IBM’s Acquisition Of Prescinto Shows Growing Demand For Predictive Maintenance Solutions To Meet Net Zero Goals

IBM’s Acquisition Of Prescinto Shows Growing Demand For Predictive Maintenance Solutions To Meet Net Zero Goals

On October 15, 2024, global industrial asset management solution provider IBM announced its acquisition of Indian-headquartered asset performance management (APM) software provider Prescinto. Founded in 2016, Prescinto manages 16GW of clean energy assets across 14 countries, offering advanced capabilities in data capture, real-time monitoring, and AI-driven predictive analytics, to optimize renewable energy operations and manage clean energy assets efficiently.

Over the past 18 months, Verdantix has emphasized the need for businesses to adopt industrial technologies that drive decarbonization by optimizing energy usage, reducing emissions and improving operational efficiency. APM solutions with predictive analytics have long been used to prevent costly unplanned downtime and maximize performance –their role in achieving sustainability and net zero goals is now becoming increasingly clear. By optimizing asset efficiency, these solutions inherently contribute to energy savings and emission reductions. In the Verdantix 2023 industrial operations and maintenance survey, 78% of respondents considered predictive maintenance software to be ‘critical’ or ‘helpful’ to achieving their firms’ net zero goals. 

The acquisition of Prescinto illustrates IBM’s continued commitment to accelerating decarbonization efforts while enhancing the capabilities of its IBM Maximo Application Suite (MAS) – its solution for asset lifecycle management. Recognized as a market Leader in both the 2024 Verdantix Enterprise Asset Management and APM Green Quadrant benchmarks, the IBM MAS will now offer capabilities to track and monitor the performance of solar, wind and energy storage assets in near-real time. The solution will identify root causes for underperformance and recommend actions to optimize generation. This acquisition significantly strengthens IBM’s capabilities to support renewable energy firms.

Sixty-one per cent of respondents in the Verdantix annual survey plan double- or single-digit increases in spend on decarbonizing their plant operations, while a further third see the implementation of digital technologies for emissions reduction as a high priority in the coming year. With a growing focus on maximizing the performance of renewable infrastructure, capabilities such as condition monitoring and predictive maintenance will be critical to ensuring the success of these energy transition technologies. 

IBM’s acquisition of Prescinto reflects the growing trend in the APM market towards accelerating the energy transition for industrial customers. Since early 2022, several large players have made similar moves: AspenTech launched its Sustainability Pathways to enhance site-wide energy efficiency, optimize utility networks and develop sustainable alternative processes; Fluence – a joint venture between Siemens and AES – expanded its software portfolio to encompass real-time performance monitoring and AI-driven predictive analytics for energy storage assets; and GE Vernova introduced its APM Accelerators – a suite of pre-built industry models tailored for renewables such as wind and solar. Vendors in this space should consider pursuing similar strategies, either through strategic acquisitions or organic growth, to integrate advanced energy management and environmental performance capabilities.