In line with its efforts to drive IoT technology, SAP SE (SAP - Free Report) recently announced the addition of 18 strategic partners to facilitate the adoption of Internet of Things (IoT) technology for businesses to a larger extent. The extensive network of partners will offer implementation services for SAP Leonardo IoT accelerator packages, enabling customers to build IoT solutions as per business needs.
The new partners to offer the services include Accenture PLC (ACN - Free Report) , Bristlecone, Capgemini, Deloitte Consulting CSTI Corp., Fujitsu, Exed Consulting, GoSCM, HCL Technologies, IntechPro, Intrigo Systems, KPIT Technologies, Movilitas, Process Technologies, Rocket Consulting Ltd., Tech Mahindra, Vesta Partners and Westernacher Consulting.
SAP with its partners will provide customer deployment services for 10 SAP Leonardo IoT accelerators. This include SAP Predictive Maintenance and Service solution packages, SAP Connected Goods software, SAP Asset Intelligence Network, SAP Vehicle Insights application, SAP Global Track and Trace solution, and SAP Leonardo IoT Foundation as well as SAP Edge Services.
SAP is on a constant lookout for strategic investments to boost market share. The company has established itself as a trusted partner for business enterprises who seek to transform the entire landscape of their operations including applications, cloud, business networks and platforms. With business enterprises leveraging on state-of-the-art technology to outshine peers, we believe that the company’s market leading portfolio will continue to witness increased demand, thus supplementing the company’s financials.
Moreover, the company has earmarked a budget for bolt-on acquisitions to fortify the IoT portfolio, going forward. Further, the company’s latest digital innovation system — SAP Leonardo — is also off to a decent start, gaining clients. Carrying efforts forward, the company expanded its SAP Leonardo, which can now integrate machine learning, IoT, Big Data, analytics and blockchain on SAP Cloud Platform. Further, with SAP’s API hub, the company is optimistic that new partnerships will enable its SAP platform to thrive across the hyper-scale public cloud providers.
Despite these positives, dull prospects of the global IT industry in recent quarters, along with flat customer spending projections have adversely affected performance. Moreover, many of the company’s emerging markets have faced fiscal imbalances and general economic slowdowns over the past few quarters, which affected its purchasing power.
In light of such headwinds, shares of this Zacks Rank #3 (Hold) stocks have yielded just 0.2% in the last three months, underperforming the industry’s average gain of 9.7%. This apart, the inherent seasonality in technology spending on part of clients exposes the company’s sales to risks of quarterly fluctuations.
Stocks to Consider
Some better-ranked stocks from the same space include Aspen Technology, Inc. (AZPN - Free Report) and Avid Technology, Inc. (AVID - Free Report) . While Aspen Technology sports a Zacks Rank #1 (Strong Buy), Avid Technology carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Aspen Technology has surpassed estimates in the trailing four quarters, with an average positive earnings surprise of 32.5%.
Avid Technology has surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 18.3%.
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