Free is an interesting trend. As we always said, there is no free lunch. But, last decade introduced us to a new way of thinking about FREE. I recommend you to read a book – Free: The Future of a Radical Price by Chris Anderson. Free trend is interesting and has many opportunities. It is, of course, not a silver bullet to solve any problem. I can define two main use cases for free service or software: 1/ multi-level business schema in which monetizing is enabled by free product. The best example is Google. More generic use case is any ads selling in social networks; 2/ freemium model in which free product used to increase market share and product reach. Despite many discussions about significant potential of freemium models, it didn’t change the grand business schema in PDM/PLM. Most of “free” examples are coming into option #2 I mentioned above. PLM is a system that must be “sold” opposite to other products that can be “bought”. However, PDM is a bit different. Last 2-3 years indicated some shifts in PDM development. The value became more clear, the functionality is more standard and cloud file sharing and storage tools gave some vision for the future of PDM. In parallel, CAD/PDM integration became more integrated and customers are often assume that it must be provided by CAD vendors.
Today was a big day for customers looking for PDM solutions. First news came from SolidWorks World 2015. Here is the news – I picked it up from #SWW15 tweet feed – SOLIDWORKS 2016 package will include Standard PDM.
Second news came from GrabCAD. A short email from GrabCAD this morning informed me that GrabCAD Workbench is now completely free. According to Hardi Meybaum, GrabCAD CEO here is why GrabCAD decided to make Workbench free.
…the reason is a focus on growing the community. “Our goal with this change is to reach more people. Returning to the free model of Workbench will increase the speed of adoption and support uninhibited product design collaboration.”
These two events made me think about future trajectories of PDM value proposition and pricing. Few interesting data points – if you are listening to companies developing cloud CAD solution, you can get the message – future cloud CAD won’t require PDM. More specifically, PDM will be a fundamental part of cloud CAD allowing people to collaborate on design. Even more, it will be much more transparent and intuitive than today. On the other side, generic cloud file sharing and collaboration tools are getting much more smarter and can quietly become ready to manage CAD files. Last, but not least – the complexity of CAD / PDM integration is well know fact. The trend towards simplification of integration and an attempt to re-imagine the way PDM can be integrated with PDM gain some support from both software vendors and customers. It might end up by removing check-in/out commands or tight bundling of CAD/PDM solutions coming from CAD vendors.
What is my conclusion? Everyone needs to manage CAD data, but nobody wants to implement CAD data management. My hunch, GrabCAD decided to give away Workbench to reach more customers and learn more future potential of GrabCAD business models. SolidWorks is trying to gain more market share from own customers without PDM solutions before they will implement free cloud PDM from other vendors. SolidWorks customers will get standard PDM package for free, which is a good news for large amount of companies having 2-3 SolidWorks seats. It looks like we are in the beginning of PDM market disruption. I can be wrong, but users are winning and this is what mostly important. Just my thoughts…
Best, Oleg
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
