Let’s be honest, it’s been a pretty ho-hum year so far in the CAD software business. Sure, there have been new releases, but with mostly small incremental enhancements and improvements. There has also been some relatively minor industry consolidation, but nothing like in previous recent years. Those events pale, however, in comparison to the intended acquisition announced last week of relative innovative newcomer, cloud-based Onshape by industry stalwart PTC. This acquisition is something I strongly consider to be a major positive industry disruptor.
Pending regulatory approval and satisfaction of other conditions, the transaction is expected to be completed in November 2019.
A Meeting of the Minds: Jon Hirschtick, Onshape’s CEO (left) in deep discussion with PTC’s CEO, Jim Heppelmann (right). (Image courtesy of PTC)
Onshape will be integrated with PTC and will operate as a PTC business, with current management reporting to PTC CEO, Jim Heppelmann, including Onshape’s co-founder and CEO, Jon Hirschtick.
This week, PTC announced Creo 5.0, the latest release of its Creo CAD software that covers concept to manufacturing in a single design environment. According to the company, Creo 5.0 introduces five new and enhanced capabilities for product design and productivity enhancements in the areas of topology optimization, additive and subtractive manufacturing, computational fluid dynamics, and CAM.
“PTC is on the leading edge of some of the hottest technologies today with the Internet of Things (IoT) and augmented reality (AR), but it has not forgotten its roots in CAD, instead transforming this business by infusing its leading Creo software with new technologies and capabilities,” said John Mackrell, chairman, CIMdata.
Topology Optimization
The physical design of products is often limited by existing designs and practices. The new Creo Topology Optimization Extension automatically creates optimized designs based on a defined set of objectives and constraints, and freed of existing designs and thought processes. This helps users save time and accelerate development by enabling creation of optimized parts for given tasks they must perform.
Creo automatically creates optimized geometric forms/shapes based on input conditions and defined criteria.
The Creo Topology Optimization Extension will be available Summer 2018 in the first maintenance build of Creo 5.0. (more…)
PTC’s user conference in Boston last week (LiveWorx17 ) covered a lot of ground — everything from Creo to Windchill to augmented reality (AR), but the focus of the event was PTC announcing the launch of its newest version of ThingWorx Industrial Internet of Things (IoT) platform – ThingWorx 8. According to the company, with this update, ThingWorx evolves into a more robust, comprehensive industrial IoT (IIoT) technology offering. PTC also announced a new lineup of ThingWorx-powered apps for the manufacturing environment, as well as ThingWorx Studio support for native authoring and publishing of AR experiences for Microsoft HoloLens.
Interestingly, PTC’s VP of Corporate Communications, Jack McAvoy said that two of this year’s three main messages for LiveWorx17 revolved around ThingWorx as more than a platform and the evolving ThingWorx ecosystem through physical/digital convergence.
PTC’s foray into IoT got a big boost about four years ago when it acquired ThingWorx, creators of a platform for building and running applications for the Internet of Things (IoT), for about $112 million. The acquisition of ThingWorx immediately positioned PTC as a major player in the emerging Internet of Things era.
According to a research report, Disruptive technologies: Advances that will transform life, business, and the global economy from the McKinsey Global Institute, the Internet of Things has the potential to create economic impact of $2.7 trillion to $6.2 trillion annually by 2025. The firm believes perhaps 80 to 100 percent of all manufacturing could be using Internet of Things applications by then, leading to potential economic impact of $900 billion to $2.3 trillion, largely from productivity gains. For example, with increasingly sophisticated Internet of Things technologies becoming available, companies can not only track the flow of products or keep track of physical assets, but they can also manage the performance of individual machines and systems.
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.
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.
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…)
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…)
So, you think that the Internet of Things (IoT) is a fad? Based on my experience at PTC’s LiveWorx 2015 in Boston this week, IoT is a 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 last might help convince you – LiveWorx 2014 (~350 attendees); LiveWorx 2015 (>2,300 attendees). Numbers don’t lie and that shows the growing interest in IoT.
Because of the amount of material covered in just a couple of days, and the major implications surrounding IoT and PTC, I’ll be writing about some the major (and some minor) technology and business announcements, as well as how this all fits together and might shape PTC’s strategy going forward, including:
The benefits and advantages of IoT from PTC’s perspective
Problematic IoT concerns that persist, including security and safety
ThingWorx 6.0
PTC’s partnership with ServiceMax for connected field service management
PTC’s ThingWorx Converge as an IoT integration hub
The ColdLight acquisition for handling big data and predictive analytics
The ThingWorx Marketplace that has apps and related tools for IoT
For many years, all of the major CAD vendors have been stressing the importance of managing the design and manufacturing data created using their software. Surprisingly though, still relatively few design and manufacturing companies, especially SMBs, have a formal PDM system of any type in place beyond Windows Explorer or Excel. Some of the reasons we hear for PDM not being employed include the perceptions (and experiences) that PDM is time consuming and expensive to implement.
While most SMBs have made the transition from 2D to 3D, many are finally exploring how to manage the mountains of CAD and associated product development and project data. These companies are seeking solutions that are more capable and scalable than just files, folders, Excel spreadsheets, and Windows Explorer.
Along with about 1,900 attendees, we just returned this week from the 2013 edition of the PTC Live Global conference and exhibition in Anaheim, CA. We saw and heard several interesting things from PTC employees, partners, and customers.
Let’s start off on Day 1. After a short introduction, PTC’s president and CEO, Jim Heppelmann took the stage with the song “Iron Man” by Black Sabbath blasting. What’s that about? The early focus of his address was the focus of not only PTC, but just about every other software vendor – mobility.
This dramatic change of tune comes just a couple of years after Heppelmann derided the notion of software as a service and cloud computing as nothing more than “vapor.” Today, mobility to PTC, according to Heppelmann, consists of products being delivered as a service, with the line blurred between product and service.
He then introduced the concept of reverse innovation to accommodate different unique requirements for different customers. Interesting concept, but I need to get more details on exactly what this means.
He went on to say that for products in general, value is shifting away from hardware to software, especially embedded software. Increasingly, products are defined, upgraded, and updated via software. Traditional hardware manufacturers are beginning to employ more software engineers than mechanical engineers. As handy as these software innovations might seem, do they offer too many choices and ultimately frustrate customers and drive up costs? The verdict on this remains to be seen, but I tend to say, “yes,” too many choices can be overwhelming, especially for products that are meant to be simple.
What he was getting at, though, is that increasing numbers of CPUs and software mean “smart” products connected to the Internet. In other words, an “Internet of things,” thanks largely to increasing connectivity.
With 10 Creo apps currently available, and although the next release of Creo (3.0) won’t be available until early next year (Q1?), a few hints were given about what it might look like. Think scalability and interoperability – more on that later, though. PTC says that today, one in four Pro/ENGINEER users has upgraded to Creo, but sees adoption rate at 50% uptake by the end of this year. That seems just a bit optimistic, but potentially doable.
I’ve just begun with the highest of highlights about the conference and the future as PTC sees it. Over the few weeks I’ll discuss some of the most significant announcements coming out of PTC’s user conference with regard to new products/technologies, corporate direction, and customers’ reactions. From what I witnessed this week, PTC’s future looks brighter than it has for quite some time.
