On October 26, 2009 IBM and Dassault Systemes signed an agreement under which Dassault Systemes (DS) intends to acquire IBM sales and client support operations encompassing DS's Product Lifecycle Management (PLM) software application portfolio, as well as customer contracts and related assets, for approximately $600 million in cash.
DS and IBM have also defined the next steps in their long-standing relationship, and plan to establish DS as an IBM Global Alliance Partner and expand their services partnership.
The transaction is expected to be completed in the first half of 2010, subject to the execution of local agreements and completion of regulatory processes and applicable labor relations requirements in various countries.
While the transaction is being completed, both companies expect their existing operations, including customer service and product availability, to continue as usual. After completion of the transaction and integration of the two companies’ PLM operations, DS PLM customers will benefit from simplified engagement and support processes for DS's market-leading PLM product portfolio.
“The adoption and integration of PLM and 3D collaboration by a growing number of enterprises require deep industry knowledge," said Bernard Charlès, president and CEO of Dassault Systèmes. "The planned integration of the IBM sales force and related business operations represents the largest investment in our corporate history. We are putting our customers and partners first, creating a globally efficient sales organization to bring the value of V6 PLM applications to every enterprise in every industry.”
"We are reaching a new level of customer engagement built on commitment, multi-industry knowledge and high-value solutions for sustainable innovation," added Charlès. "Looking forward, the wide adoption of 3D lifelike experience and PLM will require the combination of direct sales, our network of partners and online communities."
Pursuant to the planned global alliance agreement, IBM and DS expect to continue to jointly invest in developing, deploying and supporting client PLM environments, delivering integrated PLM solutions to their clients worldwide.
The enhanced services agreement is expected to bring significant potential to the global marketplace with extended IBM resources and expertise to help transform client PLM environments, leveraging the DS V6 portfolio. Both companies are dedicated to strengthening and extending their cooperation in the areas of professional services, cloud computing, middleware, flexible financing, hardware, and sales and distribution.
"With this announcement, IBM is evolving its partnership with DS to better align our mutual strengths and better address our clients' PLM needs," said Tom Hawk, general manager, IBM Global Industrial Sector. "This transaction also helps fuel IBM's focus on PLM integration through middleware, business transformation and application services, and dynamic infrastructure."
Steve Mills, senior vice president and group executive, IBM Software Group, added: "Today's agreement positions both our companies for growth in the PLM space, allowing us to focus on our core competencies and better serve our clients. The extensive use of IBM Software platforms in the DS application portfolio will continue to make our partnership unique and valuable to our customers."
Commentary By Jeffrey Rowe, Editor
And with the signing of an agreement, the MCAD world continues to consolidate, but that’s not necessarily a bad thing.
Significant? Yes. Surprising? No. As the PLM market evolves, so must the vendors that supply and support it. Also, this deal would not have been made if both parties were not in synch, but they were — one was ready to sell and one ready to buy.
The relationship that IBM and DS have had over the years (almost 30) may have been tenuous at times, but in the CAD world it has certainly been a lasting one through good and bad times with quite a legacy. With the current state of the economy, it’s not really surprising at all that this agreement transpired. These are trying times for virtually all business sectors, and high-end engineering software and services have been hit harder than a lot of other sectors. I talk to a number of customers of so-called mid-range and high-end technical and engineering software, and the overriding sentiment I hear is that the current releases of software that the have will suffice and “be good enough” until things turn around. When exactly that will be is anybody’s guess, but suffice it to say this is not going to be a banner year for engineering software sales at most if not all levels.
However, DS and IBM parting ways is testimony that sometimes even good relationships must come to an end. It’s time to move on to the next episode. If anything, this may be looked upon as an opportunity for both IBM and DS to focus on their core competencies and what they each do best. This ability to focus will also likely benefit customers of both companies. IBM can focus more on systems integration and consulting; DS can focus more on software and related services. In fact, with the agreement, most, if not virtually all of the affected IBM employees will be absorbed by DS.
Keep in mind, too, that with this agreement IBM is not abandoning the PLM market. Far from it. It just may go a different direction, because it has IBM Global Alliance partnerships with companies such as Siemens and PTC. Overall, the agreement is probably a good thing for the PLM market. With the agreement, it will be interesting to see if, based on annual revenue, DS can overtake Autodesk (who has experienced recent revenue declines) as the top dog in CAD.
So, does this agreement with IBM make DS more of a true design company than it was before? Well maybe slightly in terms of technology, but certainly in terms of increased presence, especially because it got an undisclosed number of “customer contracts and related assets.” To me, that translates into an ongoing revenue stream, at least for the foreseeable future. So, maybe the ~$600 million price tag for the contracts and related assets is a good investment in terms of regenerative income. Time will certainly tell.
The Week’s Top 5
At MCADCafé we track many things, including the stories that have attracted the most interest from our subscribers. Below are the five news items that were the most viewed during last week.
Autodesk Announces Support for Windows 7
Autodesk has announced support for Windows 7. For the 2010 product line, Autodesk will support nine products on Windows 7. These products are Autodesk Inventor 2010, Autodesk Inventor LT 2010, AutoCAD 2010, AutoCAD LT 2010, AutoCAD Architecture 2010, AutoCAD Electrical 2010, AutoCAD Mechanical 2010, AutoCAD MEP 2010, and Autodesk Algor Simulation 2010 software. Autodesk will support Windows 7 for most of its other products as updated versions are released. Windows 7 offers new features and functionality that will benefit Autodesk customers, including full support for 64-bit computing, Windows search and improved performance. Multi-touch support has also become a core capability of Windows 7, and Autodesk is developing new software to take advantage of this technology. At the Windows 7 launch event, Autodesk demonstrated Project Cooper, a preview of new technology for simple drawing and drafting that has been engineered to take advantage of the multi-touch capabilities of Windows 7.
Z Corporation Introduces First Automated, Monochrome 3D Printer
Z Corporation today unveiled the world's first automated, monochrome 3D printer and the company's most affordable automated 3D printer to date, making advanced rapid prototyping technology more accessible to mainstream engineers and architects. Like other Z Corporation 3D printers, the ZPrinter 350 converts 3D data into physical models much as desktop printers convert word-processing files into physical documents. The ZPrinter 350 is available for $25,900 USD (U.S. MSRP). The ZPrinter 350 delivers functionality that includes:
- automatic material loading
- snap-in binder cartridges
- integrated recycling of unused build material
- self-monitoring operation
- control from both the desktop and printer
- 0.8 in/hour (20 mm/hour) vertical build speed
- 8 x 10 x 8 in (203 x 254 x 203 mm) build size
- 300 x 450 dpi resolution
- office-safe build materials, aggressive dust-control, and zero liquid waste
Delcam releases FeatureCAM 2010 feature-based CAM system
Delcam has released the 2010 version of FeatureCAM , its feature-based machining software with enhancements across the full range of functionality, from 2D drilling and wire EDM, to five-axis milling and mill-turn operations. Most important of these developments is support for multi-threading when generating 3D toolpaths. This allows calculations to be spread across multiple cores in dual- or quad-core computers. According to Delcam, average time savings are approximately 25% on a dual-core PC. Improved algorithms have been introduced within the user interface to speed up the editing of features and to reduce the time needed to switch between machine-tool set-ups, while more efficient handling of stock models will reduce the memory required for calculations and so enhance performance still further. The company says that the most innovative new programming option is combined drilling and milling functionality that will allow more efficient hole creation on machines fitted with automatic tool changing. It generates roughing and finishing toolpaths to produce any holes for which the appropriate drill is not loaded, using existing tooling within a machine’s crib.
CoCreate 16.5 Now Tightly Integrated into the PTC Product Development System
PTC launched CoCreate 16.5. Highlights for CoCreate 16.5 include:
- Enterprise Viewing – ProductView allows anyone in the enterprise to leverage the value of CoCreate models through viewing, visualization, markup and interaction with CoCreate data.
- Technical Illustrations – Arbortext IsoDraw helps companies automate the process of creating and updating high-quality technical illustrations and animations directly from their CoCreate models.
- Engineering Calculations – Mathcad helps companies easily create and document engineering-critical values for their CoCreate models, and capture the intellectual property surrounding engineering calculations.
- Production Machining – Users can leverage Pro/ENGINEER NC and Tooling Solutions to create simple to complex machining tool path programs from CoCreate part data. Changes made to the CAD model can be made associatively and propagated to downstream NC deliverables.
- Interoperability with Pro/ENGINEER – Extended teams benefit from seamless collaboration by publishing their models from CoCreate Modeling 16.5 to Pro/ENGINEER Wildfire 3.0 or later.
- Enterprise PLM for CoCreate Drafting – The Windchill Workgroup Manager for CoCreate Drafting enables companies to optimize product development processes including gaining greater control over their CoCreate drawings.
- Advanced Simulation – CoCreate Advanced Mechanica helps companies by providing extended simulation capabilities for very complex, real-life scenarios and simulation requirements and significantly improves verification and validation processes well beyond the capabilities of CoCreate FE Analysis.
Moldex3D Introduces Free New Tools to Enhance Collaboration and Productivity
Moldex3D introduced its new free software—Moldex3D Viewer and Moldex3D eDesignSYNC:
- Moldex3D Viewer– is a standalone Moldex3D result visualization tool that can be used to visualize, quantify, and compare Moldex3D analysis projects interactively. With Moldex3D Viewer, benefits or defects of the designs can be shown and discussed visually, and therefore better communication among the project team can be achieved. Those results are often best explained through visualization.
- Moldex3D eDesignSYNC – is a free interface for Pro/ENGINEER and SolidWorks users to have direct access to the analysis capabilities of Moldex3D/eDesign. With a button embedded inside Pro/ENGINEER or SolidWorks, eDesignSYNC converts CAD models in their native format for direct analysis with Moldex3D/eDesign 3D plastic injection simulation software. There is no need for CAD users to export the model into a neutral format, such as STEP or IGES, or clear up the mess after importing. With eDesignSYNC, CAD users can focus on analysis for part design and manufacturing optimization.
Jeffrey Rowe is the editor of MCADCafé and MCAD Weekly Review. He can be reached at Email Contact or 408.850.9230.
Dassault Systemes and IBM Announce Intent to Integrate IBM PLM Sales Operation into DS
Product and Company News
Siemens PLM Software’s JT Documentation is World’s First ISO Specification for 3D Visualization in PLM Domain
Fishbowl Solutions Releases Data Integrity Tool, HPGL Compare, to Automate Pro/ENGINEER Drawing Validation with Windchill PDMLink
Flow Science announces Release of FLOW-3D Version 9.4
ShapeSpace 3D Search Capability for Enterprise Open Source PLM Software from Aras
Design Without Barriers -- Pro/ENGINEER Wildfire 5.0 is here!
Siemens PLM Software and Tata Consultancy Services Announce Next Generation Softlines, Hardlines and Footwear Out-of-the-Box Solution for “On-Trend, On-Time” Execution
National Instruments Updates Graphical Software for LEGO MINDSTORMS NXT Robotics Platform
Kubotek Announces New Features and Pre-Release Pricing for KeyCreator Version 9
NCG CAM Demonstration Version Now Available to Download
NEi Software and Firehole Technologies Form Partnership to Deliver Advanced Composites Analysis to NEi Nastran
Flowmaster Launches V7.7 Aerospace. New 1D CFD System simulation software for Aircraft systems design and simulation
Cimatron Regains Compliance with NASDAQ Closing Bid Price Requirement
Apriso’s Enterprise Approach to Quality Management Reduces Manufacturers’ Total Cost of Quality
MIETrak MRP Software from MIE Solutions UK continues to thrive at CH Clarke Engineering Limited
MecSoft Announces Software Compatibility with Windows 7
CCE Announces 2-For-1 Offer on All EnSuite Licenses
Cambashi Launches New Interactive Web Site
Six part series for Engineering Fluid Dynamics
Delcam's PowerMILL gives aerospace company up to 80% faster programming
Elmo Solutions Releases New Version of its Agni Link CAD-ERP Data Integration Solution
Catalog Data Solutions Selected by E•Drive for Online CAD Downloads
3 HTi Signs Business Agreement with Solido
DCS Inc. announces the release of 3DCS Analyst SA (Stand Alone) version 18.104.22.168 for Multi CAD
COADE Launches Facebook and Twitter Accounts for Communicating Its Plant Design and Engineering Analysis Capabilities
Aerospace Company Offers New Full-Plane 3D Scans With Z Corporation's ZScanner 700 PX
Game, Set, Match: ANSYS Software Verifies Design of Wimbledon Innovative Retractable Roof
TopSolid 7 – A new generation of CAD/CAM for optimised performance
Autodesk Subscription Advantage Packs Provide Early Access to New Features
ANSYS Named to Deloitte’s Technology Fast 500
Edgecam 2010 R1 – Unrivalled Efficiency
MasterGraphics Adds Autodesk Algor Simulation Software to Manufacturing Solutions Portfolio
Right Hemisphere Announces First Public Demonstration
SIMPOE announces integration with SIEMENS PLM Sofware
Solido signs distribution agreement with Axemble of France
EAC Now Offering Pro/ENGINEER Wildfire 5.0 as PTC Begins Shipping the Latest Release
CAD Schroer Enhances 2D/3D Productivity with STHENO/PRO 4.0 - powerful drafting for Pro/ENGINEER
MIE Solutions Releases QuoteIt! Estimating Software 10.4
Paradigm Imaging Releases New imagePRO FLEX
Uncovering Secrets of Khufu Pyramid - CD-adapco Joins "Passion for Innovation"
CimatronE Cuts 5-Axis Cycle Times by 50%
Delcam joins Singapore medical consortium
CD-adapco launches 2010 Post Processing Competition
Teams Win at NASA National Lunar Robotics Competition
PTC Recognizes TriStar as Top Reseller, Trainer, and Windchill Provider
Two Indian SolidWorks resellers add WorkNC to their portfolio (SESCOI)
First Trace, Inc. Announces Korrigo for AutoCAD LT Instant Rebate Program
CES Selector 2009 Helps Industry Make Better Materials Choices
Related MCAD News
NVIDIA RealityServer Propels 3D Cloud Computing Using GPUs
New Siemens Research Turbine Commissioned at NREL Site
General Motors Develops Two-Mode Hybrid Powertrain With Model-Based Design
FUEL CELL, HYDROGEN ENERGY AND RELATED NANOTECHNOLOGIES TO REACH $14 BILLION BY 2014
Boeing Reports Third-Quarter Financial Results
Ball Aerospace-built WorldView-2 Satellite Reveals First Images
UPDATE: New Features Added to PTK Promotion from Henke Associates
Impact of the Recession on the Aerospace Industry
CollabNet TeamForge 5.3 to Include "Dynamic Planning," a Breakthrough Approach to Managing Agile Development
Univa Delivers Cloud Management for Oracle® E-Business Suite
Chinese National Charged with Stealing Ford Trade Secrets
MySQL to Microsoft SQL Converter
MultiSUITE CAD 2010 – A New Approach to Steel and Concrete Detailing
Delcam Crispin software transforms orthotics business Sub-4
Autodesk Names Applied Technology Group as Reseller of the Quarter for Excellence in Customer Service
Electrical Equipment Manufacturers Excel at Mixed-Mode Manufacturing: Cincom Report
Boeing Announces Senior Leadership Changes
AMT The Association For Manufacturing Technology Elects New Board of Directors and Officers
NCGCAM Solutions Annouces the Big Ugly Challenge with a Chance to Win CAM Software
Stratasys Conference Call to Discuss Third Quarter Financial Results
Schott Systeme Showcase 5 Axis Machining at Fakuma 2009
Cimatron to Showcase its New Machine Simulator at CMTS, Toronto
Delcam to release PowerSHAPE CAD with Parasolid at Euromold
CD-adapco CAE Calendar Competition: 5 Great Reasons to Enter
Boeing Subsidiary CDG to Host 3D Modeling and Simulation Webinar
SOLIDWORKS 2010 PRESENTATION TOUR IN MEXICO
Toyota is First Automotive Manufacturer to Participate in SmartGridCity Project
Avatech Solutions Extends Deadline for ‘Render Us Speechless’ Contest
Delcam to show FeatureCAM 2010 on global WebEx Presentations
PTC to Host FY’10 Investor Day in New York City On Tuesday, November 3, 2009
NASA Hosts National Lunar Robotics Moon Excavation Competition
MIE Solutions Presenting at FABTECH International In Chicago November 15th-18th, 2009
LMS Offers Master Class on Vehicle Energy Management November 10-12
ESPRIT by DP Technology at Mactech Expo 2009, Cairo, Egypt, Oct. 22-25
ATS to show latest releases of Edgecam and Radan at Advanced Manufacturing & Technology Show
Delcam and DMG to show live dental machining at Dentech
LMS Vehicle Energy Management Master Class US
Delcam to show new CAM range at Metalex in Thailand
FAE Information - Worldwide News Magazine - October 2009
You can find the full MCADCafe event calendar here.
To read more news, click here.
-- Jeff Rowe, MCADCafe.com Contributing Editor.