Siemens Expands Investments, Including $175M R&D Ramp-Up

SiemensSiemens is expanding its investments in U.S.-based digital capabilities to co-create intelligent solutions with customers. It’s the first company worldwide to create 20 centers for digital customer applications in the industrial sector. Each of the MindSphere Application Centers serves multiple locations in different countries and specializes in a particular industry where Siemens is active. About 900 software developers, data specialists, and engineers are working with Siemens customers at these centers to develop digital innovations for data analysis and machine learning. These new solutions are being developed on MindSphere, Siemens’ open, cloud-based operating system for the Internet of Things (IoT).

In order to get closer to its customers, the company has distributed its 20 centers across around 50 locations in 17 countries worldwide. Eight of these digital service hubs are located in the United States – in Austin, Foster City, Atlanta, Alpharetta, Pittsburgh, Berkeley and Orlando – and constitute the largest footprint for these centers outside of Germany. Siemens launched its MindSphere IoT operating system across the company about one year ago. Approximately one million devices and systems are now connected via MindSphere, and this figure will reach 1.25 million by the end of fiscal 2018.

“From digital twins and digital services to the Internet of Things and Artificial Intelligence, Siemens is innovating next-generation digital technologies to help cities and companies across the country realize measurable value from data,” said Lisa Davis, CEO of Siemens USA. “To further this customer value proposition and prepare our company for the future, we’re investing in the next-generation workforce, which is paramount to our future success.”

The company has also increased its U.S. R&D investment by $175 million year-over-year to $1.3 billion in fiscal 2017 – a 16 percent increase – with a strong focus on digital innovation. In Chicago, for example, Siemens is investing $13 million annually in a new digital R&D hub focused on cloud and Internet of Things applications to support the building management and automation market. Also on a global level, Siemens will again increase its global R&D expenditures in fiscal 2018 and is investing an additional sum of about $600 million. As a result, R&D spending will increase from nearly $6.3 billion in fiscal 2017 to $6.9 billion in fiscal 2018.

“With the arrival of the Internet of Things in industry and infrastructure, many organizations are still trying to understand how to incorporate digital strategies into their business models,” said Roland Busch, Chief Technology Officer and Member of the Managing Board of Siemens AG. “Siemens has reinvented itself into one of the world’s top 10 software companies and is continuing to expand its digital capabilities. With our MindSphere Application Centers, we’re combining deep expertise in automation and electrification with our unique industrial software offering to enable our customers to leverage digital solutions for their specific needs.”


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