Everyone says they’re “becoming a software company.”
But when you look closer, industrial giants are at very different stages of that transformation.
Using three dimensions —
1️⃣ Organizational power of the software unit (decision rights, P&L control, and GTM focus)
2️⃣ Software vision, portfolio strategy, and governance maturity
3️⃣ Number and scale of software acquisitions
—you can map where the major players stand today, ranking from bottom to top:
Honeywell — The most hardware-anchored. Strong in automation, but still without a transformative software acquisition or SaaS-specific GTM.
Emerson— Integrates software tightly within hardware. Efficient for cross-selling, but lacks standalone SaaS scale.
Rockwell Automation— Concentrates embedded and SaaS software in one BU. The structure exists, but the balance between industrial controls and digital services remains in flux.
GE Vernova— Has grouped all software activities in one business unit — a bold move to clarify ownership and investment priorities.
Schneider Electric— A two-tier model: AVEVA operates as an independent software entity inside a hardware parent. It’s the cleanest organizational separation in the sector.
Siemens Digital Industries Software— The benchmark. A decade of continuous software acquisitions and clear portfolio governance have built both scale and coherence.
Industrial transformation to software is as much about governance and structure as technology. Companies that empower their software units — with autonomy, capital allocation rights, and a distinct GTM — move fastest.
The next wave won’t just connect machines to data.
It will connect software strategy to organizational power.
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