SAP To Invest $2.2B In Connected Devices, Buys Plat.One
Zacks Investment Research | Sep 28, 2016 09:21PM ET
German software giant, SAP SE (DE:SAPG) (NYSE:SAP) , announced that it has earmarked a whopping $2.2 billion for the expansion of its Internet of Things portfolio. SAP is also acquiring Italian IoT firm Plat.One as part of its IoT initiative.
SAP believes that the worldwide market for connected sensors and smart devices will be worth about €250 billion ($279 billion) by the end of this decade. Thus, this huge investment is part of a major push into the budding IoT (Internet of Things) space which will aid SAP in staying ahead of the curve.
SAP’s Initiatives
One of SAP’s acquisitions is Plat.One, which develops a platform used for creating, deploying, and managing IoT applications. The Plat.One platform has been designed for large-scale implementations, and offers IoT and machine-to-machine (M2M) application development tools, along with data and device management capabilities.
Plat.One’s solutions will enable SAP to integrate essential IoT capabilities (such as device lifecycle management and connectivity, and IoT edge capabilities) into the SAP HANA Cloud Platform.
SAP’s recent acquisition of Norwegian analytics software maker – Fedem Technology – which specializes in engineering analysis software will empower SAP to foster IoT’s analytics section. SAP plans to leverage on Fedem’s capabilities to develop a service in which digital avatars of buildings and industrial machines can be created using IoT sensors and feeds. In essence, these avatars will replace the need for physical, on-site inspection, as they will provide a visual illustration of the state of IoT assets.
SAP is also releasing a series of "jump-start" and "accelerator" IoT software packages, designed to monitor and control IoT software and equipment, for a broad range of industries.
SAP’s IoT Strategy
The company declared that it will launch a new product line — SAP IoT — which will integrate huge amounts of data from things connected to the Internet, with machine learning and SAP's real-time database S/4 HANA. SAP will focus on transforming this data into intelligent, actionable services and insights, which will enable firms to pursue new opportunities, improve internal operations and discover ways of engaging with customers.
Further, SAP also plans to open SAP IoT Labs globally, in order to foster engagement with local IoT startups and partners. The IoT development labs will also act as hubs for IoT research and development. SAP plans to start with Johannesburg, Palo Alto, Berlin, Munich, Shanghai and São Leopoldo, Brazil.
In addition to research and collaboration, the company has also reserved part of its $2.2-billion fund for targeted acquisitions, like small bolt-on deals that are a good fit with SAP's IoT portfolio.
Get The News You Want
SAP AG ADR Price and Consensus
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.