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Oct 27

Written by: Brad Holtz
10/27/2009 

Almost exactly 5 years ago, I wrote this about the evolving nature of the relationship between Dassault Systemes and IBM:

I expect that other Dassault competitors will be announcing similar agreements with IBM very soon.

Two and a half years ago I wrote an article in Engineering Automation Report that describing the changing relationship between IBM and Dassault [http://www.eareport.com] . The gist of the article was that the Venn diagram of the business directions of IBM and Dassault, while extremely close, were not entirely congruent and their paths seemed likely to drift so as to be even less congruent as time passes.

With developments like these, as well as Dassault's channel development, this trend looks to be strengthening.

Don’t get me wrong, the Venn diagram is still 98% overlapping. And the Dassault relationship drives about $2B of business for IBM. But what was once a very tight and exclusive relationship seems to be embarking in the direction of an “open marriage”.

Time will tell.

(from my commentary on CADWire.net on Nov 10, 2004: www.cadwire.net/commentary/ in response to a relationship between Microsoft and Dassault Systemes)

 

Today, the couple announced that, as they have each grown over the years, their individual interests, while still quite entangled, are no longer congruent enough to maintain the marriage and they have chosen to formalize their separation. Though now separated, the couple remain quite close. While Dassault Systemes gains custody of their offspring, IBM will remain close by, freed up now to focus its efforts on its strenghts: providing middleware and global services to PLM customers, including Dassault Systems' customers.   Although they will no longer be sharing the same bed, they have renewed their vow of friendship, tightening their relationship between them at levels that are much more meaningful to all.

Siemens PLM Software and PTC, long envious of the IBM-Dassault Systemes marriage, wish the former couple their best, but are likely to be thrilled at the opportunity to interact with an unconflicted IBM.  

Customers of the former couple are expected to rejoice at the clarity that the new situation brings.

In the coming days I'll provide a more direct analysis of the deal after I speak with all the parties involved.

 

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3 comment(s) so far...

Re: Dassault Systemes to Acquire IBM's PLM Business Unit

Brad,

Your divorce analogy is appropriate, but the assumption that the divorce will be friendly and "good" for everyone denies the probability that there are deeper issues that will make it turn ugly. I believe that IBM "dumped" Dassault. Here is my read on it alibre.typepad.com/.

Paul

By Paul Grayson on   10/30/2009

Re: Dassault Systemes to Acquire IBM's PLM Business Unit

Paul, your analysis is good, but I disagree with with your thought that IBM is winning at the expense of Dassault Systemes. You have to consider that the value of the IBM PLM business to IBM is not the same as its value to DS. IBM and DS each thought they got the better side of the deal. And they're both right when considered from they're perspective.

By Brad Holtz on   10/30/2009

Re: Dassault Systemes to Acquire IBM's PLM Business Unit

Great! The articles so far have been full of great material. Glad to hear the serious will continue. Keep 'em coming!

By Joy on   2/5/2010

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