Software AG Acquires Cumulocity and Extends its Internet of Things Technology Leadership in Asia Pacific

Software AG (Frankfurt TecDAX: SOW) has announced the acquisition of Cumulocity GmbH (“Cumulocity”), based in Dusseldorf, Germany. Cumulocity develops innovative solutions for the Internet of Things (IoT) offering connectivity for networked digital devices and sensors through a cloud-hosted IoT device management and application enablement platform.

Embedding Cumulocity’s IoT solutions into Software AG’s portfolio allows enterprises in Asia Pacific to integrate their IT applications with operational IoT devices – providing maximum ease of use, flexibility and ultimately business value. For Software AG, the acquisition of Cumulocity is a further step in the expansion of its technology leadership in the IoT area, following the successful acquisition of the artificial intelligence company Zementis in December 2016. Financial details of the transaction were not disclosed.

According to forecasts by MachNation, IoT application enablement and device management revenue for the emerging Asia Pacific region will stand at USD383 million in 2017 and will grow to USD23.8 billion in 2025. Furthermore, an Aruba research report states that by 2019, 86% of organisations in Asia Pacific will have some form of IoT in place. Singapore in particular has been highlighted by Forrester as one of the countries that will lead the region’s IoT spending to realise its vision of becoming a Smart Nation. With the acquisition of Cumulocity, Software AG has strengthened its enterprise software leader’s presence in the fast-growing Asia Pacific market and will be able to tap into the fast growth of IoT proliferation in the region.

Based on a strategic partnership, Software AG embedded Cumulocity’s IoT Cloud Platform into its Digital Business Platform software portfolio two years ago. The combination of the Digital Business Platform and Cumulocity’s Application and Device Management technology reduces the complexity of the Internet of Things and allows the scalable and flexible management of networks of millions of devices. Additionally, enterprises can integrate those IoT edge devices with any existing IT application and deploy other Digital Business Platform software products to those devices.

“The Internet of Things and Industry 4.0 are central growth markets for Software AG and for the entire technology sector. With the acquisition of Cumulocity, we are strengthening our technological market leadership and facilitating our customers’ access to the Internet of Things. They benefit from an expanded, holistic product portfolio that combines the data from physical sensors with innovative, analytical software solutions,” says Karl-Heinz Streibich, Chief Executive Officer of Software AG.

“The successful cooperation between Software AG and Cumulocity started in 2015 in the context of a strategic IoT partnership – the merger is a next logical step. We are convinced that we will be able to accelerate our success story as part of Software AG. Especially our partners and customers will benefit from the merger of both companies,” added Bernd Gross, Chief Executive Officer of Cumulocity.

“With Asia Pacific becoming the frontline for IoT and being the driver of global IoT growth, it is important that customers in the region have access to the best solutions in order to reap the business benefits of IoT deployment. Cumulocity and Software AG are excited at the growth potential of the IoT market in Asia Pacific. We look forward to playing an integral role in helping businesses in the region by offering them industry leading IoT infrastructure solutions,” says Jos Grond, Head of Asia Pacific Region of Cumulocity.

The acquisition of Cumulocity technology completes Software AG’s portfolio of core Internet of Things software services. These are streaming analytics, on-premise, cloud and hybrid – and now IoT device – integration, in-memory technology, dynamic process management and IoT edge device management.

Making full use of Software AG’s portfolio, enterprises can ideally operate at the interface of human and artificial intelligence. Complementary products for the analysis, evaluation and visualization of real-time, historical and predictive data ensure the optimal use of artificial intelligence in decision making processes. Remote monitoring and the control of machines in production diagnostics or in predictive maintenance are exemplary industry areas of application.

As well as the acquisition of Zementis, Software AG has announced major, strategic IoT or Industry 4.0 alliances with major corporations in recent months including Bosch, Octo, Dell and Huawei.

About Cumulocity

Cumulocity is the leading Internet of Things (IoT) device management and application enablement platform. Cumulocity is used by brands, including Deutsche Telekom, Software AG and Gardner Denver, to power IoT solutions in manufacturing, fleet management, consumer electronics and many more. Our platform incorporates real-time analytics and visualization, and can be easily tailored via publicly documented APIs and our open UI framework. Cumulocity is available in the cloud, on-premise or as a hybrid. Carrier grade security, scalability and reliability provide the assurance needed to manage millions of IoT devices. Our active partner eco-system, 2,500 strong developer community and GTM support ensure our partners and customer’s success.

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 About Software AG

The digital transformation is changing enterprise IT landscapes from inflexible application silos to modern software platform-driven IT architectures which deliver the openness, speed and agility needed to enable the digital real-time enterprise.

Software AG offers the first end-to-end Digital Business Platform, based on open standards, with integration, process management, in-memory data, adaptive application development, real-time analytics and enterprise architecture management as core building blocks. The modular platform allows users to develop the next generation of application systems to build their digital future, today.

With over 45 years of customer-centric innovation, Software AG is ranked as a leader in many innovative and digital technology categories. Software AG has more than 4,500 employees, is active in 70 countries and had revenues of €872 million in 2016.

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