As part of its plan to invest €2-bn over five years into expanding its Internet of Things (IoT) solution portfolio, underpinned by more sensors, smart devices and Big Data, SAP has announced a deliberate course of action to grow its ecosystem of partners and startups in the IoT market.

"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."

From an Africa point of view, the company recently moved to establish an SAP COIL (Co-Innovation Lab) in Johannesburg, South Africa and is working with several ecosystem partners to conduct IoT proof of concepts at local companies.

The idea is to leverage activity in other co-innovation labs established in Berlin,Munich, Palo Alto, São Leopoldo and Shanghai.

Simon Carpenter, Chief Technology Advisor, SAP Africa, says some of these are at advanced stages but SAP is unable to divulge names at this time. "The model we are adopting here is to ensure that customers and partners with unique and valuable IP in the IoT space are able to realise their concept on the SAP Hana platform."

He adds that IoT projects typically involve high-volume, high-velocity data flows and short-interval control requirements.

"IoT impacts both the consumer and business market. In Africa today there is an urgency to take costs out the equations, especially in those asset intensive industries like oil & gas, mining and transport, and logistics that are currently struggling in the face of the commodity cycle downturn," says Carpenter.

According to the SAP exec the integration of OT and IT worlds enables companies to manage their assets far more scientifically to reduce maintenance costs by up to 10%. "Of course, in IoT projects the assets themselves are often widely distributed and mobile so SAP will generally be partnering with telco and telematics companies to ensure a robust 'edge to outcome' solution can be delivered."

The value proposition SAP is taking to the Africa market is the opportunity to apply machine learning and integration with core business applications of its SAP S/4 HANA platform.

Its solution portfolio will include various packages, with plans in place to offer IoT package solutions tailored for specific industries including cities, agriculture and energy.

M&A support

The company has also announced the acquisition of enterprise-grade IoT provider PLAT.ONE focused on the provision of expertise and technology to accelerate the availability of key IoT capabilities in SAP HANA Cloud.

The enterprise software firm also acquired Norwegian firm Fedem Technology, specialising in advanced engineering analysis and building software for multibody dynamic simulation and lifetime calculation of structures and mechanical systems under the influence of complex loads.

"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 with a 'digital inspection.' Additionally, the solution is intended to consider complex forces in play and detect both instantaneous consequences of one-off events and long-term health effects of cyclic loads, making possible accurate monitoring of maintenance requirements and remaining-life prediction for assets," the company has stated.