Acquiring to expand in IoT: Capgemini, Altran and Engineering/Industry 4.0

The Altran acquisition will develop Capgemini’s OT capabilities and improve its ability to compete in segments such as IoT and edge computing

The acquisition of Altran, announced on June 24, will expand Capgemini’s engineering and R&D services capabilities and complement the company’s established consulting and IT capabilities. Capgemini is positioning as an “intelligent industry” vendor that can provide solutions around Engineering 4.0 and Industry 4.0. and expand in smart technology-driven segments such as IoT, AI, 5G, cloud, edge, data and cybersecurity. While Capgemini has well-established IT expertise and digital transformation (DT), design and innovation consulting capabilities, as evidenced in Capgemini Invent, the company will gain Altran’s operational technology (OT) capabilities, which are a key component in IoT models (see TBR’s special report IoT is trending toward smaller, easy-to-replicate projects that will generate increased data over time).

TBR notes that Capgemini is catching up to some of its peers in IoT. For example, Capgemini’s direct competitor Atos already has a history in OT due to its acquisition of Siemens’ IT Solutions and Services business and global strategic alliance with Siemens AG, giving it a head start in IoT. Atos increased its investment in ongoing joint efforts with Siemens in IoT, and in May Atos launched the BullSequana Edge server, which manages data at the edge and can be used securely for IoT environments. But in February Capgemini partnered with AR solutions provider Idemia to develop an IoT device management platform that strengthens the security and connectivity of devices and data. The platform will be based on Capgemini’s IoT device management platform X-IoT, which securely connects and manages cloud gateways and protocols, and on Idemia’s M-Trust solution.

The acquisition of Altran, which is expected to close at the end of 2019, will add 47,000 employees and provide Capgemini with access to key decision makers and technology budget holders around intelligent industry solutions. While Capgemini already has reach with IT and business leaders, Altran will grant access to leaders in manufacturing, supply chain and engineering R&D.

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