Strong Ansys Q2 Results: Simulation Excellence Continues to Drive Product Innovation and Quality

Simulation is core to product development—contributing to safer and better designed, engineered, manufactured and ultimately cheaper products.

As virtual and physical validation simulations come together, products become safer and better designed to anticipate performance and user scenarios, rapidly assess and inform functional and technical changes, more accurately predict behaviors and alternate solutions, and continuously inform the decision-making process.

As virtual and physical validation simulations come together, products become safer and better designed to anticipate performance and user scenarios, rapidly assess and inform functional and technical changes, more accurately predict behaviors and alternate solutions, and continuously inform the decision-making process.

Over the years, market analysts have repeatedly reported growth in the simulation and analysis market. This comes as no surprise considering the rising complexity of engineering products. As a matter of fact, the simulation world expanded across multiple disciplines over the past 50 years, becoming more and more advanced and predictive (from computer-aided design to multi-physics simulation, material intelligence, model-based systems analysis, 3D printing and much more).

Simulation software applies science-driven principles, enabling engineering teams to experiment and solve real-world problems before they occur. Simulation platform editors now cover a wide range of highly technical disciplines, from mechanical to electrical engineering and embedded software, such as:

  • Finite element structures
  • Kinematics
  • Fluid-structure interactions
  • Optics
  • Chemistry

Furthermore, simulation solutions specialize in industry-based scenarios, such as in-flight simulators in the aerospace industry, or advanced driver-assistance (ADAS) systems in the automotive industry, among other examples.

Founded in 1970, Ansys is a historical player in the simulation space—alongside several other players such as Siemens, MSC Software, Autodesk, Dassault Systèmes, MATLAB, PTC and more.

Recently, Ansys reported strong Q2 2021 financial results. This announcement reinforces the importance of simulation and simulation lifecycle management in the engineering world, including the ongoing requirement to manage the related product lifecycle management (PLM) data—either as input or output to virtual product simulation.

According to Craig Brown, a CIMdata executive consultant, “based on CIMdata’s estimates, the global PLM market grew faster than CIMdata’s forecast for the calendar year 2020, especially in electronics design and manufacturing certification (e.g., requiring more multi-physics simulations)”. In this context, Ansys announced record Q2 annual contract value (AVC) and revenue, with double-digit growth compared to the Q2 2020, and despite the challenges posed by the COVID-19 pandemic. The company has steadily grown inorganically over the past 20 years with about 30 acquisitions—expanding into complementary and new technical domains.

Ajei Gopal, Ansys president and CEO, declared that “Ansys delivered exceptionally strong results for the second quarter and significantly beat our financial guidance across our key metrics. Our broad-based growth validates our strategy of Pervasive Simulation, and our product leadership and ongoing go-to-market momentum gives us increased confidence in our business and ability to execute against our goals. In July, we extended our technology leadership with Ansys 2021 R2, which introduced breakthrough technologies and innovative capabilities across our product portfolio.”

In parallel with these financial results, Ansys recently ranked 73rd in Fast Company’s third annual list of 100 best workspaces for innovators, which “celebrates [global] companies … that continued to foster creative cultures during a period of unprecedented global disruption.” Reportedly, Ansys invested about a quarter of its revenue into R&D, and its virtual conference drew 20,000 attendees.

Per the press release, Ansys was “recognized for its Ansys RaptorH product, which is revolutionizing the development of system-on-chip (SoC) and 3D integrated circuits (3D-ICs),” as well as for its “investments in innovation, including research and development, along with other initiatives such as the inaugural Ansys Simulation World 2020 Virtual Conference.” Other companies nominated in the Fast Company list in the technology industry section included SAP, Keysight Technologies, and the Alibaba group, among others.

Stephanie Mehta, editor-in-chief of Fast Company, mentioned that “this newest list of the Best Workplaces for Innovators honors those organizations that found ways to collaborate and invent despite the challenges posed by the pandemic, ensuring employees were at the forefront.”

Engineering complexity is rising with more advanced, connected and smart products. Complexity in product engineering emerges from new requirements, capabilities, usages and integrations across the product lifecycle.

Previously, I noted 10 business benefits that result from effective SLM practices—focusing on better product quality, verification and validation, increased data visibility and traceability, and better problem-solving ability. Simulations have clearly become the norm in the current digital world, covering more and more technical and integration scope across the product lifecycle:

  • As part of early product concept phases, simulations help plan and architect viable solutions, influencing both technical and financial aspects.
  • During detailed product development, simulations help verify, validate and optimize design and engineering performance; this includes helping with how products are designed and manufactured.
  • During product production, manufacturing and assembly, simulations contribute to ongoing capability assessment and optimization, as well as asset performance prediction and maintenance.
  • During product usage, simulations allow for predictive maintenance, service assessment and operations, as well as capitalize on next-generation product improvements.

There are therefore rising requirements to effectively manage simulation data in an integrated way—something that has been on the PLM agenda for decades. Simulation data is unique and specialized by its nature. Yet it needs to be accurate and timely (relatively to a given build type or product configuration).

  • Input data includes material, geometrical information, bill of materials (BOM), requirements, legislative or standard parameters, metadata, properties, and attribute content based on boundary conditions or performance indicators.
  • Output data typically includes large datasets, behavioral and technical results, modeling parameters, adjustment requirements, change assessment results, impact analysis and more.

As products evolve through design iterations or change through usage and service, their ability to deliver must be guaranteed. As it is not possible to simulate every combination or scenario, choices must be made. These choices include the ability to plan the minimum set of relevant experimentation and validation, both virtually and physically. The cost-effective approach is to reduce physical simulation to the bare minimum and increase predictive solution while focusing on multiple instances of virtual verification and early validation. As engineered products become more complex, they also become difficult—or even impossible—to grasp without the use of holistic simulation software, much of which is as integral to the PLM practice as getting products developed and commercialized.

What are your thoughts?

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Written by

Lionel Grealou

Lionel Grealou, a.k.a. Lio, helps original equipment manufacturers transform, develop, and implement their digital transformation strategies—driving organizational change, data continuity and process improvement, managing the lifecycle of things across enterprise platforms, from PDM to PLM, ERP, MES, PIM, CRM, or BIM. Beyond consulting roles, Lio held leadership positions across industries, with both established OEMs and start-ups, covering the extended innovation lifecycle scope, from research and development, to engineering, discrete and process manufacturing, procurement, finance, supply chain, operations, program management, quality, compliance, marketing, etc.

Lio is an author of the virtual+digital blog (www.virtual-digital.com), sharing insights about the lifecycle of things and all things digital since 2015.