IBM acquires Prescinto to bolster renewable energy asset management capabilities

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Dive Brief:

• IBM has acquired software-as-a-service provider Prescinto to integrate the company’s renewable energy asset management software into IBM’s own asset lifecycle management tool, the company announced Tuesday.
• The deal adds the Bangladore, India-based firm that utilizes artificial intelligence and machine learning to help asset managers and operators manage their renewable energy portfolios to IBM’s stable of sustainability solutions. The terms of the deal were not immediately disclosed.
• For IBM, “Prescinto isn’t just a tactical acquisition” and plays into the company’s broader strategy for its asset lifecycle management tools, the Maximo Application Suite, as well as plans to expand its energy and utilities expertise and “help businesses across a range of industries become more sustainable, Kendra Dekeyrel, IBM VP of ESG and asset management product leader, said in an emailed statement to ESG Dive Thursday.

Dive Insight:

IBM’s Maximo Application Suite is already utilized by water, natural gas, oil, nuclear and other energy and utility companies, but the company has seen organizations increasingly turn to alternative energy generation like solar, wind and battery storage. IBM said in the release that the Maximo suite had the largest market share (10.8%) of any asset lifecycle management application in 2023, per a study from the International Data Corporation.

The tech company said the acquisition and enhanced functionality of Maximo tools will allow its clients to track and monitor the performance of their renewable energy assets in “near real-time,” identify sources of underperformance and receive recommendations for optimized generation.

“As organizations turn to alternative energy sources like wind and solar, IBM continues to support their journey,” DeKeyrel said. “The shift presents different challenges: it can be daunting to effectively manage and maximize the performance of high-tech devices like turbines, solar panels and inverters.” 

Prescinto was founded in 2016 and will bring with it a portfolio of clients based in 14 countries that collectively manage 16 gigawatts of power generation assets, according to the release. Prescinto’s asset performance management tool includes data capture and monitoring features, and also uses AI to give users analysis, data trends, actionable recommendations and action prompts for maintenance and repair.

The acquisition was announced the same day that research and advisory services company Verdantix gave the Maximo suite the highest average scores for functional and technical capabilities of any enterprise asset management software. IBM was recognized as a leader in the space, along with companies like Hexagon, ServiceNow and enterprise software firm Industrial and Financial Systems’ Ultimo tool. 

The global utilities asset management market is expected to reach $12.4 billion by 2031 — up from $4.3 billion in 2021 — according to a 2022 study by Allied Market Research.

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