Schneider Electric Launches Automation-as-a-Service Model

Schneider Electric unveils service model for industrial automation modernization

Schneider Electric has introduced Industrial Automation Modernization as a Service, an offering that enables manufacturers to upgrade aging control systems without halting production or replacing entire infrastructures. The solution combines Schneider Electric's EcoStruxure Automation Expert platform with HPE SimpliVity hybrid cloud infrastructure to deliver software-defined automation capabilities on a consumption basis.

The announcement, made at Automate 2026 in Chicago, addresses a persistent challenge in industrial operations: most control systems predate cloud computing, artificial intelligence, and modern cybersecurity frameworks. These legacy architectures create vendor lock-in, require increasingly scarce on-site specialists, and accumulate technical debt that complicates modernization efforts.

According to details first reported by Engineering.com, industrial companies lose an average of $11 million annually due to outdated automation architectures, with large enterprises exceeding $45 million per year in losses.

Why it matters

Manufacturers face mounting pressure to modernize for cybersecurity, workforce constraints, and AI readiness—but traditional rip-and-replace approaches carry prohibitive costs and operational risks. A service-based model that supports incremental adoption alongside existing systems fundamentally changes the economics and risk profile of automation modernization, making it accessible to organizations that previously deferred upgrades.

Three-layer architecture for continuous modernization

The offering structures automation modernization across three integrated layers. HPE compute, storage, and data protection technologies provide the infrastructure foundation for mission-critical industrial workloads. Schneider Electric's open, software-defined automation layer enables centralized deployment and updates across compatible hardware without physical intervention. Expert services spanning assessment, migration, managed operations, and cybersecurity round out the package.

This architecture allows organizations to modernize incrementally alongside existing programmable logic controller and distributed control system infrastructure, preserving capital investments while establishing a foundation for long-term transformation.

Built on open standards to prevent vendor lock-in

A distinguishing feature is the commitment to open standards. Both Schneider Electric and HPE participate in UniversalAutomation.org, which promotes software-defined automation based on the IEC 61499 standard. This approach means customers can modernize incrementally, switch vendors without re-engineering, and adapt as technology evolves—avoiding the single-vendor dependencies that characterize traditional automation architectures.

The solution maintains consistent governance and uptime whether control logic runs on-site at remote facilities, centrally in private cloud environments, or distributed across both.

Measurable outcomes across operations

Schneider Electric cites specific performance improvements from the service model. Organizations can reduce commissioning time by up to 60 percent and reach market 50 percent faster through templated, repeatable deployments. The company notes that 70 percent of industrial companies already plan to virtualize automation by 2030. AI-driven optimization within the platform has demonstrated up to 40 percent energy reduction in intensive operations, while unified cloud governance enforces consistent operational technology cybersecurity policy across all sites.

The financial model shifts unpredictable capital expenditure to stable, consumption-based operational expenditure, enabling organizations to scale automation capabilities without proportionally scaling headcount.

Schneider Electric offers a structured entry path beginning with a Digital Transformation Advisory workshop to assess current automation environments and define modernization roadmaps. Organizations can then identify high-impact sites for focused pilots before broader deployment.

Engineering.com first reported the launch details.