Rumored Schneider acquisition suggests new directions for the industry
By: SGN Staff
Quick Take: Schneider's bid to acquire Invensys has some important ramifications. Frost & Sullivan's Energy and Environment Industry Manager Konkana Khaund gives his take below. Although Khaund focuses on the impacts to Schneider's business lines, the purchase would cause ripples in the industry at large.
For instance, if successful the acquisition would represent yet another global giant that has made a major commitment to Internet of Everything (IoT) or smart cities or both, following IBM, GE, Cisco and Microsoft. As Khaund implies, it suggests that Schneider will be more closely integrating its own internal units to capture the synergies made possible by machine-to-machine.
I think Khaund misses the potential this acquisition has to accelerate Schneider's nascent smart cities initiative. Invensys, which recently joined the Smart Cities Council, has some powerful smart city capabilities, most notably in transportation. - Jesse Berst
What's next for Schneider Electric through the potential takeover of Invensys
The announcement could lead to some significant implication on competitive strategy maximization and diversification for Schneider Electric. The immediate industry focus is high on evaluating the outcome on the industrial business of Schneider Electric, which would be the prime beneficiary from such an acquisition, given Invensys’ core competencies in this area. But it is hard to ignore the imminent implications this could have on Schneider Electric’s buildings, residential and data center businesses. Though Invensys' early statements emphasize this as a bid to strengthen its industrial business, and move away from energy controls and monitoring, it is highly unlikely that the outcome may be limited to just that. Schneider Electric will most certainly not bypass the opportunity to bolster its energy management and software businesses further -- an initiative that has been consistently invigorated with every targeted acquisition the company has made in recent times.