Swedish operator Ericsson has signed an agreement with German software company SAP for the joint marketing and sale of cloud-based M2M services to enterprises around the world.
The partnership will combine Ericsson’s M2M platform expertise with enterprise services from SAP (Walldorf, Germany) and is designed to overcome some of the barriers to the adoption of M2M technology.
Those include “the lack of complete multi-industry end-to-end offerings and deficiency of suitable global coverage connectivity solutions that are needed by multinational enterprises,” said Ericsson (Stockholm, Sweden) in a statement.
Ericsson claims its joint offering with SAP will overcome those barriers while lowering investments for customers in areas in including maintenance, remote services, inventory, logistics, road transport management, vending and customer experience management.
Ericsson and SAP are aiming to recruit operator partners that will provide the M2M services to enterprises on a software-as-a-service (SaaS) basis and say they are already in negotiations with companies that include the UK’s Three (Maidenhead, UK) and Scandinavia’s Telenor Connexion (Stockholm, Sweden).
“This joint collaboration between SAP and Ericsson … will provide great opportunities to reach new customers in different industries and markets,” said Per Simonsen, the chief executive of Telenor Connexion.
As well as the technology, Ericsson says it will also contribute its consulting, systems integration and managed services skills to the SAP partnership.
It claims the number of customers for its M2M platforms is growing rapidly, following recent announcements by Three, MegaFon (Moscow, Russia), Swisscom (Worblaufen, Switzerland), TeliaSonera (Stockholm, Sweden) and XL Axiata (Jakarta, Indonesia).
“The global M2M service revenue is estimated to reach more than $200 billion by 2017,” said Hans Vestberg, the president and chief executive of Ericsson. “This partnership gives us a chance to unlock some of that potential.”