Enterprise application software provider SAP SESAP has announced multiple partnerships with premium Internet of Things (IoT) security companies for developing state-of-the-art end-to-end security solutions. Powered by the SAP HANA Cloud platform, these high-end security solutions are expected to witness rapid traction with rising demand from business enterprises.
According to market reports, the IoT market is experiencing steady growth momentum with an expected CAGR of 31.7% during 2014-2019. A surge in the use of smart applications including navigation devices, media players and imaging devices continue to fuel demand for improved IoT infrastructure. As a result, billions of devices will be connected to cloud as part of IoT solutions, thereby creating a momentous market demand for advanced hardware- and software-enforced data privacy and security solutions.
SAP, with its ecosystem of co-innovators, intends to create comprehensive security solutions for protecting the entire gamut of IoT. These include azeti Networks AG, Certified Security Solutions ("CSS"), Panoramic Power, Check Point Software Technologies CHKP and Intel INTC .
While azeti Networks intends to develop a solution for taking care of remote assets, CSS is offering its VerdeTTo IoT Identity Platform to better handle device authentication, data encryption and communication.
Similarly, Check Point Software Technologies, with its proven expertise for providing "malware catch rates", is working toward development of IoT solutions for scalability issues. Intel, on the other hand, is extending its unmatched predictive data analytics platform. Finally, Panoramic Power is offering its expertise to address financial, operational and energy issues of clients.
SAP's proprietary SAP HANA Cloud Platform, the common denominator in all the above applications, has been a growth driver for the company since its introduction. Moreover, management expects to witness 50-70 billion connected devices by 2020, which indicates tremendous potential for the entire IoT domain. Amid this scenario, this Zacks Rank #3 (Hold) stock is bracing itself for the fourth industrial revolution that will be heralded by IoT.
Jive Software, Inc. JIVE is another better-ranked stock in the same industry, sporting a Zacks Rank #1 (Strong Buy).