Software that serves the physical environment is usually highly customized. For every $1 of software sold, there is anywhere from $1 to $10 of accompanying implementation and professional services revenue.
Just how much money gets spent in customization?
The average utility has an asset management platform contract that costs $20 million + per year. These asset platforms track everything from substations to big power plants and much of the data is static upon entry. Contracts are usually a baseline price for the software and then tens of thousands of hours of pre-booked professional services. The existing leaders in this asset management space are IBM Maximo, Oracle Primavera, or Infor ERP. These firms offer both the software and the professional services revenue.
Like the long-standing assets they manage, these software platforms are not built for iteration. This is why Energize is incredibly bullish on new asset management platforms like Sitetracker that are purpose-built for more distributed assets. Energy and industrial customers require a new software experience. In the past, critical infrastructure execs looked to solve problems by adding more people and billable hours. The tide is turning. Now the default in the energy and industrial verticals is to attempt to solve a problem with software.
Platforms like Sitetracker (and others) all bring world-class asset management solutions to the new asset bases with an easier onboarding schedule and a lower price-point. These suites are also all built with newer technology stacks allowing for faster iteration and response to customer needs. And the best of these new solutions are enabling applications to integrate with their workflows. Want a predictive AI application for your engine? Here is SparkCognition. How about computer vision detection for QA? Check out Matroid. Worker safety and communications? Beekeeper hits the mark, Just check the box and new applications integrate into field operations. This is the future, happening now. New software giants will take over the asset management vertical.
Better software and faster feedback cycles will drive greater efficiency in our operating environment. It will be a fun space to watch over the coming years.