PLM This Week: Siemens Set to Acquire ALM Software Leader
Felix Nilsson posted on November 30, 2015 |
Dassault Systèmes brings 3D visualization to retail. Autodesk sees losses due to business transforma...

Siemens Set to Acquire ALM Software Leader

Chuck Grindstaff, CEO and president of Siemens PLM Software.

Chuck Grindstaff, CEO and president of Siemens PLM Software.

On Wednesday, Siemens PLM Software announced its intention to acquire Polarion Software, developer of a browser-based solution for application lifecycle management (ALM).

The deal is expected to be finalized during the first quarter of 2016.  It will result in the integration of Polarion’s software into Siemens’ Teamcenter PLM suite.

It’s no secret that there’s been an explosive increase in the amount of software that goes into almost every product, a development that’s been fueled in part by the emergence of the Internet of Things.

For instance, a car might have 100 million lines of embedded code.  This number is only expected to increase. The point of an ALM solution is to enable manufacturers to continuously integrate, verify and validate this code. In fact, some companies have argued that the PLM concept must expand to encompass this area .

One example is PTC, whose acquisition of MKS in 2011 resulted in the ALM solution “Integrity”. Siemens’ acquisition of Polarion indicates they now are on the same page.

"Today's announcement is another step in Siemens' commitment to help our customers fully realize the benefits of digitalization. By adding Polarion ALM solutions to our PLM portfolio, we are further strengthening our ability to help companies create smart, connected products,” said Chuck Grindstaff, CEO and president of Siemens PLM Software.

Polarion is a leader in the ALM market, with over 2.5 million users accessing its browser-based system. The major customers are from core PLM industries, as well as customers in adjacent high growth industries. 

That makes this deal a perfect fit for Siemens.

"Our two companies have enjoyed a successful relationship over the past two years and we have plans for a successful joint market strategy. This acquisition now offers us an opportunity to move further and faster towards the delivery of high value PLM/ALM solutions to our customers," said Frank Schroeder, CEO of Polarion Software.

Unfortunately, Siemens did not and will not disclose the terms of the deal. But stay tuned for a more in-depth article on this subject on the PLM/ERP site.

Dassault Systèmes Brings 3D Visualization to Retail

Last week, Dassault Systemès announced three new vertical solutions for biopharma (“Industry Solution Experiences” in the company’s own lingo), and it seems as though the French PLM behemoth is set to keep the good times rolling.

It is now releasing another 3DEXPERIENCE platform connected solution, this time for consumer goods companies.

According to a press release, “‘My Retail Theatre’ provides consumer goods companies with interactive, high-end 3D visualization capabilities that let shoppers configure personalized products offline or online. 

Retailers can display their full product assortment regardless of physical store size, increasing consumer choice while reducing the need for large inventories.”

With the help of significant internal development and a number of strategic acquisitions, DS has some very powerful tools at its disposal for creating photorealistic 3D visualizations.

This solution leverages these capabilities by enabling retailers to reuse 3D assets from the product development process for marketing and sales purposes.

The result is a model that can be interactively explored by consumers, and that can be customized with colors, materials and textures. Product components are displayed based on available inventory and deliveries can be quoted based on realistic lead times.

Once fully configured, consumers can proceed to the checkout as well as share their product on social media.

Autodesk Sees Losses Due to Business Transformation

CAD and PLM giant Autodesk is going through a rough transformational period.

The company announced in February that it planned to eliminate perpetual licenses, instead opting for a recurring subscription model for all of its products.

Autodesk recently presented the figures for its third fiscal quarter 2015 (ended October 31, 2015), showing a performance that can be characterized as “sluggish.”

While Autodesk is clearly playing the long game, the company’s financial results are suffering in the short term. Revenues for the third quarter were at $599.8 million, which is three percent less than the corresponding period the previous year, but up two percent on a constant currency basis.

Profits were down significantly, ending up with a net loss of $43.8 million, compared to a net profit of $10.7 million a year ago.

So how is the transformation going?

Total subscriptions were 2.47 million, an increase of approximately 80,000 from the second quarter of fiscal 2015. The total annualized recurring revenue (ARR) was $1.35 billion, an increase of 15 percent compared to the third quarter last year.

However, according to the Autodesk chief Carl Bass, the performance was actually above expectations.

"Autodesk continues to focus on delivering world-class software and great experiences to our customers, while driving our business model transition as rapidly as possible,” said Carl Bass, Autodesk president and CEO.

He continued, "We are balancing the necessary investments in the transition with our ongoing focus on spend management, leading to better than expected profitability for the quarter. And we remain confident in our long-term view that our business model transition will deliver a 20 percent CAGR in subscriptions and a 24 percent CAGR in ARR through fiscal year 2020."

Looking at the different geographical regions, the Americas was the only region that saw any growth, ending at $236 million, an increase of two percent year-over-year. 

The big losers were APAC (Asia Pacific) and Emerging Markets, decreasing by seven and eight percent respectively. The EMEA region shrunk by five percent to $225 million.

Some people might ask themselves why we’ve chosen to include Autodesk in the PLM section. If you are one of these people, have a look at this article explaining Autodesk’s PLM venture quite clearly.

In other Autodesk related news, the company’s big global event, Autodesk University, will be kicking off on Tuesday next week.

The PLM TV News team with Verdi Ogewell, as well as editorial staff from including John Hayes will be there to cover it.

So, expect lots of updates next week.

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