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.
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.
We just left Scottsdale, Arizona after a great weekend at the annual Congress on the Future of Engineering Software (COFES) event.
Over the years I’ve attended probably 8-10 of these unique events, and they have all been a bit different, but I have always come away with new insights and perspectives on engineering software.
The keynotes are always thought provoking and the roundtable discussions and general conversations are stimulating, because they often provide food for thought and questions for further investigation rather than just simple answers.
This year’s theme was “Taking a Step Back To See the Big Picture.” As engineers and software professionals we are good at focusing on the thing at hand – the design challenge; the need for a new tool; our competitive situation. However, rarely do we consider the bigger world in which these issues reside.This year, COFES took a giant step backwards for broadening our view. In other words, to think about thinking about the bigger picture. The nature of our work requires that we spend the majority of our time getting things done, tightly focused on executing our tasks and plans. And while we do that, we are continuously faced with choices, big and small, along the way. Too often, we make decisions in the narrow context of what we have in front of us, unless some outside force pushes a broader context into our consciousness.
It appears that PTC is wading deeper into Internet of Things (IoT) waters with the announcement that it has signed a definitive agreement to acquire privately-held Axeda Corp., a pioneer in the development of technologies that connect machines and sensors to the cloud. Paying approximately $170 million in cash, PTC’s primary motivations behind the acquisition are Axeda’s innovative technology, customer base, and partnerships that could directly complement the PTC ThingWorx business across the entire Internet of Things technology stack.
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.