Change is constant
by Richard Werneth, President, CATI
 



For those that track the ongoing evolution of the MCAD/PLM/TLA (three letter acronym) industry, there has been significant news surrounding several organizations in recent weeks. Of course, many engineering and manufacturing professionals spend the majority of time focusing on getting projects out the door in record time, not following progress in the MCAD space.

There has always been churn in the industry and it has evolved to the point where a number of products have emerged that will do the job in some form or fashion. As a technical professional, many times the tendency is to review features and functions of a new potential technology and use that as a primary methodology in selecting a partner. The market in recent years has forced the evolution of several organizations and we are starting to see some continued symptoms, both positive and negative, of this process. With the inherent risk in moving to a new tool, knowing that a partner is financially sound and focused, with a vision for the future, is more key now than ever.

For example, Parametric Technology (PTC), the company that brought solid modeling to a larger market over 10 years ago, recently released their quarterly results. PTC reported sales of just under $672 million and a net loss of $98.3 million in the fiscal year that ended September 30, 2003. The quote from Chief Executive, Dick Harrison, "We were pleased with our execution this quarter, as we met our revenue targets while implementing an aggressive cost-reduction program."

Another industry player, EDS, recently announced that they would be selling up to 49% of their PLM group (Unigraphics, Solid Edge, Teamcenter, IMAN, etc). New Chief Executive, Michael Jordan (not the ex-Bull) wants to focus on their core business, outsourced services, and feels PLM is a distraction as it makes up only 4% of their revenue.

Finally, AutoDesk recently completed a lengthy lawsuit proceeding in which Spatial Technology, provider of a solid modeling engine for products such as Inventor, alleged that AutoDesk broke a contract agreement by using core technology without a license. After Spatial was purchased by Dassault Systemes, AutoDesk chose to recreate their own solid modeling engine as opposed to using an out of the box option like the rest of the industry. The dispute centered on whether they had the right to use the source code behind the toolkit.

For more news and information on these topics there are several excellent industry sources such as www.mcadcafe.com <http://www.mcadcafe.com>, www.tenlinks.com <http://www.tenlinks.com> and www.cadcamnet.com <http://www.cadcamnet.com>.

The point is this: Before moving to a new technology in which an organization’s engineering assets will be created, make sure to look beyond product features and understand the current health of your partner and their vision for the future. Our goal at CATI/InFlow is to be a resource for industry trends and technologies so you can focus on what you do best.