Tuesday, April 30, 2013
Nuance Announces Second Quarter Fiscal 2013 Results
Nuance Press Release:
Nuance Announces Second Quarter Fiscal 2013 Results
Board of Directors Authorizes $500 Million Stock Repurchase Plan
BURLINGTON, Mass., April 30, 2013 – Nuance Communications, Inc. (NASDAQ: NUAN) today announced financial results for its second quarter fiscal 2013, ended March 31, 2013.
Nuance reported GAAP revenue of $451.0 million in the second quarter fiscal 2013, a 15.6% increase over GAAP revenue of $390.3 million in the second quarter of fiscal 2012. Nuance reported non-GAAP revenue of $484.0 million, which includes $33.0 million in revenue lost to accounting treatment in conjunction with acquisitions. Second quarter fiscal 2013 non-GAAP revenue grew 15.9% over non-GAAP revenue of $417.7 million in the second quarter of fiscal 2012.
In the second quarter of fiscal 2013, Nuance reported GAAP net loss of ($25.8) million, or ($0.08) per share, compared with GAAP net income of $0.9 million, or $0.00 per diluted share, in the second quarter of fiscal 2012. In the second quarter of fiscal 2013, Nuance reported non-GAAP net income of $110.4 million, or $0.34 per diluted share, compared to non-GAAP net income of $138.8 million, or $0.43 per diluted share, in the second quarter of fiscal 2012. Nuance’s second quarter fiscal 2013 non-GAAP operating margin was 29.1%, down from 36.8% in the second quarter of fiscal 2012. Nuance reported cash flow from operations of $93.1 million in the second quarter of fiscal 2013, down from $100.5 million in the second quarter of fiscal 2012. Nuance ended the second quarter of fiscal 2013 with a balance of cash and cash equivalents of $1,005.3 million.
Please refer to the “Discussion of Non-GAAP Financial Measures” and to the “GAAP to Non-GAAP Reconciliations,” included elsewhere in this release, for more information regarding the company’s use of non-GAAP measures.
“We are disappointed with our results for the second quarter, which were driven by a combination of execution issues and external factors. We have taken immediate corrective actions to improve the performance of our business and revised our operating plan accordingly,” said Paul Ricci, Nuance Chairman and CEO. “Despite short-term setbacks, we continued to make advancements in the quarter, earning design wins and new bookings in new strategic product areas including our automotive business and Nina solutions for customer care. Our share buyback program announced today underscores our confidence in the business and our focus on shareholder value as we expect growth to accelerate in fiscal 2014.”
Highlights from the quarter include:
- Healthcare – For Nuance’s healthcare solutions, second quarter fiscal 2013 non-GAAP revenue was $229.3 million, up 53.0% from the second quarter of fiscal 2012. We secured new business with key healthcare customers including Adventist Health System, Alberta Health Services, Alexian Brothers Medical Center, Memphis Baptist Memorial Hospital, Meridian Health, Morristown Medical Center, Orlando Health, Pomona Valley Medical Center, Sacred Heart Hospital, St. Joseph Health, St. Luke’s Hospital, University of New Mexico and WellSpan Health.
- Mobile & Consumer – For Nuance’s mobile and consumer solutions, second quarter fiscal 2013 non-GAAP revenue was $116.2 million, up 1.0% from the second quarter of fiscal 2012. We secured new business or design wins with key mobile customers including Apple, Asus, Blackberry, DoCoMo, Ford, Fujitsu, GM, Honda, Kyocera, LG, Samsung and TPV.
- Enterprise – For Nuance’s enterprise solutions, second quarter fiscal 2013 non-GAAP revenue was $74.5 million, down 18.5% from the second quarter of fiscal 2012. We secured new business with key enterprise customers including Caremark, Eastern Bank, E*Trade, Geico, HM Revenue & Customs, KTIM, MetroPCS, QBE, USAA, US Bank, US Social Security Administration and Wells Fargo.
- Imaging – For Nuance’s document imaging solutions, second quarter fiscal 2013 non-GAAP revenue was $64.0 million, up 4.4% from the second quarter of fiscal 2012. We secured new business with key imaging customers including Ericsson, Hong Kong Jockey Club, IBM, P&G, Ricoh, Sharp, Southwick Council, StoraEnso and UPM.
Nuance Authorizes $500 Million Stock Repurchase Plan
Under the plan, Nuance intends to repurchase up to $500 million of its outstanding shares of common stock.
Stock repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The timing and the amount of any purchases will be determined by the Company’s management based on its evaluation of market conditions, capital allocation alternatives, and other factors. The share repurchase plan does not require the Company to acquire any specific number of shares and may be modified suspended, extended or terminated by the Company at any time without prior notice. The share repurchase plan is designed to comply with U.S. securities laws, rules and safe harbors for purchases that do not constitute tender offers. These restrictions can lengthen the time it may take for Nuance to acquire its shares under this repurchase plan.
Conference Call and Prepared Remarks
Nuance is providing a copy of prepared remarks in combination with this press release. These remarks are offered to provide shareholders and analysts with additional time and detail for analyzing results in advance of the company’s quarterly conference call. The remarks will be available at http://www.nuance.com/earnings-results/ in conjunction with this press release.
The conference call will begin today, April 30, 2013 at 8:00 am EDT and will include only brief comments followed by questions and answers. The prepared remarks will not be read on the call. To access the live broadcast, please visit the Investor Relations section of Nuance’s Website atwww.nuance.com. The call can also be heard by dialing (800) 288-8968 or (612) 332-0630 at least five minutes prior to the call and referencing code 291523. A replay will be available within 24 hours of the announcement by dialing (800) 475-6701 or (320) 365-3844 and using the access code 291523.
About Nuance Communications, Inc.
Nuance Communications, Inc. (NASDAQ: NUAN) is a leading provider of voice and language solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with devices and systems. Every day, millions of users and thousands of businesses experience Nuance’s proven applications. For more information, please visit www.nuance.com.
Trademark reference: Nuance, the Nuance logo, Dragon Medical and eScription are registered trademarks or trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other trademarks referenced herein are the property of their respective owners.
Nuance Announces $500 Million Stock Repurchase Plan
Nuance Press Release:
Nuance Announces $500 Million Stock Repurchase Plan
“Our decision to initiate a $500 million stock repurchase plan emphasizes the ongoing commitment on the part of the Board of Directors and the management team to enhance stockholder value and reflects our confidence in Nuance’s growth prospects and long-term financial outlook,” said Tom Beaudoin, chief financial officer, Nuance. “Our strong balance sheet and significant cash flow from operations provide the flexibility to simultaneously invest in our business, initiate a share repurchase program and opportunistically take advantage of strategic opportunities.”
Under the plan, Nuance intends to repurchase up to $500 million of its outstanding shares of common stock.
Stock repurchases may be made through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The timing and the amount of any purchases will be determined by the Company’s management based on its evaluation of market conditions, capital allocation alternatives, and other factors. The share repurchase plan does not require the Company to acquire any specific number of shares and may be modified suspended, extended or terminated by the Company at any time without prior notice. The share repurchase plan is designed to comply with U.S. securities laws, rules and safe harbors for purchases that do not constitute tender offers. These restrictions can lengthen the time it may take for Nuance to acquire its shares under this repurchase plan.
About Nuance Communications, Inc.
Nuance is a leading provider of voice and language solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. Every day, millions of users and thousands of businesses experience Nuance’s proven applications and professional services. For more information, please visit: nuance.com.
Nuance and the Nuance logo are trademarks or registered trademarks of Nuance Communications, Inc. or its subsidiaries in the United States of America and/or other countries. All other company names or product names may be the trademarks of their respective owners.
SAP Announces New Development Training for New SAP HANA Platform as "Massive Open Online Course"
SAP News Release:
SAP Announces New Development Training for New SAP HANA Platform as "Massive Open Online Course"
SAP NEWSBYTE - SAP AG (NYSE: SAP) today announced a new online course aimed at software developers seeking introductory knowledge of the SAP HANA platform. The course, entitled "Introduction to Software Development on SAP HANA," is now open for registration and was designed specifically for programmers seeking an overview of the native programming capabilities of SAP HANA. The course complements the comprehensive training and certification courses for SAP HANA already available from the SAP Education organization that are delivered online and in training centers worldwide.
"Introduction to Software Development on SAP HANA" will be offered in the "massive open online course," or MOOC, format, which has grown increasingly popular in academia. In a mix of online lectures, self-tests, weekly assignments and online discussion forums, the new course aims to provide an experience similar to traditional classroom training, yet with a greater flexibility for the learner and virtually unlimited scalability for SAP as the course provider. The course is also planned to be rolled out to more than 1,300 universities worldwide via the SAP University Alliances program.
"The MOOC format provides a great opportunity for developers to get an introduction to SAP HANA and benefit from the flexibility to consume lectures and conduct exercises at their convenience," said Bernd Welz, senior vice president and head of Solution and Knowledge Packaging, SAP. "Participants can appreciate the flexibility to consume the lectures and do the exercises when and where it is most convenient. And to give learners the maximum flexibility, the course lectures can also be viewed on a mobile device or offline."
"The growing demand for SAP HANA knowledge coincides with learning trends that increasingly favor self-study methods," said Markus Schwarz, senior vice president and global head of SAP Education. "Our efforts to enhance our portfolio and provide greater flexibility to learners have gained validation by industry analysts. This new offering provides an ideal stepping stone to the comprehensive and in-depth online learnings offered by SAP Education around SAP HANA and other strategic solutions."
Registration is open to all audiences on the openSAP platform. The six-week course is scheduled to begin May 27, 2013, requiring four hours of study time per week. Course participants who successfully complete their assignments and the final exam will receive a record of achievement confirming that they have taken successful first steps toward becoming an SAP HANA developer.
For more information, visit the SAP Newsroom. Follow SAP on Twitter at @sapnews, @SAP_UA and@SAPEDU.
Monday, April 29, 2013
NetApp Delivers Storage and Data Management Expertise for the White House Military Credentialing and Licensing Initiative
NetApp Press Release:
NetApp Delivers Storage and Data Management Expertise for the White House Military Credentialing and Licensing Initiative
NetApp Certified Storage Associate (NCSA) Certification Offers Service Personnel Web-Based Training and Storage Certification
The President's Military Credentialing and Licensing Task Force, led by the Department of Defense, is charged with identifying military specialties that readily transfer to civilian jobs. Working with civilian credentialing and licensing associations, the administration is beginning to address gaps between military training programs and credentialing and licensing requirements. Through the Joining Forces Initiative, they are able to provide service members with greater access to necessary certification and licensing exams.
As the current #1 storage provider to the federal government,[1] NetApp is pleased to work with the Joining Forces Initiative to offer web-based training and storage certification to military service personnel. The NetApp Certified Storage Associate certification (NCSA) is a new, entry-level certification designed to familiarize participants with storage technology and terminology, NetApp® products and solutions, and the skills to accomplish basic tasks with the NetApp Data ONTAP® architecture. NetApp Data ONTAP is the world's #1 branded storage operating system.[2]
"We are committed to helping our troops get the credentials they need," Mark Weber, president of NetApp U.S. Public Sector, said. "We are proud to be part of a forum that is working to spotlight the training program, and to collaborate with key stakeholders to share ideas and best practices to get our veterans and military personnel in high-demand jobs."
Through its Academic Alliances Program, NetApp will provide veterans and service personnel with NetApp Learning Accounts, access to web-based training classes, the ability to complete hands-on lab exercises through a virtual lab environment, and up to 500 test vouchers to complete the NCSA certification at a local Pearson VUE testing center. NetApp looks forward to working with Joining Forces and the coalition of participating organizations to deliver this innovative certification curriculum to program participants.
Additional Resources
- Learn about NetApp solutions for the federal government:www.netapp.com/us/solutions/industry/government/
- Follow NetApp on Twitter: twitter.com/NetAppGov
- Join NetApp on Facebook: www.facebook.com/NetAppGov
- View NetApp videos on YouTube: www.youtube.com/channel/UCXRliDVyJ9AbFPo4Jcd_H5A
- Connect with NetApp on LinkedIn: www.linkedin.com/groups?about=&gid=111681
About NetApp
NetApp creates innovative storage and data management solutions that deliver outstanding cost efficiency and accelerate business breakthroughs. Our commitment to living our core values and consistently being recognized as a great place to work around the world are fundamental to our long-term growth and success, as well as the success of our pathway partners and customers. Discover our passion for helping companies around the world go further, faster at www.netapp.com.
NetApp creates innovative storage and data management solutions that deliver outstanding cost efficiency and accelerate business breakthroughs. Our commitment to living our core values and consistently being recognized as a great place to work around the world are fundamental to our long-term growth and success, as well as the success of our pathway partners and customers. Discover our passion for helping companies around the world go further, faster at www.netapp.com.
NetApp, the NetApp logo, Go further, faster, and Data ONTAP are trademarks or registered trademarks of NetApp, Inc. in the United States and/or other countries. All other brands or products are trademarks or registered trademarks of their respective holders and should be treated as such.
[1]Source: GovWin Consulting Analysis of FPDS-NG, October 2012
[2]Source: IDC Worldwide Quarterly Disk Storage Systems Tracker Q4 2012, March 2013 (Open Networked Disk Storage Systems Revenue)
Nuance OmniPage Ultimate Delivers Document Accuracy and Simplicity to Businesses
Nuance Press Release:
Nuance OmniPage Ultimate Delivers Document Accuracy and Simplicity to Businesses
Solution Delivers Powerful and Innovative Productivity Tools for Scanning, Converting and Delivering Content in the Right Format for the Right Application
BURLINGTON, Mass., – April 29, 2013 – Nuance Communications, Inc., a leading provider of speech and imaging solutions, today introduced OmniPage® Ultimate, the new release of the world’s leading document conversion and scanning solution for Microsoft® Windows®. OmniPage Ultimate brings accuracy and simplicity to business by converting paper, PDF documents and digital camera images into files users can edit, search and share. In addition, users can now easily convert paper files into natural sounding audio files that can be listened to in the home or office, or while on the go.
OmniPage Ultimate delivers significant new benefits that address the dynamic needs of today’s businesses, including:
- Better utilize scanning devices and IT networks with OmniPage DocuDirect TM for scanning, conversion and automated document delivery
- Take documents on the go with Nuance’s advanced speech technology to convert documents to files that are read aloud to users via desktop and mobile devices
- Convert documents stored in leading cloud services for anywhere, anytime information access
- New file formatting for reading documents on smartphones and tablets with eBook applications that support the ePUB format
- Faster and easier conversions through a new tablet-like interface called the OmniPage Launchpad
“OmniPage Ultimate offers unparalleled productivity in how it transforms documents quickly and accurately, and then shares them in the most efficient format for any task,” said Michael Rich, General Manager and Senior Vice President of the Nuance Document Imaging Division. “With business and personal technology becoming more integrated and demand for accessibility always increasing, there has never been a greater need to transform documents into new, dynamic formats without losing vital information.”
Key New Features of OmniPage Ultimate:
- Scanning and routing for any business environment. OmniPage DocuDirect is the foremost low-cost solution for occasional document scanning, conversion and document routing for small businesses or workgroups that share a scanning device.
- Accurate document and photo conversion. Featuring an enhanced OCR engine, OmniPage delivers the fastest, most precise way to convert paper, PDF files and images into nearly any file type such as Microsoft® Word, Excel® and PowerPoint® 2007, PDF, HTML, Corel® WordPerfect®, or MP3 audio files that can be listened to with mobile devices. Nuance extends its leadership in optical character recognition technology (OCR) with a 25 percent increase in character accuracy for conversion of digital camera images.
- Easy to use. OmniPage loads in less than one second with LaunchPad, a user-friendly, tablet-like interface, which means users can use it to quickly convert any kind of document and send to any destination by clicking on tiled action buttons.
- Ideal for small businesses. OmniPage Ultimate removes complexity from digitizing and sharing documents, is universally compatible with any scanner, and offers the best tools to customize any document workflow processes. In addition, with OmniPage’s DocuDirect feature, users with low-volume scanning devices, including digital copiers and multifunction printers (MFPs) can automatically send converted files to pre-programmed destinations or on-demand to anyone, anywhere including mobile devices.
- Innovative text to speech. OmniPage is integrated with Nuance’s most sophisticated speech output technology to allow users to comfortably listen to any document being read aloud through an Apple iPhone, Apple iPad, Android or other mobile device that supports MP3 audio files.
- Portable documents for mobile devices. OmniPage Ultimate now supports the popular ePub format that is compatible with popular eBook readers. Users can quickly convert documents and take them anywhere to be read with eBook applications on the iPad, Android tablets, Microsoft Surface, Nook Simple Touch, Nook Tablet, Sony Reader PRS-350/PRS-650/PRS-950, Kobo eReader, Kobo Touch and Kobo Arc.
- Flexibility with cloud and SharePoint. Convert documents stored in Windows Live SkyDrive, GoogleDocs, Evernote, Box, Dropbox, and many more when integrated with Nuance Cloud Connector. OmniPage connects with Microsoft SharePoint and DMS, and features new support for Open Text Hummingbird Connector, and Autonomy-Interwoven iManage Connector.
- Increased productivity. Converted documents look like the original – complete with columns, tables, bullets and graphics – and are simple to edit. The new release helps users save time by creating searchable PDFs, converting paper forms to fillable forms, and exporting data to spreadsheet-compliant or database-compliant format.
- Better organization. OmniPage Ultimate includes PaperPort Professional 14, desktop document management software that helps users organize, view, combine and find their PDF documents plus more than 150 additional document and photo formats. OmniPage Ultimate also includes Nuance PDF Create 8 to create 100 percent industry-standard PDF files.
- Accessible in more than 100 languages. OmniPage Ultimate includes the recognition of languages based on the Latin, Greek and Cyrillic alphabets as well as Chinese, Japanese and Korean languages enabling users from around the world to access, edit and manage documents.
OmniPage Ultimate is available through Nuance’s global network of reseller partners. OmniPage Ultimate is $199 for upgrades from previous OmniPage version and $499 for new purchases with volume discounts available through the Nuance Open License Program. For additional information on OmniPage features, pricing and volume licensing programs, please visitwww.nuance.com/omnipage or call 800-443-7077.
About Nuance Communications, Inc
Nuance Communications, Inc. (NASDAQ: NUAN) is a leading provider of voice and language solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with devices and systems. Every day, millions of users and thousands of businesses experience Nuance’s proven applications. For more information, please visit www.nuance.com.
Survey by SAP and Harris Interactive Finds Brazil, China, Germany and India Most Ready for M2M Technology to Drive Connected, Smarter Cities
SAP News Release:
Survey by SAP and Harris Interactive Finds Brazil, China, Germany and India Most Ready for M2M Technology to Drive Connected, Smarter Cities
Increased Business Insight, Efficiency, Productivity, Collaboration and Mobility Present Biggest Benefits and Opportunities from M2M; Companies that Fail to Implement M2M Technology Expect to Fall Behind Competition
WALLDORF, Germany - “Machine to machine” (M2M) is proving to be as transformative as any technology innovation since the beginning of the Internet age. Survey findings released today from a study conducted by Harris Interactive on behalf of SAP AG (NYSE: SAP) highlight that almost 30 percent of IT decision makers (ITDMs) agree that smart cities would be the most beneficial outcome of deployment of M2M technologies. This would include highly intelligent cities capable of collecting and analyzing large amounts of data from smart, connected devices and citizens’ social media activity in real time to vastly improve urban life. Additionally, the clear majority of respondents expect M2M to provide businesses and employees with greater insight, including the ability to respond to real world events, as well as increased efficiency, productivity and collaboration. The ability to increase mobility among the work force was also identified as a big opportunity for M2M in the workplace.
Much like the bring-your-own-device (BYOD) movement, consumers are a key driver of M2M technology initiatives and services in global markets. When it comes to embracing BYOD, China emerged as the leader among the countries surveyed, with 56 percent of ITDMs there stating their company embraces BYOD and provides productivity apps for one or more mobile platforms. The survey results found that most ITDMs in all six countries view M2M as the natural evolution of the “consumerization of IT,” with India and China at 92 percent and 90 percent respectively. The majority of Brazilian, German, UK and US ITDMs agreed, with a combined average of 81 percent.
“The number of ‘things’ connected to the internet is expected to reach 50 billion by 20201 and consumers are playing a central role in this transformation,” said Sanjay Poonen, president of Technology Solutions and Mobile Division, SAP. “Today, M2M technology is primarily being used to collect vast amounts of machine data. The ‘Internet of Things’ goes one step further by integrating data from machines, ERP, CRM systems, social media and more, in real time, allowing humans to intelligently interact with devices, devices with devices and devices back to humans – the ultimate social media collaboration of man and machine. This vision requires a technology infrastructure that can handle big data, analytics and mobility in the cloud securely – something SAP is uniquely able to deliver.”
Looking beyond the benefits of an individual consumer or company, pluralities from all six countries surveyed said that smart cities would be the coolest possible outcome of M2M: China (35 percent), Brazil (35 percent), Germany (30 percent), India (27 percent), US (25 percent) and UK (21 percent).
“Our vision of the ‘Networked Society, where anything that benefits from being connected will be connected, is supported by our global platforms in machine-to-machine communications,” said Douglas Gilstrap, senior vice president and head of Strategy, Ericsson. “This will lead to new, innovative business models from connected vending machines and automobiles to connected homes and cities. High volumes of data can be transformed into in-depth knowledge for real-time decision-making. Companies like SAP and Ericsson are actively uniting work and living environments that were previously separate, bringing deeper engagement to the interactions between cities, municipalities, businesses, institutions, associations and citizens. Ultimately this will boost life satisfaction and economic growth.”
Global Alignment on the Power of M2M
Survey respondents in all six countries expressed a strong belief in M2M representing a natural step in the evolution of technology and widely agree with the need for, and benefits of, the broader adoption of M2M. In fact, an average of 70 percent of the ITDMs in all six countries surveyed agree that companies that fail to implement M2M technologies will fall behind their competitors. This is likely due to most ITDMs from the countries surveyed perceiving tangible benefits of M2M, including:
Survey respondents in all six countries expressed a strong belief in M2M representing a natural step in the evolution of technology and widely agree with the need for, and benefits of, the broader adoption of M2M. In fact, an average of 70 percent of the ITDMs in all six countries surveyed agree that companies that fail to implement M2M technologies will fall behind their competitors. This is likely due to most ITDMs from the countries surveyed perceiving tangible benefits of M2M, including:
- Giving companies greater insight into their business: China (96 percent), India (88 percent), Brazil (86 percent), Germany (79 percent), US (74 percent) and UK (61 percent)
- Enabling businesses to respond to real world events: China (92 percent), India (86 percent), Brazil (82 percent), Germany (82 percent), US (78 percent) and UK (73 percent)
Those surveyed also view the following as presenting the biggest opportunities for M2M in the workplace:
- Increased efficiency was the No. 1 response in Brazil (54 percent), UK (53 percent) and US (49 percent)
- Increased productivity for employees was the top selection in China (69 percent), significantly higher than any other countries surveyed
- Increased employee collaboration was the No. 1 opportunity in Germany (63 percent)
- Increased mobility among the workforce was the biggest opportunity in India (65 percent)
Obstacles to M2M
Before any of the opportunities and benefits can be fully realized, an overwhelming majority of those surveyed in all six countries cited at least one obstacle to M2M adoption. ITDMs from all countries except China were most likely to see a lack of expertise needed to manage the adoption and security of M2M as presenting the biggest impediment to adoption: India (66 percent), Brazil (62 percent), US (57 percent), Germany (56 percent) and UK (50 percent). In China, while a substantial majority of ITDMs still cited a lack of expertise as the biggest obstacle (63 percent), a slightly higher proportion said “how to manage and analyze all the real time data resulting from M2M” (65 percent).
Before any of the opportunities and benefits can be fully realized, an overwhelming majority of those surveyed in all six countries cited at least one obstacle to M2M adoption. ITDMs from all countries except China were most likely to see a lack of expertise needed to manage the adoption and security of M2M as presenting the biggest impediment to adoption: India (66 percent), Brazil (62 percent), US (57 percent), Germany (56 percent) and UK (50 percent). In China, while a substantial majority of ITDMs still cited a lack of expertise as the biggest obstacle (63 percent), a slightly higher proportion said “how to manage and analyze all the real time data resulting from M2M” (65 percent).
“The benefits of M2M are undeniable but there are barriers toward the adoption of M2M solutions, such as the lack of complete multi-industry offerings, management, security and big data issues, and deficiency of suitable global connectivity solutions that are needed by multinational enterprises,” said Poonen. “SAP is one of the only companies at the nexus of mobile, big data and cloud with the ability to turn the huge amounts of data into instant wisdom and deliver best in class ‘Internet of Things’ solutions for consumers and enterprises.”
ITDMs from all six countries were also emphatic that the availability of broadband infrastructure, such as LTE/4G, will be instrumental in allowing M2M technologies to flourish in the future: US (91 percent), China (91 percent), India (91 percent), Germany (88 percent), UK (87 percent) and Brazil (85 percent). ITDMs themselves, however, will most likely not serve as a barrier to the success of M2M as majorities in nearly all countries surveyed acknowledge that M2M will have an impact on the workforce (average of 62 percent for the combined six countries) and yet a majority are not concerned about a disruption due to M2M (average of 55 percent).
For a closer look, see: “Infographic: How The Internet Of Things Is Raising Your IQ.” For more information, visit the SAP Newsroom.
1Berg Insight, “The Global Wireless M2M Market” report, Tobias Ryberg, April 2012
About the Survey
The survey was conducted online by Harris Interactive on behalf of SAP among 751 IT decision makers (ITDMs) in Brazil (n=126), China (n=125), Germany (n=125), India (n=125), the United Kingdom (n=125) and the United States (n=125) between January 15 and February 1, 2013. For the purposes of this study, an “IT decision maker” (ITDM) is defined as an adult (age 18+) who is currently employed, either full- or part-time, has at least some influence in the selection of voice, data, and mobile telecommunications services and works at a company of the following size for each country: Brazil (75 million reais), China (10 billion CNY), Germany (100 million EUR), India (500 crores), UK (100 million GBP), US ($500 million). Total sample data in each country are weighted by number of employees to be representative of companies with the aforementioned minimum revenue in each country.
The survey was conducted online by Harris Interactive on behalf of SAP among 751 IT decision makers (ITDMs) in Brazil (n=126), China (n=125), Germany (n=125), India (n=125), the United Kingdom (n=125) and the United States (n=125) between January 15 and February 1, 2013. For the purposes of this study, an “IT decision maker” (ITDM) is defined as an adult (age 18+) who is currently employed, either full- or part-time, has at least some influence in the selection of voice, data, and mobile telecommunications services and works at a company of the following size for each country: Brazil (75 million reais), China (10 billion CNY), Germany (100 million EUR), India (500 crores), UK (100 million GBP), US ($500 million). Total sample data in each country are weighted by number of employees to be representative of companies with the aforementioned minimum revenue in each country.
About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 238,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 238,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
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Survey by SAP and Harris Interactive Finds Brazil, China, Germany and India Most Ready for M2M Technology to Drive Connected, Smarter Cities
SAP News Release:
Survey by SAP and Harris Interactive Finds Brazil, China, Germany and India Most Ready for M2M Technology to Drive Connected, Smarter Cities
Increased Business Insight, Efficiency, Productivity, Collaboration and Mobility Present Biggest Benefits and Opportunities from M2M; Companies that Fail to Implement M2M Technology Expect to Fall Behind Competition
WALLDORF, Germany - “Machine to machine” (M2M) is proving to be as transformative as any technology innovation since the beginning of the Internet age. Survey findings released today from a study conducted by Harris Interactive on behalf of SAP AG (NYSE: SAP) highlight that almost 30 percent of IT decision makers (ITDMs) agree that smart cities would be the most beneficial outcome of deployment of M2M technologies. This would include highly intelligent cities capable of collecting and analyzing large amounts of data from smart, connected devices and citizens’ social media activity in real time to vastly improve urban life. Additionally, the clear majority of respondents expect M2M to provide businesses and employees with greater insight, including the ability to respond to real world events, as well as increased efficiency, productivity and collaboration. The ability to increase mobility among the work force was also identified as a big opportunity for M2M in the workplace.
Much like the bring-your-own-device (BYOD) movement, consumers are a key driver of M2M technology initiatives and services in global markets. When it comes to embracing BYOD, China emerged as the leader among the countries surveyed, with 56 percent of ITDMs there stating their company embraces BYOD and provides productivity apps for one or more mobile platforms. The survey results found that most ITDMs in all six countries view M2M as the natural evolution of the “consumerization of IT,” with India and China at 92 percent and 90 percent respectively. The majority of Brazilian, German, UK and US ITDMs agreed, with a combined average of 81 percent.
“The number of ‘things’ connected to the internet is expected to reach 50 billion by 20201 and consumers are playing a central role in this transformation,” said Sanjay Poonen, president of Technology Solutions and Mobile Division, SAP. “Today, M2M technology is primarily being used to collect vast amounts of machine data. The ‘Internet of Things’ goes one step further by integrating data from machines, ERP, CRM systems, social media and more, in real time, allowing humans to intelligently interact with devices, devices with devices and devices back to humans – the ultimate social media collaboration of man and machine. This vision requires a technology infrastructure that can handle big data, analytics and mobility in the cloud securely – something SAP is uniquely able to deliver.”
Looking beyond the benefits of an individual consumer or company, pluralities from all six countries surveyed said that smart cities would be the coolest possible outcome of M2M: China (35 percent), Brazil (35 percent), Germany (30 percent), India (27 percent), US (25 percent) and UK (21 percent).
“Our vision of the ‘Networked Society, where anything that benefits from being connected will be connected, is supported by our global platforms in machine-to-machine communications,” said Douglas Gilstrap, senior vice president and head of Strategy, Ericsson. “This will lead to new, innovative business models from connected vending machines and automobiles to connected homes and cities. High volumes of data can be transformed into in-depth knowledge for real-time decision-making. Companies like SAP and Ericsson are actively uniting work and living environments that were previously separate, bringing deeper engagement to the interactions between cities, municipalities, businesses, institutions, associations and citizens. Ultimately this will boost life satisfaction and economic growth.”
Global Alignment on the Power of M2M
Survey respondents in all six countries expressed a strong belief in M2M representing a natural step in the evolution of technology and widely agree with the need for, and benefits of, the broader adoption of M2M. In fact, an average of 70 percent of the ITDMs in all six countries surveyed agree that companies that fail to implement M2M technologies will fall behind their competitors. This is likely due to most ITDMs from the countries surveyed perceiving tangible benefits of M2M, including:
Survey respondents in all six countries expressed a strong belief in M2M representing a natural step in the evolution of technology and widely agree with the need for, and benefits of, the broader adoption of M2M. In fact, an average of 70 percent of the ITDMs in all six countries surveyed agree that companies that fail to implement M2M technologies will fall behind their competitors. This is likely due to most ITDMs from the countries surveyed perceiving tangible benefits of M2M, including:
- Giving companies greater insight into their business: China (96 percent), India (88 percent), Brazil (86 percent), Germany (79 percent), US (74 percent) and UK (61 percent)
- Enabling businesses to respond to real world events: China (92 percent), India (86 percent), Brazil (82 percent), Germany (82 percent), US (78 percent) and UK (73 percent)
Those surveyed also view the following as presenting the biggest opportunities for M2M in the workplace:
- Increased efficiency was the No. 1 response in Brazil (54 percent), UK (53 percent) and US (49 percent)
- Increased productivity for employees was the top selection in China (69 percent), significantly higher than any other countries surveyed
- Increased employee collaboration was the No. 1 opportunity in Germany (63 percent)
- Increased mobility among the workforce was the biggest opportunity in India (65 percent)
Obstacles to M2M
Before any of the opportunities and benefits can be fully realized, an overwhelming majority of those surveyed in all six countries cited at least one obstacle to M2M adoption. ITDMs from all countries except China were most likely to see a lack of expertise needed to manage the adoption and security of M2M as presenting the biggest impediment to adoption: India (66 percent), Brazil (62 percent), US (57 percent), Germany (56 percent) and UK (50 percent). In China, while a substantial majority of ITDMs still cited a lack of expertise as the biggest obstacle (63 percent), a slightly higher proportion said “how to manage and analyze all the real time data resulting from M2M” (65 percent).
Before any of the opportunities and benefits can be fully realized, an overwhelming majority of those surveyed in all six countries cited at least one obstacle to M2M adoption. ITDMs from all countries except China were most likely to see a lack of expertise needed to manage the adoption and security of M2M as presenting the biggest impediment to adoption: India (66 percent), Brazil (62 percent), US (57 percent), Germany (56 percent) and UK (50 percent). In China, while a substantial majority of ITDMs still cited a lack of expertise as the biggest obstacle (63 percent), a slightly higher proportion said “how to manage and analyze all the real time data resulting from M2M” (65 percent).
“The benefits of M2M are undeniable but there are barriers toward the adoption of M2M solutions, such as the lack of complete multi-industry offerings, management, security and big data issues, and deficiency of suitable global connectivity solutions that are needed by multinational enterprises,” said Poonen. “SAP is one of the only companies at the nexus of mobile, big data and cloud with the ability to turn the huge amounts of data into instant wisdom and deliver best in class ‘Internet of Things’ solutions for consumers and enterprises.”
ITDMs from all six countries were also emphatic that the availability of broadband infrastructure, such as LTE/4G, will be instrumental in allowing M2M technologies to flourish in the future: US (91 percent), China (91 percent), India (91 percent), Germany (88 percent), UK (87 percent) and Brazil (85 percent). ITDMs themselves, however, will most likely not serve as a barrier to the success of M2M as majorities in nearly all countries surveyed acknowledge that M2M will have an impact on the workforce (average of 62 percent for the combined six countries) and yet a majority are not concerned about a disruption due to M2M (average of 55 percent).
For a closer look, see: “Infographic: How The Internet Of Things Is Raising Your IQ.” For more information, visit the SAP Newsroom.
1Berg Insight, “The Global Wireless M2M Market” report, Tobias Ryberg, April 2012
About the Survey
The survey was conducted online by Harris Interactive on behalf of SAP among 751 IT decision makers (ITDMs) in Brazil (n=126), China (n=125), Germany (n=125), India (n=125), the United Kingdom (n=125) and the United States (n=125) between January 15 and February 1, 2013. For the purposes of this study, an “IT decision maker” (ITDM) is defined as an adult (age 18+) who is currently employed, either full- or part-time, has at least some influence in the selection of voice, data, and mobile telecommunications services and works at a company of the following size for each country: Brazil (75 million reais), China (10 billion CNY), Germany (100 million EUR), India (500 crores), UK (100 million GBP), US ($500 million). Total sample data in each country are weighted by number of employees to be representative of companies with the aforementioned minimum revenue in each country.
The survey was conducted online by Harris Interactive on behalf of SAP among 751 IT decision makers (ITDMs) in Brazil (n=126), China (n=125), Germany (n=125), India (n=125), the United Kingdom (n=125) and the United States (n=125) between January 15 and February 1, 2013. For the purposes of this study, an “IT decision maker” (ITDM) is defined as an adult (age 18+) who is currently employed, either full- or part-time, has at least some influence in the selection of voice, data, and mobile telecommunications services and works at a company of the following size for each country: Brazil (75 million reais), China (10 billion CNY), Germany (100 million EUR), India (500 crores), UK (100 million GBP), US ($500 million). Total sample data in each country are weighted by number of employees to be representative of companies with the aforementioned minimum revenue in each country.
About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 238,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 238,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
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