SAP is investing $US2.4 billion over the next five years to help business and government entities benefit from the proliferation of sensors, smart devices and Big Data that is transforming organisations with the Internet of Things (IoT).
As part of this investment, the company has acquired Italian-based PLAT.ONE, an enterprise-grade IoT provider that simplifies the management of IoT solutions.
The company provides expertise and technology to accelerate the availability of key IoT capabilities in SAP HANA Cloud Platform, such as advanced lifecycle management for IoT devices and broad device connectivity.
The tech giant said the acquisition increases its involvement within IoT market, providing an integrated technology stack from connectors to the IoT foundation and applications, business network and business process layer, enhanced by machine learning and predictive analytics.
In addition to PLAT.ONE, SAP has also invested in Fedem Technology, a Norwegian company specialising in engineering analysis and building software for multibody dynamic simulation and lifetime calculation of structures and mechanical systems.
With this acquisition, SAP plans to build an end-to-end IoT solution in which a digital avatar continuously represents the state of operating assets through feeds from sensors, replacing the need for physical inspection.
According to SAP CEO, Bill McDermott, the acquisitions will help the vendor accelerate innovation in its IoT solution portfolio, while growing its ecosystem of partners and start-ups across the industry.
“With billions of connected devices, we now have the potential to reshape society, the economy and the environment," he said.
"SAP is making another bold investment to help our customers seize the benefits of live business, [empowering them] to innovate from the core to the edges to the networks.”
The investments come hot on the heels of SAP's acquisition of Altiscale, which provides the vendor a boost in the cloud analytics space.
In addition, SAP also confirmed plans to establish SAP IoT labs around the world, with planned locations including Berlin, Johannesburg, Munich, Palo Alto, São Leopoldo and Shanghai.
SAP A/NZ global channels and general business general manager, Sumal Karu, said the company's partner network will play an important role as it grows its IoT business.
"We want to create a vibrant ecosystem as we work with partners to build specific applications in certain industries, scale services to enable our customers digital transformation and go-to-market with new offerings. Our Industry 4.0 packages are one example where our partners will help us bring new IoT solutions to market," he said.
Karu added that it's imperative for SAP to form strategic technology partnerships that complement its portfolio.
"The partnerships that we form help us to enhance our portfolio with a focus on devices/gateways, device connectivity and connectivity management. This allows us to deliver true end-to-end solutions that offer business and operational value to our customers.
“SAP PartnerEdge offers a framework for SAP partners to meet the needs of customers of all sizes – including in the domain of IoT. The program empowers our partners to build, market and sell software apps on top of technology platforms such as the SAP HANA Cloud Platform," he added.