This week MSC Software Corporation, the company that brought you such products as Nastran, Patran, Marc, and Apex, announced that it had reached an agreement to be purchased by Hexagon AB for $834 million cash. Like all corporate acquisitions, this one is subject to clearance and standard regulatory filings, and is expected to be completed in April. For more than 50 years MSC has been a leading provider of CAE solutions, primarily simulation software for virtual product and manufacturing process development, and was one of the first 10 commercial software companies.
With 2016 proforma sales of $230, MSC will continue to run as an independent business unit within Hexagon’s Manufacturing Intelligence (HMI) division. HMI’s main businesses are in the automotive, aerospace, machinery, consumer electronics, and other discrete manufacturing markets. Process-oriented solutions are essential for manufacturers, and MSC’s products address key design and engineering processes for CAE.
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.
Last month, RS Components (RS), the trading brand of Electrocomponents plc, a global distributor for electromechanical engineering components announced that user activations of DesignSpark Mechanical (DSM), the company’s free-for-download 3D modeling and design tool, had reached a cumulative total of 200,000. According to the company, the volume of total activations of the software continues to increase at a rate of between four and five percent per month.
Developed in conjunction with SpaceClaim, DesignSpark Mechanical is a key tool in the RS DesignSpark initiative for providing resources that enable engineers to rapidly develop prototypes in the product concept design stage. Originally launched in late 2013 with a second version offering new functionality introduced the following year, the software is also available with extended engineering options (DS Mechanical Exchange and DS Mechanical Drawing) that costs $995 for the pair.
“DesignSpark Mechanical is a powerful 3D solid modeling tool that has rapidly been accepted by professionals, students and the maker communities, who have found enormous utility in the tool, enabling them to quickly develop 3D prototypes and bring their concepts and products to market in a very fast time,” said Mike Brojak, Head of DesignSpark Customer Solutions at RS. “Meeting this milestone is another hallmark of success for our DesignSpark initiative, which empowers engineers and designers in the maker community and from the smallest start-up to large organizations.”
Last week marked the 50th edition of one of the world’s biggest technology spectacles – CES 2017 – showcasing the connected future of technology. With more than 3,800 exhibiting companies and exhibit space of more than 2.6 million net square feet, CES 2017 hosted some the world’s biggest companies in addition to hosting more than 600 startups. More than 175,000 industry attendees, including 55,000 from outside the U.S., convened in Las Vegas to discover the latest and greatest in many segments of the technology industry.
Probably one of the big trends at CES 2017 was Amazon’s Alexa assistant integrated into all sorts of gadgets everywhere, including cars! Not to be outdone, at this year’s CES, though, no fewer than 56 exhibitors were under the 3D Printing banner – many that you’ve heard of and a few that you probably haven’t. Although there were some basic retreads on previously released products, there were significant developments presented, and the ones that caught our eye were in the areas of materials (metals and ceramics) and affordability (sub-$500 machines).
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.
Cloud computing is helping more manufacturers become more agile and competitive, but it is by no means the only aspect of improving manufacturing practices. There are actually several technologies involved with making connected smart manufacturing a reality.
That’s just part of the findings of the 2016 State of Manufacturing study written by Plex Systems and based on survey responses from approximately 200 manufacturers.
Last year’s State of Manufacturing Technology report validated that the cloud is one of the primary catalysts for technology usage overall. Fundamentally, the cloud reduces the IT cost and personnel burden for core systems and administration, opening up resources for greater innovation and much needed focus on higher-value technology projects. The core capabilities inherent in modern cloud solutions—mobility, ease of integration, configurability, and the elimination of upgrade cycles— also make it easier and less expensive for manufacturers to connect their people, equipment, materials, suppliers, and customers.
This year’s survey discusses an emerging trend: connected manufacturing. Organizations are building on the connectivity of the cloud and leveraging integration that extends from mobile devices to plant floor equipment, customers to suppliers, and people to materials. These capabilities are providing a new application foundation for everything from agile process design to enterprise supply-chain management, innovation, and product quality.
I read a lot of books, mostly non-fiction and technical in both hardcopy and digital formats. Although I get through most of them, there are some I don’t even try to finish, and a few become favorites that I keep for future reading and reference. I recently read a book entitled Re-Use Your CAD: The ModelCHECK Handbook by Rosemary Astheimer. When I saw Handbook in the title, I thought it would be another dry reference book, but I was pleasantly surprised that it was much more than that — it’s a good learning and reference resource.
The book’s author, Rosemary L. Astheimer, is an application engineer for Action Engineering, as well as a Continuing Lecturer for the Polytechnic Institute at Purdue University. She received her BS in Mechanical Engineering from the University of Massachusetts in Amherst and her Masters of Software Engineering from Brandeis University. Before joining the faculty in 2014, Ms. Astheimer spent over 15 years working in the CAD software industry. She began her career in software support, transitioned into a pre-sales application engineer focusing on business development of new products and was most recently a product manager.
By acquiring one of ECAD’s giants, Mentor Graphics, Siemens continues to round out its design capabilities far beyond its MCAD roots as part of its Vision 2020 quest. Siemens says the acquisition is an extension of “shaping the Digital Industrial Enterprise by expanding its portfolio for industrial software.”
Under terms of the agreement, Siemens will acquire Mentor for $37.25 per share in cash, which represents a value of $4.5 billion. The offer price represents a 21% premium to Mentor’s closing price on November 11, 2016, the last trading day prior to the announcement.
Major Mentor shareholder Elliott Management has committed to support the transaction. In many ways, I don’t think Mentor had much of a chance of fending off the acquisition, as its profits were minuscule (and had been for some time), and got strong-armed by Elliott who owns a good chunk (~8%) of Mentor. By the way, Elliott blessed the offer.
Elliott Management, run by billionaire Paul Singer, said when it raised its stake it saw numerous opportunities to boost Mentor’s “deeply undervalued” shares and had started talks with the company’s management and board. According to the company, the acquisition is a “great outcome” for Mentor shareholders as the company will benefit from Siemens’s increased scale and greater resources.
The acquisition extends Siemens’ Digital Enterprise Software portfolio with Mentor’s electronics IC and systems design, simulation, and manufacturing software – capabilities essential for smart connected products, such as autonomous vehicles. (more…)
It’s almost the end of November, so with just over a month left of this year, it’s not too early to start thinking about what we’ll be covering in 2017. The calendar below reflects what we perceive as some of the most important topics today, as well as feedback from our readers and other supporters.
The main theme for each month will be covered in an extended article or series of articles so that the topic can be covered in a more comprehensive way. We’ll also be covering some of the major MCAD events throughout the year, reporting what we see and hear from vendors, partners, and attendees.
We’ll also be covering some of the major MCAD events throughout the year, reporting what we see and hear from vendors, partners, and attendees. All of the events we attend will include daily written coverage and Tweets throughout event days, as well as video and audio interviews.
If you have any thoughts of topics you would like to see covered in 2015, feel free to contact me at jeff@ibsystems.com or 719.221.1867.
We look forward to an exciting 2017and providing you with the MCAD content you want most for improving your design, engineering, and manufacturing processes.
Keep MCADCafe.com your source for all things MCAD because 2017 is going to be a great year!
2017 MCADCafe Editorial Calendar of Monthly Topics
January 2017 – CAM Trends
February 2017 — Cloud Computing with MCAD Applications
Along with almost 10,000 other attendees, I was in Las Vegas this week at Autodesk University and am still trying to comprehend if I’ve just seen the future of manufacturing.
To a large extent, Autodesk’s vision for the future of making things stems from what it calls generative design.
So what is generative design? According to Autodesk’s official definition, generative design mimics nature’s evolutionary approach to design.
AU 2016: The Future Of Making Things
In the digital realm, designers and engineers input design goals into generative design software, along with parameters, such as manufacturing methods, materials, and cost constraints. Using cloud computing, the software quickly explores all possible permutations of a solution, generating design alternatives. The software then tests and learns from each iteration what works, what doesn’t, and what works best.
In other words, with generative design, there is not necessarily a single solution to a problem, instead, there are potentially thousands of solutions that address the initial problem.
