I read Martyn Day article The Jim Heppelmann Interview. Mr. Heppelmann shared his thoughts about different aspects related to PTC, CAD, PLM and competitors. Read this interview and make your opinion. Here my favorite passage from this interview related to comparison between Windchill and SolidWorks:
“Windchill is doing exceptionally well and just to put it into perspective – I think we all look at SolidWorks as a great business for Dassault Systemes and Windchill’s substantially more successful than SolidWorks. While SolidWorks was launched in 1996, and I think it’s a $350 million dollar business right now, Windchill was launched in 1998 and it’s going to be a more than $500 million business this year. So Windchill is 1.5 times more successful than SolidWorks from that perspective.
One of Mr. Heppelman’s conclusions is that PTC becomes a "Windchill company". Here is the quote:
So, to some extent we really have become the ‘Windchill PLM’ company because that’s become as big now as everything else combined.
What is my take? I have to agree with Mr. Heppelman. SolidWorks is a very successful business. What is also remarkable is the mainstream character of SolidWorks business. I think, the note about Windchill success is an interesting confirmation about mainstream character of PLM business in general and PTC success in PLM business during the past few years. Another interesting question is what role Windchill component will play in the future Creo product line announced by PTC few months ago?
Just my thoughts…
Best, Oleg
I think that Mr. Heppelman’s conclusion is inaccurate. He is comparing the revenue of two different companies that sell similar (not identical) products at different prices. The revenue of PTC may very well be higher, but so is the cost of their software. To say that PTC is 1.5 more successful than SolidWorks because their revenue is 1.5X greater is a gross over-simplification. Does Windchill cost 1.5X more than SolidWorks?
Another CAD/PLM competitor, Siemens (NX) may be percieved as being more successful than SolidWorks on revenue alone, but their product costs 4X what SolidWorks costs. Siemens could have 75% of the sales of SolidWorks and have the same revenue, assuming (inaccurately) equal operating costs.
When comparing the success of these two companies (or any competing software companies, in my opinion), it would be more accurate to compare the number of licenses that each has sold annually (or currently has in use, if that can me measured). However, due to different license architecture, this may even be difficult. For example, SolidWorks licenses are lifetime licenses – your license number does not change with each new release. Conversely, Autodesk provides you with a new license number for each new major release. If not accounted for, this new license number can artificially inflate the percieved usage of Autodesk products. (I am not familiar with the current license structure of PTC products.)
Comparisons like that provided by Mr. Heppelman are simply an inaccurate respresentation of relative success between competing companies. Revenue is not the only metric for success.
‘SolidWorks is a 350Million Business RIGHT NOW, while WindChill is GOING TO BE A 500Million Business THIS YEAR.’ Needless to say, one is a published value while the other is conjecture. Wow, that is REALLY a nice way to compare. Moreover, is this an implicit admission that SolidWorks has replaced Pro/Engineer as a mainstream 3D CAD and that PTC can no longer compete in this domain? Why is a PLM being compared to a suite of 3D CAD solutions? Apples and oranges? Why not compare with Siemens PLM, Enovia and the like. We should, admittedly, admire PTC for having weathered the storm and still survived in spite of many downturns, including announcing that they were up for sale. It is good to remember that when PTC acquired Computer Vision, they intended to close down this small division that did something ‘non-descript.’ However the guy who was sent to close down the shop ended up recommending and convincing its product to Top Management to continue. Needless to say, that was WindChill ! A vestige becomes a saviour ! PTC has really come around but it is merely a shadow of its arrogant old days when it used to say to customers, ‘tow my line or be left out.’
Chris, Thanks for your comment! I think, the integral comparison is somewhat hard to do, because of differences between product portfolio, licenses, business models, etc. The most important is cost, in my view. Since the brand/company performance can be measured and compared this way. Best, Oleg
Natarajan, thanks for the comments! I agree- the more appropriate is to compare Windchill with Teamcenter. This is “apple-to-apple” comparison…. Best, Oleg
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