Previse Systems says that it is seeing good momentum in the market, which has been strong since the beginning of the year. I spoke with Marc Zumstein, a week or so ago, to catch up with this relatively new vendor in the European energy arena having visited its booth at E-World a couple of weeks prior. Marc told me that he sees quite a few companies moving away from attempts to build internally along with several replacement projects that are helping to drive demand. He also points to the energy transition as a driver claiming that Previse is one of few vendors, that has strong capabilities to cover trading of renewable energy.
The industry does seem to go through cycles of build versus buy in our view, and with the emergence of newer technologies and applications in the cloud, there does seem to be a preference to buy solutions now. Marc suggests though that part of the drive to buy is because “energy companies increasingly see that it is not that simple to build an ETRM solution, that such solutions are the results of many years or decades worth of lessons learnt.” He sees some companies that had begun build projects turning to the market. We do too.
Previse Systems is a relatively recent entry founded by ex-Allegro veterans of ETRM construction and deployment. It benefits, Marc suggests, by having been developed on all new technologies and by being cloud native. The staff have also learned many lessons from their time in the industry that have been incorporated into its approach. Currently, it has four customers using its solution in production and Marc hopes to soon see a fifth, he told me. “We also have a huge pipeline, and we are curious as to how much of that will turn into business for us.” Previse is also readying to hire on the back of the demand it is seeing.
He says that volatilities and high prices have changed how trading and risk is viewed over the last year driving increased necessity for systems. The drive toward short-term trading is also key as it also drives data volumes that require high-performant systems. The war has also brought a good deal of turmoil into the market that has also served to heighten volatilities and increased need for ETRM solutions. He sees the potential for companies getting into trouble as they cannot get gas from Russia, or they are not properly hedged as well as the possibility of market risk distortions created by price caps and other market interventions.
Having just completed its first E-World with a booth, Marc was pleased with traffic there and hopes to see this add to the already full pipeline. We will be watching Previse carefully in the coming months to see how things go.