Schneider Electric Launches Automation-as-a-Service on HPE Cloud

Schneider Electric has introduced Industrial Automation Modernization as a Service, a subscription-based offering that allows manufacturers to upgrade aging control systems without halting operations or replacing existing infrastructure. The solution pairs Schneider's EcoStruxure Automation Expert software with HPE SimpliVity hybrid cloud infrastructure, converting what has traditionally been a large capital expenditure into an operational expense model.

According to details first reported by Schneider Electric, the offering was announced June 23, 2026, and demonstrated at Automate 2026 in Chicago.

Why it matters

Industrial organizations face mounting pressure to modernize control systems designed before cloud computing and modern cybersecurity existed, yet most cannot afford the operational risk or capital outlay of wholesale replacement. Schneider estimates industrial companies lose an average of $11 million annually to technical debt from proprietary, aging automation architectures—$45 million for large enterprises. This service model addresses that constraint by enabling incremental modernization alongside existing programmable logic controllers (PLCs) and distributed control systems (DCS), preserving prior capital investments while establishing a path toward software-defined automation.

Three-layer architecture

The service combines infrastructure, software, and lifecycle support. HPE provides the compute, storage, and data protection foundation for mission-critical workloads. Schneider's EcoStruxure Automation Expert delivers open, software-defined control that can be deployed and updated centrally without physically touching assets. Professional services cover assessment, migration, managed operations, and cybersecurity.

Gwenaelle Huet, Executive Vice President of Industrial Automation at Schneider Electric, characterized the shift from capital to operational expenditure as a fundamental industry change. "No more big upfront commitments that start aging on day one," Huet said. "Instead, an always-current service aligned to real operational needs."

Open standards foundation

Both Schneider Electric and HPE participate in UniversalAutomation.org, an industry initiative promoting open, software-defined automation based on the IEC 61499 standard. This standards-based approach means customers can modernize incrementally and switch vendors without re-engineering, avoiding vendor lock-in that has historically constrained industrial automation.

Schneider claims the service enables organizations to reach market 50 percent faster and reduce commissioning time by up to 60 percent through templated, repeatable deployments. The company also cites AI-driven optimization demonstrating up to 40 percent energy reduction in intensive operations, with unified cloud governance enforcing consistent operational technology cybersecurity policy across sites.

Adoption path

Schneider offers a structured implementation starting with a Digital Transformation Advisory workshop to assess current automation infrastructure and define a modernization roadmap. Organizations then identify high-impact sites for initial deployment and launch focused pilots—in areas such as data center cooling or specific production lines—to validate outcomes before broader rollout.

Peter Groth, Vice President of OEM, Service Providers and Telcos at HPE, noted that industrial enterprises face pressures similar to those that transformed enterprise IT a decade ago: rising complexity, skills scarcity, and demand for real-time intelligence at scale.

A working deployment combining operational technology and IT workloads was demonstrated at HPE Discover 2026 and is on display at Automate 2026 this week. Details were first reported by Schneider Electric in a June 23 announcement.