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Magic Quadrant for Enterprise Asset Management Software

Published: 09 November 2017 ID: G00325830

Analyst(s):

Summary

The EAM market is very mature, with differentiation most notably in usability, scalability and how well solutions support industry-specific processes. CIOs and IT leaders of asset-intensive organizations should use this research to understand the current state of the EAM market.

Strategic Planning Assumption

Through 2020, the dominant delivery method for EAM in large asset-intensive organizations will continue to be on-premises systems, with cloud/SaaS being more favored by smaller organizations.

Market Definition/Description

Asset-intensive organizations evaluate and procure enterprise asset management (EAM) products to address physical asset care requirements. These products provide management support for maintenance of:

  • Fixed plants such as power generation, manufacturing, oil refineries and equipment

  • Linear distributed assets such as power lines, rail and pipelines

  • Mobile and fixed fleet assets such as service equipment, trucks, transformers, pumping stations and wind generator towers

This report focuses on the asset-intensive industry (particularly manufacturing, natural resources, transportation and utilities).

An EAM solution includes functionality for managing, planning and scheduling; work order creation; maintenance history; and inventory and procurement; as well as equipment, component and asset tracking for assemblies of equipment. In some instances, the functionality is extended by the addition of basic financial management modules such as accounts payable, cost recording in ledgers and HR functions such as maintenance skills databases.

For asset-intensive organizations with complex requirements, the functionality provided must be capable of managing:

  • Hierarchical plant structures

  • Preventive maintenance

  • Outage/shutdown planning for refurbishments

  • "Fleet" capability, not just for vehicles, but also for fleets of assets such as oil fields or wind farms

  • Tracking and managing of operational technology (OT) devices and systems

This is reflected in the requirements listed here, most of which will be satisfied by the best-in-class software products in this category:

  • Detailed asset registry, combined with internal and external parts and support descriptions (core EAM) and the ability to define and maintain hierarchical and list-based asset and component structures.

  • Long-term maintenance, project and work schedules (core EAM), including assigning tasks to resources for job completion over a period of time.

  • Support for complex (alternative manufacturers and alternative suppliers) inventory relationships for indirect maintenance, repair and operations (MRO) that are associated with forecasting planned and unplanned work on installed assets (core EAM). This includes an internal catalog of replacement parts linked to assets and components that is used for managing single-location and multilocation inventory records of spare parts.

  • Supply chain capability for indirect goods, with demand planning linked to maintenance and repair schedules (core EAM), enabling requesting parts and materials for both stocked and nonstocked items. Capability of procurement management and supplier management.

  • Probability-based, "just in case" MRO-focused inventory and procurement, rather than "just in time" or MRP-based inventory.

  • Unplanned job reporting/requesting — capability for end users to report faults or failures and have them acted on as part of a job plan.

  • Preventative maintenance (time-based) — creating recurring maintenance jobs based on a time schedule.

  • Human capital management capabilities to match skills, training and availability with work requirements.

  • Statistical analysis of equipment performance and reliability — standard reports and analytics for management oversight of operations, as well the ability to develop custom reports.

  • Ability to accept condition-based triggers for creating work orders.

  • Serial number tracking and tracing for equipment and parts.

  • Financial support via detailed cost analysis.

  • Warranty tracking to component levels and support for manufacturers' records requirements for equipment under warranty.

  • Shutdown project planning.

  • "Lock out/tag out" or "permit to work" functions.

  • Enablement of both connected and disconnected application usage for mobile workers.

  • Capital construction planning (and for utilities, compatible unit estimating).

  • Inclusion of fleet maintenance support functionality for vehicles and nonvehicle assets. Defining and managing a replicated set of repeated assets to manage the data collectively and individually.

  • Support for the management of "smart" field devices and software-based systems such as operational technology (OT) and the Internet of Things (IoT).

  • Linear asset management — defining and maintaining linear structures (pipes, wires, rail, roads) within the EAM systems in a dynamic and flexible way, including offsets and intersects and integration with GIS.

Technically, the EAM applications are designed to scale to more than 100 concurrent users and run on multiple sites from a single central database (as opposed to a computerized maintenance management system [CMMS], which is typically a small-scale, single-site application). Thus, they cater to whole-of-business requirements, rather than departmental or site requirements. They should also be able to support cloud or hosted deployments. Finally, where applicable, they should be designed to integrate with other relevant enterprise applications — such as financials, procurement and HR — necessary for managing the business of asset-intensive organizations.

EAM does not include asset performance management (APM) or asset investment planning (AIP), although some EAM vendors provide a subset of APM or AIP functionality (typically in a separate product). In addition, most EAM vendors have partnerships with APM and/or AIP vendors. This Market Quadrant does not rate the APM or AIP functionality of the EAM vendors but does assign credit for having some capability and for having strategic partnerships (see "Market Guide for Asset Performance Management" and "Technology Overview for Utility Asset Investment Planning" for more on these products).

Magic Quadrant

Figure 1. Magic Quadrant for Enterprise Asset Management Software
Research image courtesy of Gartner, Inc.

Source: Gartner (November 2017)

Vendor Strengths and Cautions

ABB (Asset Suite)

ABB is an approximately $34 billion power and industrial automation company based in Zurich, Switzerland. ABB's Enterprise Software group is the result of a number of acquisitions, most notably its acquisition of Ventyx in 2010 (Gartner estimates EAM revenue of $191 million). The Asset Suite product has been focused almost exclusively on the EAM market for power generation and utilities. Asset Suite is primarily deployed at large utilities in North America, with some large deployments in Europe and success in the Asia/Pacific region. The company offers two EAM products, this one (Asset Suite) and Ellipse, separately evaluated below.

Asset Suite 9.4.0 is the latest release and supports all core EAM functionality. It is the first version built on a modern, web-based architecture and replaces the COBOL-based product. Mobility (Action Manager) and analytics are included. However, ABB does sell a couple of separate mobile products, including a mobile workforce management (MWM) product called Service Suite and an operator rounds product called eSOMS. Reliability-centered maintenance (RCM) capability is included in Asset Suite. Separate, but complementary, is ABB's Asset Health Center APM product and Electronic Work Package (eWP) through ABB's partner DataGlance.

Strengths
  • Asset Suite has a strong presence in nuclear power generation.

  • Within its target industries, it is a highly scalable solution, suitable for large, multifaceted enterprise deployments.

  • Asset Suite targets power generation (including nuclear), chemical, oil and gas, and pulp and paper.

  • ABB is developing an integrated view of connected assets linking OT systems, mobility, APM and asset management.

  • Customers report high satisfaction with the product meeting their needs, good service responsiveness and ease of deployment.

Cautions
  • Customers' report that Asset Suite is a higher-cost EAM solution to deploy and maintain with a low rating for ease of ERP integration.

  • It has very limited presence outside of power generation, transmission and distribution.

  • The 9.4.0 version has a limited track record in deployment.

  • There is potential confusion and dilution of efforts with maintaining two EAM products in overlapping markets.

ABB (Ellipse)

ABB is an approximately $34 billion power and industrial automation company based in Zurich, Switzerland. It offers two EAM products, this one (Ellipse) and Asset Suite, separately evaluated above.

ABB's Enterprise Software Group (Gartner estimates EAM revenue of $191 million) is the result of a number of acquisitions, and the Ellipse product came to ABB via its acquisition of Mincom in 2011. The Ellipse product is installed in a number of different asset-centric industries, with utilities representing approximately a quarter of its customer base. The geographic distribution of its customer base is broad, with 40% of its customers in Australia (its home base), 40% in the Americas and 20% in EMEA.

Ellipse 8.9 is the latest release and supports all core EAM functionality, including linear assets support within the product. ABB has introduced Ellipse Select, a preconfigured version of Ellipse that embeds a standard configuration into the product. Separate but complementary, is ABB's Asset Health Center APM product. ABB is also reselling the Fieldreach mobility suite, which was developed in the U.K. by Ellipse partner AMT-Sybex. ABB partners with Microsoft for analytics. Ellipse also integrates with the ABB LinkOne parts visualization tool and Axis procure-to-pay solution.

Strengths
  • It is flexibly deployed as a point EAM solution or a comprehensive ERP suite, complete with financials, and is highly scalable.

  • It has a global client base (particularly Australia and the U.S.) and support resources, including significant channel sales of 35%.

  • It has a strong customer base and experience in utilities, transport, mining and natural resources.

Cautions
  • License and maintenance costs are reported at the high end of the scale for EAM.

  • ABB's partner network is still undeveloped, and its own Ellipse implementation resources, outside of utilities and mining, are limited.

  • Very limited use in manufacturing and unproven in other asset-intensive subsectors.

  • There is potential confusion and dilution of efforts with maintaining two EAM products in overlapping markets.

  • Very negative customer reference ratings in user satisfaction and quality and capability of product.

eMaint

eMaint is a CMMS/EAM solution provider based in Bonita Springs, Florida, and acquired in 2016 by Fluke, a manufacturer of industrial testing equipment. Gartner estimates EAM revenue of approximately $22 million. Additional office locations are in Europe and India.

eMaint 11.4.0 is the latest release. This EAM/CMMS product is sold as a cloud solution, primarily targeting smaller organizations (up to $500 million revenue) in manufacturing, oil and gas, and chemicals. A mobile extension, eMaint MX Mobile, supports access via smartphones, tablets and mobile computers through a browser-enabled user interface. The relationship with Fluke provides for integration with a wide ecosystem of SCADA integration (Schad), wirelessly connected tools (Fluke Connect tools), remote monitoring sensors (Fluke Sensors) and maintenance software (Fluke Connect).

Strengths
  • eMaint has a large number of customers globally, particularly in North America, South America, Europe and Asia, primarily in manufacturing, oil and gas, utilities, and public sector.

  • The product is sold as a subscription service, resulting in a low cost to license and deployment that is readily scalable.

  • References report a high degree of satisfaction with product value and support.

  • The product is well-suited to clients seeking a simple, straightforward EAM solution with minimal footprint and disruption.

Cautions
  • There are a limited number of eMaint customers with large-scale deployments.

  • Complex maintenance (linear and fleet) and MRO supply chain capability are limited, compared to other EAM systems.

  • There is limited availability of third-party resources; some references report negative sentiment about end-user training, although it is accessible online.

  • Offline mobile workforce capability, released in March 2017, currently has limited functionality.

IBM

IBM is an approximately $80 billion global technology and consulting corporation with headquarters in Armonk, New York. Its Maximo Asset Management product is positioned in IBM's Watson IoT group. Gartner estimates EAM software revenue of $295 million. Maximo is deployed in a broad cross section of asset-intensive subsectors around the globe, including mining, oil and gas, utilities, power, transportation, manufacturing, and aviation.

Maximo 7.6 is the latest major release of the product and provides support for linear assets and calibration, in addition to the full set of core EAM functionality. IBM provides a Maximo SaaS offering, built/deployed on top of IBM's cloud infrastructure. Bluemix IBM also provides two mobile technology options — Maximo Everyplace and Maximo Anywhere. The former is the legacy product for connected (Everyplace) modes and is now included in Maximo. For disconnected (Anywhere) modes of operation, Maximo Anywhere is the new mobile platform built on the IBM MobileFirst product. IBM also offers several industry solutions with enhanced functionality. The company is internally developing a predictive maintenance capability and partnering with MaxGrip and GE Digital for aspects of APM.

Strengths
  • Maximo is a highly scalable product with a large global customer base.

  • The product is suitable for both small and very large enterprises.

  • The product supports a broad range of functionality, including the extended functionality found in its industry solutions, to support all industry subsectors.

  • References rate the product capabilities highly.

  • The company has strong involvement with industry trends such as PAS55 and ISO 55000 support and certification.

Cautions
  • References, customers and prospects report that costs and time to deploy and maintain are at the high end of the EAM market and say the product is below average in value for money, despite the offered functionality.

  • Can be very complex to configure and support the extensive features.

  • Customers report below-average satisfaction with IBM contract engagement and product support, and they report low ease of deployment and integration.

  • Mobile strategy has been evolving over the past several years, with the Maximo Anywhere product still gaining traction.

  • IBM doesn't directly offer on-site training but does offer free online courses. Despite a wide base of third-party service providers, references rank end-user training low.

IFS

IFS is a $430 million global enterprise application software vendor based in Linkoping, Sweden. Gartner estimates EAM software revenue as $74 million. The company sells ERP, field service management (FSM) and EAM systems, including delivering its EAM module as a point solution or as part of the ERP suite. IFS sells its products to midsize-to-large enterprises in a wide range of industries with significant maintenance and construction requirements — including energy and utilities, nuclear, oil and gas, manufacturing, mining, pulp and paper, and aerospace.

IFS Applications 9 is the latest release of the IFS ERP/EAM product. It has extensions for fleet and linear assets, compatible units, GIS integration and field workforce scheduling. IFS recently updated its mobile strategy (using HTML5+Cordova for smaller apps and Xamarin for larger apps), and is available on iOS, Android and Windows. IFS partners with BAE Systems to deliver a reliability-centered maintenance (RCM) module. The company has acquired MXi Technologies for aviation maintenance, but that remains a separate product. A subscription-based cloud offering is planned to be available in late 2017.

Strengths
  • The product supports a broad range of EAM functionality, can be deployed in all industry subsectors and scales to large installations.

  • IFS's references report high levels of satisfaction with integration and deployment, service levels, and value for money, and with relatively lower license implementation and maintenance fees.

  • IFS's EAM functionality is preintegrated to the IFS Applications suite of enterprise applications, including financials, procurement and HR, but references also report ease of integration with other ERP products.

  • Applications support data replication for operating in remote operations in a disconnected mode.

  • Support and close involvement with industry standards such as ISO 55000, and compliant with 21 CFR Part 11.

Cautions
  • Customers report concerns with contract negotiation, ease in dealing with the vendor, end-user training and software support timeliness.

  • IFS's mainly European asset-intensive customer base is weighted toward Western Europe, resulting in fewer experienced resources outside those areas.

  • Its oil and gas industry presence is mainly drillers and oil field service organizations.

  • Customer base for the current release lags, compared to other vendors.

Infor

Infor is an approximately $3 billion global enterprise application software vendor based in New York. Gartner estimates EAM software revenue at $146 million. Infor's EAM product (Infor acquired Datastream 7i) had been focused mainly on manufacturing. Infor has broadened its EAM product focus across multiple industries such as manufacturing, utilities, healthcare, facilities, transit, public sector (including state/local, federal and transit), life sciences, and transportation.

Infor EAM 11.3.1 is the latest release, and it supports core EAM functionality such as planning, work orders, inventory and procurement. It also has a proven mobile product called Infor EAM Mobile on Android, iOS and Windows. Support for linear assets was added in a 1Q16 release. Infor EAM also supports some basic RCM functionality such as reliability calculations and risk matrices. For more advanced RCM functionality, Infor has a partnership with MaxGrip.

Strengths
  • Fulfills all the criteria for a leader in Gartner's segment descriptions and delivered as SaaS or on-premises.

  • It has high user satisfaction ratings for quality of EAM software, user groups and peer community, and customer experience.

  • Infor EAM is relatively easy and cost-effective to upgrade and maintain and is highly scalable.

  • Good availability of third-party resources.

  • Support and close involvement with industry standards such as ISO 55000, and compliant with 21 CFR Part 11.

Cautions
  • Customers report below-average satisfaction with software integration and deployment ease.

  • Some customer concerns with quality of technical support.

  • For government and utilities, Infor has two products — EAM and Infor Public Sector — that overlap for maintenance capabilities, which may cause confusion in the market. These are on different platforms, and the assessment here is solely on Infor EAM.

Mainsaver

Mainsaver is a relatively small ($10 million to $20 million), independent, stand-alone EAM software vendor based in San Diego. It is privately held by investors, who purchased the Mainsaver product from Titan in 2002. Mainsaver targets small-to-midsize enterprises, and is designed specifically for fixed-plant environments such as manufacturing and power generation. It has been widely deployed by independent power producers, including both conventional and renewables. It is primarily focused on North American markets, but has a growing partnership network outside the continent.

Mainsaver 12.8.1 is the latest version, and it supports core EAM functionality, including planning, work orders, inventory and procurement. It also offers a mobile deployment option called Mainsaver Connect on Windows, which is also available on iOS and Android. It has a third-party partnership for analytics functionality.

Strengths
  • Mainsaver's references rate its product functionality, reliability, implementation and service levels highly. We believe that the narrower scope of product results in a much lower probability of project dissatisfaction for customers.

  • The product is relatively inexpensive, easy and quick to deploy and upgrade, and well-suited to clients seeking a simple, straightforward EAM solution with minimal disruption.

  • The company has a proven cloud-based EAM option and significant experience in subscription-based cloud delivery.

  • References report high satisfaction in contract negotiations and dealing with the vendor.

Cautions
  • The product is primarily installed at small, stand-alone facilities, not enterprise deployments.

  • It has a limited presence outside of North America, but is growing via partners in Europe and Asia.

  • The product has limited third-party support available in the market.

  • Product functionality, particularly in analytics, is more limited than with top-tier EAM systems.

  • The product does not offer linear assets or fleet management industry extensions.

Oracle

Oracle is an approximately $38 billion global technology company with headquarters in Redwood Shores, California. Gartner estimates EAM software revenue as $62 million. Oracle's Work and Asset Management (WAM) is an EAM product brought in through the acquisition of SPL WorldGroup (which had acquired the Synergen product) in 2006. Oracle Utilities Global Business Unit is based in San Francisco, in a location separate from the main Oracle headquarters. Oracle WAM 2.2 is the latest version of the product. It supports the full set of EAM functionality, as well as linear assets. WAM v2 is based on new architecture (no longer Oracle Forms-based) and is designed to support improved configurability and integration. Oracle also provides Operational Device Management (ODM), a product to manage the maintenance of intelligent devices in the field — including smart meters — via WAM. WAM supports APM and basic RCM functionality. Mobile functionality is supported by a separate Mobile Workforce Management (Oracle MWM) on Windows, iOS and Android.

Strengths
  • Oracle's references rate its ease of integration and overall value near the top of its peers. References also rate highly the ease of dealing with the vendor on product and support issues.

  • Oracle has a dedicated asset solutions unit with sales and consulting expertise focused on the market.

  • Includes embedded intrinsic APM and asset health capabilities and includes operational device management (support of OT systems).

  • The product is particularly well-suited for deployment to support a range of municipal services, including electrical distribution and water/wastewater, and Oracle Utilities has a good understanding of this market segment.

  • Oracle can deliver to a wide geographic market with this product.

  • WAM is part of a broader set of utility industry functionality such as customer information management (CIS) and outage management systems (OMSs) that is delivered to mainly public-sector utilities.

Cautions
  • Oracle has a global presence; however, the majority of the deployment is in North America, with less presence in the rest of the world — leading to a shortfall in experienced resources.

  • The product has a small (historical) presence in other industries, but is current targeted at utilities and city governments.

  • Due to the development process, functionality is available in the on-premises version first, before being available in the cloud (e.g., compatible unit functionality for utilities, at the time of writing).

  • Customer references express concern about pricing and contract flexibility negotiation, as well as ease of deployment.

  • References also reported low satisfaction in meeting their organizations' needs and the availability of knowledgeable third-party resources.

Ramco Systems

Ramco Systems is part of the Ramco Group of companies — a large, diversified conglomerate. Gartner estimates EAM software revenue at $7 million. Headquartered in Chennai, India, Ramco Systems has offices in all geographic regions. The vendor provides ERP and HCM suites, along with an MRO solution, primarily for the aviation and logistics, power, and manufacturing markets. Market penetration is mainly in India, the Middle East and Asia, but the company also has customers across North America, Europe and Asia (including ANZ).

Ramco Enterprise Series 5.3 is the latest version, and it supports EAM within a broad ERP software package. It also offers a mobile deployment option for specific functions, and is available on iOS, Windows and Android. It has native predictive analytics functionality. The company has set up an innovation lab co-funded by Singapore EDB, with Air France Industries KLM Engineering & Maintenance as anchor partner, to build innovative technology use cases around robotics, augmented reality, blockchain and facial recognition in a maintenance scenario.

Due to its specific vertical focus for EAM, Ramco has been featured as a Niche vendor in the Magic Quadrant.

Strengths
  • Ramco has a proven cloud-based EAM offering and an on-premises version, and significant experience in subscription-based cloud delivery.

  • Well-suited to aviation and aerospace needs, with significant calibration system experience and conforms to Federal Aviation Administration (FAA) e-signature requirements.

  • Ramco has customers in most regions globally.

Cautions
  • There is limited awareness of the Ramco brand outside the Asia and Middle East regions, and the company offers only limited global capabilities in terms of localizations and languages, especially in Europe.

  • Customer base lags for the current release, possibly due to extensive customization during deployment.

  • The product has limited third-party support available in the market.

  • Customers report concerns with ease of deployment. They rank it low in satisfaction with meeting their organizations' needs and with end-user training.

SAP

SAP is an approximately $21 billion global enterprise application software vendor based in Walldorf, Germany. Gartner estimates EAM software revenue at $204 million. SAP offers a complete ERP suite, designed for a cross section of industries. Its EAM offering is used by a broad spectrum of, mostly large, asset-intensive organizations. Its EAM customers are located in every major region of the world.

SAP is transitioning its customer base from ECC 6.0 to S/4HANA (on-premises or cloud). SAP pursues a cloud-first policy, so cloud-based EAM includes more up-to-date solutions than the on-premises version. Both products support all core EAM functionality, as well as extended functionality such as calibration, linear assets and compatible units. Mobile functionality is supported via the SAP Work Manager product (on-premises or cloud) and SAP Asset Manager (native iOS and cloud-based). Scheduling is supported by the Multiresource Scheduling (MRS) ERP extension, embedded S/4HANA Resource Scheduling (on-premises and cloud) and scheduling software from ClickSoftware (cloud only). SAP acquired Fieldglass, which brings with it a cloud-based contingent workforce management solution. For some APM capability, SAP has a partnership with both GE Digital and MaxGrip. SAP has its own SAP Predictive Maintenance and Service application (on-premises and cloud) available and is developing an additional application for asset performance and strategy management.

Strengths
  • SAP EAM is preintegrated to the SAP suite of enterprise applications, including financials, procurement and HR, and should be considered by organizations already invested in SAP ERP systems.

  • SAP has a mature and extensive global community of EAM support resources and partners, minimizing implementation risks and support shortfalls.

  • The product is highly scalable and suitable for large and midsize enterprises across the full spectrum of asset-intensive industries.

  • SAP has made significant investments relevant to EAM, including mobile, analytics and workforce management, as well as developments like Leonardo IoT Integration and Asset Intelligence Network capability, which are useful for Industrie 4.0 initiatives.

  • References rate high satisfaction in dealing with the vendor, and vendor's adherence to SLAs and overall service and support.

Cautions
  • SAP EAM remains best-suited to companies fully committed to using SAP ERP as a platform (e.g., Enterprise Central Component [ECC] and S/4HANA). It is not a practical candidate for a stand-alone EAM implementation or integrations with non-SAP ERP systems.

  • The S/4HANA product is newly released this year, and no references for S/4HANA EAM were available at the time of writing.

  • Customers report costs to deploy and maintain the product are at the high end of the EAM market, due to needing a broad ERP implementation to obtain EAM functionality.

  • Customers rate contract and pricing flexibility low, and low value in what the product provides for the money spent. References and customers consistently rate usability of the product as poor, although SAP's investments in simplified user experience show promise in addressing this perennial issue. There is also concern that user interface developments for the S/4HANA version will leave the ECC 6.0 users behind.

Schneider Electric

Schneider Electric is an approximately $28 billion electrical distribution and industrial automation company with headquarters in Paris. Schneider Electric's Avantis EAM product has a long history in the EAM market, having come to Schneider through its acquisition of Invensys. Although Avantis is found in a large cross section of industries around the world, approximately half of its revenue comes from a diverse set of energy and utilities subsectors (particularly hydro and water). There is increasing focus on manufacturing and infrastructure. While Schneider has a global presence, the Avantis product is best known in North America, where it originated — with growth in Europe and Asia.

Avantis.PRO 6.0 is the latest version of the product and supports all core EAM functionality, as well as extended functionality such as linear assets and fleet management. In addition to offering core EAM functionality on mobile devices, Schneider has also integrated its IntelaTrac operator rounds product with Avantis to enable operators to initiate a work order based on an inspection finding. The acquisition of Prism has added intrinsic APM capability to Avantis. In 2016, Schneider Electric acquired MaxEAM, which provides advanced scheduling applications for mobile work, and is partnering with MaxGrip to provide embedded RCM capability.

Strengths
  • Avantis is a broadly used best-of-breed EAM solution suitable for most energy and utilities subsectors.

  • Schneider is primarily an OT provider, and has invested in OT integration with Avantis to support condition-based maintenance.

  • Lower-than-average maintenance fees lead to lower long-term TCO.

  • References rank the product highly for end-user training and quality of technical support.

  • Customers are in most regions globally.

Cautions
  • The product has a small number of large, multisite asset-intensive enterprise deployments.

  • References rate product reliability, contract negotiation and ease of deployment near the bottom of its peers. References report limited third-party resource availability.

  • It is one of the few IT business applications in Schneider's predominantly OT and industrial portfolio.

  • There is minimal involvement in subscription-based cloud deployment.

  • Customer base significantly lags for the current release.

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant may change over time. A vendor's appearance in a Magic Quadrant one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. It may be a reflection of a change in the market and, therefore, changed evaluation criteria, or of a change of focus by that vendor.

Added

This is considered to be a new Magic Quadrant due to the change of industry scope from those published before. In prior years, we restricted this to an energy and utilities industry customer focus.

Dropped

This is considered to be a new Magic Quadrant due to the change of industry scope from those published before. In prior years, we restricted this to an energy and utilities industry customer focus.

Inclusion and Exclusion Criteria

For this Magic Quadrant, we are evaluating the most prominent EAM products worldwide, based on Gartner inquiry frequency and customer base. Software products must address the majority of functional capabilities listed above. They should have a demonstrable track record in asset-intensive organizations; they should have generated license and/or subscription fee revenue of at least $3 million during the past 12 months; and they should cover multiple geographies and industries.

Evaluation Criteria

Ability to Execute

Gartner analysts evaluate providers on the quality and efficacy of the processes, systems, methods or procedures that enable IT provider performance to be competitive, efficient and effective, and to positively impact revenue, retention and reputation. Ultimately, providers are judged on their ability and success in capitalizing on their vision and on their ability to enable clients to achieve a successful outcome with minimal risk.

  • Product/Service: Core goods and services offered by the vendor that compete in/serve the defined market. This includes current product/service capabilities, scalability, quality, feature sets, skills, reliability and interfaces, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.

  • Vendors that support a wide range of functionality or high degree of depth of functionality and complexity have greater market potential and are rated accordingly. This is a cross-industry Magic Quadrant; therefore, the evaluation of a provider's offering is focused on the provider's ability to serve in several distinct industry sectors.

  • Overall Viability: An assessment of the overall organization's financial health, including a combination of license and maintenance revenue, the financial and practical success of the business unit, and the likelihood that the individual business unit will:

    • Continue to invest in the product

    • Continue offering the product

    • Advance the state of the art within the organization's portfolio of products

  • To score the highest, vendors should: (1) support a wide installed base; (2) have an active user community; (3) have signed new customers in the last 12 months; and (4) have the likelihood of acquiring other products/organizations.

  • Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, value for money, understanding the organization, a combination of SaaS and on-premises delivery models, and the overall effectiveness of the sales channel.

  • Pricing includes vendor flexibility in supporting multiple pricing scenarios such as perpetual licensed, hosted, SaaS and business process outsourcing.

  • Market Responsiveness/Record: The ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change.

  • This criterion also considers the vendor's history of responsiveness, its track record for entering and leaving markets, and the customer view of the vendor's industry and EAM execution.

  • Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to:

    • Deliver the organization's message in order to influence the market.

    • Promote the brand and business.

    • Increase market presence and awareness of the products.

    • Establish a positive identification with the product/brand and organization in the minds of buyers.

  • This "mind share" can be driven by a combination of publicity, promotions, thought leadership, word-of-mouth and sales activities. This criterion also includes advertising spend and organization visibility.

  • Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements, training, installation process, and the customer view of ease in dealing with the vendor.

  • Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.

    This criterion also includes responsiveness to problems, the availability and use of skilled resources (in-house and third party) and the ease of upgrade and enhancement processes.

Table 1.   Ability to Execute Evaluation Criteria

Evaluation Criteria

Weighting

Product or Service

High

Overall Viability

Medium

Sales Execution/Pricing

Medium

Market Responsiveness/Record

High

Marketing Execution

Low

Customer Experience

High

Operations

Low

Source: Gartner (November 2017)

Completeness of Vision

Gartner analysts evaluate providers on their ability to convincingly articulate logical statements about current and future market direction, innovation, customer needs, and competitive forces and how well they map to the Gartner position. Ultimately, providers are rated on their understanding of how market forces can be exploited to create opportunity for the provider.

  • Market Understanding: The ability of the vendor to understand buyers' needs and translate these needs into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those wants with their added vision.

  • This criterion also considers if the vendor's product is best-of-breed or a suite (the majority of EAM delivery is best-of-breed), has cloud and on-premises options (the vast majority of EAM delivery is on-premises) and its overall functionality.

  • The vendor should demonstrate strategic actions around partnership opportunities and trends in the market. Examples include plans for:

    • Artificial Intelligence/machine learning

    • Cloud/SaaS delivery

    • Mobile versions of EAM modules

    • Real-time analytics

    • Integration to ERP, CRM and GIS products

    • Integration to APM functionality

  • Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization, and externalized through the website, advertising, customer programs and positioning statements.

  • This criterion also considers the vendor's marketing plan. We look at whether vendors have a well-articulated strategy for revenue growth and a sustained opportunity for profitability. Key elements of the strategy include a sales and distribution plan, internal investment priority and timing, and partner alliances. A Leader will move a market by offering users proven best practices, templates and samples by industry. Customers should continue to grow their solutions via a range of modular choices (at varying price points) that do not lock them into a platform decision.

  • Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.

  • This criterion also considers pricing models (e.g., named, concurrent) available.

  • Offering (Product) Strategy: A vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature set as they map to current and future requirements.

  • The vendor understands major technology shifts in the market and communicates a plan to leverage them. Examples include:

      • Support for multiple mobile operating systems

      • IoT/OT platform integration

      • Named industry extensions — linear assets and fleet management

      • APM: RCM and predictive analytics

      • Calibration

  • Business Model: The soundness and logic of a vendor's underlying business proposition. Sales channel and partnership strategies for implementation, integration, training and support are important components.

  • This criterion also considers how the EAM unit exists as either a pure-play or a bigger suite.

  • Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including verticals.

  • This criterion considers organizations by vertical structure, industry specializations, different vertical versions, and number of verticals supported.

  • Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

  • This criterion considers if the vendor is doing innovative development with the product and if it has links with other complementary systems: APM, AIP, GIS and MWM/FSM.

  • Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries, as appropriate for that geography and market.

  • This criterion also considers how many countries the product is deployed in, how many languages are supported, and the top targeted countries for the product.

Table 2.   Completeness of Vision Evaluation Criteria

Evaluation Criteria

Weighting

Market Understanding

High

Marketing Strategy

Medium

Sales Strategy

Medium

Offering (Product) Strategy

High

Business Model

Medium

Vertical/Industry Strategy

Medium

Innovation

High

Geographic Strategy

Medium

Source: Gartner (November 2017)

Quadrant Descriptions

Leaders

Leaders combine the characteristics of vision and thought leadership with a strong ability to execute. Leaders in the EAM market are present in a high percentage of EAM evaluations, and they win a significant number of them. They have robust core functionality and offer reasonable — although not necessarily leading-edge — capabilities in extended EAM areas. To be a Leader, a vendor doesn't necessarily need to have the absolute broadest or deepest EAM application. Its offerings must meet most mainstream maintenance requirements in complex industries without significant modifications, and references must be available to validate this. Leaders must anticipate where customer demands, markets and technology are moving, and must have strategies to support these emerging requirements ahead of actual customer demand. Leading vendors should have coherent strategies to support IoT and OT integration and APM, and must invest in, and have processes to exploit, innovation. Leaders also have market momentum and strong client satisfaction — both in the vendor's local markets, as well as internationally. Because Leaders are often well-established in leading-edge and complex user environments, they benefit from a user community that helps them remain in the forefront of emerging needs.

Key Characteristics:

  • Reasonably broad and deep EAM offerings

  • Proven success in moderate- to high-complexity environments

  • Participation in a high percentage of new deals

  • A strong and consistent track record

  • Consistent performance and vigorous client growth and retention

  • Enduring visibility in the marketplace from both sales and marketing perspectives

  • A proven ecosystem of partners

  • Global scale

Challengers

The critical characteristic of Challengers is that they have capable, proven and mature products, with numerous live customers. They also have consistent track records of successful implementations. Challengers' offerings often run at very large and complex operations. These solutions are in use by a large number of individual enterprises, supporting multiple operations locally and worldwide. While vendors in this quadrant provide solid and established EAM solutions, there are generally some insufficiencies in offerings or go-to-market strategies when compared with Leaders. These solutions are preferred by buyers that favor Ability to Execute over Completeness of Vision. Vendors can have practical visions for these solutions, but vision and thought leadership are typically not on par with solutions in the Leaders quadrant.

Key Characteristics:

  • A capable, proven and mature EAM, with numerous live customers

  • A consistent track record of successful implementation

  • Often running in large and complex operations

  • Offerings that are not as broad or deep as EAM leaders

  • Generally, not displaying the overall thought leadership, innovation or compelling visions of EAMs on the right of the diagram

Visionaries

To be a Visionary, a vendor must have a coherent, compelling and innovative strategy that seeks to deliver a robust and evolving offering to the market. Visionaries are often thought leaders in one or more EAM solution dimension (for example, functionality, services, go-to-market, vertical industry or deployment strategies), and they tend to be on the leading edge of some emerging concepts. However, these offerings have some deficiencies in their Ability to Execute in areas such as demonstrable proven deployments, company viability, growth, global scale or operations. At a minimum, solutions in the Visionaries quadrant fall into one of two broad categories. They can be established EAM offerings that fall short of the leading positions in the market on customer delivery. Or they can be innovative vendors with unique, and potentially disruptive, views of where the market is going, but have not yet proven these in the marketplace. These vendors can exhibit innovation in EAM products, services, or go-to-market and deployment strategies, but lack in other areas.

Key Characteristics:

  • A coherent, compelling and innovative strategy that seeks to deliver a robust and evolving offering to the market

  • A thought leader in one or more EAM solution dimension that tends to be on the leading edge of emerging concepts

  • A yet undemonstrated ability to handle a broad range of complex user requirements

  • Execution gaps and/or shortfalls in demonstrable customer delivery

  • Innovation in EAM products, services, go-to-market, vertical or deployment strategies

Niche Players

Although there might be an assumption that vendors in the other quadrants are better choices for new EAM buyers, in certain circumstances Niche Players are just as good or better choices for prospective users. This is because they might focus on a geographic or vertical market that is meaningful to particular users or be focused on a market segment less concerned with on-premises delivery, scalability or complex processes. However, this focus alone is not a compelling-enough differentiator for a vendor to ascend to a leadership position. It would also have to perform well in other dimensions. Although some vendors in the Niche Players quadrant often have solid EAM solutions for a specific industry, segment or geography, they are not as broad as the EAM solutions in other quadrants.

Key Characteristics:

  • Focuses primarily on a geography or vertical market

  • Not a generally differentiated offering, although it can have some unique capabilities

  • Not yet well-established and visible in the market

  • Not a broad or deep EAM

  • Market momentum and product or company viability may be in question

A Niche Player should be considered for inclusion on a shortlist when the specific project requirements match the vendor's specific strengths (see the Strengths and Cautions sections for each vendor).

Context

Vendors included in this Magic Quadrant have demonstrated their ability to provide licensed, SaaS or multiple delivery options that support EAM customers across a range of asset-intensive industries. Organizations using this Magic Quadrant to evaluate vendors for an EAM project shortlist should consider the variations in requirements that reflect their own specific needs of the sector in which they operate. By definition, Leaders in this Magic Quadrant are suitable for almost every asset-intensive industry. Challengers, Visionaries and Niche Players, in contrast, should only be considered when the requirements match the vendor's specific industry, capabilities, experience or regional focus.

The large number of vendors in the Niche Players quadrant is reflective of a market that, although it has been in existence since 1999, is relatively fragmented. This is the case, despite a considerable number of acquisitions, mergers and other forms of consolidation over the years. Most of the vendors in the Niche Players quadrant have a long history of providing EAM software to asset-intensive organizations, and therefore, may be appropriate for specific types of EAM deployments.

In this market sector, clients need to look at their overall application portfolios and plan how their EAM solutions will interact with other related asset management applications, such APM and AIP (see "Mapping a Route to Asset Management and Reliability" ). Organizations also need to make key technology architectural decisions, such as choosing between an EAM point solution approach and an ERP suite solution, as part of their EAM selection processes. Based on the relative importance of asset reliability and availability to the overall success of the business, a company should select the vendor that best fits its application architecture. At the same time, it should offer the optimum mix of functionality for the company's portfolio of plants and equipment. Vendors vary in scalability and fit to purpose, and a solution that is appropriate for one client may lack key features needed by another client. Long-term vendor and product viability are factors in most customer evaluations, and potential buyers should examine current profitability, as well as a long-term commitment to EAM, the product and their industry.

Although the scope of this Magic Quadrant is global, some vendors focus on specific geographies and may be small globally but significant regionally, so do not choose vendors based on size alone. The Magic Quadrant process is, by necessity, an averaging of vendor offerings and performance. Therefore, we recommend consulting the authors for advice on your needs, location and industry subsector, such as transportation, manufacturing, oil and gas (upstream, midstream or downstream), mining and metals, power generation (nuclear, renewable or hydroelectric), transmission and distribution, or water/wastewater and process industries.

Magic Quadrant analysis represents conditions at a specific point in time. To be consistent and complete in the analysis, Gartner stops all data collection after a cutoff date. The cutoff date for this Magic Quadrant was August 2017.

This Magic Quadrant evaluates many EAM vendors in the market, but is not intended to be an exhaustive list of all possible vendors, solutions or products. The Magic Quadrant is a valuable tool for assessing and comparing multiple solutions and vendors. However, clients are encouraged to develop a clear understanding of their own objectives and requirements, and to use the Magic Quadrant in conjunction with inquiries with Gartner analysts.

Market Overview

EAM is a mature software market. The majority of asset-intensive organizations already have at least one EAM system, and many have standardized on one enterprisewide system. Some organizations have been using the same system for over 20 years. In addition, large organizations made substantial investments, including significant customizations, in their current systems and have had little appetite for switching providers. In all of these ways, the EAM market is very much like the broader ERP market. It has experienced low, single-digit growth and a low churn rate for a number of years now.

The low churn rate has been a mixed blessing for users. On the one hand, support for legacy versions of products has been extended by a number of EAM vendors, removing any external pressure to upgrade or replace existing deployments. However, product development continues unabated, and all vendors assessed released new versions of their products in the first half of 2017. Legacy applications can also be difficult and costly to maintain, particularly given the number of customizations common in older deployments. A number of the EAM vendors in this Magic Quadrant have only recently had a mature mobile technology offering.

For many organizations, the EAM decision has been linked over the past few years to a focus on asset performance management (APM) and for utilities, to asset investment planning (AIP) (see "Market Guide for Asset Performance Management" and "Technology Overview of Utility Asset Investment Planning" ). Improving the decisions on what work to do and when (or where to invest new capital) is becoming a more strategic area of investment for asset-intensive organizations, since most of them already have an EAM system in place to automate asset management work processes. The EAM vendors in this Magic Quadrant have widely varying APM and AIP strategies, including building or acquiring the capabilities and partnering with APM and AIP vendors. It is an area of innovation for many of them, but EAM still represents the vast majority of each of their businesses.

Recent developments suggest the EAM market is on the cusp of a significant replacement/upgrade phase. In addition to a large number of vendors modernizing their architectures, cloud-based alternatives are becoming more common (see "Cloud-Based Alternatives Are Changing the Enterprise Asset Management Market" ). While only some of the vendors in this Market Quadrant have a cloud-based EAM offering today, all have a cloud offering on their near-term roadmaps. The cloud-based alternatives will not appeal to all sectors of the EAM market, but an increasing number of midsize organizations that face capital constraints are considering cloud as a deployment option. Gartner's own research also found that organizations are increasingly choosing cloud-based EAM alternatives where there is an enterprisewide initiative to move away from managing on-premises IT infrastructure and applications.

We are also seeing the emergence of new requirements in some areas. Economic changes mean that asset-intensive organizations are seeking maximum returns on their assets, so operational asset optimization becomes more important. This, in turn, means further refining the relationship between operations and maintenance scheduling, so requirements are emerging to connect maintenance scheduling to production, delivery and profitability.

Evidence

This analysis was the result of a formal survey of the vendors listed, the customer references provided, and extensive and continuous engagement with the vendors' customers through client inquiry during the year.

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying business proposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.