance for all their devices, rather than paying per device and needing to pay additionally for devices that exceed the data per device.

At emnify, you only have to pay for active IoT SIM cards. It’s the secret to our usage-based pricing model. When a SIM is inactive, it’s not using data. If we charged IoT manufacturers for a fixed amount of data per SIM every month, there could be thousands of inactive devices that used no data but still incurred costs.

Additionally, some active SIMs will consume significantly more data than others. A temporary increase in device usage or data-intensive processes like remote firmware updates or Over-the-Air (OTA) provisioning would cause some devices to use far more than their monthly limit. With data pooling, these differences don’t cause your costs to fluctuate, and you don’t have to worry about devices running out of data.

Why data pooling is ideal for IoT

Without data pooling, you essentially have two problems:

  1. Paying for data you’re not using
  2. Having to pay extra for the data you need

This is the classic dilemma with limited-data cell phone plans, and it’s one reason why shared data plans are so attractive to consumers with more than one device. These plans use data pooling to enable, for example, a family with four smartphones to share a monthly limit of 5-10 GB of data. The family has complete flexibility to decide how the data gets distributed between the four devices. If someone uses more or less data in a given month, it simply affects the data pool available to the other devices on the plan.

emnify’s pricing works similarly, but with one key difference: you’re never paying for a fixed amount of data for specific devices. Your data pool gets bigger as you activate more SIMs automatically. In this way your pool is set up for growth and balances out the consumption of your entire fleet.

As an IoT manufacturer, your data needs can change at a moment’s notice. A customer could go out of business or need fewer devices. A new deployment could exponentially increase the number of active SIMs you have in the field. Thanks to data pooling, all that data shares the same plan. Because no matter how many customers you serve and how many devices you deploy, you’re still one customer to us.

What is an “active” SIM?

An active SIM is one you’ve intentionally activated in the connectivity portal or using emnify’s API. Manufacturers often wait to activate a SIM until the device ships to the customer. This activation can also be done by the “factory test” mode - where the device only goes into active mode after consuming a specific amount of data - which is a little bigger than what the tests in the factory use.

Over the lifetime of your deployments, there could be any number of reasons why you or your customers would want to deactivate a SIM. Perhaps the device is no longer needed, or temporarily out of use. Maybe it was stolen, or otherwise became a security risk.

Whatever the reason, you shouldn’t have to pay for these inactive SIMs. Therefore you can suspend the SIM any time for free on the portal, via API or Zapier - and will not pay any longer.

At emnify, we only charge you for SIMs that are active. Each SIM has a fixed cost per month with some included data volume, similar to how a traditional cellular provider charges customers per line, and then all of your active SIMs share a single pool of data.

Learn more about emnify’s IoT connectivity solution

emnify is a communication platform specifically designed for the Internet of Things. Leveraging cellular connectivity, our platform enables unlimited devices to transmit and receive data anywhere in the world.

Learn more about emnify’s IoT connectivity platform.

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Image for post emnify connects to SFMIX to cater with increasing M2M/IoT data volumes

emnify connects to SFMIX to cater with increasing M2M/IoT data volumes

emnify, the leading provider of cloud services enabling the Internet of Things, announced today to start peering at the San Francisco Metropolitan Internet Exchange (SFMIX). The SFMIX is a carrier-neutral Internet Exchange based within the “Silicon Valley” region of California to promote local data exchange. “We see a great increase of data traffic from mobile M2M/IoT devices connected through our globally distributed mobile packet core towards popular cloud providers and M2M applications in the San Francisco Bay Area. To provide lowest possible latency and best quality of service we have now implemented IPv4/6 peering capability at the SFMIX on Gigabit scale.”, said Martin Giess (CTO). Vishesh Joshi (Product Manager, SDN & NFV) added: “All participants of the SFMIX (http://sfmix.org/participants) will be able to benefit from the best connectivity to mobile devices roaming into the bay area, based on our unique SDN technology we are able to dynamically route mobile data traffic on a global scale while making use of local breakouts like the SFMIX”. About emnify emnify addresses with its cloud services exclusively the rapidly expanding global machine-to-machine (M2M) communications market and enables the Internet of Things (IoT) Eco System with Cellular Connectivity and Management Tools to connect and control devices – simple, efficient and secure. If you have questions about our services or you are looking for reliable and secure mobile connectivity for your M2M/IoT devices please contact us by email at info@emnify.com