Ericsson inks M2M deal with SAP AG

MWC: Agreement set to help telcos, enterprises launch M2M-based services

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Ericsson inks M2M deal with SAP AG Ericsson and SAP announced the agreement at Mobile World Congress.
By  Roger Field Published  February 26, 2013

Ericsson and SAP AG have signed an agreement to jointly market and sell cloud-based, machine-to-machine (M2M) solutions and services to enterprises via operators around the globe.

The solutions will be based on a combined software-as-a-service (SaaS) offering from Ericsson and SAP within M2M.

Ericsson's services, technology and network operator infrastructure, powered by Ericsson Device Connection Platform & Service Enablement Platform, and SAP's HANA platform will allow businesses to deliver M2M-based services more quickly and efficiently, according to Ericsson.

Enterprises have faced barriers toward the adoption of M2M solutions, such as lack of complete multi-industry end-to-end offerings and deficiency of suitable global coverage connectivity solutions that are needed by multinational enterprises.

Ericsson and SAP will deliver a connected cloud-based offering to operators that will remove various barriers to growth in the M2M sector while minimising up-front investment and faster time-to-market.

These new services will also help enhance enterprise efficiency in key business processes such as maintenance, remote service, inventory, logistics and road transport management, vending and customer experience management.

The joint M2M infrastructure and industry-specific solutions will be provided by operators as a service to enterprises, and Ericsson and SAP are already discussing the model with operators.

Hans Vestberg, CEO, Ericsson, said that global M2M service revenue is estimated to reach more than $200bn by 2017.

"This partnership gives us a chance to unlock some of that potential," he said. "By accessing services and controlling devices with solutions leveraging Ericsson experience from the communications industry and SAP from the enterprise segment, businesses will find better and more innovative ways to respond to customer needs more quickly. Building an ecosystem also allows our operator customers a new way to address new markets and enterprise needs."

Jim Hagemann Snabe, co-CEO of SAP AG, said: "Today's announcement is a first step toward delivering on a shared vision that SAP and Ericsson have for co-innovating with our customers worldwide to help them deliver on the promise of M2M. Together, we will break down the barriers that prevent customer adoption of M2M solutions by delivering a simple, affordable and fast-to-implement solution."

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