HOUSTON - Oct. 21, 2003 - Today at ISA EXPO 2003, Microsoft Corp. and Invensys plc announced an alliance to combine Invensys’ strengths in process and manufacturing applications and expertise in key industry segments with Microsoft’s platform, technology and enterprise products. The alliance will drive a new generation of Invensys solutions to provide manufacturers with real-time visibility in their plant environments and supply chains.
Although Invensys has long developed solutions using Microsoft® technology, under the alliance, Invensys will tightly integrate Microsoft’s platform into the company’s future offerings. Microsoft also will help Invensys accelerate the development of its enhanced productivity tools, products and customer solutions with broad, horizontal appeal to the manufacturing industry and specific benefits for the hydrocarbons, power and utilities, food and beverage, and pharmaceutical manufacturing segments.
“Our joint development, training and engagement model under the alliance will ensure we deliver solutions with the functionality, longevity, robustness and security that our customers demand,” said Leo Quinn, chief operating officer for Invensys Production Management. “The solutions will help our customers address many of the issues that are keeping them awake at night - such as speed to market, the diversion of investment to infrastructure issues at the expense of value-added applications, and the retention of intellectual property as more and more highly skilled professionals retire.”
The cornerstones of the alliance will be provided by more strongly linking Invensys’ ArchestrA® architecture with Microsoft .NET technology and Microsoft’s Windows Server System™ integrated server software. Invensys solutions built on the ArchestrA architecture empower decision-makers to achieve their business goals without abandoning previous investments in automation systems, production processes or intellectual property.
The ArchestrA architecture provides a common foundation for industrial automation solutions and can effectively integrate with all disparate systems in a plant. By working more closely with Microsoft .NET technology, Invensys solutions built on the ArchestrA architecture will be able to bridge all levels of the enterprise and take advantage of the unparalleled installed base of Microsoft products and productivity tools in the manufacturing environment.
“We believe this is going to be a successful alliance and a great example of how we’re continuing to work with market leaders that use our platform to build solutions that focus on critical areas for our manufacturing customers, such as providing real-time visibility into their plant floors,” said Charles Johnson, worldwide managing director of the manufacturing industry solutions group at Microsoft. “Invensys not only has the demonstrated domain expertise in a number of important vertical segments, but also one of the longest track records of successfully developing go-to-market solutions based on the Microsoft platform.”
For example, Invensys’ ArchestrA plant automation and information software architecture was designed from the ground up to take advantage of Microsoft .NET technology and to extend the life of a customer’s existing systems. In addition, Invensys is the world’s second-largest supplier of Microsoft SQL Server™ and was the first major automation company to incorporate Windows® operating system-based workstation applications into a large-scale process control system. In 1996, with the introduction of I/A Series on Windows NT®, Invensys was also the first major automation company to incorporate Windows workstation applications into a large-scale process control system.
More recently, Invensys was the first company to utilize the Windows XP operating system for process control system applications and the first to use Windows CE in an optionally redundant industrial module. And today, Invensys is announcing one of the first mobile manufacturing solutions that will run on Windows XP for the Tablet PC (see today’s Invensys news release on Wonderware InTouch HMI software support for Microsoft Windows XP Tablet PC Edition).
The alliance’s first goal will be to extend the Invensys ArchestrA architecture using Microsoft .NET technology to create an adaptive collaborative environment for easily and effectively integrating all production management systems from enterprise resource planning and warehouse management to customer relationship management. The end result will be a complete business framework based on Microsoft .NET technology and Web services for the manufacturing plant or process of the future.
On a different level, Invensys and Microsoft engineers also are working together closely to embed ArchestrA at the device level to create Invensys automation systems that are fully appropriate for mission-critical industrial applications.
The two companies anticipate that their alliance ultimately will do the following:
- Drive solutions that provide real-time connections between shop floor, engineering, supply chain and product life-cycle management tools and enterprise applications
- Maximize customers’ investments while increasing overall productivity
- Increase uptime and asset availability for managing multiple sites, integrating with partners and optimizing complex supply chains
- Prove that technology and solutions from Invensys and Microsoft will be robust, flexible, scalable and secure
One customer already seeing benefits from Invensys and Microsoft working more closely together is the South African division of SABMiller plc, one of the world’s largest brewers.
“With Invensys and Microsoft, we believe we are on the right path to achieving our operational goals for excellence across our brewing operations, but we are just taking the first steps,” said Thinus Van Schoor, automation manager at SABMiller.
“We are encouraged by the results so far, like the significant cost savings from reduced engineering time and reuse of objects, and the way the ArchestrA architecture enables us to leverage standards and best practices. We also are pleased thus far with the ease of integration, and interoperability offered to other systems, as well as the overall flexibility.
“We have already captured a significant portion of our intellectual property in a library of ArchestrA objects, and we are making them available to all our plants,” Van Schoor added. “By leveraging the objects in our library, we can recognize significant savings. In fact, we are aggressively targeting engineering cost savings from reusable control modules, process specifications, and process classes or procedures.”
About Invensys
Invensys is a global leader in production technology. The group helps customers improve productivity, performance and profitability using innovative services and technologies and a deep understanding of their industries and applications.
Invensys Production Management works closely with customers to increase performance of production assets, maximize return on investment in production and data management technologies and remove cost and cash from the supply chain. The division includes APV, Avantis, Eurotherm, Foxboro, IMServ, SimSci-Esscor, Triconex and Wonderware. These businesses address process and batch industries -- including oil and gas, chemicals, power and utilities, food and beverage, and personal health care -- and the discrete and hybrid manufacturing sectors.
Invensys Rail Systems is a global leader in the design, manufacture, supply, installation, commissioning and maintenance of safety related rail signaling and control systems as well as a complete range of rail signaling and communications products. The business includes Westinghouse Rail Systems Limited (WRSL), Dimetronic Signals, Safetran Systems, Burco Services, Westinghouse Signals Australia and Foxboro Transportation. WRSL was recently awarded two contracts valued at more than £850m (US$1.3 billion) for the renewal of signaling on the London Underground.
Invensys also currently serves other market sectors through its Development Division. The businesses in this division are: Appliance Controls, APV Baker, Climate Controls, Hansen Transmissions, Lambda, Metering Systems and Powerware. Invensys is actively seeking to develop these businesses through equity partners or new owners.
Invensys operates in more than 60 countries, with its headquarters in London. For more information, visit www.invensys.com.
Microsoft-Invensys Alliance – Frequently Asked Questions
October 21, 2003
Q. What is the nature of the joint strategic alliance between Invensys and Microsoft?
A. Invensys and Microsoft are joining forces to accelerate the development of solutions and services that improve the real-time exchange of data in a production environment.
The alliance combines the strengths of Invensys in process and manufacturing applications and its expertise in key industry segments with Microsoft's platform, technology and enterprise products.
The companies will work together and invest resources to optimize the development of Invensys applications, systems and solutions by building those systems on the Microsoft platform of products. The companies will also engage in joint marketing, sales and training activities.
Q. Why was this Alliance formed?
A. For manufacturers today, the difference between success and failure lies in their ability to get the right information at the right time in the right context to the right person. At the same time, they need to protect their IT and automation system investments. The enhanced products that result from this alliance will help our customers to raise the ROI on their investment and reduce total cost of ownership as they:
- Achieve effective, adaptive and real-time collaboration throughout all levels of their enterprise to create true enterprise "agility"
- Eliminate many problems associated with system integration across enterprise boundaries
- Increase uptime and asset availability for managing multiple sites, contractors and complex supply chains
- Expand their enterprises to include suppliers, customers and other trading partners engaged in their production process
- Extend the life of their legacy systems and leverage the latest software technologies — and thereby protect prior investments in automation systems, production processes or intellectual property
- Rapidly assemble new applications using existing applications, versus the costly and time-consuming method of re-programming
- Invest in technologies widely in use today that are reliable, flexible, scalable and secure — and that will not be outdated or abandoned in the near future.
Q. What are the terms of this Alliance?
A. It is a three-year alliance, with options to extend and the goal of producing, marketing and selling enhanced software productivity tools and solutions that will allow manufacturing companies to increase their resource productivity and keep expenditures to a minimum. Both companies expect to reach new customers, expand into new markets and achieve measurable revenue growth over the next 3 years. Initially the companies will focus on the hydrocarbons (chemical, oil and gas) market, but later on will also target the power and utilities; food and beverage; and pharmaceutical market. Joint training and account planning are also part of the agreement.
Q. What are the fundamental principles that each party is committing to?
A. At the heart of the agreement is our desire to provide customers with a new generation of solutions that give them real-time visibility in their production environments. To do this, Invensys will use Microsoft's platform as the primary basis for its future solutions development and Microsoft for its part will help Invensys in its solutions development, provide training on its products, and engage in joint sales and marketing efforts.
Q. Is this Alliance an exclusive agreement?
A. No, it is not an exclusive agreement. Both companies can work with other partners. However the significant resources dedicated by both companies clearly demonstrate that this effort is a high priority for them. This is probably the largest and deepest commitment to date by Microsoft to an industrial solutions provider. Invensys has committed to enhancing the development of many of their products and solutions on the Microsoft platform. However, Invensys will continue to support users of legacy technology such as UNIX or the IBM iSeries (formerly AS/400).
Q. What are the specific commitments that Invensys is making in this alliance?
A. Both companies are committing significant resources to development, marketing and training. We are not publishing any specific dollar amounts except to say that the commitments from both sides are very significant.
Q. Will the two companies sell each other's products?
A. The companies will encourage the sale of each other's products; but actual orders will be booked by each company, for their own respective products.
Q. What training commitments are both companies making as part of this alliance?
A. Invensys will develop a technical training program designed to increase its knowledge and proficiency with Microsoft products and technologies, focusing on the Microsoft.NET Framework; Microsoft Windows Platform software; Microsoft Biz Talk Server; Microsoft Content Management Server; and the Microsoft Business Framework. Microsoft has committed funds and resources to help in this training.
Q. What marketing and sales commitments are both companies making as part of this alliance?
A. The companies will focus on marketing and selling Invensys products and solutions that are currently available on the Microsoft platform (such as ArchestrA) and others that will be available in the near future on the Microsoft platform (such as vertical solutions that may be developed on our Invensys collaborative environment framework). They will engage in traditional marketing and sales activities such as participation in industry events; preparation of white papers and case studies; joint sales calls and sales training.
Q. Invensys has many customers, particularly from Foxboro, that use UNIX technology. Will Invensys abandon those customers now that it has formally announced it is moving development of its products to the Microsoft platform?
A. No, Invensys is absolutely not abandoning any of its UNIX, or other legacy technology customers. Two years ago, when Invensys formally announced ArchestrA, the company signaled its intent to work under the Microsoft platform. Since then, Invensys has continued to make significant improvements to its flagship automation control platform, the I/A Series System. For instance, Invensys recently announced significant new improvements to the I/A Series, — new high performance, high availability controllers; and ultra-high availability Ethernet-based networking technology. Both improvements are available to I/A Series customers on the UNIX or Microsoft platform.
Going forward, the next generation of I/A Series A2 ("ArchestrA ready") systems will enable I/A Series users to continue to leverage the latest open technologies to continuously improve the performance of their plants – at same time allowing them to leverage their existing legacy systems.
Q. Will any new Invensys-Microsoft products and solutions be developed and sold as part of this alliance?
A. No previously unplanned products are jointly being developed as part of this alliance. Both companies will continue with their current product roadmaps. However, Invensys, working with Microsoft, will adapt its products and solutions to fit under the Microsoft platform and leverage the benefits of that technology. For example, as Invensys continues to enhance its ArchestrA framework, it will continue to leverage Microsoft technology. And as Invensys builds out its framework for a real-time collaborative environment, that will also be based on the Microsoft platform. Invensys products, such as the FactorySuite family of software, I/A Series System automation system, Triconex fault tolerant control systems, etc., will be developed going forward to take advantage of Microsoft technology.
Q. What Microsoft technologies are included in this alliance?
A. Invensys will adopt its products and solutions to fit under the Microsoft Platform and the Microsoft .NET Framework. The Microsoft platform covers the Microsoft Windows operating system including Windows 2000, Windows XP, Windows XP Embedded, Windows Server 2003 and successor versions. The Microsoft .NET Technologies encompasses Microsoft’s software and technologies for Web services which includes the Microsoft .NET Framework, Visual Studio. NET and other Microsoft developer tools and technologies.
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Invensys, ArchestrA, APV, Avantis, Burco, Dimetronic, Eurotherm, Foxboro, Hansen, IMServ, Lambda, Powerware, Safetran, SimSci-Esscor, Triconex and Westinghouse are trademarks of Invensys plc, its subsidiaries and affiliated companies. All other brands and product names may be the trademarks of their respective owners
