Q4 and the holiday season is often a busy time for the vendors. It has been historically the favored time for the RFP (as periodic CTRMCenter contributor David Calmonson will tell you in comic terms) and the vendors will also push to get any business closed prior to year end of course. In recent years, we have seen something of a decline in demand for CTRM software largely due to the many changes in the industry and perhaps due to a focus on architecture, business processes and data in preparation for digitization on the part of many companies in the space. However, we have been expecting demand to increase over 2018 and going into 2019 for a variety of reasons though perhaps with the emphasis being towards the smaller deal and more often in the cloud.
Over the last few weeks, as we collect responses from the vendors for the 2019 Sourcebook and in generally touching base, we do detect an uptick in demand. Most of those we have spoken to have told us they are very busy and this activity seems to be in commodities generally and in the liquid hydrocarbon side in particular. One larger vendor we spoke with had been involved in more than 15 demos in the last 6-weeks and many others have reported similar levels of activity. Yesterday, Eka issued an announcement recording four new ETRM deals on the back of 16 commodity deals over the last 6-months cementing our view that there is more demand in the market. A briefing from French vendor – EZnergy – late last week, established that it had had a good year also with its installations up 25% over the previous year. Other briefings also suggest activity levels are strong.