When in the Automation component business, (PLC's, temperature controllers, motor controllers, etc.) the next logical step is to add value to those components by integrating them into a functioning machine. Being brand independent is a show of good faith. Many Factories have their own control platform and want to keep with their current brand.
Most generic automation components are made by many different brands so that does not prevent an integrator from using an installed brand.
So for example, if Siemens is selling PLC's and providing a service to go with them, it would be writing ladder code and system integration. This service if done right could provide a higher margin than the component business.
One of the positive byproducts of offering services may be that Siemens will have more quality control over installations and upgrades. For some of the more complex vendors, the system gets set up, but many of the bells and whistles don't get deployed. With a services arm, it may be easier for Siemens to keep a hand in the game to make sure the customer gets full use of the technology. That would require hanging around post installation in a service role. I would guess that would be part of a service package.
Siemens was emphatic that the services push is not going to hurt solution providers and partners, and they're clearly committed to that position. In practice, this means that the squishy overlaps which will inevitably arise early on will have to be addressed agressively, to build up a reservoir of goodwill with the third parties.
Good observation, Jack. Siemens seems to be doing some significant expansion in the past three or four years. It would seem almost inevitable they would stumble into the markets of their partners. But who knows. They're a smart company. They may be making accommodations to distributors as they introduce new services that overlap. Did you get any feel for this at the briefing, Alex?
I wonder how Siemens foray into providing technical service will affect their distributors. A lot of these small local companies make a good chunk of their revenue on support services (or give them away as a means of building the relationship).
Alternative energy seems to be the key here. Wind and solar will require infrastucture changes. And if the electric car market takes off, capacity will have to be boosted. This is good timing for Siemens.
It is very interesting to see this revelation being posted. An area that is very near to my mind is "cloud computing" which Siemens is all ready in this realm. I see this as a huge offering to manufacturing. Interested to see if anyone has thoughts around this or experience through Siemens in this realm.
By experimenting with the photovoltaic reaction in solar cells, researchers at MIT have made a breakthrough in energy efficiency that significantly pushes the boundaries of current commercial cells on the market.
In a world that's going green, industrial operations have a problem: Their processes involve materials that are potentially toxic, flammable, corrosive, or reactive. If improperly managed, this can precipitate dangerous health and environmental consequences.
With LEDs dropping in price virtually every year, automakers have begun employing them, not only on luxury vehicles, but on entry-level models, as well.
From Dell / Intel® New Paradigms in Design Work Scott Hamilton, vertical market strategist for Dell Precision workstations, 5/2/2013 3
Early in my career, I worked as a draftsman and remember the days of drawing on vellum with numbered pencils and Mylar with plastic lead. This was a fun experience in the sense that I ...
I've been using workstations for more than 10 years and love finding ways to get more performance from my system. With demanding professional applications that require more power each ...
A lasting memory from my first job as an engineer in an auto assembly plant is standing on hard concrete at six in the morning, vending-machine coffee clutched in hand, listening to ...
A quick look into the merger of two powerhouse 3D printing OEMs and the new leader in rapid prototyping solutions, Stratasys. The industrial revolution is now led by 3D printing and engineers are given the opportunity to fully maximize their design capabilities, reduce their time-to-market and functionally test prototypes cheaper, faster and easier. Bruce Bradshaw, Director of Marketing in North America, will explore the large product offering and variety of materials that will help CAD designers articulate their product design with actual, physical prototypes. This broadcast will dive deep into technical information including application specific stories from real world customers and their experiences with 3D printing. 3D Printing is
To save this item to your list of favorite Design News content so you can find it later in your Profile page, click the "Save It" button next to the item.
If you found this interesting or useful, please use the links to the services below to share it with other readers. You will need a free account with each service to share an item via that service.
Tweet This
3 
