Creating Smart Business Models in Manufacturing with the SAP Cloud Platform Internet of Things Service and SAP HANA Service

Offering end-to-end smart solutions for customers


Manufacturers with various types of standalone equipment face the challenge of transitioning to a world of smart, connected devices. Beyond the simple opportunity to sell equipment with sensors and connectivity built in, there are larger opportunities for manufacturers to move up the value chain. Sensors on connected devices create a new source of big data. This data stream needs to be captured, consolidated, analyzed, and disseminated in a way that creates value. If manufacturers of connected equipment can solve the data puzzle, they can benefit from offering higher-value, complete solutions to their customers.

In partnership with SAP, the manufacturer embarked on creating an entirely new business model for disrupting their manufacturing space with a new technology-based offering of equipment-as-a-service. The manufacturer could have simply built and sold new high-tech equipment with sensors and radio-frequency (RF) connectivity, leaving someone else to design the networked data systems. Instead, they tackled the challenges, and are now reaping the rewards of creating and offering a complete end-to-end solution for their customers. The equipment-as-a-service offering includes everything from installing and maintaining the equipment to providing the software solution for efficiently managing the data generated by the connected devices.

The solution diagram above illustrates a combined architectural pattern for implementing an IoT model with Edge Services.

Download the blueprint 

Bill of Material - SAP Cloud Platform Components for licensing considerations 

The following Bill of Material is for reference purposes only and represents an example of the SAP Cloud Platform services and components required for this use case. Please consult your SAP Account Executive regarding your specific licensing needs.

Sales Item


Licensing metrics


SAP HANA service

The most advanced in-memory database fully managed across multiple clouds

GB memory in 16 GB blocks

128 GB, enterprise edition

SAP Cloud Platform Internet of Things 

Develop, customize, and operate IoT business applications in the cloud.

Per device in blocks of 100

500 devices

Customers can use the SAP Cloud Platform pricing estimator to calculate the required investment for a project. Scale up or down on services as required.

Members and partners of SAP PartnerEdge[1] can evaluate the development of an application for this use case – most development licensing is covered by the packs offered by SAP’s partner licensing services. Click here for details.

*excluding open ecosystem basic.