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SAP Brings SAP Vehicle Insights for Vehicles, Stock Flat

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The latest launch by enterprise application provider SAP SE (SAP - Free Report) – SAP Vehicle Insights – an application designed for managing connected vehicles,  dint have much effect on the stock price. The company’s shares closed Friday’s trading session at $76.90 (up a meager 1%) following this news.

SAP is bullish on the surge in the usage of connected devices across the globe and believes that the growing adoption of Internet of Things (‘IoT’) will boost the trend. The company believes that its star offering SAP HANA Cloud Platform, when integrated with SAP Vehicle Insights will unlock better ways of integrating IoT in financial services. 

Details

SAP Vehicles Insight offers a host of services like basic data analytics, vehicle diagnostics and mobility-as-a-service programs that will offer seamless integration of business and machines for contemporary digital businesses. Powered with SAP HANA Cloud Platform, the latest offering has been designed to collect, store and analyze real-time sensor data from vehicles and equipment.

SAP expects SAP Vehicles Insight to find extensive use in logistics optimization and commercial fleet management. It can also be adopted in existing business systems with minimal disruption which will help clients reduce costs and improve operations through better planning and control.

Leveraging on the competence of SAP Vehicles Insight, companies can improve load weight, temperature and timely deliveries. It can also help them venture into new businesses and models in the fields of digital farming and telematics for insurance. In a nutshell, the new application is fostering the development of a networked IoT ecosystem that needs coordination among multiple facets including connectivity, advanced analytics and mobility technology.

Cloud Business

SAP has established dominance over three of the most critical client demand areas, namely, efficient customer engagement, human capital management and interconnected commerce network, which in turn, support growth. The company has gained a competitive edge over its cloud competitors as its processes are designed to be industry-specific and can be customized to meet corresponding business requirements.

Driven by solid market traction of its cloud business, the company has raised its mid-term outlook, signaling brighter days ahead. We believe SAP’s efforts toward enhancing its hold in the IoT area and cloud market. Management expects around 50–70 billion connected devices by 2020, hinting at the tremendous potential of the IoT domain.

Sap currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include CommVault Systems, Inc. (CVLT - Free Report) , CounterPath Corporation CPAH and ACI Worldwide, Inc. (ACIW - Free Report) . While CommVault Systems sports a Zacks Rank #1 (Strong Buy), CounterPath  and ACI Worldwide hold a Zacks Rank #2 (Buy).

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