How SAP Should Market It’s Internet of Things


Two months ago, KPMG released the findings of its “Consumer Loss Barometer” study, a survey of more than 1,000 consumers and technology-focused business executives. The survey was meant to gauge how consumers would react to a cyber-attack against key consumer industries. Needless to say, over two-thirds of respondents were apprehensive to invest or purchase an IoT device amidst concerns of a cyber-attack.

This is bad news for companies like SAP, that are aggressively pushing their IoT enabling services and technologies on existing clientele.

This release from the company confirms that the tech company wants a piece of the €2B IoT market. It reportedly plans to spend €2 billion ($2.24 billion) to build up its offerings for enterprises tapping Internet of Things (IoT) technology.

According to a Crunchbase Pro search, more than 180 companies with business models tied to IoT have raised over US$1.1 billion altogether. Last year 162 IoT companies raised over US$ 800 million.

Consumers say the possibility of being hacked deters them from fully using their IoT devices and businesses may not be adequately addressing their concerns.

Three years ago, Google went down for five minutes and saw a 40% drop in traffic. To ensure it never happens again, they invested in commodity hardware and wrote code that distributed among several hundred servers across dozens of data centers. As a result, should one component be attacked or become compromised, the remainder pick up the slack and no one is wiser. Extensive redundancy like this is the primary reason why Google’s apps like Gmail rarely have outages. And yes, this can prevent a DDoS attack as well. It’s tough to cripple so many widely distributed systems and such an extensive bandwidth. The Domain Name System (DNS) is also spread out across the globe and having the resources to detect & mitigate a DDoS attack takes resources.

SAP would do well to replicate this as well, consider the fearful segment for its IoT services and address these concerns by replicating this approach in-house.

Along with marketing the end user benefits of IoT in everyday lives (such as commuting) it should speak to the apprehensive segments by communicating directly and via channel partners, with the intention of easing concerns developing in the minds of their customers.

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Usman Khalid

About the Author Usman Khalid

Usman Khalid is the founder & CEO of Centric DXB. He excels in taking the point of view of both our clients and our internal teams - expressing those perspectives, concerns and requirements to the other side. Aspiring clients & partners can reach him on [email protected]