A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

How CAD vendors “murdered” PDM business

How CAD vendors “murdered” PDM business
Oleg
Oleg
23 March, 2015 | 5 min for reading

cad-ambush-pdm

Here is the passage I captured during my weekend reading – We only sleep at night because Facebook, Google, Apple, Amazon, Microsoft, and Elon Musk don’t want our businesses. Yet. It came from the Warren Ellis’ article The New Tech Disruption: Murdering Businesses and Haunting Their Corpses. The article is a very nice summary of examples demonstrating the dynamics of businesses these days and aggressiveness towards earlier partners and future competitors. It is must read for everyone who is building business these days. Here is one example:

If you build your business on top of someone else’s system, eventually they’re going to notice. Just last week, the livestreaming app Meerkat, which uses Twitter to transmit, felt a cold breeze pass through the room when Twitter bought the competing system Periscope, which will doubtless be baked into Twitter as soon as possible. Digital businesses can murder and haunt their own parasites.

The article made me think more about what happens in product data management (PDM) businesses. Let me go back in time into 1990s or maybe even earlier. Do you remember the beginning of PDM (product data management)  or how it was called TDM (technical data management)? PDM was born to manage CAD files. The fundamental idea was to solve a problem created by CAD system. CAD systems used files to store data. But, as you know, most of CAD systems are not creating single file, but use MANY files to store data. These files are interconnected for different purposes – parts are used by assemblies, drawings are created out of parts. If you are user of AutoCAD, you must be familiar with the mess that can be created by usage of XREFs. Trying to re-use and share design was painful. You can hear customers screaming for decades about how to find a last revision of a document.

So, the problem was clear identified. The pain was here and PDM vendors came up with a value to help customers – data management system that can keep record of all these files and provides a set of functions to search, share, change, etc. More than 2 decades later, there are no so many PDM companies left. Most of them (successful) were acquired by CAD vendors, many of less successful disappeared. However, what I found mostly interesting is that pain is still here. Users are struggling to manage CAD files, revisions, re-use, search and share files.

During last few years, we had a renaissance of PDM driven mostly by cloud technology. Cloud is an ideal paradigm to share data. So, the idea to develop cloud products to share and view CAD data was appealing to many companies. Some of them developed very good products customers really like, but I can carefully state that none of them turned into sustainable businesses.

So, what happened? Here is my guess – all PDM businesses were murdered… by CAD vendors. Think about acquisition as a kind of murder too. Each CAD vendor acquired (or developed)  PDM product, which was  “the best for a specific CAD”, but never provided an equally good solution for multiple CAD systems. Most of “other CAD integrations” are developed by partners because of limitations of licensing and partnership agreements. Independent PDM vendors put their focus on developing of multi-CAD strategies and struggled to keep up with CAD features development and API support.

The things are getting more interesting these days. The new era of cloud CAD systems is coming. The most interesting part of cloud CAD systems is that in order to make them successful, CAD vendors will have to solve fundamental PDM problem – to store design data, manage revisions, search and re-use existing designs. You can read more about this in my earlier post – Cloud CAD will have to solve PDM problem at first place.

Last week I attended Onshape webinar where Jon Hirschtick explained why Onshape decided to develop new generation of CAD systems using cloud platform and new browser based technologies. You can see recording here. The following slide caught my attention. You can clearly see – Onshape is going to provide PDM functionality with no additional license cost to all Onshape users.

onshape-data-management

https://www.youtube.com/watch?v=CD3op_P6dXk

Autodesk, which is strategically focusing on development of cloud technologies and applications for the last five years, is coming with the similar functionality in their Fusion360 product. I captured the following table at Autodesk Fusion360 website. As you can see core PDM functionality is included into Fusion360 subscriptions.

autodesk-fusion360-pdm-functions

The following video is a good demo of Fusion360 data management.

What is my conclusion? PDM business is built on top of CAD systems. In the past, CAD vendors had “love-hate” relationships with PDM businesses. Depends on the time and specific situation, PDM was out of CAD priorities. In some periods PDM businesses helped CAD vendors to collaborate and compete. Things are changing today. Data management is very critical for CAD business. CAD vendors cannot avoid it and let other companies to manage their data. Data management (PDM) is an essential part of cloud CAD success, since it is a part of their “platform” and data management strategies. I can see some interesting competition in front of us about how to get data management done right from cost and user experience standpoints. If your technology knows how to manage CAD data in the cloud, you can be a valuable asset for CAD vendor. If you are building PDM business, you probably will be a target for a future murder. Just my thoughts…

Best, Oleg

Image courtesy of nonicknamephoto at FreeDigitalPhotos.net

 

Recent Posts

Also on BeyondPLM

4 6
4 February, 2017

Time is running fast. Ilan Madjar, my former SMARTEAM colleague and managing partner of xLM Solutions LLC reminded me about...

2 May, 2019

One of the most complicated questions when selling PLM is to prove ROI. The topic was debated so much in...

22 May, 2015

Products are getting complex these days. Look on every small electronic gadget in your hands. It is actually combined from...

6 July, 2011

The big weekend finally over and this is a time to get back on track with a long list of...

8 November, 2010

Today, I had an interesting experience in my life. I had a chance to attend Dassault System Enovia Collaborative Innovation...

29 June, 2018

Who will win cloud war? BOLD business article brings an interesting comparison between vendors and the funny picture I reference above....

2 July, 2014

One of the companies I’m following on regular basis is Aras Corp. and its Aras Innovator product. Aras represents an...

28 July, 2010

iPad sales are skyrocketing. I read “Global CIO: Top 10 Reasons Steve Jobs & Apple Are The Future Of IT”....

1 October, 2009

30 September was time for 100’000 happy individuals to get Google Wave invitation. Even I’m not part of these 100’000,...

Blogroll

To the top