BARCELONA, SPAIN -- (Marketwire) -- 02/25/13 -- In an effort to meet the growingdemand for machine-to-machine technology, Ericsson (NASDAQ: ERIC) and SAPAG (NYSE: SAP) have signed anagreement to jointly market and sell cloud-based, machine-to-machine (M2M)solutions and services to enterprises via operators around the globe. Thesolutions will be based on a combined software-as-a-service (SaaS) offeringfromEricsson and SAP within M2M.
The combined power of Ericsson's services, solutions, technology andnetworkoperator infrastructure, which are powered by Ericsson Device ConnectionPlatform & Service Enablement Platform, and enterprise business solutionsfromSAP powered by the SAP HANA® platform will allow businesses to findbetter andmore innovative ways to respond to customer needs even more quickly thantheycould before. The announcement was made at Mobile World Congress, heldFebruary25 - 28, 2013 in Barcelona, Spain.
Enterprises have faced barriers toward the adoption of M2M solutions, suchaslack of complete multi-industry end-to-end offerings and deficiency ofsuitableglobal coverage connectivity solutions that are needed by multinationalenterprises. Ericsson and SAP are teaming up to deliver aconnected cloud-based offering to operators that will remove thosebarriers, while at the same timeadding the benefits of minimal up-front investment and fastertime-to-market. These new solutions and services will also help enhanceenterprise efficiency inkey business processes such as maintenance, remote service, inventory,logisticsand road transport management, vending and customer experience management.
The joint M2M infrastructure and industry specific solutions will beprovided byoperators as a service to enterprises, and Ericsson and SAP are alreadydiscussing the model with operators.
Per Simonsen, CEO, Telenor Connexion, said: "At Telenor Connexion we seethatM2M is becoming an increasingly strategic and integral part of ourcustomers'operations and products. This joint collaboration between SAP and Ericssoniskey in facilitating customers' implementation of M2M, increasing the valueproposition and enhancing the customer experience. In addition, this willprovide great opportunities to reach new customers in different industriesandmarkets."
Lynda Burton, Director of Wholesale at Three UK, said: "We are seeing agrowingdemand for turnkey M2M solutions. This partnership, combined with Three'smarketleadership and experience in mobile data, delivers a powerful solution toenterprise customers."
SAP is well positioned to offer enterprises market leading mobile, cloudcomputing and big data analytics, as well asin-depth experience incombiningthose technologies to create unique and powerful solutions across 24industries.
Jim Hagemann Snabe, Co-CEO of SAP AG, said: "Today's announcement is afirststep toward delivering on a shared vision that SAP and Ericssonhave for co-innovating with our customers worldwide to help them deliver onthe promise ofM2M. Together, we will break down the barriers that prevent customeradoption ofM2M solutions by delivering a simple, affordable and fast-to-implementsolution. Enterprises will benefit from an offering that provides themwitheverything they need to connect to machines, and helps turn high volumes ofdatainto 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 andapplications testing, as well as verification services to facilitate afastertime-to-market, efficient use of mobile network resources and an optimizeduserexperience. Operators, such as M2M connectivity providers, may choose fromdifferent levels of ambition, ranging from a full enterprise M2M primesupplierto an ecosystem partner.
The Ericsson Device Connection Platform and Service Enablement Platformoperatorcommunity is growing rapidly, with recent announcements by 3UK, Megafon,Swisscom, TeliaSoneraand XL Axiata.
Hans Vestberg, President and CEO, Ericsson, said: "The global M2M servicerevenue is estimated to reach more than 200 BUSD by 2017. This partnershipgivesus a chance to unlock some of that potential. By accessing services andcontrolling devices with solutions leveraging Ericsson experience from thecommunications industry and SAP from the enterprise segment, businesseswillfind better and more innovative ways to respond to customer needs morequickly.Building an ecosystem also allows our operator customers a new way toaddressnew markets and enterprise needs."
The joint go-to-market model combines the assets of SAP, Ericsson andmobileoperators, making it possible for enterprises to effectively connect theirenterprise assets across multi-country operations with full integration toexisting business processes, along with support for mobile and real-timescenarios.
This means that an enterprise needing a full end-to-end logistics solution-including M2M connectivity, applications and cloud services - can get acomprehensive solution from a mobile operator leveraging the SAP/Ericssonpartnership.
In another example, an enterprise needing a smart vending machine solutionincluding M2M connectivity, applications and cloud services, would be abletocontract the SAP and Ericsson offerings as a service through a mobileoperatorleveraging the deal. Other components and vertical applications from bothcompanies can also be included in order to offer value-add and increase thescope of the solution offered to the customer.
NOTES TO EDITORS
As market leader in enterprise application software, SAP (NYSE: SAP) helpscompanies of all sizes and industries run better. From back office toboardroom,warehouse to storefront, desktop to mobile device - SAP empowers people andorganizations to work together more efficiently and use business insightmoreeffectively to stay ahead of the competition. SAP applications and servicesenable more than 232,000 customers to operate profitably, adaptcontinuously,and grow sustainably. For more information, visit www.sap.com.
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Ericsson is the world's leading provider of communications technology andservices. We are enabling the Networked Society with efficient real-timesolutions that allow us all to study, work and live our lives more freely,insustainable societies around the world.
Our offering comprises services, software and infrastructure withinInformationand Communications Technology for telecom operators and other industries.Todaymore than 40 percent of the world's mobile traffic goes through Ericssonnetworks and we support customers' networks servicing more than 2.5 billionsubscribers.
We operate in 180 countries and employ more than 100,000 people. Founded in1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company'snetsales were SEK 226.9 billion (USD 35.0 billion). Ericsson is listed onNASDAQOMX, Stockholm and NASDAQ, New York stock exchanges.
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