Germany’s second biggest software firm, Software AG, aims to capitalise on its core strengths and expand into the upcoming IoT market.
On Thursday, Germany’s No.2 business software firm, Software AG, reported ot would be investing $23 to $34.5 million (20 million to 30 million euros) in 2019 in growth projects, with CEO Sanjay Brahmawar seeking to revitalize the 50-year-old software giant.
Brahmawar, who has been on the job for 6 months, wants to place the Darmstadt-based Software AG on newer opportunities including, Internet of Things (IoT).
“Going forward, we must focus on translating our strengths into results,” said Brahmawar, a former IBM executive, following Software AG’s report of a 1% decline in revenue and flat operating profit in the fourth quarter.
Software AG has set a 2019 guidance for operating margins of 28% to 30%, compared with 31.5% as a whole in 2018.
For 2019, Software AG’s digital business platform division is targeting a growth of 3% to 7%, while the newly formed IoT division expects growth to be between 75% to 125%. Its Adabas & Natural database line however expects revenues to dip by 5%.
Software AG is scheduled to brief investors on its strategy overhaul at a capital markets day in London on February 5.
($1 = 0.8696 euros)