How Much Does Asset Performance Management Software Cost?

Many asset-intensive industries benefit from the outcomes Asset Performance Management (APM) software supports. From a reduction in operations and maintenance expenses to increased safety and efficiency, APM software is fast becoming an essential tool for many energy industrials looking to reduce their risk and exposure to supply chain and pricing volatility, as well as attract and retain talent. In fact, Gartner® positions APM in the Slope of Enlightenment in its famed hype cycle for both Utilities and Oil & Gas industries which tells us the technology is mature and adoption is increasing due to known outcomes.

According to Gartner®, Asset Performance Management encompasses the capabilities of data capture, integration, visualization, and analytics tied together for the explicit purpose of improving the reliability and availability of physical assets. APM includes the concepts of condition monitoring, predictive forecasting, and reliability-centered maintenance (RCM).

GE Vernova's APM provides functionality beyond these areas and focuses on an interoperable software offering that can support anything from spare parts analysis to prescriptive analytics with AI. Asset Performance Management is an important software in the asset performance ecosystem due to its ability to get more from other industrial data sources.

One of the first questions we receive in any interaction is this: “How much does Asset Performance Management software cost?”

The answer depends on a number of factors. Let’s break down what can influence the cost of Asset Performance Management software, and what you should consider before making a purchase.

1. Number of Assets and Tags Monitored or Users

The number of assets and tags from assets you need to monitor affects cost, especially when it comes to predictive analytics within APM. APM software vendors usually charge based on how many machines or pieces of equipment you want to track. The more assets you have, the more data the software has to process, which can increase the price. For condition-based monitoring, the number of users and workflows being covered will affect cost.

2. Applications Deployed

As noted above, Asset Performance Management is a robust suite of applications. Customers can select to start with one application or multiple. There is no right or wrong way to approach so long as the applications are tied directly to supporting business outcomes.

3. Scale of Deployment

Deploying APM to a single site or across an enterprise impacts cost. However, some vendors, such as GE Vernova, have a pricing model for SaaS whereas the initial cost for the microservices architecture covers all future sites. This encourages customers to scale their APM application(s) to multiple sites as this foundational cost is already covered and only the additional site costs are incremental.

4. Deployment Type: Cloud vs. On-Premises

How you choose to deploy APM software can also impact the price. You generally have two options.

Cloud-Based Deployment: Cloud-based solutions tend to have lower upfront costs because you don’t need to invest in expensive hardware or maintain servers. Instead, you pay an annual or monthly subscription fee. This option is typically more scalable and cost-effective for companies that want flexibility. Cloud-based APM also comes with the benefit of receiving regular updates with new releases and never having to plan for upgrades.

On-Premises Deployment: While we’ve seen a major shift to cloud in recent years,  a number of customers continue to deploy APM on-premises. This means they install the software on their own servers and use their in-house staff to manage. While on-premises systems offer more control and customization, they tend to have higher upfront costs, including hardware, installation, and ongoing maintenance.

On-premises can also limit scalability and limit users to the version purchased unless regular upgrades are purchased.

For more detail on this topic, see our blog outlining the differences between on-premises and cloud deployment for APM.

5. Services

While most companies agree that out-of-the-box capabilities are best, additional services can be required to support business outcomes. These include:

6. Licensing and Subscription Models

APM software providers offer different pricing structures, and it’s important to understand which one fits your business best.

7. Advanced Features

Many APM software solutions come with a wide range of additional features that can impact price. Some advanced features you might need include:

8. Support and Training

Many Asset Performance Management vendors offer various levels of support and training. For many customers in the energy industry, a premium level of support is required due to the critical role APM plays in supporting production and safety.

Additionally, training –– albeit much lower in cost compared to all other variables –– can be a factor in the overall cost.

While the cost of Asset Performance Management software can range from $100,000 to $1,000,000+ each year depending upon the variables listed above, customers typically report a return on investment that more than justifies the cost by avoiding costly breakdowns, reduce maintenance expenses, and improve the efficiency of their assets.

Don’t take our word for it. Many of our customers have realized substantial returns on their APM investment. Below are some real-life examples. 

SABIC: Improving Machine Lifespan

SABIC, a global leader in the chemicals industry, used GE Vernova’s APM software to improve the performance of their machinery. By monitoring their equipment and predicting failures, they extended the life of key machines.

Result: They improved the mean time between failures (MTBF) by over 1,100%. This means their machines were running much longer without breaking down, which saved them a lot of money on repairs and replacements.
 
SOCAR Turkey: Reducing Inspection Costs

SOCAR Turkey used GE Vernova’s APM to extend the time between mandatory inspections of their equipment. By monitoring asset health more closely, they could safely delay inspections without risking breakdowns.
 
Result: SOCAR Turkey saved money by reducing the frequency of inspections and still kept their operations running smoothly.
 
OQ: $59M Savings from Avoiding Downtime

OQ, an international energy company, used GE Vernova’s APM software to optimize the maintenance of their critical assets. They implemented a risk-based approach to inspections and maintenance, meaning they only worked on machines when it was truly needed.

Result: OQ saved approximately $59 million by avoiding unnecessary downtime and costly repairs.
 
AboitizPower: Keeping Power Plants Running Smoothly

AboitizPower used GE Vernova’s APM software to monitor 38 critical assets at their power plant. By predicting failures before they happened, they reduced unplanned downtime and kept the plant running more efficiently.

Result: They prevented costly breakdowns, keeping their plant online and productive, which improved their bottom line.

While APM software requires an initial investment, the impact on business KPIs and overall return on investment can be substantial. From preventing expensive downtime to improving asset performance, energy industrials are realizing millions of dollars in savings thanks to APM solutions like those offered by GE Vernova.

In short, Asset Performance Management software is no longer a nice-to-have tool. Instead, the energy industry is fast deploying APM software as a core element to produce power and energy resources more reliably, efficiently, and safely. 

GE Vernova has more than 350 customers globally who rely on APM to enhance their operational excellence. To learn how APM can support your business objectives and gain greater insight into the cost of deploying, reach out to us today.