Case Study: SKF achieves lower costs and faster, more reliable factory operations with Microsoft Azure

SKF builds factories of the future with Azure hybrid cloud solutions managed with Azure Arc

SKF, the Swedish industrial manufacturer behind bearings, seals, and related services, was looking to modernize its factories and digitalize its full value chain to improve decision-making, reduce complexity, and overcome legacy hardware, software, and compliance challenges. To support this transformation, SKF partnered with Microsoft Azure and used Azure Stack HCI, Azure Arc, and Azure SQL Edge/SQL Managed Instance as part of its hybrid cloud approach.

Microsoft Azure helped SKF build a “cloud-controlled, locally executed” factory platform that standardized operations across its sites, enabled unified management, and kept production data processing close to the factory floor. The rollout across about 100 factories has delivered roughly 40% lower hardware-related costs and a 30% reduction in machinery-related IT/OT downtime, while also improving scalability, automation, and uninterrupted operations.

SKF