The 5,000-managed installation milestone caps a banner 2005 for Mathsoft marked by record license sales and unprecedented growth. It reflects the emergence of Mathcad as an industry standard and the rapid adoption of Mathsoft's calculation management strategy.
The ratio of managed installation revenue to individual user revenue has flipped in the five years since Mathsoft was created in a management-led buyout. Seventy-five percent of Mathcad revenue now comes from managed installations, and only 25 percent comes from individual licenses. It was the opposite at the time of the buyout.
The inversion reveals a heightened focus on calculation management among engineering organizations of every size. "Mathsoft's vision is resonating because engineering calculations gain value with effective stewardship and reuse," said David Scripter, regional IT manager at global engineering design firm URS, the 5,000th Mathsoft software licensee. "Whether you're using Mathcad in the workgroup or Mathsoft's calculation management software across the enterprise, you're reaping a significant return on your engineering data, methods and formulae."
Helping shape the calculation management vision are organizations that signed major new deals with Mathsoft in 2005, including Airbus UK Ltd., BAE Systems MBDA, Bechtel SAIC, Continental Benelux SA, Goodrich Optical & Space Systems, Honeywell International, Nokia Corp., Lockheed Martin Space Systems Co., Los Alamos National Laboratory, Northrup Grumman Corp., Parsons Brinckerhoff, Polimeri Europa and Texas A&M University.
"Engineering calculations are the crown jewel of any product development organization," Monica Schnitger, senior vice president of market analysis at research firm Daratech Inc., said at last week's daratechSUMMIT2006 conference. "The increasing adoption of managed installations emphasizes that manufacturers have realized that these calculations are critical intellectual property that must be propagated beyond an individual engineer's desktop to be shared, reused and reported."
Leading software providers to the manufacturing industry have also joined the calculation management movement by extending the functionality of Mathcad. In 2005 and early 2006, Mathsoft signed partnerships with ANSYS Inc., Bentley Systems, ESRD, National Instruments, PTC, SolidWorks Corporation and StructureWorks LLC.
Meanwhile, escalating demand in 2005 prompted Mathsoft to begin direct sales in Europe and Asia. These efforts were supported by a new $3 million follow-on investment from Edison Venture Fund.
"Five thousand managed installations is a significant milestone for our company and our customers, and we expect this trend to continue as many more engineering organizations in the world need the competitive advantage of better managing their calculations as a critical engineering asset," said Mathsoft Chairman and CEO Chris Randles. "Our mission going forward is to continue investing in our products, partnerships and services to position the company for continued growth. And if demand is any indication, we expect to see the second 5,000 managed installations in a fraction of the time required for the first."
About Mathsoft Engineering & Education, Inc.
Mathsoft Engineering & Education, Inc. pioneered calculation management solutions that protect engineering innovation, investments and intellectual capital while improving organizational efficiency and productivity. Mathsoft software is the internationally recognized standard for technical calculations and applying mathematics. Ninety percent of Fortune 1000 companies, 500 government agencies and 2,000 colleges and universities around the world use Mathsoft to capture the strategic value in their engineering calculations. More information on Cambridge, Mass.-based Mathsoft is available at www.mathsoft.com.
Mathsoft and Mathcad are registered trademarks of Mathsoft Engineering & Education, Inc. All other names are trademarks of their respective manufacturers. (R) 2006 Mathsoft Engineering & Education, Inc.
Contact:
Mathsoft Engineering & Education, Inc. Bernie Buelow, 617-444-8040 Email Contact or Beaupre & Co. Public Relations, Inc. Stefanie Guzikowski, 603-559-5836 Email Contact