Siemens, IBM, Red Hat Launch Hybrid Cloud Initiative to Increase Real-time Value of Industrial IoT Data

Siemens to Adopt Red Hat OpenShift for its MindSphere Platform used by Manufacturers Globally

ARMONK,N.Y.,Feb. 24,2021 -- Siemens,IBM (NYSE: IBM) and Red Hat today announced a new collaboration that will use a hybrid cloud designed to deliver an open,flexible and more secure solution for manufacturers and plant operators to drive real-time value from operational data. In one month,a single manufacturing site can generate more than 2,200 terabytes of data according to a report by IBM – yet most data goes unanalyzed.

Through the joint initiative,Siemens Digital Industries Software will apply IBM's open hybrid cloud approach,built on Red Hat OpenShift,to extend the deployment flexibility of MindSphere®,the industrial IoT as a service solution from Siemens. This will enable customers to run MindSphere on-premise,unlocking speed and agility in factory and plant operations,as well as through the cloud for seamless product support,updates and enterprise connectivity.

"Today's manufacturers require agility and flexibility to meet expectations for higher quality products with shorter production cycles," said Raymond Kok,senior vice president of Cloud Application Solutions for Siemens Digital Industries Software. "MindSphere already provides customers with data-driven insights to strengthen operations through Industrial IoT. Through our work with IBM and Red Hat,we can now offer customers the flexibility to choose to operate MindSphere on-premise or in the cloud to best meet their distinct operational needs and become more efficient,nimble and responsive to today's marketplace."

"We see that most industrial data is generated outside of IT – in manufacturing operations,supply chains or connected products – yet to leverage digital technologies,manufacturers choose to either send data up to their enterprise cloud,or bring the technology down," said Manish Chawla,Industry General Manager,Energy,Resources,and Manufacturing at IBM. "Our collaboration with Siemens uses hybrid cloud and is being engineered to deliver manufacturers the best of both worlds: autonomy,speed and control over shopfloor data processed at the edge,as well as seamless connection to the enterprise."

"Our collaboration with Siemens helps streamline operations in manufacturing by bringing the leading Kubernetes platform and an open hybrid approach," said Darrell Jordan-Smith,senior vice president,Industries and Global Accounts,Red Hat. "With Red Hat OpenShift as the underlying platform for MindSphere,we reduce complexity by providing manufacturers one unified method to deploy and operate MindSphere on-site or in the cloud. This allows manufacturing leaders to focus on innovation and drive maximum business results."

To help operationalize the capabilities and reduce IT risk,IBM Global Business Services and Global Technology Services consultants will serve as a provider for managed services and IoT solutions for Siemens' MindSphere customers.

MindSphereis used by organizations to collect and analyze real-time sensor data from products,plants,systems,and machines,enabling users to optimize products,production assets,and manufacturing processes along the entire value chain to build a real-time digital twin. By adopting Red Hat OpenShift,the industry's leading enterprise Kubernetes platform,as the preferred on premise architecture,customers will have the flexibility to run MindSphere solutions locally in a private cloud,or in future applications through a hybrid,multi-cloud model,as well as enabling field to enterprise insights. Through this offering,Siemens and IBM enable customers to retain full physical control of their data to better cope with regulatory requirements and data privacy.

Today's announcement builds on a long-standing relationship between IBM and Siemens,including most recently,the introduction of a joint solutionwith IBM Maximo that extends the operating lifecycle of industrial products and machinery by bringing together engineering,operations and maintenance data into one platform.

The collaboration with Siemens is part of IBM's ecosystem program to invest in accelerating adoption of hybrid cloud and open architectures across essential industries,including manufacturing,energy,smart cities,telecommunications,and financial services. Siemens is leveraging IBM's Cloud Engagement Fund,established as part of IBM's $1B investment into its ecosystem,to access technical resources and cloud credits to support migration of client workloads to hybrid cloud environments.

These efforts are increasing in importance as organizations navigate the impacts of the pandemic which has created an acute need for speed to market,flexibility and nimbleness to encourage innovation.

About IBM

For more information about IBM visit,www.ibm.com. Statements regarding IBM's future direction and intent are subject to change or withdrawal without notice and represent goals and objectives only.

About Red Hat

Red Hat is the world's leading provider of enterprise open source software solutions,using a community-powered approach to deliver reliable and high-performing Linux,hybrid cloud,container,and Kubernetes technologies. Red Hat helps customers integrate new and existing IT applications,develop cloud-native applications,standardize on our industry-leading operating system,and automate,secure,and manage complex environments. Award-winning support,training,and consulting services make Red Hat a trusted adviser to the Fortune 500. As a strategic partner to cloud providers,system integrators,application vendors,customers,and open source communities,Red Hat can help organizations prepare for the digital future.

About Siemens

Siemens Digital Industries Softwareis driving transformation to enable a digital enterprise where engineering,manufacturing and electronics design meet tomorrow. TheXcelerator portfoliohelps companies of all sizes create and leverage digital twins that provide organizations with new insights,opportunities and levels of automation to drive innovation. For more information on Siemens Digital Industries Software products and services,visitwww.sw.siemens.comor follow us onLinkedIn,Twitter,FacebookandInstagram. Siemens Digital Industries Software – Where today meets tomorrow.

Note: A list of relevant Siemens trademarks can be foundhere.

Contact: Allison Bishop,Allison.Bishop@ibm.com

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