PTC’s Industrial IoT Transformation: A Closer Look at 5 Acquisitions and Their Impact

PTC, a company known for its CAD and PLM products, embarked on a journey to reinvent itself as an Industrial IoT company. Over four years, PTC made five significant acquisitions, amounting to a total investment of $600 million. Let’s take a closer look at these acquisitions and evaluate their impact:

1. Thingworx: Acquired in December 2013 for $118 million, Thingworx is considered the most crucial acquisition for PTC’s entry into the IoT market. It served as an Industrial IoT Platform and formed the foundation of PTC’s IoT acquisition strategy.
2. Axeda: Acquired in July 2014 for $170 million, Axeda provided advanced device management and remote monitoring capabilities to PTC’s IoT stack. Although often overlooked, it was vital in enhancing PTC’s IoT offerings.
3. Coldlight: Acquired in May 2015 for $105 million, Coldlight specializes in machine learning and predictive analytics. PTC utilized Coldlight’s software to create a “digital twin” for every physical thing monitored, supporting its IoT strategy.
4. Kepware: Acquired in December 2015 for $118 million, Kepware brought edge data collection capabilities to PTC. With access to over 150 industrial protocols, Kepware significantly expanded PTC’s reach in data acquisition.
5. Vuforia: Acquired in November 2015 for $65 million, Vuforia focused on augmented reality (AR). PTC recognized the potential of AR in the Industrial IoT space, particularly in manufacturing and expert support.

PTC’s acquisitions have positioned them as a visionary in the industrial IoT landscape. They have successfully integrated the acquired companies and technologies under the PTC brand, creating a comprehensive IoT platform. However, fully integrating these diverse components into a single platform is no small feat.

While PTC’s approach involves acquiring best-in-breed IoT components, other companies have built their own purpose-built IoT platforms from scratch. Both approaches have merits, but PTC’s acquisitions have undeniably strengthened its position in the IoT market.

Overall, PTC’s IoT strategy, marked by these acquisitions, has been commendable. The recent investment of $1 billion by Rockwell further validates their success. However, the challenge lies in effectively integrating the acquired technologies to deliver a fully integrated IoT platform.