Germany has been a traditional industrial powerhouse for decades and leads the world in not just productivity, its reputation has been built upon engineering excellence and build quality with major brands such as Mercedes, Porsche, Daimler … the list is endless.
German manufacturing was always a behemoth of productivity and quality. Despite past struggles to reunite the nation, combining East and West Germany, with all its vast financial, technological and philosophical differences Germany has out-performed most industrial nation over the last few decades.
However, things are changing with traditional German industrial companies like Bosch who are major players in Industry 4.0 looking to transform themselves from manufactures of equipment to service providers.
Bosch is reinventing its product portfolio, whereby engineering expertise is still an advantage but in making the "Internet of Things" (IoT) devices a reality, Bosch is producing services instead of products.
The strategy for major IoT companies and manufacturer’s such as Bosch is to move from products to services … selling light not light bulbs. Its announcement on Wednesday follows that service strategy, Bosch plans to build its own cloud and that puts it into direct competition with services from U.S. technology giants Amazon and Google.
Bosch's cloud will be run out of a computing center based in Germany, which could reassure many EU based companies, and customers regards the privacy of their data.
Bosch Chief Executive Volkmar Denner said "There are product companies like Bosch trying to add software and services and there are IT companies trying to get into the physical space. The race is completely open."