Services, software and recurring revenue models

“The Ovation Automation Platform 4.0 builds upon our boundless automation vision to bring a unifying data fabric across the organizations to optimize operations from device to enterprise.”

“Ovation 4.0 brings customer-focused innovation, such as secure generative AI models to offer prescriptive operations and maintenance guidance together in a robust solutions portfolio.”

“It also offers integration with our Ovation Green software to improve holistic awareness across traditional and renewable power generation and storage to aid customers who have an increasingly complex mix of generating assets.”

“One of our breakthrough innovation priorities is software-defined automation. Our industry-leading Ovation Automation platform just launched a software-defined AI-ready platform for the power and water industries.”

“We believe bringing AspenTech fully under Emerson's ownership at this time would enable us to combine technology capabilities to rapidly accelerate our vision of moving the control system landscape to a software-defined enterprise automation architecture.”

“We call the full suite of software modules, Emerson's Enterprise Operations platform, which will run production into our safety, reliability and optimization at the site regionally, and eventually at the enterprise level for all our customers.”

“We will deploy this capability in phases, moving from foundational integration of our various software modules to site level and then eventually enterprise-wide control and optimization.”

“We believe this approach will move the existing $30 billion control system and optimization software TAM from its current construct of 1/3 software, 2/3 hardware and services for a predominantly software-based market, growing high single digits with a significant proportion of recurring revenue.”

“Across the key capabilities required to offer customers an Enterprise Operations platform, we believe the combination of Emerson and AspenTech would have unique offerings relative to our leading automation competitors as well as to nontraditional players like ERP and cloud providers.”

“In particular, our extensive experience integrating software modules to our distributed control system suite, our leading approach to zero trust cybersecurity and our insights into native connectivity with field devices enable us to provide compelling value to our customers.”

“For total clarity, AspenTech's suite of optimization software solutions would continue to be actively sold on top of third-party control systems as they are today.”

“We see meaningful opportunities to leverage Emerson's management system to improve operating margins, cash flow and innovation productivity as we have demonstrated with test and measurement.”

“We are focused on our value creation road map. And at the successful completion of these strategic actions, we will have created a highly attractive $16 billion global industrial technology company with a comprehensive portfolio of software-defined and hardware advantaged automation solutions.”

“Industrial software is our largest growth platform, and software represents approximately 14% of post-transaction sales, which is well positioned to increase as we drive the software content in our business higher.”

“ACV, which is an operating metric used to gauge the underlying health of software businesses is $1.4 billion and grew at 10% year-over-year.”

“We will simplify the reporting segments with these transactions moving from seven to five as we intend to consolidate AspenTech into Control Systems & Software.”

“AspenTech's process simulation and optimization software delivers efficiency and productivity gains in mission-critical environments for its global customer base, including top EPC, utilities, chemicals and energy companies.”

“DeltaV software recorded double digit growth in subscriptions, and LabVIEW also contributed high single digit growth.”

“For the full year, we expect double digit ACV growth led by a strong EPC project backlog across energy and energy transition with continued adoption for our industrial software across power, life sciences, semiconductor and aerospace and defense.”

“We believe the technology is highly differentiated. And we further believe, Scott, as we'll highlight at Emerson Exchange, that to deliver our vision of boundless automation in the next generation of distributed control system around enterprise software, the AspenTech and DeltaV Ovation platforms collaboratively coming together is going to be critical.”

“Our industrial software businesses continued to perform well, and the total company ACV is up 11% year-over-year with broad based strength.”

“In 2024, we delivered more than two-thirds of new equipment with a customer value agreement, which remains an important part of our services growth initiatives.”

“Also in 2024, we saw record usage of Vision Link, our equipment management application, on-boarding and activating thousands of new customers throughout the year.”

“We continued to execute our various services initiatives as we strive towards our aspirational target of $28 billion in services revenues.”

“We continue to grow services and services footprint. It's the first business where we really leaned in on the digital front with long-term service agreements.”