Siemens inks deal with Alibaba for China loT partnership

July 10, 2018 09:29
Chinese Prime Minister Li Keqiang shakes hands with Siemens CEO Joe Kaeser as German Chancellor Angela Merkel looks on during a signing ceremony in Berlin on Monday for some commercial accords. Photo: Reuters

Siemens has entered into an agreement with Alibaba Group to use the Chinese online giant's cloud infrastructure for rollout of the German firm's digital operating system MindSphere, Reuters reports.

The deal was among a raft of Sino-German commercial accords worth some US$23.5 billion signed on Monday in Berlin, the report said.

The partnership will help upgrade China’s industry, Siemens was quoted as saying in a statement.

MindSphere is Siemens’s cloud-based, open IoT operating system that connects products, factories, systems and machines.

By gathering information from an array of sensors installed in production lines it aims to increase efficiency and reduce down time for machinery.

Under the agreement, Siemens and Alibaba will begin collaborating immediately and intend to make MindSphere on Alibaba Cloud available in 2019.

Until now Siemens' digital products have been offered only through Amazon’s Web Services and Microsoft’s Azure online platforms.

The German engineering giant hopes the tie up with Alibaba will help it make further inroads into China, already Siemens’s third-largest market.

“This cooperation is a landmark deal for bringing Industry 4.0-solutions to China as the world’s powerhouse of manufacturing,” Siemens CEO Joe Kaeser said.

The German firm also flagged plans to work with China’s State Power Investment Corp on heavy-duty gas turbines, according to the report.

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