Most large PLM companies deal with three groups of people that are necessary for survival – employees, customers, and investors. Every company regards and treats the three groups differently, but most of the successful ones acknowledge the importance of all three – although some companies are better at it than others and some companies regard one or more of the groups as necessary evils.
Each of the groups gets the information it needs to make decisions from different sources, such as press releases, news feeds, whitepapers, eBooks, financial reports, and so on. Financial reports for tech companies are especially interesting not only because of what they say, but what they might imply. And, while some companies try to report “alternative facts,” financial figures don’t lie, and some things are obvious, but there are always numbers subject to speculative interpretation.
That brings me to PTC’s most recent financial report that was made public last week. There were some surprises, some good, some not so good, but in many ways reinforced and reflected the direction of the company, namely IoT. Admittedly, IoT was not the biggest source of revenue for PTC, but it’t clear that it is increasingly important to the health and wealth of the company.
Just about a year ago, PTC received the IoT Innovation Vendor of the Year Award from marketing analytics and consulting firm Compass Intelligence at the 2016 International Consumer Electronics Show (CES). The Compass Intelligence Annual Awards recognize the best Internet of Things (IoT) products and services offered in the market during the past year.
In the view of the award presenting organization, PTC had become a leading provider of technology that enables its customers to realize the value inherent in the Internet of Things. As well, in their opinion, PTC’s CEO, Jim Heppelmann, had become a major thought leader, having coauthored two seminal HBR articles that describe the implications of the IoT and offering companies a blueprint to get started on their own IoT journeys.
This week PTC announced that it had been named Industrial Internet of Things Company of the Year by IoT Breakthrough, an independent organization dedicated to recognizing IoT products and companies that stand out in the industry. PTC also received the IoT Breakthrough award for “Industrial IoT Solution of the Year” for its Kepware KEPServerEX industrial connectivity software.
As part of its ongoing acquisition quest, less than a year ago PTC acquired Vuforia from Qualcomm Connected Experiences for $65 million. What a difference a year has made!
Vuforia is an augmented reality (AR) technology platform, that PTC is betting will enrich its technology portfolio and further foster its strategy to provide technologies that blend the digital and physical worlds. In other words, the next phase of the Internet of Things (IoT).
When it was first reported that Qualcomm was soliciting bids for Vuforia as part of its effort to cut costs and focus on its key mobile business, PTC surprisingly was the ultimate suitor for the company and its technology.
Vuforia is a software platform that democratizes AR development. According to PTC, Vuforia is the most widely used AR platform in the world, powering more than 80% of AR apps in the Apple App Store and Google Play. In fact, more than 30,000 Vuforia-powered applications have been published on the App Store and Google Play – and have led to more than 275 million app installs. Vuforia also supports an active developer ecosystem with more than 250,000 registered developers, and more than 30,000 projects in development.
What a difference a few days make. Last week I was in Denver teaching math to middle schoolers and this week I was in Boston with about 4,000 others attending PTC’s LiveWorx 16. The spotlight at the conference shone on the Internet of Things (IoT) and PTC’s commitment to it.
So, you think that the Internet of Things (IoT) thing is still just a fad? Based on my experience at PTC’s LiveWorx 16 in Boston this week, IoT is becoming an increasingly big part of the future – not only for PTC, but for all of us.
Still not convinced? Just the attendance figures alone from this year over the past couple might help convince you – LiveWorx 2014 (~350 attendees); LiveWorx 2015 (~2,300 attendees); LiveWorx 16 (~4,000 attendees). Attendance numbers don’t lie and that shows the growing interest in IoT. (more…)
This week PTC received the IoT Innovation Vendor of the Year Award from marketing analytics and consulting firm Compass Intelligence at the 2016 International Consumer Electronics Show (CES) in Las Vegas, Nevada. The Compass Intelligence Annual Awards recognize the best mobile computing, wireless data communications, Internet of Things, and eco-friendly products and services offered in the market during the past year.
The IoT Innovation Vendor of the Year Award is part of the A-List in M2M/IoT awards category and is voted on by more than 60 industry-leading press and analysts based upon a range of criteria, including vision, strategy, leadership, and financial success.
In the view of the award presenting organization PTC has become a leading provider of technology that enables its customers to realize the value inherent in the Internet of Things. As well, in their opinion, PTC’s CEO, Jim Heppelmann, has become a major thought leader, having coauthored two seminal HBR articles that describe the implications of the IoT and offer companies a blueprint to get started on their own IoT journeys.
As part of its ongoing acquisition quest, earlier this week PTC announced that it had signed an agreement to acquire the Vuforia business from Qualcomm Connected Experiences for $65 million. Vuforia is a widely adopted augmented reality (AR) technology platform, that PTC is betting will enrich its technology portfolio and further foster its strategy to provide technologies that blend the digital and physical worlds. In other words, the next phase of the Internet of Things (IoT).
Under terms of the agreement, PTC will acquire the Vuforia business, including its developers ecosystem. PTC is committed to continued investment in the Vuforia platform and to the ongoing support and growth of the Vuforia ecosystem, but why wouldn’t it? The deal is expected to close later in 2015.
It was first reported last month that Qualcomm was soliciting bids for Vuforia as part of its effort to cut costs and focus on its key mobile business. The surprise was that PTC was the ultimate suitor for the company and its technology.
Vuforia is a mobile vision platform that enables apps to “see” and connect the physical world with digital experiences that demand attention and drive engagement. Vuforia is supported by a global ecosystem of developers, and has powered more than 20,000 apps with more than 200 million app downloads and installs worldwide.
Vuforia’s technology lets people use their smartphone or tablet to bring advertisements, toys, and other real-world objects to life. The effort has attracted a notable base of developers, but let’s face it, augmented reality remains more of a novelty than a big business. Obviously, PTC is out to change that. (more…)
ANSYS, a major provider of engineering simulation (CAE) software, announced that it has acquired substantially all the assets of Delcross Technologies, a developer of computational electromagnetic simulation and radio frequency system analysis software.
The acquisition is intended to let ANSYS users to understand how antennas interact within their operating environments and how this behavior affects the system’s overall ability to transmit and receive data without interference. As usual, and not surprisingly, terms of the deal, which closed earlier this week, were not disclosed.
So, what does this really signify? Simulating not just large-scale antenna systems, such as those found in giant aerospace projects (which will surely go on after the acquisition), but on a much, much smaller scale for Internet of Things (IoT) projects.
Although it’s almost a year old, below is a video presentation (click on the image) from Delcross Technologies for modeling installed performance of antennas on electrically large platforms, such as aircraft and automobiles.
For many years all of the major CAD vendors have been touting the importance of managing the mountains of design, engineering, and manufacturing data created using their software. Conversely, most manufacturing organizations, large and small, have made the transition from 2D to 3D and are finally investigating how to best manage these mountains of CAD and associated product development data beyond files, folders, Excel spreadsheets, Window Explorer, and FTP servers.
It is estimated that approximately 70% of commercial CAD seats today still are not connected to any product data management (PDM) system, and the CAD/PDM/PLM companies are very aware of this situation and are doing everything possible to change it. It has come down to an aggressive SMB-marketing of existing “scaled down” or “right-sized” PLM solutions, as well as introducing of new opportunities by leveraging cloud and open source solutions.
The biggest challenge in the SMB space is promoting an answer to the question, “Why change?” At the end of the day, if a company can get things done by using Excel, Office and email, a very compelling alternative solution to change is needed. Small doesn’t necessarily mean simple. Small- and medium-sized business is complicated and competitive. Cost and implementation challenges are still two key elements that every vendor struggles with when trying to provide a viable PDM solution for SMBs.
Various sources claim the following benefits of PDM, including:
30 percent to 70 percent shorter development time
65 percent to 90 percent fewer engineering changes
20 percent to 90 percent faster time to market
200 percent to 600 percent higher quality
20 percent to 110 percent higher productivity for engineers
While these are impressive figures, many SMBs are still not convinced of the benefits of PDM and remain on the fence as to whether to implement it or not. This indecision presents both a challenge and an opportunity for making believers of SMBs in PDM.
Generic Product Data Management Overview (From Wikipedia)
Organizations implement PDM for many different reasons, but virtually all implement with common goals, including:
Securely controlling product-related information
Sharing product knowledge for collaboration
Searching for and reusing product information.
The two biggest words and phrases that resonate with SMBs regarding PDM are “preconfigured process workflow” and “design reuse.”
About a month ago I spent a few days in Boston at PTC’s LiveWorx 2015 event. It was an eye opener for me and a brief look into the future of PTC with its growing emphasis and dependence on the Internet of Things (IoT).
Beyond the technologies and business strategies presented, what struck me was the relatively young crowd attending with relatively young PTC PR people pushing the IoT platform. Sold out with over 2,300 attendees (up from ~350 in 2014), the draw was similar or maybe more than this year’s PTC Live Global user event. Although Creo and Windchill were certainly present at LiveWorx, they took a back seat to IoT offerings, such as ThingWorx, Axeda, and others.
So what does IoT really mean? I don’t know either because it’s evolving so rapidly and all participating vendors define it so that it accommodates what they offer best. In other words, until standards are established, the definition continues to evolve. I will admit, however, that PTC currently has a leg up on virtually all of the competition for IoT in its traditional design, engineering, and manufacturing space.
A standard definition is in the works, however, and IoT generally refers to uniquely identifiable objects and their virtual representations in an Internet-like structure. The term Internet of Things was proposed by Kevin Ashton in 1999, although the concept has been discussed since 1991, so it’s not exactly brand new.
According to PTC, the Internet of Things has the potential to create trillions of dollars of new economic value in the coming decade. To capture this value, manufacturers will rely on new applications that enable the creation of smart, connected products, thus PTC’s interest and commitment, as shown in the brief video below.
PTC’s Vision for Smart, Connected Products (more…)
Last week at LiveWorx 2015, PTC made several major product and strategic announcements around the Internet of Things (IoT) and their implications for the future of PTC. A couple of the most prominent of these product announcements were ThingWorx 6.0 and ThingWorx Converge.
Before being acquired by PTC about 18 months ago, ThingWorx realized that making IoT a reality required an ecosystem of complementary technologies that enable “things” to be created, connected, operated, and serviced. With the ecosystem established, applications that capitalize on the data these “things” generate can be developed.
According to Russ Fadal, President & General Manager, ThingWorx, a PTC business, it’s estimated that in 2010 there were approximately 7 billion connected smart devices in the world. That number is expected to be in the neighborhood of 1 trillion by 2035. That’s explosive growth, to say the least!
He said that today IoT is challenged because 80% of resources are dedicated to infrastructure and 20% for applications, and he would like to see those percentages reversed. Other issues that he, PTC, and the IoT industry as a whole are trying to resolve include security, predictable performance, 10X+ faster production and implementation, and what to do with the mountains of data generated by IoT devices. Security is especially important because it is not an event, but an ongoing process that will never go away. No small concerns here, therefore the evolution of the platform ecosystem — ThingWorx.