International Business Machines Corporation IBM recently announced the acquisition of Prescinto, a prominent provider of asset performance management software-as-a-service tailored for the renewable energy industry. Headquartered in Bangalore, India, Prescinto commenced its operation in 2016. Since then, the company’s operation has expanded across 14 countries with 16 Gigawatts of energy assets under its management.
With AI at the core, Prescinto’s cutting-edge technology addresses some vital functionalities of asset performance management of the renewable energy sector. This solution uses high-definition maps, real-time monitoring and custom alerts to provide a comprehensive and centralized visualization of assets. It deploys open-source protocols and a data governance layer for efficient data capture. Its AI-based analysis swiftly detects losses and offers data visualization and actionable insights to optimize energy generation. These leading-edge features facilitate efficient management, streamline operations and maintenance, maximizing return on investment.
IBM’s asset lifecycle management product Maximo Application Suite (MAS) already has a strong market presence across several sectors such as water, oil, natural gas and nuclear energy. Integration of Prescinto’s technology will further augment the capabilities of IBM MAS, strengthen its position in the energy and utility sector and reinforce IBM’s ability to support the enterprise’s sustainability goals.
The shift toward green energy adoption is gaining pace across industries globally. However, renewable energy companies are facing several challenges to maintain an increasingly complex system that includes high-tech devices like turbines, solar panels and inverters. IBM is aiming to develop a robust solution suite that will maximize energy output, enhance system effectiveness and minimize downtime.
Research suggests that the utilities asset management market is projected to reach a valuation of $12.4 billion in 2031, with a compound annual growth of 11.3%. The acquisition of Prescinto underscores IBM’s strategic alignment with this emerging market trend. This bodes well for the company’s long-term growth.
IBM recently signed an agreement to acquire Accelalpha, a company that specializes in Oracle Cloud applications. These strategic buyouts also reflect IBM’s broader strategy of enhancing its AI native product offerings for diverse use cases, solidifying the company’s leadership position in digital transformation across industries.
Shares of IBM have gained 65.6% in the past year compared with the industry’s growth of 50.9%.
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IBM currently carries a Zacks Rank #3 (Hold).
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