Emerson Transaction & Value to Petroleum Supply Chain Talk w/
Emerson Transaction & Value to Petroleum Supply Chain Interview with Antonio Pietri, President and CEO of AspenTech - ARC Forum 2023. Interview conducted by Andy Chatha of @ARCadvisory.
Timestamps: - 00:00
Antonio, recently you completed a major transaction with Emerson Software. Could you tell us a little bit, how is that going to help you deliver more value to your customers? – 00:27
Yeah. Great. Well, thank you for that question. And the fact is that we're very proud of the transaction that we did with Emerson. Emerson is turned out to be a great partner. The thesis for that transaction was to really get AspenTech to scale, not only in addition to paying $6 billion that contributed to software businesses. So today the new AspenTech is about 4,000 employees and 1.2 billion in revenue. So now we have a scale to be more acquisitive, which is a second part of the thesis for the transaction. Really leverage Emerson's balance sheet to help AspenTech be more acquisitive in the market at scale. So we'll continue to drive organic software development innovation, but also doing organic M&A in order to accelerate our growth and our expansion into asset intensive industries. The third part of the thesis was really for AspenTech to expand into new markets.
So with the two software companies that they contributed, we're now into the utilities industry, transmission and distribution. Were into upstream oil and gas. So today the new AspenTech model, the entire petroleum supply chain from the rock in the reservoir to the fuel distribution to gas stations. And then lastly, we've expanded our value proposition to your question from just profitability to profitability and sustainability. Being in the utilities industry is about global electrification, which is a key dimension of net zero carbon emissions. The upstream capabilities that we took on, we can also use for carbon capture and sequestration for geothermal energy and so on. And since we closed the transaction with Emerson, we've also announced a couple of acquisitions in mission, which we announced yesterday, is now renamed. The DataWorks Business Unit is an enterprise data management platform. And to me, the simplest way to frame measure is it helps bring order to data. We're hearing from customers that they really have a challenge with organizing their data, understanding the relationships between data, and that's what it mentioned does. And then the other transaction that we've done since Emerson is a company called Mine in the metals and mining space.
Well, that's very impressive. Now also, you have a quite diverse set of solutions now as companies are trying to actually transform their operations and so forth and become more sustainable. How do you feel that all the combined portfolio will help them move faster in their journey? – 03:20
Yeah, yeah. No, that's a great question. And it's what we're hearing from our customers now that we've been introducing the new AspenTech. They react in a very positive manner that now they understand the portfolio of solutions that we can bring to bear around sustainability. And frankly, they are the ones telling us that they feel we're so uniquely positioned to help them in their own transformation in this energy transition into new business models or new areas. So look, historically we've done efficiencies and efficiencies. Now everyone recognizes that it's about reducing energy consumption, which reduces the Co2 footprint. We can do carbon capture and sequestration. We've now built capabilities to model for hydrogen, hydrogen production, hydrogen storage, and transportation, where also we've also introduced capabilities to do paralysis for circularity or electrolyzers for the hydrogen production, but also biofuels.
Aspen technology has always been very big on first principle models, correct? That's your core business. Correct. How do you merge that with all of these AI models that we are starting to see come in? How do you actually combine and leverage them, take full advantage of both of these technologies? Could you elaborate on that? 05:48
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