IOT@SOFTWARE AG
THE NEW GROWTH DRIVER
Eric Duffaut
CCO and Member of the Executive Board
15th Berenberg European Conference
December 6, 2017
© 2017 Software AG. All rights reserved.
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This presentation includes forward-looking statements based on the beliefs of Software AG management.
Such statements reflect current views of Software AG with respect to future events
and results and are subject to risks and uncertainties. Actual results may vary materially from those
projected here, due to factors including changes in general economic and business conditions, changes in
currency exchange, the introduction of competing products, lack of market acceptance
of new products, services or technologies and changes in business strategy. Software AG does not intend
or assume any obligation to update these forward-looking statements.
This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way
securities of Software AG or any of the companies that are members of the Group at present or in the
future, nor does it form part of such an offer and it should not be understood as such. This presentation
does not constitute an offer of sale of securities in the United States of America. Securities may not be
offered or sold in the United States of America without registration or exemption from registration in
accordance with the U.S. Securities‘ Act of 1933 in its currently valid form.
© 2017 Software AG. All rights reserved.
SAFE-HARBOR-STATEMENT
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SOFTWARE AG AT A GLANCE
© 2017 Software AG. All rights reserved.
Technology leader for more than 40 years in data management
and application development platforms
~ €3.5bn MARKETCAP
~ 64% Free Float
€870+ MILLION
IN REVENUE
45%+ recurring
77% product revenue
4,400+ EMPLOYEES**
R&D 25%
S&M 19%
Consulting
&Services
43%
Admin
13%
47%
Americas
45%
EMEA
REVENUE
51%
DBP
26%
A&N
23%
Services
BY REGION* BY BUSINESS LINES*
* Based on Group product revenue – FY 2016 **P&L as of December 31, 2016
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BUSINESS LINES (UP TO NOW)
© 2017 Software AG. All rights reserved.
*Group revenue split FY 2016
Share of
Revenue* 51%
Growing Revenue
• IoT and Industry 4.0 Platform
• Integration & Automation
• Analytics & Decisions
• In-Memory Data
• Business & IT Transformation
Share of
Revenue*
Growing Stability
• System Support 2050+
• Application Development
• Data Management System
• Modernization
Share of
Revenue*
Growing Margin
• Strategy & Design
• Product Implementation &
Customized Solutions
• Education & Cloud Services
• Global Delivery (on-/offshore)
27% 22%
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THE NEXT BIG THING:
MERGE THE PHYSICAL & DIGITAL WORLDS
© 2017 Software AG. All rights reserved.
6 | © 2017 Software AG. All rights reserved.
Industrial IoT Imperative
Total cost of poor quality amounts to a stagging 20% of sales American Society of Quality
Poor maintenance strategies can reduce plant capacity by 5 to 20% Deloitte
Unplanned downtime costs manufacturers approx. $50 billion per year Deloitte
Productivity in manufacturing has dropped by 2.5% GLOBALLY since
2005. Gartner
Through 2016, just 16% of manufacturers have adopted Industrial IoT
strategies McKinsey
THE INDUSTRY 4.0
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IOT MARKET OVERVIEW
© 2017 Software AG. All rights reserved.
connected devices by 2020
50 billion in data generated per year –
40 trillion Gb by 2020
40% growth
Operating costs of key affected industries could be impacted by IoT
$36 trillion
$1 trillion Worldwide IoT revenue projected by 2020
8 | © 2017 Software AG. All rights reserved. For internal use only
Key Findings
» Early market with huge opportunities
» Highly fragmented
» Intense competition
» No single vendor will dominate the IoT
market
» Difficult to navigate for end customers
9 | © 2017 Software AG. All rights reserved.
2007 2008 2009 2010 2011 2012 2013 2016 2017
€1.2B INVESTMENTS in IoT so far…
DEVICE CONNECTIVITY & MANAGEMENT
ENTERPRISE & CLOUD INTEGRATION
REAL-TIME ANALYTICS & VISUALIZATION
WORKFLOW AUTOMATION
Cumulocity IoT
SOLUTION ACCELERATORS
CUMULOCITY IOT IS THE GLOBALLY LEADING IOT PLATFORM
IOT IS A STRATEGIC GROWTH AREA FOR SOFTWARE AG
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CAPABILITIES COMING TOGETHER
© 2017 Software AG. All rights reserved.
IoT Platform
IoT Suite
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TECHNOLOGY THAT EXCITES
HYBRID INTEGRATION
(SAG WebMethods)
IN MEMORY DATA GRID
(SAG Terracotta)
IoT Solutions
(SAG Cumulocity*)
STREAMING ANALYTICS
(SAG Apama)
*Cumulocity is the IoT solution portfolio of
Software AG
© 2017 Software AG. All rights reserved.
Source: The Forrester Wave™: Streaming Analytics, Q3
2017, Forrester Research, Inc., September 7, 2017
Source: The Forrester Wave™: In-Memory Data Grids,
Q3 2015, Forrester Research, Inc., September 23, 2015
Source: The Forrester Wave™: Hybrid Integration For
Enterprises, Q4 2016, Forrester Research, Inc.,
November 18, 2016
Source: MachNation 2017
IoT Device Management Scorecard
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DIFFERENT DELIVERY MODELS
© 2017 Software AG. All rights reserved
FOR DIFFERENT CUSTOMER NEEDS
Growing Maturity Level over Time
Fle
xib
ilit
y &
So
ph
isti
cati
on
IoT SaaS
Fast Entry
• Self-service, out-of-the-box
• Pre-defined solution accelerators
IoT PaaS
Fan Out (Departmental)
• High productivity, fast go-to-market
• Smart rules
• Focus on business users
IoT Framework
Scale Out (Enterprise Level)
• Cross divisional end-to-end
company processes
• Coding, professional developers
• Existing and new IoT applications
fully interwoven
IoT Suite
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IoT Suite
MULTIPLE CONSUMPTION MODELS
© 2017 Software AG. All rights reserved.
End Customer
SaaS
End Customer
PaaS
OEM
End Customers
SaaS
Service Provider
SaaS PaaS
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OPEN PARTNER ECOSYSTEM
© 2017 Software AG. All rights reserved.
Hardware & Devices
System Integrators
& VARs
Technology,
Co-Innovation,
Associations Connectivity,
Security,
Infrastructure
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TARGET MARKETS AND GROWTH FOR CUMULOCITY IOT
Dedicated IoT Business Line (starting 1.1.2018)
• Manufacturing - Heavy Industry,
Automotive, IT Hardware, Life
Sciences and Healthcare Products
• Energy & Utilities – Oil & Gas,
Water, Electric
• Transportation & Logistics - Air
Transport, Motor Freight, Rail and
Water, Couriers
• NAM – US, Canada, Latin America
• EMEA – Germany, UK, France,
Spain, Italy, Nordics, Benelux,
Middle East, Africa
• APJ – Japan, Australia, India,
Korea, China
Cumulocity IoT addresses all segment
sizes from SMB to large MNCs and
grows with IoT requirements, from
SaaS over PaaS to multi-vendor
frameworks
Geographies Sectors/Sub-Sectors Segments
© 2017 Software AG. All rights reserved.
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SOFTWARE AG IOT DIFFERENTIATORS
• Simple: Fast Time to Value with Preconfigured IoT
applications
• Dynamic: Enabling both “Line of Business” and
“Corporate IT” use cases on a single platform
• Efficient: Comprehensive IoT implementation
methodology, Model-based IoT scenario planning
• Flexible: Offering a choice of deployment options
(cloud, on-premise, hybrid, edge)
• Open: Supports multi-cloud and multi-vendor strategies
• Proven: Based on industry-leading platform
© 2017 Software AG. All rights reserved.
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SOFTWARE AG - CUMULOCITY IOT REFERENCE EXAMPLES
© 2017 Software AG. All rights reserved.
Leading Industrial IoT
providers rely on Cumulocity IoT
Leading Telco’s
rely on Cumulocity IoT
SE
M/
SD
M
Wh
ite
la
be
lled
Leading Smart Equipment Makers/ Operators rely on Cumulocity IoT
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ADAMOS.COM © 2017 Software AG. All rights reserved.
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ADAMOS.COM
ADAMOS TOTAL VIEW
APP FACTORY
ALLIANCE
PARTNER
ECO SYSTEMS
ADAMOS
JV
… App App
APP MARKET PLACE
APP INNOVATION
& CERTIFICATION
COUNCIL
App App App
App App App App
ADAMOS
IoT SUITE
GOVERNANCE (Standards, Interfaces, …)
App App App App App App App
NEW
Enterprise & Cloud Integration
Device
Connectivity &
Management
Real-time
Analytics &
Visualization
Workflow
Automation …
NEW
App App
NEW
© 2017 Software AG. All rights reserved.
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OUR ROLE IN THE MINDSPHERE ARCHITECTURE
© 2017 Software AG. All rights reserved.
MindConnect Integration (wM Integration Cloud)
– webMethods Integration Cloud
– Bunch of On-premise Adapter
– MindConnect Adapter/Connector
MindConnect IoT Extentions (Cumulocity)
– Standard Cumulocity Functionality
– Standard Cumulocity Releases
– Limited storage period of data in Cumulocity
A NEW WAY TO SEND DATA INTO MINDSPHERE
MindConnect API
IoT Devices supported by Cumolocity
AWS S3,
Salesforce,
ServiceNow,…
On Premise
MindSphere
Connector
Whitelabled
wM Agent/
Adapter
MindSpere
Adapter
IT/OT
(e.g SAP)
webMethods
MindSphere
Connector
AWS AWS
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EXTENSION OF IOT ANALYTICS
© 2017 Software AG. All rights reserved.
WITH DEEP LEARNING
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FUTURE DIRECTION EXPANDING THE IOT ANALYTICS SPECTRUM
Difficulty
Value
Descriptive
What
happened?
Predictive
What will
happen?
Diagnostic
Why did it
happen?
Streaming
What is
happening?
Machine Learning
Why will it happen?
© 2017 Software AG. All rights reserved.
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INVESTOR RELATIONS
© 2017 Software AG. All rights reserved.
Uhlandstrasse 12
64297 Darmstadt
Germany
phone: +49 (0) 6151 / 92 1900
fax: +49 (0) 6151 / 9234 1900
softwareag.com
e-mail: [email protected]