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November 02, 2009
IBM PLM Sales Operation Integrating Into DS
Please note that contributed articles, blog entries, and comments posted on MCADcafe.com are the views and opinion of the author and do not necessarily represent the views and opinions of the management and staff of Internet Business Systems and its subsidiary web-sites.
Jeff Rowe - Managing Editor

by Jeff Rowe - Contributing Editor
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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:

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:

Moldex3D Introduces Free New Tools to Enhance Collaboration and Productivity
Moldex3D introduced its new free software—Moldex3D Viewer and Moldex3D eDesignSYNC:

Jeffrey Rowe is the editor of MCADCafé and MCAD Weekly Review. He can be reached at Email Contact or 408.850.9230.

This Week

Lead Story

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 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


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

Corporate Moves

Boeing Announces Senior Leadership Changes

AMT The Association For Manufacturing Technology Elects New Board of Directors and Officers

Industry Events

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


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

Corporate Newsletters

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.