Schneider Electric, HPE Launch Gradual Automation Upgrade Path

Schneider Electric has launched a modernization service that allows manufacturers to upgrade aging automation systems without the cost and disruption of wholesale infrastructure replacement, according to details first reported by The AI Insider.

The offering pairs Schneider's EcoStruxure Automation Expert software with HPE's SimpliVity hybrid cloud platform, creating a path for industrial operators to adopt software-defined automation while continuing to run existing programmable logic controllers and distributed control systems.

How the service works

The service includes three core components: infrastructure from HPE's compute, storage and data protection portfolio; software-defined automation built on EcoStruxure Automation Expert; and consulting, migration, cybersecurity and lifecycle management services.

Schneider Electric said the platform adheres to open automation standards, enabling customers to deploy automation software across compatible hardware rather than locking into a single vendor's proprietary ecosystem. This architecture is designed to support incremental upgrades, allowing companies to modernize systems in stages rather than through disruptive forklift replacements.

Why it matters

The shift from capital expenditure to operational expenditure models represents a fundamental change in how industrial automation is funded and consumed. For manufacturers facing pressure to prepare infrastructure for AI-driven operations—including autonomous agents and AI-powered robotics—this approach removes the barrier of massive upfront investment. It also addresses a longstanding tension between maintaining production continuity and adopting new technology, a trade-off that has historically forced companies to delay modernization or accept significant operational risk.

Preparing for AI-driven manufacturing

Gwenaelle Huet, executive vice president of industrial automation at Schneider Electric, said manufacturers are increasingly focused on building foundations for AI-driven operations, including generative AI and autonomous robotics. Reaching that capability requires flexible automation systems built on open software architectures and hybrid cloud infrastructure, she noted.

"For too long, industrial enterprises have been forced to choose between operational continuity and technological modernization," Huet said in the announcement. "Together Schneider Electric and HPE are removing that trade-off entirely — giving customers a single, governed foundation to modernize at their own pace."

Huet emphasized that moving from capital expenditure to operational expenditure models for industrial automation represents a fundamental mindset shift for the industry, changing how automation is funded, consumed and continuously improved.

Schneider Electric and HPE are demonstrating the combined system this week at Automate 2026 in Chicago. The AI Insider first reported the service details.