Software AG has set the bar high for Internet of Things (IoT) expansion in 2018. Germany’s second-largest software business after SAP announced its IoT unit will double in size before the end of the year.
At the beginning of this month, Software AG divided its IoT/Cloud unit into a separate division of the firm. Now its Internet of Things arm is forecast to expand in size by between 70 and 100%, net of currency, from a turnover of €14.9m, according to Reuters.
Software AG partnered with Deutsche Telekom AG (parent of T Mobile) to put forward its Cloud of Things IoT Platform to host its M2M and IoT enterprise offerings.
As well as Internet of Things platform, the company specialises in its Dig ital Business Platform, Digital Transformation services, analytics and decisions and its Cloud platform.
Things are looking sunny for Europe’s seventh-largest software firm. On Thursday, Software AG reported the most successful quarter in its history for its Digital Business Platform (DBP). Marketed as adaptable to existing IT infrastructure, the DBP secured a revenue of €144.7 in Q4 2017, representing a 6% year-on-year increase. Overall, the unit saw 5% growth in fiscal 2017.
“Thanks to our initiatives in the areas of the Internet of Things and Industry 4.0, we started seeing initial results and gained increased market share in 2017,” said Software AG CEO Karl-Heinz Streibich said, “We will continue in this direction in 2018 and will extend our market leadership.”
Streibich will retire from the company on July 31. The 65-year-old has held the lead position of the firm since 2003. It has not yet been announced who will replace him.
Software AG CFO Arnd Zinnhardt said: “There is enormous growth potential in the global IoT market. This is why we established a new business area on IoT / Cloud. We have built a solid foundation for dynamic, exponential growth, and we are convinced to outperform the market in 2018.”
Software AG has welcomed a healthy finance report from 2017, a year in which the firm saw a 2% boost in its total revenue. Founded in 1969 with six people, the Darmstadt-based firm now employs 4,596 workers around the world.
As of October 2016, Software AG has been developing IoT technologies such as real-time data analytics and risk-assessment systems along with predictive tools in partnership with Bosch.