cimdata webinar state of plm economy · cimdata webinar state of plm economy ... cimdata economy

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This presentation is copyright © 2018 by CIMdata, Inc. Clip art may be copyrighted. No use, reproduction or modification is permitted without prior written permission.

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Copyright © 2018 by CIMdata, Inc. 1

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Copyright © 2018 by CIMdata, Inc.

Global Leaders in PLM Consulting

The State of the PLM EconomyA CIMdata PLM Leadership Event13 December 2018#cimdatawebinar

Stan Przybylinski, Vice PresidentTel: +1.734.668.9922Email: [email protected] Twitter, Skype: smprezbo

PLM Leadership


Our Mission...Strategic management consulting for competitive advantage in global markets

CIMdata is the leading independent global strategic management consulting and research authority

focused exclusively on PLM and the digital transformation it enables.

We are dedicated to maximizing our clients' ability to design, deliver, and support innovative products

and services through the application of PLM.

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Our Services...Creating, disseminating, and applying our intellectual capital in support of your digital transformation

Delivering strategic advice and counsel through a comprehensive, integrated set of research, education, and consulting services


CIMdata Services...Creating, disseminating, and applying our intellectual capital in support of your digital transformation

Delivering strategic advice and counsel through a comprehensive, integrated set of research, education, and consulting services

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Questions?Please use the GoToWebinar chat panel

• We’re hoping that the anonymity of the chat window might help participants ask more questions

• If you want to ask a question on the record, we’ll certainly let everyone know you’re asking

• The most important thing is interaction – let us hear from you on the call


AgendaCIMdata Webinar – The State of the PLM Economy – 13 December 2018

• CIMdata’s PLM Market Definition & 2017 Review• 2018 Mergers & Acquisitions to Date• Solution Provider Updates• Questions & Answers

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PLM – CIMdata’s DefinitionDigital transformation of the lifecycle—enabled by a product innovation platform

• Strategic business approach• NOT just technologies• Consistent set of business solutions

• Collaborative creation, use, management & dissemination of product related intellectual assets

• All product/plant definition information – the virtual product • AEC, MCAD, EDA, ALM, SE, requirements, simulations, analytics, portfolio, formulas…

• All product/plant process definitions – the virtual processes• Processes that plan, design, produce, operate, support, decommission, recycle…

• An innovation platform that supports the extended enterprise• Spans the full lifecycle, from idea/concept through life

Requirements interface layer

Data & Process Management BackboneModeling & Simulation PlatformModeling & Simulation PlatformData & Process Management Backbone

Quality(&(Compliance(

Data(&(Process(Management(Backbone(

Service(Management(

(System((Idea>on(

System(Realiza>on((

PorAolio(&(Program((

Management(

Profitability(Management(

Multi-Disciplinary

Lifecycle Optimization


• CIMdata PLM Market Analysis Report• CIMdata Executive PLM Market Report • CIMdata PLM Industry Review and Trends Report• CIMdata PLM Market and Solution Provider

Analysis Report • CIMdata PLM Market Geographic Analysis Report • CIMdata PLM Market Industry Analysis Report

• Country reports for the Brazil, China, Germany, India, Japan, Russia, South Korea, Italy, United Kingdom, France, and the United States

• CAM MAR (27th year)• Simulation & Analysis (S&A) MAR

The CIMdata PLM Market Analysis ReportMajor PLM Foresight deliverables, a growing MAR series

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2017 Market ResultsResults by segment (US$ Millions) mostly positive

Segment 2017 Revenues YoY Growth

cPDm Comprehensive Technology Providers $5,725.4 1.6%cPDm-Focused Applications $2,227.1 6.5%Digital Manufacturing $767.1 6.9%SI/Reseller/VAR $7,013.6 10.1%Tools

MCAD-Multi Discipline $3,730.2 4.0%MCAD-Design Focused $2,833.2 6.6%Non-Bundled CAM $1,367.7 7.7%Simulation & Analysis $5,716.3 8.3%Other Tools (e.g., ALM) $1,374.5 7.1%EDA $9,357.5 11.7%AEC $3,585.0 6.6%

Total $43,697.5 7.6%


PLM Investments by SegmentDistribution of PLM investments in 2017

Estimates are US$ (Millions)

Additional SI/Reseller/VAR Revenue is included within each Tools sector

Revenues presented are CIMdata estimates

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• Decent growth affected by market changes• Autodesk at their revenue trough due to license model changes, PTC just got

there• Many IT trends converging that change business models, affect results

• Changing license models changes revenue timing, flow• Cloud changing how IT resources are bought, maintained• Mobile changing rules of “engagement”

• Economic growth picking up, does it matter for PLM investment? Trends say not as much as one might think…

PLM Forecast (Comments from April 2018)Impact of changes to subscription models


Market ForecastsFor 2018 (US$ Millions) and 5-year compound annual growth rate (CAGR)

Segment 2018 Estimate YoY Growth 5 Year CAGR

cPDm Comprehensive Technology Providers $6,089.39 6.4% 6.6%cPDm-Focused Applications $2,387.49 7.2% 7.4%Digital Manufacturing $834.19 8.7% 9.0%SI/Reseller/VAR $7,478.24 6.6% 6.7%Tools

MCAD-Multi Discipline $3,926.01 5.2% 5.5%MCAD-Design Focused $2,977.67 5.1% 5.2%Non-Bundled CAM $1,452.49 6.2% 6.1%Simulation & Analysis $6,179.29 8.1% 8.3%Other Tools (e.g., ALM) $1,478.94 7.6% 7.7%EDA $10,021.89 7.1% 7.1%AEC $3,925.54 9.5% 7.0%

Total $46,751.14 7.0% 6.9%

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Currency 2017 Thru 10/2018 YoY Change

Euro TO US Dollar 1.127395 1.189174 5.5%

Pound TO US Dollar 1.287 1.345502 4.5%

Japanese Yen TO US Dollar 0.00891 0.009093 2.1%

Swiss Franc TO US Dollar 1.015 1.026572 1.1%

Chinese Yuan TO US Dollar 0.148 0.170565 15.2%

Korean Won TO US Dollar 0.000884 0.000913 3.3%

Swedish Krona TO US Dollar 0.117 0.115996 -0.9%

Brazilian Real TO US Dollar 0.3133 0.308474 -1.5%

Indian Rupee TO US Dollar 0.01535 0.016541 7.8%

Australian Dollar TO US Dollar 0.7663 0.752459 -1.8%

Norwegian Krone TO US Dollar 0.120904 0.12418 2.7%

Currency Fluctuations ImportantMost PLM revenues provided in US$, Euro, Yen, Chinese RMB


2018 Results to Date for Public CompaniesFrom their financial reporting

Company Financial Targets 2018 YoY Results to DateAltair Engineering $362.0 – $366.0 million (8.6% to 9.8%) $281.2 million (15.5%, 18% SW)ANSYS $1,152.0 – $1,232.0 m (4.9% to 12.2%) 11%

Autodesk $2,455 – $2,505 million (19% to 22%) $1,833 million (22%)Cadence $2.015 – $2.055 billion⇞ (4.7%) 8.8%Dassault Systèmes 9-10% growth in CC 5.0% (9% in CC)ESI No guidance provided €53.2 million (-1%)PTC $1,225 million (5.2%) $936 million (6.6%)Synopsys $2.88 billion – $2.91 billion* (6.24%) 14.7%

⇞ Upped guidance to $2.113 – $2.123 billion *Upped guidance to $3.10 – $3.13 billion

Siemens PLM Software Claimed organic over 10%, SW mid teens (Aug 2018)

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2017 PLM Leaders RevenueLeaders’ direct revenues – led by providers of CAD tools

Revenues presented are CIMdata estimates


2017 cPDm Leaders Direct RevenueSoftware provides the majority of revenue for most providers

Software includes: one time payments (paid licenses) plus recurring fees – right to use, subscriptions, maintenanceRevenues presented are CIMdata estimates

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Acquisitions in 2018Some big, many tuck-ins but still at a high rate (1 of 4)

• Aras added the MRO business from Infospectrum, SofTech srl (SI), Comet Solutions

• Arena Solutions acquired Omnify Solutions (Empower PLM)• Autodesk added Assemble Systems (SaaS planning) and PlanGrid

(construction productivity)• Dassault Systèmes took a majority stake in Centric Software and acquired No

Magic and IQMS (ERP)• OpenText with Hightail (cloud file sharing)• Oracle (4) added DataScience.com, DataFox (cloud AI)

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• PTC acquired Frustum (generative design)• SAP added Callidus Software• Siemens (4) acquired Sakorai Test Systems Oy (network testing), Austemper

Design (IS sim), Mendix (app dev), Lightwork Design (AR/VR)

• Accenture active again (6), including Mackevision (3D), Kogentix (AI), Pillar Technology (embedded SW)

• Atos with Syntel• Capgemini (2) and LiquidHub (CX)



• Cognizant (2) and SaaSfocus and Advanced Technology Group (APAC, US Salesforce SI)

• Deloitte (3) with API Talent (AWS), Qspace (IT compliance validation), Magnetic’s AI platform

• HCL (3) C3i Solutions (CPG UX), H&D Int’l Group (German auto SI), ActianCorp. (cloud integration, analytics)

• IBM added Oniqua (MRO)• Processia and NobleTek BV & PLM Solutions• Wipro took a minority stake in Denim Group (cyber)

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• Altair added FluiDyna GmbH, SIMSOLID• ANSYS acquired OPTIS• Bentley Systems (3) S-Cube Futuretech (structural), Plaxis and SoilVision

(Geotech SW), Agency9 (city digital twin) • Gamma Technologies added AutoLion (battery sim)• Hexagon (7) adds Licom, ProCAM (CAM VARs); Spring Technologies, External

Array Software (CMM SW), Bricsys (2D/3D CAD), Agtek (planning), Industrial Business Solutions, Inc. (cloud task management)

• Nemetschek and MCS Solutions (integrated workplace management sys)• Trimble (2) with Stabiplan (BIM content), Viewpoint (construction

management)




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“Oracle Cloud: Ready for Enterprise Use”Oracle Modern Supply Chain Experience, January 29-31, 2018

• Oracle continues to make progress toward its cloud vision across their entire solution portfolio, including product lifecycle management (PLM)

• The company believes that artificial intelligence, machine learning, and advanced analytics are essential to survive in today’s fast-paced global economy

• Oracle is applying these intelligence technologies at the core of their database offerings, to enhance security, and in their applications to augment functionality and human intelligence


“Fast Track to Digital Transformation”Aras ACE 2018, 20-22 March 2018

• Industrial companies such as Audi, BMW, Microsoft, and Schaeffler are using the Aras PLM Platform to solve complex problems in support of their digital transformation programs

• The Aras PLM platform continues to grow in breadth and depth as execution against their public product roadmap continues

• Aras is starting to deliver on last year’s announcement on support of Maintenance, Repair, and Overhaul (MRO), an important and often extremely profitable lifecycle phase

• Last year’s $40M investment by Silver Lake and GE Ventures has enabled Aras to significantly grow their staff, including a doubling of the product management team

• Systems Engineering and Simulation Process and Data Management (SPDM) are new strategic focus areas for product development and M&A investments

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“Connecting the Core: IFS World Conference 2018”IFS World Conference 2018, 1-3 May 2018

• A global stalwart in mid-market enterprise resource planning, IFS is taking on today’s market challenges, relying on the cloud, and delivering on IoT and AI

• EQT, their private equity owners since 2015, have continued to invest in the company, its products and ecosystems, and M&A, extending their years of strong financial performance

• IFS’ investments, particularly on the cloud, seem perfectly timed to hit the cloud adoption wave evolving enterprise software

• With these investments, and the work in IFS Labs and R&D, the company is well positioned for the years ahead


“Intelligence Spanning the Lifecycle”SAP Infodays for PLM, 8-9 May 2018

• This German event focuses on PLM and advances in the portfolio makes it a much more informative event for SAP customers than other venues

• SAP is rapidly enhancing their PLM offering with support for authoring tools spanning the full product lifecycle, enhanced by elements from SAP Leonardo

• Customers are driving this innovation pace, helping define necessary enhancements

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“Autonomous Connected Ecosystems”Hexagon Live 2018, June 12-15, 2018

• Hexagon AB has expanded from their metrology roots to become a major player in the PLM Economy

• Their commitment to invest in recent acquisitions like Vero Software and MSC Software is clearly evident and much needed, particularly for MSC Software

• Hexagon’s Autonomous Connected Ecosystems (ACE) vision is consistent with digitalization and Industry 4.0 trends that are impacting a wide swath of industrial companies

• Their organic offerings and recent acquisitions put them in an excellent position to capitalize on these trends and helping them achieve their ACE vision

• Key partnerships with companies like SAP and OSIsoft give them direct access to enterprise and operation technology information that is vital to their vision and to maintaining their digital threads over the long life spans of the target products and assets


“PTC and Rockwell Automation Partnership”Strategic partnership announced on 11 June 2018

• The partnership will leverage both companies’ resources, technologies, industry expertise, and market presence, and will include technical collaboration and joint global go-to-market initiatives (and a $1 billion equity investment)

• PTC and Rockwell Automation have agreed to align their respective smart factory technologies, combining PTC’s ThingWorx IoT, Kepware industrial connectivity, and Vuforia augmented reality (AR) platforms with Rockwell Automation’s FactoryTalkMES, FactoryTalk Analytics, and Industrial Automation platforms

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“PTC’s LiveWorx 2018”PTC LiveWorx, 17-20 June 2018

• In 2018, PTC established strategic relationships with Microsoft, ANSYS, and Rockwell Automation to expand its ability to deliver full product lifecycle solutions

• The relationship with ANSYS significantly strengthens PTC’s capabilities in simulation and analysis while the Rockwell relationship should deliver greatly expanded shop floor/production integration with their PLM and IoT solutions

• PTC continues to build out their ThingWorx IoT platform, which they now term an “Industrial Innovation Platform.” This reflects a deliberate strategy to focus on the smart factory and services as providing the most tangible and value demonstrating use cases for IoT

• PTC consolidated all its augmented and virtual reality (AR and VR) solutions under the Vuforia brand


“Innovation without Boundaries”2018 Siemens PLM Software Industry Analyst Conference, 28-30 August 2018 (1 of 2)

• Siemens PLM Software (Siemens) is building a comprehensive set of increasingly integrated solutions, creating a ubiquitous innovation platform that customers can leverage to develop new products, systems, and business models

• Siemens has expanded the view of generative design to include mechanical/geometry, electronics systems, and generative architecture-level view, in what they’re calling Generative Engineering

• Siemens closed loop digital twin strategy is the broadest and deepest in supporting their customers’ digital transformation. Their approach to autonomous mobility expands their digital twin strategy, from the virtual and physical product to the driving experience. Thus, companies can pursue digital twin initiatives as part of the environment that a product operates in

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“Innovation without Boundaries”2018 Siemens PLM Software Industry Analyst Conference, 28-30 August 2018 (2 of 2)

• Siemens sent a clear message that they see additive manufacturing (AM) as a fundamental technology for digital transformation. They are accelerating, transforming, and scaling the global adoption of AM by aggregating digital and physical access to equipment, materials, and service providers through the Siemens Additive Manufacturing Network

• Siemens is rapidly delivering broad-based offerings for the Industrial Internet of Things (IIoT), including an extensive ecosystem of top notch partners, a growing base of apps, and, with the Mendix acquisition, the ability for both Siemens and their customers to develop purpose-built applications to support their digital transformation objectives

• Siemens continues to expand on their support for PaaS and IaaS to support delivery of their digital innovation platform using the cloud


“The Intelligent Digital Supply Chain”SAP Analyst Event, 13 September 2018

• SAP’s vision for the Intelligent Enterprise is expansive, spanning their traditional portfolio and SAP Leonardo, all powered by their digital platform, SAP S/4HANA

• SAP has made great strides in their intelligent product development (IPD) offering, combining organic development with key partnerships, like with ANSYS on predictive engineering, to support their vision for networks of digital twins across the lifecycle

• Their support for systems engineering, advanced variant configuration management, mechanical design, and electrical design continues to improve, with managing software assets coming soon

• SAP’s cloud-first development strategy for SAP S/4HANA positions SAP and their customers to take advantage of the on-going cloud adoption wave

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“Generating the Next Step”Autodesk Accelerate 2018, 19-20 September, 2018

• Autodesk continues to build out their product innovation platform vision to enable an integrated “Design-Make-Use” lifecycle view

• Their Autodesk Fusion Lifecycle solution is empowering a range of industrial companies to improve their products and processes, including more support for engineering work-in-process

• Autodesk is expanding the use of generative design technology to other manufacturing processes and other domains, like AEC


“Rethinking the Enterprise”Inforum 2018, 24-27 September 2018

• Infor, a leading enterprise software company, has seen dramatic growth with their CloudSuite strategy, delivering cloud-native multi-tenant applications using Amazon Web Services

• They are rethinking enterprise processes and applications and deploying new Infor Go capabilities that deliver mobile and cloud apps that work in concert to support anytime, anywhere access to Infor offerings

• Their work in analytics with their Birst acquisition and their Coleman initiative are bringing augmented intelligence to the point of work

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“Are You 3DEXPERIENCEd?”ENOVIA Analyst Day, 28 September 2018

• Dassault Systèmes continues to drive its vision for ENOVIA forward by extending lifecycle support to business planning and after-sales while enriching it with expanded connectivity for lifecycle functions

• Digital assets are becoming more valuable than physical assets and the 3DEXPERIENCE platform is designed to support this concept in multiple ways—as a business platform, as an operating system, and as an enabler of new business models

• The enhancements to the 3DEXPERIENCE platform and ENOVIA with 2019X should be appealing to SmarTeam and SOLIDWORKS users, giving them the capabilities they need to advance their PLM maturity

• POWER’BY offers PLM collaboration services that will help clients with multiple ECAD and MCAD authoring tools (including non-Dassault Systèmes tools) manage data using ENOVIA to improve configuration control and better distribute information to the enterprise


“Securing Our Cloud Future”Oracle OpenWorld 2018, 22-25 October 2018

• Addressing today’s and tomorrow’s security threats demands a new solution, Oracle’s Second Generation Cloud, offering “Impenetrable Barriers + Autonomous Robots”

• The Oracle Digital Supply Chain Platform combines Oracle’s traditional enterprise applications with leading edge capabilities like analytics, blockchain, and the IoT

• Oracle PLM Cloud continues to expand its capabilities and installed base, including more explicit coverage of and support for fielded products using Oracle’s capabilities in IoT, analytics, and machine learning

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“The Opportunity of Better”Autodesk University, 12-15 November 2018

• Autodesk has just about completed their business model transition from perpetual licensing to subscription

• The future of making things is still central to their vision, with automation and augmented reality/virtual reality (AR/VR) playing significant roles

• Autodesk sees the Architecture, Engineering, and Construction (AEC) market as a huge manufacturing opportunity in the next 10 years


2019 CIMdata PLM Market & Industry Forums“Augmented Intelligence: Applications Across the Product Lifecycle”

• Event for PLM software and services providers; some financial attendees

• Theme should be clear from today’s presentation• Sessions in Ann Arbor MI (4 April 2019), Frankfurt (11

April), Pune (15 April), Beijing (19 April), Tokyo (24 April)

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“The PLM Economy Loses a Visionary” RIP Charles C. “Chuck” Grindstaff

• Mr. Grindstaff joined the Unigraphics Solutions research and development team in 1978 and held various leadership positions

• In 1988 he left UG to found Waveframe, developing revolutionary digital signal processing systems for high-end motion picture applications for which he won an Oscar—a nice complement to the Emmy’s won by his father for sound engineering on trailblazing shows like Star Trek (The Original Series)

• He returned to UG in 1994 and retired as President and CEO of Siemens PLM Software in 2016 to found Next Step Vineyard LLC




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Q&ALet’s hear what’s on your mind?


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