Bosch, SAP to Collaborate on Internet of Things

Robert Bosch GmbH and software developer SAP SE have agreed to work together on internet-connected systems for industrial equipment, tools, vehicles and other devices.

The partnership will combine Bosch's platform and SAP's back-end software to monitor and control production processes for Bosch customers. SAP’s real-time Hana data-analysis software will run on Bosch’s cloud-computing system.

The so-called Internet-of-Things (IoT) system will help lower costs and improve quality by tracking and controlling equipment more precisely, according to the German companies. One example: The technology allows assembly workers improve their efficiency by remotely selecting the torque for each screwdriver's task. SAP also can evaluate new applications for its software for Bosch’s automotive and industrial customers.

By 2020, some 21 billion IoT devices will be in use worldwide, up from fewer than 5 billion last year, research firm Gartner Inc. has estimated. Bosch expects its own "connected industry" activities to deliver €1 billion ($1.1 billion) in savings by 2020 and to generate an additional €1 billion in sales.