Siemens is making significant strides in the realm of private 5G, particularly within Industry 4.0. The company acknowledges that the initial expectations for 5G uptake have been more challenging than anticipated. However, they note a shift towards use-case-driven adoption among industrial customers. Companies were initially cautious, often put off by unsubstantiated promises, but there’s now a growing interest in how technologies like 5G can solve specific industrial problems.
Enterprises are less interested in the technology itself and more in the solutions it can provide. Siemens reports that its 5G technology is best perceived as an enabler, rather than a standalone solution, helping to integrate with existing automation systems. The focus is on addressing industrial issues, rather than being swept away by the allure of new technology.
Siemens utilizes its established sales channels to introduce 5G to existing enterprise and OEM partners, focusing on providing practical solutions over flashy tech spectacles. This approach contrasts with traditional telcos’ method of presenting 5G as a comprehensive, one-size-fits-all solution. In recent discussions, Daniel Mai, who leads industrial wireless at Siemens, notes the enthusiastic reception of 5G, albeit in a manner different from initial predictions.
The private 5G market remains demanding, with notable challenges highlighted by the potential restructuring of companies like Nokia. However, Siemens remains optimistic, suggesting that the technology sometimes offers valuable solutions to persistent problems faced by customers. Mai emphasizes practical demonstrations, pointing out a partnership with Qualcomm and Palo Alto Networks that showcases integrated automation technologies including on-premises large language models (LLM) and generative AI.
Siemens positions VoIP as a supporting player in this technological orchestra. There’s an emphasis on practical applications to meet specific industrial demands, contrary to hyped visions of integrating IT/OT and AI. Industries require evidence of connectivity solutions that align with their critical operations, emphasizing reliability over mere technological novelty.
The market for private 5G has evolved, with Siemens focusing on real cases where connectivity fills a critical role, such as automating expensive and arduous tasks. Instead of pitching grand unified visions of tech transformation, Siemens is tuning into the bespoke requirements of industrial customers, offering incremental improvements supported by 5G.
Siemens backs its strategy with real-world applications like Salzgitter, a leading European steel producer. Here, 5G aids the automation of guided vehicles and cranes, showcasing how the technology integrates smoothly into existing heavy-duty operations. The automation not only enhances efficiency but also addresses safety and labor challenges.
For OEM clients like Siemens’ crane division, 5G offers enhancements in remote operations, facilitating centralized control with minimal cabling issues. This focus on deterministic communication for safety operations illustrates the practical advantages of 5G over other wireless solutions.
In summary, Siemens is not promoting 5G as a cure-all, but rather as a smart component in broader industrial solutions. The technology’s growth in Industry 4.0 reflects a more nuanced understanding of customer needs, prioritized over mere technological advancements. This strategic alignment with industrial demands provides a realistic pathway for the integration and adoption of 5G within the sector.
