SAP Plans to invest €2 billion on IoT, Acquires Startup Plat.One
Global information technology giant, SAP announced its plans to make €2 billion investment over five years to accelerate innovation in its IoT solution business. SAP’s acquisition of Plat.One is for enabling a flawless integration of key IoT capabilities into the SAP HANA Cloud Platform.
SAP plans to increase sales and marketing, scale service, support and co-innovation, and grow its ecosystem of partners and startups in the IoT market, which is estimated to reach €250 billion by 2020.
Bill McDermott, CEO of SAP, said: “SAP HANA is the data platform we knew would unlock the Internet of Things. Today SAP is making another bold investment to help our customers seize the benefits of live business. Only SAP empowers businesses to innovate from the core to the edges to the networks.”
Plat.One makes a platform that’s used for creating, deploying, and managing IoT applications. As part of strategy, SAP is planning to use Plat.One for enabling a flawless integration of key IoT capabilities into the SAP HANA Cloud Platform, such as device lifecycle management and connectivity, and IoT edge capabilities. Plat.One is headquartered in Palo Alto but was founded in Italy, where its research team is still based.
With Fedem, SAP is looking to beef up on the analytics side of IoT. The deal was originally announced in June, but SAP is now providing more insight into its plans for the company. SAP says it will use Fedem to build a service in which IoT sensors and feeds are used to create digital avatars of buildings and industrial machines. These avatars will provide a visual representation of the state of IoT assets and essentially replace the need for physical, on-site inspection.
SAP IoT aims to make sense of Big Data from the multitude of things through IoT solutions that apply machine learning and integrate with the core business applications of SAP S/4HANA. SAP IoT includes solutions connecting people, partners, things and the physical environment, enabling organizations to enrich business processes with real-time, live intelligence.