By Sarah Oliver,
Money and Investing Writer
General Electric (NYSE:GE), has decided to buy ServiceMax, a software company that will transform the way the company does business in a $914 million deal. General Electric’s motto is “Imagination at Work,” a strong representation of what the electric company stands for.
ServiceMax is a software company that helps business to cut costs, keep track of maintenance, work orders, and repair schedules. By switching to this software, GE will completely get rid of tracking its equipment by paper, a move that could save them large amounts of money in the long run.
The chief executive office of GE digital, Bill Ruth, said in a statement, “We’re moving away from where it’s all on paper to where it’s all becoming fully automated. Services are becoming a key part of the digital economy.”
GE expects that that adaptation of this new software will help them to increase productivity and revenue in the long run.
By making maintenance tracking more efficient, ServiceMax is aimed at helping companies to improve their financial positions.
ServiceMax was listed as one of Forbes next “billion-dollar startups.” According to a press release on the ServiceMax website, the software company states, “Companies of all sizes are deploying ServiceMax to streamline field service processes while simultaneously cutting costs, improving customer service and tapping into revenue opportunities resulting from improved service operations.
A number of high tech, life sciences and consumer products companies have all recently chosen ServiceMax’s cost-effective solution, which offers world-class reliability and complete field service functionality in a software-as-a-service (SaaS) model.”
GE is not the only company of its kind to make a move away from paper and towards software. According to Bloomberg, the companies’ largest competitor Siemens AG recently agreed to buy another software company, Mentor Graphics Corp.
Being acquired by GE is just one step in the next direction for the software company, it is expected that over the next several years, most companies will have adapted some kind of software company to make operations more efficient.
In addition to adopting a software program for equipment maintenance, GE expect to continue to move all sectors of the company towards digital programs. According to Bloomberg, “The Company in September paid $495 million for Meridium Inc., a software developer focused on asset performance management, or the monitoring of equipment.”
The company also recently made deals with a 3-D printing company, a very recent form of technology most companies haven’t decided to adopt yet.
GE expects revenues to increase significantly over the next ten years. With the use of more efficient technology, maintenance costs will be significantly cheaper than previously before.
The acquisition of new software will make the lives of General Electric employees and customers much simpler. Appointments and scheduling for maintenance repairs can now be made through the software on a much more time efficient basis.
GE will most likely see an increase in their number of customers, as people want to purchase items through companies that are quick and easy.
GE is making steps in the right direction towards with the acquisition of ServiceMax and other software, moves like this will allow them to be an even larger global presence.
A version of this article appeared in the Tuesday, November 22nd print edition.
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