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Aspen Technology Banks on Portfolio Strength & Acquisitions

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Aspen Technology, Inc. (AZPN - Free Report) is leaving no stone unturned to aid capital-intensive enterprises assess asset management with robust data-driven insights.

In this regard, the company has rolled out collaborative workflow management and visualization solution, Aspen Enterprise Insights.

The latest solution assembles data from across enterprises and analyzes it to offer actionable insights that in turn aids decision-making processes.

Notably, the company expanded its portfolio with the help of acquisition of Sabisu, provider of hybrid-cloud-based enterprise workflow and visualization solutions, in June 2019.

With Aspen Enterprise Insights, the company aims to address evolving needs of smart enterprises to boost productivity. The solution will offer customers with real-time access to data-driven insights for seamless asset management.

The incremental adoption of its latest solution is anticipated to aid the company’s top line in the days ahead.

Expanding Product Portfolio Holds Promise

In a bid to maintain its competitive position in the asset optimization software market, Aspen Technology continues to strengthen its portfolio. Moreover, inorganic strategy has aided the company to diversify its product portfolio strategically.

Notably, asset management solutions aid manufacturers assess the operating conditions of their assets. The solutions also aid them to take appropriate action backed by data-driven analytics to increase asset productivity in an efficient way. These solutions help in expanding operating margins of process manufacturers.

Rapid proliferation of IoT, and increasing investment on digital enterprise software are expected to boost demand of Aspen Enterprise Insights solution.

Moreover, as enterprises aim to capitalize on business value of data, heterogeneous data visualization is likely to gain importance amid growth in IIoT or Industrial Internet of Things. These trends favor financial prospects of the latest offering.

Per P&S Intelligence data, the enterprise asset management market is projected to hit $8.7 billion by 2024 at a CAGR of 13.5% between 2019 and 2024. The growth projection reinforces Aspen Technology’s efforts in this vertical.

Synergies from Buyouts Bode Well

Aspen Technology has been active on the acquisition front. Buyouts have aided growth by expanding product portfolio and adding competence.

For instance, in February 2018, AspenTech acquired Apex Optimisation, for their unique Generic Dynamic Optimisation Technology (GDOT) to enable the company align Advanced Process Control (APC) with Planning & Scheduling, helping unified production optimization for petrochemical companies and refineries in complex industrial environments.

In fact, Mnubo and Sabisu acquisitions are also expected to strengthen Aspen Technology’s offerings with embedded AI capabilities.

Risks Remain

Increasing investments on portfolio expansion, product enhancements and strategic acquisitions are likely to weigh on margin expansion at least in the near term.

Moreover, Aspen Technology’s offerings compete with similar solutions from SAP (SAP - Free Report) , IBM (IBM - Free Report) and Oracle (ORCL - Free Report) , to mention a few, which remains a concern.

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