2018.6.14:PTC and Rockwell Automation Announce Strategic Partnership to Drive Industrial Innovation and Accelerate Growth (CIMdata Highlight)

PTC and Rockwell Automation, Inc., announced on 11 June 2018 that they have entered into a definitive agreement for a strategic partnership to develop synergies between their respective offerings to help customers transform their physical operations using digital technology. As part of the partnership, Rockwell Automation will make a $1 billion equity investment in PTC.

Rockwell Automation, a global leader in industrial automation, had revenues of $6.3 billion in 2017. PTC, a PLM leader with 2017 revenues of $1.2 billion, has pursued the Internet of Things (IoT) opportunity more aggressively than their PLM peers. The partnership will leverage both companies’ resources, technologies, industry expertise, and market presence, and will include technical collaboration and joint global go-to-market initiatives. In particular, PTC and Rockwell Automation have agreed to align their respective smart factory technologies, combining PTC’s ThingWorx IoT, Kepware industrial connectivity, and Vuforia augmented reality (AR) platforms with Rockwell Automation’s FactoryTalk MES, FactoryTalk Analytics, and Industrial Automation platforms. The partners believe that the resulting integrated information solution will enable customers to achieve increased productivity, heightened plant efficiency, reduced operational risk, and better system interoperability.

CIMdata believes this relationship should provide both companies’ customers new expertise to improve their manufacturing capabilities and efficiencies. Integrating Rockwell Automation’s industrial control and software technology and domain proficiencies with PTC’s ThingWorx and other technology solutions will provide industrial enterprises a better ability to capitalize on the capabilities of the Industrial IoT. It will also allow each company to spend more time focusing on their strengths, which should help both companies bring more technology and expertise to the combined offering over time. But, as with any partnership, time will tell if the two companies will succeed. However, unlike many partnership announcements, this one includes a $1 billion price tag, which raises the stakes for both parties and the visibility of the partnership around the world. CIMdata looks forward to learning more at PTC’s upcoming LiveWorx event and from our joint clients.

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