An Intellyx Brain Candy Brief

Siemens, a German heavy industry conglomerate with offerings in industries as diverse as energy and healthcare, recently announced it was acquiring low-code player Mendix.

On the surface, this acquisition appears to be an odd fit. Siemens is an engineering-driven company to be sure, but its engineers deal largely with physical machines. Mendix, in contrast, serves IT departments.

Looking at the Siemens product line through the perspective of digital transformation, however, the wisdom behind this acquisition becomes clearer. After all, what links modern industrial technology today? The answer: The Internet of Things.

Siemens, in fact, has a software division, whose flagship product is MindSphere, an IoT platform (or ‘operating system’ in marketing parlance). To be sure, Mendix will join MindSphere in this division, and Siemens is sure to integrate or perhaps merge the products over time.

There is more to Siemens’ strategy than simply adding Mendix to MindSphere, however. The big picture for Siemens is that its digital transformation requires it to change from a machinery manufacturer which uses software to a software company that connects the value of its machinery to its customers via diverse, software-driven digital channels.

Both Siemens and its customers, therefore, will better achieve their strategic goals via software solutions that bring the value of the IoT and low-code together into comprehensive, next-generation digital capabilities.

Copyright © Intellyx LLC. Intellyx publishes the Agile Digital Transformation Roadmap poster, advises companies on their digital transformation initiatives, and helps vendors communicate their agility stories. As of the time of writing, none of the organizations mentioned in this article are Intellyx customers. To be considered for a Brain Candy article, email us at pr@intellyx.com.

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