Several news items came my way while I have been traveling. These four are from Siemens. One follows the trend of industrial automation companies incorporating Microsoft Copilot for Augmented Intelligence (AI) application. The company announced expanded collaboration with Service Now. Finally, two releases reflect the ongoing portfolio realignment we are witnessing among all the major automation suppliers—further evidence of a market maturing and consolidating.
Siemens and Microsoft scale industrial AI
Siemens with its collaboration with Microsoft claim they have enabled AI to handle the most demanding environments at scale. Combining Siemens’ domain know-how across industries with Microsoft Azure OpenAI Service, the Copilot further improves handling of rigorous requirements in manufacturing and automation.
Over 100 companies, including Schaeffler and thyssenkrupp Automation Engineering, are currently using the Siemens Industrial Copilot to streamline processes, address labor shortages, and drive innovation. With 120,000 users already leveraging the Siemens engineering software TIA Portal, they now have the opportunity to enhance their work with the genAI-powered assistant.
Since the product’s availability in July 2024, customers across various sectors have started using the Siemens Industrial Copilot for Engineering to boost efficiency. Engineers can now create panel visualizations in 30 seconds and generate code that requires only 20% adaptation. This streamlines workflows, reducing manual effort and addressing the skilled labor shortage. The chat function also provides instant, precise answers, eliminating the need for lengthy searches. By leveraging the Copilot, companies are driving productivity and innovation.
Siemens and ServiceNow strengthen shopfloor security and drive generative AI-powered automation for shopfloor operations
Siemens and ServiceNow announced a new collaboration at the ServiceNow World Forum in Munich, Germany. The companies intend to enhance industrial cybersecurity and drive the integration of generative AI into shopfloor operations. This mutual cooperation leverages Siemens’ Sinec Security Guard for industrial vulnerability management and the Siemens Industrial Copilot for generative AI-powered automation – with ServiceNow providing the workflow automation needed to streamline and enhance factory operations.
ServiceNow’s Operational Technology Service Management (OTSM) suite integrates IT and OT workflows, providing real-time visibility, and automating processes across the entire factory floor. With the addition of Sinec Security Guard, ServiceNow’s OT Vulnerability Response (OT VR) will be further enhanced to include more insights into vulnerabilities of OT equipment, enabling faster detection and remediation of security threats.
Siemens strengthens leadership in industrial software and AI with acquisition of Altair Engineering
Siemens has signed an agreement to acquire Altair Engineering Inc., a leading provider of software in the industrial simulation and analysis market. Altair shareholders will receive USD 113 per share, representing an enterprise value of approximately USD 10 billion. The offer price represents a 19% premium to Altair’s unaffected closing price on October 21, 2024, the last trading day prior to media reports regarding a possible transaction. With this acquisition Siemens strengthens its position as a leading technology company and its leadership in industrial software.
“Acquiring Altair marks a significant milestone for Siemens. This strategic investment aligns with our commitment to accelerate the digital and sustainability transformations of our customers by combining the real and digital worlds. The addition of Altair’s capabilities in simulation, high performance computing, data science, and artificial intelligence together with Siemens Xcelerator will create the world’s most complete AI-powered design and simulation portfolio,” said Roland Busch, President and CEO of Siemens AG. “It is a logical next step: we have been building our leadership in industrial software for the last 15 years, most recently, democratizing the benefits of data and AI for entire industries.”
By adding Altair’s complementary simulation portfolio, with strength in mechanical and electromagnetic capabilities, Siemens enhances Digital Twin to deliver a full-suite, physics-based, simulation portfolio as part of Siemens Xcelerator. Altair’s data science and AI-powered simulation capabilities allow anyone, from engineers to generalists, to access simulation expertise to decrease time-to-market and accelerate design iterations. Additionally, Altair’s data science capabilities will unlock Siemens’ industrial domain expertise in product lifecycle and manufacturing processes.
Siemens to sell airport logistics business to Vanderlande
Siemens AG has agreed to sell its Siemens Logistics business to Vanderlande, a company owned by Toyota Industries Corporation. Vanderlande is a leading global partner for future-proof logistic process automation in the warehousing, airports, and parcel sectors, and with that will be a strategic long-term owner for Siemens Logistics. The purchase price (enterprise value) is €300 million. Closing is expected in the course of calendar year 2025, subject to regulatory approvals.
