Machine to Machine Technology

By February 26, 2013Uncategorized

Cloud-based Machine to Machine Solutions

In an effort to meet the growing demand for machine-to-machine technology, Ericsson (NASDAQ:ERIC) and SAP AG (NYSE:SAP) recently executed 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.

The combined power of (a) Ericsson’s services, solutions, technology and network operator infrastructure, which are powered by Ericsson Device Connection Platform & Service Enablement Platform and (b) enterprise business solutions from SAP powered by the SAP HANA® platform will allow businesses to find better and more innovative ways to respond to customer needs even more quickly than they could before.

Enterprises of all types 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 are teaming up to deliver a connected cloud-based offering to operators that will (a) remove those barriers and (b) at the same time, add the benefits of minimal up-front investment and faster time-to-market. These new solutions and services will also help enhance enterprise efficiency in important 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.  Experts in the field agree that M2M is becoming an increasingly strategic and integral part of enterprise operations and products. One expert opined: “This joint collaboration between SAP and Ericsson is key in enhancing the customer experience. In addition, this will provide great opportunities to reach new customers in different industries and markets.”

Jim Hagemann Snabe, Co-CEO of SAP AG, recently characterized the announcement as “”¦ 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. Enterprises will benefit from an offering that provides them with everything they need to connect to machines, and helps turn high volumes of data into real-time knowledge and decision-making.

In addition to solutions and technology, Ericsson will lend its consulting, systems integration and managed services, and complementary device and applications testing, as well as verification services to facilitate a faster time-to-market, efficient use of mobile network resources and an optimized user experience. Operators, such as M2M connectivity providers, may choose from different levels of ambition, ranging from a full enterprise M2M prime supplier to an ecosystem partner.”

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