SAP, one of Europe’s biggest software manufacturers, has announced it is to invest 2 billion euros in the Internet of Things by the end of this decade.
The firm is looking to ramp up its IoT operations and product development in a bid to help organisations connect items up to the internet easily.
It expects to make this goal happen by 2020, with the aim of becoming a leader in the industry. SAP predicts that the IoT market will be worth 250 billion euros within the next few years.
SAP focusing on IoT
In particular, the German firm wants to focus on building software to link everyday things like washing machines and cars to the web so they can send and receive data.
These are functions that are already making waves in a plethora of big industries, including logistics, engineering, farming, wildlife, drones and 3D printing.
As part of its investment, SAP will expand the innovation in its IoT portfolio, grow an ecosystem of industry partners and increase marketing efforts across the area.
The announcement comes as the technology company recently signed a deal with Robert Bosch which will see it connecting tools like screwdrivers and hammers, as well as cars.
Disrupting the market
Bill McDermott, CEO of SAP, said his firm wants to disrupt the growing IoT market and transform the way we live. “With billions of connected devices, we now have the potential to reshape society, the economy and the environment,” he said.
SAP has also announced it’s bought Plat.One, an Italian company that provides enterprise-grade IoT solutions, along with Norwegian firm Fedem Technology.
Although the financial details of both deals remain disclosed, the technology giant confirmed that it’ll be integrating the technologies into a new connected tech platform called SAP IoT.
When the new product line is rolled out, it’ll merge large volumes of IoT data with machine learning and a real-time database.
He added: “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.”