CAD/PLM Strategy and Burning Chrome

March 2, 2011

Choose the platform for your software becomes a new issue in 2010s. Platform was kind of easy story for the last 10-15 years. You had a choice of market share leaders, blue chip companies and that’s it. You cannot get wrong by signing a contract with IBM. This is what people told me a decade ago. Not anymore, in my view… The future choice of a technological platform can be a bit more complicated. I read the article Burning Chrome by TechCruch few days ago. Have a read and make your opinion. This is my favorite passage from this article:

Google’s long-term strategy seems to be to supplant Microsoft by first building the best browser, then making it easy to move your files to Google Docs; and finally, slowly but inexorably, making Windows and Office irrelevant. Obviously no one will abandon Microsoft products wholesale anytime soon; but as cloud computing grows more ubiquitous, Google steadily iterates feature after feature, and people grow accustomed to working in the browser, then one day, maybe only a couple of years from now, a whole lot of people – and businesses – will begin to think to themselves “Hey, we haven’t actually needed Windows or Office in months. Why do we even have them at all?”

CAD/PLM and Technological Platforms

CAD vendors successfully leveraged various technological platforms in the past. Think about Autodesk and PC back in 1980s and SolidWorks and Windows in 1990s. PDM/PLM made their own play with technologies and platforms too. Windows-based PDMs in the last 1990s and early 2000s presented some approach about how to apply Windows based user experience to improve the quality of tools. The overall cost of these systems went down at the same time. Web-based development also provided some great examples of successfully implementation PLM systems.

What Next?

The question I’m asking myself is what next. I can see some interesting trials these days by CAD and PLM developers to leverage existing technological platforms and innovations. Few of them to be mentioned. PTC ProductPoint presents a massive usage of Microsoft SharePoint. Another interesting example is trying to leverage social technology (3DSwYm,Vuuch). Cloud experiments of Autodesk in something they called "infinite computing". All these examples are promising. However, I have a feeling of something missing.

What is my conclusion? “A good player goes where the puck is. A great player goes where the puck is going to be”—The Great One. I can think about Chrome as one of the next innovative platforms PM can leverage. The biggest problem PLM companies are trying to resolve already many years are cost of the deployment and mainstream deployment. To make a system to proliferate together with Google’s idea of network computer can be an interesting strategic move. Just my thoughts…

Best, Oleg

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Will PLM Channels Survive The Cloud Era?

March 1, 2011

Cloud is one of the trending topics these days. Slowly, it comes also to PLM space. With the growing number of companies in this space, it becomes clear that cloud is the future of business software and not a baloney as some of the people predicted few years ago when “the cloud” was mentioned first time. However, today I want to raise a topic, which is far from “cloud technologies” and talk about one of the aspects of business called “channel”. Every company needs to develop their channel to sell what they produce and PLM companies are not exclusion from this rule. The ability to have an effective channel made many companies extremely successful. Think about Autodesk or SolidWorks resellers. In the past, they played a key role in the development of businesses for both successful companies. If you have some time, I can recommend you the following reading about SolidWorks VAR channel written by Jeff Ray, former CEO of SolidWorks published by David Skok on his blog.

I found the video below interesting in the context of channel and cloud business. You can see Guy Weismantel, Microsoft’s director of ERP Marketing, talking about the future Microsoft Dynamics and cloud partners.

I think, everything said by Guy make a lot of sense for PLM business as well. The role of channel(s) can be changed significantly at the time software becomes available online on the internet. There are few fundamental differences – availability with no installation, subscription, customization level, services and support. So, will traditional distribution model is going to disappear? Or existing distribution channels will require some groundbreaking changes?

In my view, business partners and channels are in front of significant changes. Usage of the internet will completely change the landscape of PLM reseller channels. They will need to shift the focus more towards business and product development software consultancy and less focusing on software delivery, training and installation. Customization will become an interesting portion of business related to how cloud software can be adapted inside of the companies.

What is my conclusion? It is clear to me, PLM distribution channels are going to pass a significant change as a consequence of business switching towards cloud solutions. The relationships in the triangle vendor-customer-partner is going to change. It will be a big shift. Many surprises on the way… Just my thoughts.

Best, Oleg

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PTC, SolidWorks and Windchill PLM Success.

March 1, 2011

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

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