Follow Up To Verdantix Predictions For 2017: Watch The Market Shift Rapidly As Energy Specialists Vendors Move To Facilities Optimization Or Exit The Market
Verdantix made a bold prediction in its report “10 predictions for the REEFIM market in 2017” forecasting that market headwinds for energy management software specialists would result in vendors either expanding their proposition to look at facilities optimization in a broader sense, or exiting the market through selling to a broader software vendor or a services firm. Three months into the new year, the market is shifting even faster than we imagined.
In March, Wipro completed the $70 million sale of EcoEnergy to UTC’s subsidiary Chubb Alba Control Systems. The divestment was a strategic decision by Wipro to exit the energy management software market and focus on its core IT outsourcing business.
Among traditional energy management software players, we are witnessing new roadmaps that include expanded value propositions. For example, Panoramic Power has transitioned from energy management to using asset-level energy data for operational insight. And Powerhouse Dynamics has gained strong momentum in the restaurant, retail and convenience store markets, which is largely a result from providing added benefits beyond energy management including asset control and condition monitoring, and food safety audits.
In the future, we expect that vendors will continue the transition away from purely providing energy management solutions to broader offerings including operational optimization and asset maintenance. If not, they are likely to get acquired by players in the REEFIM market such as FM:Systems and Lucernex that are competing with other IWMS vendors to be the most comprehensive real estate platform.
To learn more about the Real Estate And Facilities Information Management (REFIM) ecosystem, see our recent report - IWMS Emerges As The Apex Platform In A Complex REEFIM Ecosystem.