Will IBM return to PLM software business?

by Oleg on March 4, 2013 · 7 comments

It is almost 2 years since Dassault Systems completed the transaction to acquire and integrate IBM PLM operations into DS. The historical IBM/DS press release is here. At the same time, IBM is continue to focus on product innovation. Navigate here and may learn about IBM product development innovation, system engineering and lifecycle support. In parallel, the adoption of PLM software is growing. More companies in the world are implementing PLM and requires more products, systems, solutions and services in PLM. For the last 3-5 years we can see how IBM is pumping infrastructure software companies… Does it mean we will see again IBM services and services solving manufacturing and product development problems? I’ve been reading Seeking Alpha’s article “So What Does IBM Mean When It Says It’s In The Solutions Business?” explains what type of solutions IBM will be providing in the future:

“It is not individual packaged products per se, but groups of related software products, services, and systems. And we know at very high level where IBM is going to focus its solutions efforts. IBM has always been about software, services, and systems – although in recent years the first two have taken front stage. The flip side is that some of these solutions areas are overly broad. Smarter Analytics is a catch-all covering the familiar areas of business intelligence and performance management, predictive analytics and analytical decision management, and analytic applications.”

I found the following video about IBM usage of system engineering to streamline smarter product development quite interesting.

During the last PI Congress in Berlin 3 weeks ago, CIMdata was talking about the need of integration between configuration management, PLM and system engineering. Peter Bilello of CIMdata mentioned such integration as an absolutely needed element of future of product innovation.

What is my conclusion? Business intelligence, decision support, system engineering and integration. These functions are quite desired by manufacturing companies to solve prod development  problems. Large companies these days are looking how to streamline product development processes. Enterprise PLM business seems to be impossible without system services and integration support. IBM is collecting a significant software stacks that can be used for this purposes. Maybe we see IBM renaissance in PLM soon? Just a thought…

Best, Oleg

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Tagged as: CIMData, Dassault, IBM, PLM

  • http://twitter.com/avwikinomics Michael Wm. Denis

    I agree with CIMdata that CM, PLM and SE are core requirements for any complex phsyical system that must be designed, manufactured and serviced over its lifecycle.
    What I might suggest CIMdata missed is ecosystem content – human documents & technological fragments – that are half the focus of Service Lifecycle Management.
    IBM and EMC are two of the big dogs in the enterprise content management arean and it has mainly been ex-IBMers who have built many of the niche ECM/CMS solutions companies.
    The question is, does IBM or EMC or MS (Sharepoint) or Dassualt or PTC (Arbortext & Servigistics) or someone else – complete the PLM / SLM total lifecycle offering?
    Sidenote – the dark horse in systems integration may actually be Red Hat – with their JBoss stack of BPM, BAM, BRMS and ESB solutions.

  • Scott Cleveland

    I agree that integration among these software packages is needed, but that is where IBM makes a lot of money. I don’t see a software solution any time soon. Look at SOA – a great idea, but very few software packages adhere to a SOA architecture. My 2 cents worth…

  • David Cherson

    Oleg,

    As a person who was part of the ProductManager/Enovia group and who participated in some implementations, I don’t see IBM looking at a full fledged return to the ‘PLM wars’. For one thing PLM is still a long range and difficult sell, and that doesn’t suit the patience of the sales organization (not only IBM, but other companies analogous to it). IBM actually had the right approach to PLM, in that we could always point to internal groups within the company who were also doing PLM. (Now that was something DEC should of and could have done). And IBM has many customers throughout several industries, particularly in aerospace.

    IBM will do things in and around PLM, such as partnering with PLM vendors when the need fits both parties. IBM is putting more effort into the software development area with Collaborative Lifecycle Management and their Rational suite of tools.

  • beyondplm

    David, thanks for your comment! I certainly agree that IBM approach is workable and beneficial for large organizations. IBM will keep using their software and services to engage with large businesses. Best, Oleg

  • beyondplm

    Thanks, Scott! IBM is clearly looking how to keep engaging with large customers. This is a place where IBM makes a lot of $$$. Agree with you view on solution. I don’t see how IBM can build a complete PLM suite any time soon. So, they will keep partnering with large PLM providers. Best, Oleg

  • beyondplm

    Michael, thanks for you insight! From my experience, PLM organizations are not very knowledgeable in SLM. They are coming from design / engineering side. So, it will take time. PTC sounds very close, because their business more and more focused on large organizations only. However, I can see others coming to this place as well. Best, Oleg

  • Dick Terleth

    Oleg,

    There is an interesting discussion on the INCOSE LinkedIn group about Systems Engineering and PLM: http://tinyurl.com/cdaxjvz

    I think it sheds light on the CIMData statement on SE, CM and PLM.

    I am not sure the respective communities are ready for it. They seem to hide in their silos and forgot how to link this approaches.

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