SAP in Talks With Vodafone, Verizon for Home Security Technology

SAP AG (SAP), the biggest maker of business-management software, is in discussions with phone companies including Vodafone Group Plc (VOD), Verizon Communications Inc. (VZ) and Deutsche Telekom AG (DTE) about providing software to help run home security systems.

SAP sees connected devices for homes and businesses as a growth engine as more appliances become available that can connect to each other, as well as the Internet, and collect data on their usage, SAP’s head of mobile Sanjay Poonen said in an interview today.

“The amount of spending on this is going to get higher and higher,” Poonen said. “The industries where this is happening are industries where SAP is historically very strong.”

Ericsson AB Chief Executive Officer Hans Vestberg said in February that machine-to-machine service revenue will exceed $200 billion by 2017. Ericsson, the world’s largest maker of wireless networks, and SAP are working together to build technology for connected appliances, the companies said in February. The talks with phone companies are part of this initiative, Poonen said.

Telecommunications companies are increasingly looking for ways to interconnect refrigerators, security systems, thermostats and cars with mobile devices as connected appliances and vehicles become more common.

Sarah Ryan, a Vodafone spokeswoman, and Marion Kessing, a spokeswoman for Deutsche Telekom, and Verizon Communications spokesman Bob Varretoni had no immediate comment.

To contact the reporters on this story: Amy Thomson in London at athomson6@bloomberg.net; Cornelius Rahn in Berlin at crahn2@bloomberg.net

To contact the editor responsible for this story: Heather Smith at hsmith26@bloomberg.net

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