"Siemens is an industrial giant with a 175-year history. The company has survived by constantly changing itself to meet new challenges. A rapidly growing part of Siemens business relies on software, and today, that means FOSS. In-house software development needs to become much faster, and much more focused on features that drive customer value, rather than commodity components. How can Siemens adapt to the age of sharing and collaboration? " Winfreid Seidel, Open Source Senior Expert, Siemens AG International Technology Conference Mindtrek 2017 20th - 21st of September, 2017 Tampere, Finland

1. Shake it up
FOSS as a force for culture change
Winfried Seidel / Karsten Gerloff
Siemens Corporate Technology

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September 2017Page 2 Siemens Operating Model
Milestones of a 170-year history
1866
The dynamo makes
electricity part of
everyday life
1816 – 1892
Company founder,
visionary and inventor
1847
Pointer telegraph
lays the foundation
of Siemens as a
global company
1925
Siemens electrifies
the Irish Free State
with a hydroelectric
power plant
1975
Breakthrough of
high-voltage direct
current (HVDC)
transmission
2010
TIA Portal takes
automation a stage
further
2016
MindSphere
introduced as the
digitalization
platform for all
industries
2012
Test operation of the
world’s largest rotor for
offshore wind turbines
1983
First magnetic resonance
imaging scanner goes
into operation
1959
SIMATIC makes
Siemens a leader in
automation technology
Werner von Siemens Siemens innovations over the past 170 years

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Vision 2020 – Our focus is E-A-D –
and there is strong growth in “D”
Note: Figures based on Industrial Business 1 Growth FY15 to FY16, rebased
Digitalization
 Leader
Automation
 Global #1
Electrification
 Leader
Strategic direction
Expand #1 position
and utilize for
digitalization
Differentiate through
enhanced offerings with
automation & digitalization
Market CAGR
FY17-20
~+8%
+3-4%
+1-2%
Digital services
~€1.0bn
Siemens software
~€3.3bn
Revenue FY 2016
Enhanced
automation
~€18bn
Enhanced
electrification
~€42bn
Classic services
~€17bn
Strengthen leadership
by combining software,
platforms & services
Cloud data platform: MindSphere
+12 %1

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More software in Siemens products:
Focus on differentiation
Operating
System
Cloud
frameworks
Cloud
orchestration
IoT
backend
HMI frameworks
Virtualization
Monitoring
Stream
processing
Data
collection
App
isolation
Augmented
reality platforms
Mobile
Device
Enterprise IT
interfaces
Cloud
Middleware
Communication
Domain-specific frameworks
SIEMENS
application
SIEMENS
application
Operating
System
SIEMENS
application
Proprietary
operating system
Differentiating
Why to buy the
Siemens product
Commodity
Invisible for
customersUp to 2000
2000–2015
Today

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Free & Open Source Software is widely used in our products
Power Generation
Industrial Automation
Rail Automation
CNC Controls
Vehicle Control Systems
Industrial communication
Building Automation
Medical Imaging

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Working together across organization boundaries
Open Source and Inner Source
Differentiation&customervalue
Open Source
Inner Source
Closed Source
Approve?
Approve?
Siemens Software Management System
• Social coding platform & component
management
• Concept for ownership, operations, financing
agreed by all Divisions & corporate core
• Centralized ownership
• Run by developers, for developers
• Makes it easy to take an agile approach to
software engineering
• Inner Source complements OSS instead of
trying to compete
• Inner Source components may be candidates
for OSS release (but this isn’t automatic)
Amount used

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The Software Management System:
built from OSS tools, connects to existing tools via interfaces
Social Coding
Platform
(Gitlab)
&
SW Component
Management
(SW360)
Component
Metrics
Security
Vulnerability
Information
Component
License
Compliance
Information
3rd Party
and Siemens
Component
Information
Quality
Assurance
Open Source
contributions
Artifact
Repositories
Software
Development
Coding platforms
(internal & external)
Clearing tools
(Fossology, others)
Vulnerability
monitoring
InterfaceInterface
An open source based integrated platform with interfaces to automate, accelerate and scale

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The Siemens Inner Source License
It’s basically an MIT license with strong copyleft 
The Siemens Inner Source License - 1.1
Copyright (c) Siemens AG, 2016
The intention of this license is to promote software development collaboration among Siemens group companies (i.e., Siemens AG and all
affiliated companies in which Siemens AG holds at least 50% of the shares or exercises control), (together hereinafter "ANY PERSON").
The original version and all modified versions of software developed and contributed by employees of ANY PERSON shall be
available via source code repository for all employees of ANY PERSON. Code located in the repository and associated documentation
are licensed under the following terms and conditions to ANY PERSON.
Permission is hereby granted, free of charge, to ANY PERSON obtaining a copy of this software and associated documentation files (the
"Software"), to make use of the Software, including without limitation the rights to use, copy, modify, merge, publish for internal purposes,
distribute, sublicense and/or distribute copies of the Software, and to permit persons to whom the Software is furnished to do likewise.
If the software is included in a product, service, solution or offering for a third party, it can only be used under the respective applicable
license conditions of ANY PERSON.
THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO
EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY,
WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE
SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

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Challenges along the Inner Source path
Legal & regulatory questions
All this is much easier with FOSS.
Export Control & Customs
Divestments
Transfer pricing and tax
Adjusting
Expectations
From control to
flexibility
From silo thinking to
collaboration
Investing in change
From worries about
confidentiality
towards confidence
Impact on business
models
Reluctance to pay
Cultural challenges

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Thank you!
Winfried Seidel
Siemens Corporate Technology
Otto-Hahn-Ring 6
81739 Munich
Germany
t +49 (89) 636-45097
winfried.seidel@siemens.com