MCAD/MCAE Industry View – A November 2010 Update

Daimler Selects CAD Software from Siemens as New Platform for Worldwide Car and Truck Development

On November 24, 2010 Daimler AG announced it had selected CAD Software from Siemens as their standard for their worldwide vehicle development. Starting in the summer of 2012, Daimler will integrate work from over 20 development centers and their most important suppliers on a single product development platform. Both companies have agreed not to disclose the contract value.

With the decision for the NX™ CAD Software of Siemens, Daimler completes their current implementation of Teamcenter®,the company's product data management backbone. Based on this combination, the automotive manufacturer will establish digital collaboration from initial concept design, through simulation during design, down to proof of concept of design solutions. The consolidation of digital product information in one single worldwide data pool will facilitate new vehicle development. The introduction of parallel processes in development, design, production planning and production will further optimize the entire value chain.

“The combination of NX CAD software with our product data management system Smaragd, which is based on Teamcenter, will integrate our entire product creation process from design through production planning down to managing production machines,” said Prof. Bharat Balasubramanian, who is responsible at Daimler for R&D product innovation and process technology.

With Daimler another vehicle manufacturer decided this year to optimize their worldwide vehicle development process with software solutions from Siemens. By changing to Siemens' open software solutions, car manufacturers can enhance their quality and efficiency in vehicle design and development.

Modern vehicle design requires an increasing integration of mechanical, electrical and electronic components with an ever expanding software ratio. This requires the integration of all of the information associated with mechanical, electrical and software in an integrated platform to allow for collaboration across the full value chain, including suppliers.

“Our CAD and PLM software will help manufacturers enhance their development processes and their production planning and therefore increase their productivity,” Chuck Grindstaff stated, president and chief technology officer of Siemens PLM Software, a business unit of the Division Industry Automation.

With software from Siemens, car manufacturers can manage the product and production planning in parallel with production, encompassing the entire value chain. Daimler has worked with Siemens' Teamcenter software for collaborative product data management since the mid 90s. With NX CAD software from Siemens, Daimler will implement a computer-based tool for the entire product development process and therefore a solution for collaborative design, engineering- and development work.

Today Siemens is one of the leading suppliers of PLM software with 6.7 million licenses and 69,500 customers around the world. The market for PLM software is exhibiting stronger growth than any other business software market. In 2009 the market had a volume of € 23 billion with a growth rate of 8% p.a. by 2014.

About Siemens PLM Software

Siemens PLM Software, a business unit of the Siemens Industry Automation Division, is a leading global provider of product lifecycle management (PLM) software and services with 6.7 million licensed seats and more than 69,500 customers worldwide. Headquartered in Plano, Texas, Siemens PLM Software works collaboratively with companies to deliver open solutions that help them turn more ideas into successful products. For more information on Siemens PLM Software products and services, visit

About the Siemens Industry Automation Division

Siemens Industry Automation Division (Nuremberg, Germany) is a worldwide leader in the fields of automation systems, industrial controls and industrial software. Its portfolio ranges from standard products for the manufacturing and process industries to solutions for whole industrial sectors that encompass the automation of entire automobile production facilities and chemical plants. As a leading software supplier, Industry Automation optimizes the entire value added chain of manufacturers - from product design and development to production, sales and a wide range of maintenance services. With around 33,000 employees worldwide (September 30), Siemens Industry Automation achieved sales of €6.2 billion in fiscal year 2010.

About Siemens Industry Sector

The Siemens Industry Sector (Erlangen, Germany) is the worldwide leading supplier of environmentally friendly production, transportation, building and lighting technologies. With integrated automation technologies and comprehensive industry-specific solutions, Siemens increases the productivity, efficiency and flexibility of its customers in the fields of industry and infrastructure. The Sector consists of six divisions: Building Technologies, Drive Technologies, Industry Automation, Industry Solutions, Mobility and Osram. With around 204,000 employees worldwide (September 30), Siemens Industry achieved in fiscal year 2010 total sales of approximately €34.9 billion.

In the preface of this November 2010 issue of the MCAD/MCAE Commentary, the following MSC.Software status was noted:

On July 07, 2009 MSC.Software announced that it had entered into a definitive agreement with affiliates of Symphony Technology Group (STG) under which a company controlled by STG would acquire all of MSC's outstanding shares in a one-step cash merger transaction. This acquisition of MSC.Software by STG was finally consummated on October 14, 2009. No financial results for MSC.Software were published for Q3 2009, and none since. Unless and until such data are subsequently made available, MSC.Software has been dropped from coverage herein, although occasionally MSC.Software news items that bear on the industry as a whole will be mentioned.

One of the important announcements of the October 14, 2009 consummation date was the appointment of Dominic Gallello as the new MSC CEO. (A new CFO Jim Johnson was also appointed and announced on October 14, 2009).




While no further financial results have since been published by MSC for us to include in our quarterly MCAD Commentaries, we have followed MSC's progress from afar, occasionally reporting on MSC activities that affect the MCAD/MCAE industry as a whole. Such reports have included mention of certain MSC customer wins over the last year or so, as well as occasional mention of product updates and releases that have occurred.

But what may have escaped our notice since October 14, 2009, are the relatively quiet but critical changes in MSC management leadership that Mr. Gallello has wrought over the last 13 months. A glance at today's list of managers published on MSC's web site, reveals a host of new names that the MCAD Commentary writer does not recall as being prominently listed prior to Mr. Gallello's and Mr. Johnson's appointments. Many new faces have come from outside the company, while several have been promoted from within MSC:





MCAD Commentary readers may check out the backgrounds of each of these individuals on whom the future of MSC.Software depends, at this URL:





Economic & Political Editorial:

While the Democratic Party and especially President Obama have been blamed in recent quarters for the U.S. unemployment rate still hovering at 9.6 %...

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