Signify Premium Insight – The Value of Partnerships in Siemens’ Fourth Quarter

In a difficult year dominated by a global pandemic, Siemens Healthineers found solace in its Value Partners. 

These large customers which have entered into long–term managed service deals with Siemens bolstered the company’s order book in a quarter which saw Imaging revenues fall 5.7% compared to a year earlier. This support in a tough year demonstrates the wisdom of Siemens’ strategy of moving toward these long–term deals. 

• Companywide, quarterly revenues reached Eur3.88bn, 6% lower compared to Q4 2019. 
• Imaging posted revenues of Eur2.45bn.  
• In Imaging, strong first and second quarters, which saw 10% and 8% growth respectively, supported the weaker second half, leaving the segment’s revenues up 2% on 2019. 

Vendor Impact 

• Siemens Value Partnerships highlight the benefits and importance of long-term, comprehensive managed service deals when riding out difficult market conditions such as those relating to Covid.  
• To secure large, managed service contracts, healthcare technology vendors will have to offer a strong product set across their entire ranges, as well as the software and broad professional service offering to allow healthcare providers to maximise return on investment. Relatively few vendors are in this position, offering a competitive advantage to those that can support such deals.