Robert Bosch recently announced the creation of its own IoT cloud computing network to strengthen its competitiveness in the technology industry. Traditional German industrial companies like Bosch are also looking for a transition, and they want to switch from a device manufacturer to a supplier of machine-related services.
Bosch hopes that their engineering experts will take advantage of the benefits of the Internet of Things. On Wednesday, Bosch announced that they plan to build their own cloud platform to compete with US technology companies such as Amazon, Google, Microsoft, IBM and Salesforce.
Bosch's cloud platform will rely on computing centers in Germany, which will attract customers who are skeptical about US server and data security.
Bosch CEO Volkmar Denner said: "There are many manufacturers like Bosch who want to add software and services, and many IT companies want to get involved in the realm. The competition between companies has been fully developed."
Stuttgart-based Bosch plans to combine its 50 indoor applications with the cloud platform this year, and after 2017 they will start serving other companies. They have now decided to build data centers elsewhere in the world, but the specific timeline has not yet been revealed.
More than 5 million devices are currently connected to Bosch's IoT software suite, which includes helping users remotely control home temperature, helping car owners find parking spots, and tracking product quality after people leave the factory.
Bosch declined to say how much they are going to invest on the cloud platform. They just said that they will invest about 500 million euros a year on this new technology.
The company plans to charge based on the customer's specific services, but currently they have not estimated how much the future profit will be. Market research expert Gartner estimates that global public cloud market sales this year will exceed $200 billion.
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