Aveva: Schneider Electric Acquisition Will Drive Switch to SaaS

Aveva says its acquisition last month by Schneider Electric will accelerate its switch to a subscription-only business model.

Schneider Electric has owned 60% of Aveva since a reverse takeover in 2017. The recent acquisition saw the French firm buy the rest of Aveva in a deal worth nearly $11 billion.

Now Aveva says it want to become “the leading provider of software and industrial software applications and data platforms.”

To achieve this, it is transitioning to a subscription-based and hybrid cloud business model, said Kerry Grimes, head of global partners at Aveva.

Aveva’s Kerry Grimes

“Our customers will have the option to pay for our software on a recurring basis and have access to updates and support,” he said.

On Premises or Cloud

Customers can choose whether they want to host the software and data on premises or in the cloud. This, said Grimes, “will lead to increased adoption and satisfaction among our customers as it allows for more scalability and true flexibility.”

The Schneider acquisition will provide the necessary resources and support to transition to this model, he added.

“As more customers adopt this model, we expect costs to decrease and revenue growth to become more predictable.” This he said, will result “in increased annual recurring revenue and improved long-term profitability.”

Grimes also said the acquisition will create a stronger alliance between the two companies, and a broader set of solutions. It will also provide access to a larger set of customers, meaning partners will find more opportunities. They can, he said, “leverage Aveva’s software platforms and deliver solutions with greater customer value across operations, energy, and sustainability.”

Aveva to Remain Separate

Aveva is one of Britain’s oldest technology companies. Its software encompasses the energy, infrastructure and manufacturing sectors, where there is a crossover with Schneider.

To maintain Aveva’s identity as a software company, its teams won’t be integrated with Schneider Electric’s hardware operations or regional businesses.

This, said Grimes, will allow the firms to “more rapidly increase the scope of the cooperation between the combined teams.” They will remain “distinct and separate to enable customers realize greater value out of Aveva software platforms and SE offers.”