How Siemens & Microsoft Are Ushering in a New Era of IoT
The buildings of the future will all be digital and the internet of things (IoT) will be at the centre of this next generation of constructions.
The IoT is the umbrella term for appliances (think kettles, microwaves, televisions) that are connected to one other via a digital network. allowing them to automatically submit and receive data while also letting users to control them remotely.
Currently, though, the IoT is too limited to be the utopian concept that it appears to be at first glance. It's main problem is that not all appliances can be connected to the same network, especially if a building contains appliances that are made by different manufacturers.
Solving this problem would be a huge step forward for IoT technologies, likely helping to propel them towards mass adoption.
Stepping up to the challenge are Siemens and Microsoft, who have announced a collaboration to enhance the interoperability of IoT technologies for commercial buildings, data centres and higher education facilities.
The partnership will connect Siemens' digital building platform, Building X, with Microsoft Azure IoT Operations through Azure Arc technology.
The collaboration promises to reduce integration efforts by up to 80% whilst providing enterprise customers with greater access to IoT-based data for optimising building operations and sustainability initiatives.
Open standards drive interoperability
The solution leverages established open industry standards including World Wide Web Consortium Web of Things and Open Platform Communications Unified Architecture for data communication to the cloud.
Both companies are members of the W3C and the OPC Foundation, organisations that develop standards focused on accessibility, interoperability, privacy and security.
The integration represents one of the first IoT data solutions based purely on open standards across multiple providers.
"This collaboration with Microsoft reflects our shared vision of enabling customers to harness the full potential of IoT through open standards and interoperability," says Susanne Seitz, CEO of Siemens Smart Infrastructure Buildings.
Susanne added that "the improved data access will provide portfolio managers with granular visibility into critical metrics such as energy efficiency and consumption."
Technical capabilities and market availability
The system will enable automatic onboarding and monitoring of datapoints including temperature, pressure and indoor air quality from heating, ventilation and air conditioning systems, valves and actuators.
Enterprise customers will be able to develop bespoke use cases such as energy monitoring and space optimisation through one-click device onboarding to the cloud.
Siemens hardware and software components can be integrated without being confined to a single vendor ecosystem, providing customers with architectural flexibility.
"Siemens shares Microsoft's focus on interoperability and open IoT standards. This collaboration is a significant step forward in making IoT data more actionable," explains Erich Barnstedt, Senior Director & Architect at Microsoft's Corporate Standards Group.
"Microsoft's strategy underscores our commitment to partnering with industry leaders to empower customers with greater choice and control over their IoT solutions."
Industry context and implications
The partnership addresses the persistent challenge of siloed IoT data in commercial building management, where different systems often operate independently without data sharing capabilities.
"With IoT data often being siloed, this level of transparency is a game-changer for an industry seeking to optimise building operations and meet sustainability targets," Susanne says.
Building X forms part of Siemens Xcelerator, the company's open digital business platform designed to accelerate customer digital transformation initiatives.
The interoperability solution between Building X and Azure IoT Operations will become available in the second half of 2025.
The collaboration comes as commercial property operators face increasing pressure to demonstrate measurable sustainability improvements whilst managing operational costs effectively.
Siemens Smart Infrastructure, headquartered in Zug, Switzerland, employed approximately 78,500 people worldwide as of September 2024 and focuses on connecting energy systems, buildings and industries.
