Enterprise software application maker, SAP AG and communications technology provider Ericsson Corp., have joined forces to develop cloud-based machine-to-machine (M2M) products and services for large organizations.

The M2M solutions produced by the partnership will be provided by operators to enterprise customers as a service, according to a joint statement released by the two companies today.

For example, a company needing a smart vending machine solution including M2M connectivity, application and cloud services, will be able to contract the SAP and Ericsson offering as a service through a mobile operator leveraging the deal. Other components and vertical applications from both companies can also be included in order to offer a value-add component and increase the scope of solutions sold to the customer.

“Today’s announcement is a first step towards delivering a shared vision that SAP and Ericsson have for co-innovating with our customers worldwide to help them deliver on the promise of M2M,” said Jim Hagemann Snabe, co-CEO of SAP. “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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M2M technologies facilitate communication between devices over a wired or wireless network. The technology has a wide range of applications which encompasses, e-health, assets management, consumer electronics and even networked vehicle management.

The technologies adoption in the enterprise, however, has faced barriers such as the lack of complete multi-industry end-to-end products and a lack of a suitable global coverage connectivity needed by firms with widespread global offices.

SAP and Ericsson said they are working together to develop a connected cloud-based offering to move pass these hurdles. The model envisioned by the partnership will allow businesses to connect their enterprise assets across multi-country operations with full integration to existing business processes, according to Hans Vestberg, president and CEO of Ericsson.

He said global M2M service revenue is expected to reach more than $200 billion by 2017.

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