European software major SAP Thursday said it will be investing 2 billion Euro or close to $2.2 billion in the internet of things ecosystem. The firm’s objective is to create an IoT ecosystem that would help enterprises as well governments to make use of sensors, drones, and other connected devices that promise to transform human lives.
The said investment will be made withing next 5 years and by that time, SAP claims, the market size of IoT would have reached 250 billion Euros.
“SAP plans to accelerate innovation in its IoT solution portfolio, 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,” the company said in a statement.
Besides creating an IoT ecosystem, SAP will use the said investment money in new acquisitions and innovations.
“With billions of connected devices, we now have the potential to reshape society, the economy and the environment,” said Bill McDermott, CEO of SAP. “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.”
The company which is also the largest software firm in Europe has also created a new unit, SAP IoT, which will dedicatedly work on IoT; and use big data and machine learning to integrate with its own SAP Hana platform.
“SAP IoT includes solutions connecting people, partners, things and the physical environment, enabling organizations to extend and enrich business processes with real-time, live intelligence so that they can see where opportunities exist, achieve new operational efficiencies, and reimagine business models, products and services to deliver more immediate customer and stakeholder value,” the statement added.
SAP with the use of SAP IoT is working towards connecting objects to the internet to address issues around urban and rural areas and spanning agribusiness, infrastructure and energy, health, defense, manufacturing, consumer and transportation industries.