Automation software

Günter Herkommer,

Schneider Electric - the background to the Aveva takeover

In September 2017, Schneider Electric acquired a majority stake in Aveva and at the same time contributed its own software business to the British company. Jürgen Siefert, Vice President Industry DACH, explains the strategy behind this.

Jürgen Siefert: "Thanks to Aveva, we will be able to offer customers a completely comprehensive software solution in future, which we were not able to do before."

© Schneider Electric

Mr. Siefert, what specifically prompted Schneider to acquire the British software company Aveva?

Jürgen Siefert: Schneider Electric has always endeavored to close existing gaps in our digital technology backbone EcoStruxure with targeted acquisitions. With this in mind, for example, we integrated Elau, a company in the edge control sector, back in 2005.

EcoStruxure is the name for Schneider Elecric's open and IoT-capable solution architecture across all target industries, consisting of three levels: Connected Products, Edge Control and Apps, Analytics and Services.

© Schneider Electric

We are also investing heavily in apps, analytics and services - a first important step in this regard was the acquisition of Invensys in January 2014. One of the most important brands that we have acquired in this context for the mechanical engineering sector is the Wonderware brand. Their software has optimally rounded off our portfolio in the 'Operate' and 'Maintain' segments - in other words, with regard to the operation and maintenance of systems and entire factories.

Where we have not been active in the past, or only marginally, is in the area of production design and simulation. This is precisely where Aveva's strength lies, which is why the acquisition of the British software company is now the perfect addition for us in the upper area of Apps, Analytics & Services.

What is the size of the investment?

Schneider Electric has acquired 60% of Aveva, which corresponds to an investment volume of almost 1.5 billion euros. The Cambridge-based company currently employs around 4,400 people.

The official takeover statement said: "Schneider Electric is handing over its industrial software business to Aveva as part of the 'reverse takeover'. Is this the right strategy in the age of Industry 4.0 - where software and digitalization are at the forefront of everything?

The decisive answer to this question is: Even though Aveva and Schneider Electric are still two legal companies, Aveva is now also 60% Schneider Electric! Incidentally, the legal constellation has nothing to do with the practical work. In other words: If the customer still wants to buy 100% of their solution from Schneider Electric in future - including the complete software part - then that's what they'll get. To this end, we form teams within Aveva and Schneider Electric that organize the cooperation between the two companies in order to ultimately develop the best solution for the user together and in close coordination.

Does Schneider Electric hand over its entire software to Aveva or just parts of it?

Here again, it is helpful to keep in mind the EcoStruxure image with its three levels. There are specific software solutions at each level - at the lower level for 'Connected Products', for example, the respective parameterization software, at the middle level in the area of edge control the entire programming tools and finally at the top level the corresponding analysis and service apps to 'fill the whole topic with life'.
Many of the software tools that Schneider Electric previously had in its portfolio at this top level - such as the Wonderware software solutions - will move to Aveva, while all other software components will remain exactly where they were previously located within Schneider Electric.

What is important in this context, however, is that Aveva, as the future competence center for industrial software within the Schneider Group, will keep an eye on and define the 'big picture' from Cambridge. It is crucial that we first bring together the people and teams within the two companies. The second step will then be to harmonize the interfaces so that both software worlds understand each other.

What does the roadmap look like in terms of time?

As far as the 'big picture' is concerned, we already know exactly where we want to go; however, experience has shown that it will certainly take some time to work out the milestones in detail.

What you need to know: With software - unlike in the hardware sector, where Schneider Electric originally comes from - there is no final picture of what the perfect product will look like at some point. On the one hand, software that is perfect is outdated anyway. On the other hand, we are operating in a very dynamic market that requires constant adaptation.

SPS IPC Drives is just around the corner. Schneider Electric will be represented in two different halls - with which topics in each?

In Hall 6, which is dedicated to 'Software & IT in Manufacturing', Aveva will be represented as an independent company and will also be addressing its existing customer clientele with its complete 'software shopping basket'.

At our traditional location in Hall 1, however, we as Schneider Electric will continue to focus on OEMs and industrial end customers from the mechanical and plant engineering sector in line with our channel approach. Visitors to the trade fair will also be able to see all the Aveva software that is specifically relevant for this clientele there.

What specific innovations is Schneider Electric bringing to Nuremberg?

At the trade fair, there will be new digitalization tools in the field of consumer packaging goods, which optimize the entire value chain from the producer to the consumer. The central eye-catcher of the trade fair appearance is the presentation of a model representation of the digital dairy. Not only is digitalized production made transparent, the associated software solutions with apps, analytics and services are also visualized.

Two years ago, Schneider Electric also announced Prometheus at SPS IPC Drives - a universal configuration tool that can also generate the control code for the entire control technology or any controller. What has become of it?

The Prometheus approach should be seen as an addition to our portfolio and comes from the Wonderware environment. SCADA systems have always been suitable for operating heterogeneous automation architectures. For the operator of such a solution, it would of course be ideal to be able to operate the various control systems used from different manufacturers with a single tool. In fact, Wonderware's 'Control Configuration Manager' is being further developed and maintained for such applications in order to be able to serve application areas outside the Schneider landscape that cannot be reached with the established tools from Schneider Electric.

For solutions in machine and plant automation, our EcoStruxure architectures are clearly in focus, as they guarantee maximum performance, for example in high-performance systems for packaging technology with integrated robotics.

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