Cloud and AI Strategy: How Technology Drives Manufacturing Business Goals

Magnus Edholm sits down with Brian Frattaroli, Global Industry Strategy and Portfolio leader for Siemens Software, to discuss the cloud and AI imperative driving business goals in manufacturing. According to IDC research, by 2029, more than 50% of all cloud compute resources will be devoted to AI workloads—a shift that's already transforming how manufacturers operate. In this conversation, Brian explains why business goals are now merging with technology goals, making cloud infrastructure essential for companies pursuing digital transformation. He addresses common concerns about cloud migration, including cost considerations, scalability options, and the differences between small-to-medium businesses and large enterprises. The discussion covers how Siemens' Xcelerator platform provides flexible, scalable solutions across design, simulation, and operations. Brian shares practical insights, including real-world examples like the FIA (international racing organization) using Siemens cloud-based simulation technology for aerodynamic studies and standards development. He emphasizes that moving to cloud doesn't require an all-or-nothing approach—companies can start with one domain or division and scale according to their business strategy. Key topics include the merging of business and technology goals, the role of trust in selecting technology partners, how cloud eliminates internal infrastructure costs while providing operational flexibility, and practical first steps for companies considering cloud migration. The conversation highlights how Siemens solutions—including Designcenter, Simcenter, Teamcenter, and Opcenter—enable digital threads connecting stakeholders across product development, production planning, and manufacturing operations. This video is part of LIVE from CES: Industrial AI in Action, a joint Siemens x AWS series featuring leaders, customers, and experts shaping the future of industry.