Kepware, a PTC Technology

Background

Kepware Technologies, established in 1995 and headquartered in Portland, Maine, specializes in developing industrial connectivity software solutions. The company's mission is to facilitate seamless communication between diverse automation devices and software applications, thereby enhancing operational efficiency across various industries. Kepware's flagship product, KEPServerEX, serves as a robust platform for managing critical production, facility, and infrastructure data, enabling users to connect, manage, monitor, and control a wide array of automation devices through a unified interface.

In January 2016, Kepware was acquired by PTC Inc., a global provider of technology platforms and solutions that transform how companies create, operate, and service products in the Internet of Things (IoT) era. This acquisition aimed to enhance PTC's IoT portfolio by integrating Kepware's industrial connectivity solutions, thereby accelerating PTC's entry into the Industrial IoT (IIoT) market.

Key Strategic Focus

Kepware's strategic focus centers on delivering comprehensive industrial connectivity solutions that bridge the gap between operational technology (OT) and information technology (IT) systems. By providing a scalable and unified architecture, Kepware enables organizations to standardize secure and seamless access to OT data at scale. The company's solutions cater to a broad range of industries, including manufacturing, oil and gas, building automation, and power and utilities, addressing the need for interoperability among diverse automation devices and software applications.

Financials and Funding

Prior to its acquisition by PTC Inc., Kepware was a privately held company. In December 2015, PTC announced a definitive agreement to acquire Kepware for approximately $100 million, with an additional $18 million contingent upon achieving certain strategic initiatives and financial results. At the time of acquisition, Kepware generated approximately $20 million in annual revenue.

Technological Platform and Innovation

Kepware's technological innovation is exemplified by its flagship product, KEPServerEX, an industrial connectivity platform that leverages OPC and IT-centric communication protocols to provide a single source of industrial automation data. The platform supports over 150 device drivers, client drivers, and advanced plug-ins, enabling connectivity with a wide range of automation devices and software applications. Key features of KEPServerEX include:

Accessibility: Provides data access for industrial client applications (such as MES and SCADA) and big data analytics software via OPC, proprietary protocols, and IT protocols.

Optimization: Optimizes communications and reduces network and device load through data conditioning and protocol-specific optimization.

Connectivity: Supports a broad range of protocols found in various verticals, including wired and wireless networks, databases, custom software applications, and OPC servers.

Aggregation: Simplifies connected application configuration by providing a single point of entry to all information, eliminating the need for multiple solutions for discrete connectivity.

Security: Offers tools to control user server access, data sources, or data values, regulate read/write access, connect or disconnect client applications, and configure secure data tunnels.

Diagnostics: Isolates device and application communications for troubleshooting, offering OPC diagnostics for real-time and historical views of OPC events.

Additionally, Kepware offers Kepware+, an enterprise industrial connectivity solution designed for standardizing secure and seamless access to OT data at scale. Kepware+ provides a streamlined interface for remote visualization and connectivity configuration, enhancing operational efficiency across manufacturing operations.

Leadership Team

As a subsidiary of PTC Inc., Kepware operates under the leadership of PTC's executive team. Key figures include:

Jim Heppelmann: President and CEO of PTC Inc.

Tony Paine: Platform President at Kepware Technologies.

Tony Paine has been instrumental in driving Kepware's innovation and growth, leading the development of the company's flagship products and expanding its market presence.

Competitor Profile

Market Insights and Dynamics

The industrial connectivity market is characterized by a growing demand for solutions that enable seamless communication between diverse automation devices and software applications. This demand is driven by the increasing adoption of IoT technologies, the need for operational efficiency, and the integration of legacy systems with modern IT infrastructures. The market is competitive, with several key players offering similar solutions.

Competitor Analysis

Key competitors in the industrial connectivity space include:

Moxa: Offers a range of industrial networking solutions, including protocol converters and device servers, facilitating communication between various industrial devices and networks.

Opto 22: Provides hardware and software solutions for industrial automation, including controllers and I/O systems that support multiple communication protocols.

HighByte: Specializes in industrial data operations software, enabling organizations to model, transform, and securely flow industrial data to IT systems.

These competitors focus on providing connectivity solutions that address the challenges of integrating diverse industrial devices and systems, similar to Kepware's offerings.

Strategic Collaborations and Partnerships

Kepware has established strategic partnerships to enhance its market position and expand its capabilities. Notable collaborations include:

Cisco: Partnered with Kepware to deliver OPC-based network monitoring and management drivers for Cisco's networking products, enabling seamless integration with industrial automation systems.

Kanto L-Engineering Co. (KLEC): Serves as Kepware's preferred distributor in Japan, promoting, distributing, and providing support for Kepware's software solutions in the Japanese market.

These partnerships have been instrumental in expanding Kepware's global reach and enhancing its product offerings.

Operational Insights

Kepware's competitive advantage lies in its extensive experience in industrial connectivity, comprehensive device support, and commitment to innovation. The company's solutions are designed to be scalable and flexible, allowing organizations to integrate a wide range of devices and protocols into a unified system. By focusing on interoperability and ease of use, Kepware addresses the challenges associated with connecting diverse automation devices and software applications, positioning itself as a leader in the industrial connectivity market.

Strategic Opportunities and Future Directions

Looking ahead, Kepware is poised to capitalize on the growing demand for Industrial IoT solutions by continuing to enhance its product offerings and expand its market presence. The integration with PTC's ThingWorx IoT platform presents opportunities for developing advanced analytics and machine learning capabilities, enabling organizations to gain deeper insights into their operations. Additionally, Kepware's focus on security and scalability positions it well to address the evolving needs of industries seeking to modernize their automation systems and improve operational efficiency.