Enterprise application software provider SAP SE SAP and electronics equipment manufacturer Koninklijke Philips N.V PHG recently entered into a partnership to help urban planners provide better service at reasonable costs. The new collaboration would also aid SAP in expanding its footprint in the Latin American market, with Buenos Aires taking the lead.
The strategic tie-up involves seamless integration of the real-time situational awareness capabilities of SAP HANA, SAP’s proprietary cloud platform, with Philips’ CityTouch street lighting management system to create a comprehensive information network.
The collaboration entails real-time integration of information from Philips’ connected streetlights with data from other sensors. This data, related to street lighting, parking and traffic controls, will be broadly assimilated on a singular dashboard and critically examined by town planners for improved operational results.
Philips is currently working on a project in Buenos Aires, Argentina, to power 91,000 streetlights with its CityTouch-managed LEDs for helping the city realize greater energy savings and better safety measures. The SAP HANA platform has been deployed in this project to help Buenos Aires better manage about 700,000 assets like streetlights, parks, bus stops, buildings and bridges. This will help city planners minimize damage by monitoring storm & heavy rainfall as well as reduce energy consumption by adjusting lighting intensity.
SAP believes that as more & more cities increasingly embrace digital transformation, there is tremendous potential for real-time and predictive analytics applications, as they serve to improve services related to lighting, sustainability and efficiency. According to Philips, less that 1% of streetlights in only about 30 countries are connected with CityTouch, which represents lucrative opportunities for SAP, going forward.
Meanwhile, the SAP’s analytics platform enjoy huge popularity with about 4,000 regional, local and city organizations benefiting from it. According to reports from Gartner, 1.6 billion ‘things’ (including electric devices, buildings & establishments, smart homes and others) will be connected to create smart city infrastructure by the end of 2016, representing a 39% year-over-year rise. With increasing number of companies from a gamut of industries coming together to create an interconnected urban environment, we believe SAP’s business prospects shine bright for the long term.
SAP currently has a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Autodesk, Inc. ADSK and Cadence Design Systems Inc. CDNS. Both stocks sport a Zacks Rank #1 (Strong Buy).
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