COFES
The Congress on the Future of Engineering Software Register | Login
 

COFES 2013
April 11-14, 2013
Scottsdale, Arizona
The Scottsdale Plaza Resort

  Search
COFES Blog
Oct 28

Written by: Steve Wolfe
10/28/2009 4:58 AM  RssIcon

Late on the evening of October 26, IBM announced its intention to sell its "IBM sales and client support operations encompassing DS's Product Lifecycle Management (PLM) software … customer contracts and related assets" to Dassault Systèmes. Since 1982, IBM has sold and supported Dassault Systèmes CATIA and related software. The announced sale, which is expected to close in the first half of 2010, ends that relationship.
 
IBM will receive $600 million in cash for its PLM business. Approximately 700 IBM employees, including PLM general manager Al Bunshaft, will join Dassault Systèmes.
Dassault Systèmes' competitors, Siemens PLM Solutions, Parametric Technology, and Autodesk, are likely to blow the current transaction out of proportion, claiming that Dassault Systèmes has lost a major sales advantage. In reality, this deal is likely to have modest impact on both companies.
 
IBM will be shedding a relatively small part of its software business that doesn't fit with its main strategy. Steve Mills, IBM Software Group senior vice president, has made it clear for several years that IBM wants to be in the business of selling system software and middleware. It no longer wants to sell applications, such as mechanical design and manufacturing software. Sales of CATIA software in 2008 amounted to 30-35 percent of Dassault Systèmes' total revenue, according the Dassault Systèmes CEO Bernard Charlès, or between $600 and $700 million.
 
For its part, Dassault Systèmes will be able to book increased revenues from the acquisition even if software sales to IBM customers don't rise at all. IBM's gross margin on CATIA, Enovia, and related software is about 50 percent, or about $300 million. Assuming Dassault Systèmes can keep prices up, that additional $300 million will, over the next 18 months, flow to its top line.
Charlès says customers also will benefit from IBM's divesting of the PLM software organization. For historical reasons, customers currently can buy some but not all of Dassault Systèmes' PLM software from IBM. Products that aren't in IBM's price book must be bought from Dassault Systèmes directly. This administrative quirk means that many large customers must negotiate two contracts in order to buy the full line of Dassault Systèmes' PLM software.
 
There is little doubt that Dassault Systèmes would not have been as successful as it is if IBM had not sold its software on mainframes and RS-6000 workstations beginning in the 1980s. But with IBM losing enthusiasm for application software, it may not have many more new large accounts to deliver. Dassault Systèmes already decided to choose another company, CAXA, instead of IBM to represent its products in China.
By taking control of its own sales efforts, Dassault Systèmes will be better able to work with other large corporations in information technology such as Hewlett-Packard, Oracle (soon to be the owner of Sun Microsystems), Tata Consultancy, and Dell Computer. Dassault Systèmes will continue to be one of IBM's Global Alliance marketing partners, a status also enjoyed by Parametric Technology and Siemens PLM Software. The French software giant now competes on an equal basis with the other major suppliers of higher priced CAD/CAM, CAE, and PDM software.
 
The challenge for Dassault Systèmes will be winning large new accounts and mid-sized accounts that promise to grow into large accounts. Historically, the company has done well in Europe, where 46 percent of its sales are generated. But Dassault Systèmes is a laggard in the Western Hemisphere from which it derives 31 percent of its sales. In contrast PTC and Autodesk pull in 38 percent of their revenues from the Americas. A risk to investors (among many) to Dassault Systèmes investors is that former IBM employees, stripped of Big Blue's imprimatur, may not be able to close deals with corporate IT departments as well as they once did.

Tags:
Categories:
Location: Blogs Parent Separator Steve Wolfe

91 comment(s) so far...


Gravatar

Re: IBM and Dassault Systèmes: An Amiable Separation

Hi, Steve!

Just a point of clarification: DS is a Global Alliance Partner. Other vendors in the PLM space are Global PLM Alliance Partners. Small difference, but key, I think. There are only a few Global Alliance Partners. Those few include SAP, Oracle, Infor and four others. And now DS.

-Derek

By Derek Lane on   7/8/2010 3:16 PM

us open

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# us open

By TrackBack on   8/15/2012 1:25 AM

Atacar de Ansiedad y Depresión

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# Atacar de Ansiedad y Depresión

By TrackBack on   8/21/2012 10:07 PM

Relación de abuso verbal

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# Relación de abuso verbal

By TrackBack on   8/22/2012 2:40 AM

Colin Kaepernick

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# Colin Kaepernick

By TrackBack on   11/26/2012 6:48 AM

http://sthm.temple.edu/tellafriend.php?url=http://www.squidoo.com/electric-baseboard-heaters3

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# http://sthm.temple.edu/tellafriend.php?url=http://www.squidoo.com/electric-baseboard-heaters3

By TrackBack on   12/3/2012 9:33 PM

dora The Explorer doll

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# dora The Explorer doll

By TrackBack on   12/3/2012 10:29 PM

Teen blonde fucked in the mouth and pussy

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# Teen blonde fucked in the mouth and pussy

By TrackBack on   12/4/2012 7:49 PM

Find Out More

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# Find Out More

By TrackBack on   12/7/2012 9:14 AM

reverse phone detective

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# reverse phone detective

By TrackBack on   12/18/2012 4:17 PM

reverse phone lookup

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# reverse phone lookup

By TrackBack on   12/22/2012 8:23 AM

free phone number lookup cell phones

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# free phone number lookup cell phones

By TrackBack on   12/28/2012 2:10 AM

colorado background check

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# colorado background check

By TrackBack on   12/29/2012 9:50 PM

people finder ireland

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# people finder ireland

By TrackBack on   12/30/2012 6:55 PM

free reverse cell phone lookup name white pages

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# free reverse cell phone lookup name white pages

By TrackBack on   12/30/2012 7:46 PM

payday loans

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# payday loans

By TrackBack on   12/31/2012 4:09 PM

get back your ex

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# get back your ex

By TrackBack on   12/31/2012 7:24 PM

how to lose weight really really fast

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# how to lose weight really really fast

By TrackBack on   1/2/2013 5:17 PM

hcg diet plan pdf

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# hcg diet plan pdf

By TrackBack on   1/3/2013 12:40 PM

sprint cell phone lookup by name

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# sprint cell phone lookup by name

By TrackBack on   1/5/2013 4:02 AM

free complete reverse phone lookup

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# free complete reverse phone lookup

By TrackBack on   1/21/2013 10:38 AM

mavideoporno.fr

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# mavideoporno.fr

By TrackBack on   1/24/2013 7:22 AM

Film Porno Streaming

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# Film Porno Streaming

By TrackBack on   1/27/2013 12:59 PM

Film X

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# Film X

By TrackBack on   1/27/2013 2:56 PM

www.u2fancams.com

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# www.u2fancams.com

By TrackBack on   1/28/2013 1:32 AM

industproj

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# industproj

By TrackBack on   2/11/2013 8:16 PM

teamprometheus.org

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# teamprometheus.org

By TrackBack on   2/14/2013 9:18 AM

tingping.pixnet.net

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# tingping.pixnet.net

By TrackBack on   2/15/2013 4:41 AM

blogspot.fr

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# blogspot.fr

By TrackBack on   2/16/2013 2:45 AM

freeforever.pixnet.net

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# freeforever.pixnet.net

By TrackBack on   2/16/2013 6:43 AM

http://topseobacklinks.com

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# http://topseobacklinks.com

By TrackBack on   2/16/2013 6:49 AM

http://mediawiki.univw.uni-saarland.de/wiki/index.php?title=Benutzer:ClarettaMills1975

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# http://mediawiki.univw.uni-saarland.de/wiki/index.php?title=Benutzer:ClarettaMills1975

By TrackBack on   2/16/2013 8:28 AM

wiki.megafund.org

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# wiki.megafund.org

By TrackBack on   2/16/2013 9:43 AM

www.gol.com.bo

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# www.gol.com.bo

By TrackBack on   2/16/2013 1:55 PM

http://newsbookblog.blogspot.fr/

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# http://newsbookblog.blogspot.fr/

By TrackBack on   2/17/2013 2:53 AM

oddsocksnopants.blogspot.ru

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# oddsocksnopants.blogspot.ru

By TrackBack on   2/17/2013 3:22 AM

danne-nordling.blogspot.fr

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# danne-nordling.blogspot.fr

By TrackBack on   2/17/2013 4:43 AM

joeldoogie.blogspot.ru

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# joeldoogie.blogspot.ru

By TrackBack on   2/17/2013 8:19 AM

http://valgomeuropa.blogspot.fr/2011/07/keliones-savaitgalis-rygoje.html

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# http://valgomeuropa.blogspot.fr/2011/07/keliones-savaitgalis-rygoje.html

By TrackBack on   2/17/2013 8:50 PM

isocial.co

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# isocial.co

By TrackBack on   2/18/2013 5:02 AM

robinmaxson.blogspot.co.uk

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# robinmaxson.blogspot.co.uk

By TrackBack on   2/18/2013 2:09 PM

http://eileen0723.pixnet.net/

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# http://eileen0723.pixnet.net/

By TrackBack on   2/18/2013 6:25 PM

casadokct.blogspot.ru

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# casadokct.blogspot.ru

By TrackBack on   2/19/2013 5:45 AM

http://daily-islamic-supplications.blogspot.ru/2012/09/zakia-usmanis-blog-lets-do-right-thing.html

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# http://daily-islamic-supplications.blogspot.ru/2012/09/zakia-usmanis-blog-lets-do-right-thing.html

By TrackBack on   2/19/2013 5:55 AM

netbraintricks.blogspot.com

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# netbraintricks.blogspot.com

By TrackBack on   2/19/2013 6:37 AM

vle.um.edu.mt

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vle.um.edu.mt

By TrackBack on   2/19/2013 9:14 AM

mouse click the following web site

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# mouse click the following web site

By TrackBack on   2/25/2013 11:51 AM

videoxporno.org

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# videoxporno.org

By TrackBack on   2/26/2013 12:29 PM

Verificare Seo

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# Verificare Seo

By TrackBack on   2/27/2013 1:51 PM

www.yearendvacation.com/topic/seo-solutions-are-the-best-way-to-improve-traffic-to-your-internet-site/

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# www.yearendvacation.com/topic/seo-solutions-are-the-best-way-to-improve-traffic-to-your-internet-site/

By TrackBack on   2/28/2013 1:55 PM

optimizare seo site

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# optimizare seo site

By TrackBack on   2/28/2013 2:08 PM

lamula.pe/members/bananateam2/profile/

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# lamula.pe/members/bananateam2/profile/

By TrackBack on   2/28/2013 2:48 PM

ncaa basketball

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# ncaa basketball

By TrackBack on   2/28/2013 7:51 PM

apartamente de vanzare bacau 3 camere

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de vanzare bacau 3 camere

By TrackBack on   3/2/2013 7:57 AM

vanzari apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau

By TrackBack on   3/2/2013 12:06 PM

vanzari apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau

By TrackBack on   3/2/2013 3:05 PM

apartamente de inchiriat in bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de inchiriat in bacau

By TrackBack on   3/2/2013 4:40 PM

bacau apartamente de vanzare

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# bacau apartamente de vanzare

By TrackBack on   3/2/2013 8:10 PM

inchirieri apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# inchirieri apartamente bacau

By TrackBack on   3/2/2013 9:12 PM

apartamente de vanzare bacau 3 camere

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de vanzare bacau 3 camere

By TrackBack on   3/3/2013 1:16 AM

inchirieri apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# inchirieri apartamente bacau

By TrackBack on   3/3/2013 2:26 AM

apartamente de vanzare bacau 3 camere

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de vanzare bacau 3 camere

By TrackBack on   3/3/2013 3:07 AM

apartamente de inchiriat bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de inchiriat bacau

By TrackBack on   3/3/2013 6:42 AM

apartamente de vanzare bacau 3 camere

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de vanzare bacau 3 camere

By TrackBack on   3/3/2013 11:18 AM

inchirieri apartamente 2 camere bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# inchirieri apartamente 2 camere bacau

By TrackBack on   3/3/2013 1:30 PM

vanzari apartamente bacau 2 camere

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau 2 camere

By TrackBack on   3/3/2013 4:10 PM

vanzari apartamente bacau 2 camere

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau 2 camere

By TrackBack on   3/3/2013 5:26 PM

inchirieri apartamente in bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# inchirieri apartamente in bacau

By TrackBack on   3/3/2013 6:10 PM

apartamente bacau de vanzare

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente bacau de vanzare

By TrackBack on   3/3/2013 9:18 PM

vanzari apartamente 3 camere bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente 3 camere bacau

By TrackBack on   3/3/2013 10:20 PM

bacau inchirieri apartamente

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# bacau inchirieri apartamente

By TrackBack on   3/3/2013 10:57 PM

vanzari apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau

By TrackBack on   3/4/2013 2:19 AM

vanzari apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau

By TrackBack on   3/4/2013 3:26 AM

apartamente de inchiriat bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de inchiriat bacau

By TrackBack on   3/4/2013 3:59 AM

vanzari apartamente bacau 2 camere

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau 2 camere

By TrackBack on   3/4/2013 7:19 AM

vanzari apartamente 2 camere bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente 2 camere bacau

By TrackBack on   3/4/2013 8:40 AM

apartamente de inchiriat bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de inchiriat bacau

By TrackBack on   3/4/2013 9:03 AM

vanzari apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau

By TrackBack on   3/4/2013 12:09 PM

apartamente de vanzare in bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de vanzare in bacau

By TrackBack on   3/4/2013 2:06 PM

inchirieri apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# inchirieri apartamente bacau

By TrackBack on   3/4/2013 4:56 PM

vanzari apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente bacau

By TrackBack on   3/4/2013 6:14 PM

inchirieri apartamente 2 camere bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# inchirieri apartamente 2 camere bacau

By TrackBack on   3/4/2013 9:03 PM

vanzari apartamente 2 camere bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# vanzari apartamente 2 camere bacau

By TrackBack on   3/4/2013 10:28 PM

inchirieri apartamente bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# inchirieri apartamente bacau

By TrackBack on   3/4/2013 10:44 PM

inchirieri apartamente 2 camere bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# inchirieri apartamente 2 camere bacau

By TrackBack on   3/5/2013 2:18 AM

apartamente de inchiriat bacau

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# apartamente de inchiriat bacau

By TrackBack on   3/5/2013 8:49 AM

blogspot.ro

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# blogspot.ro

By TrackBack on   3/7/2013 9:09 AM

free xbox live membership.get xbox live codes free

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# free xbox live membership.get xbox live codes free

By TrackBack on   3/8/2013 1:42 AM

click through the up coming web page

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# click through the up coming web page

By TrackBack on   3/9/2013 8:57 AM

acid reflux symtoms

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# acid reflux symtoms

By TrackBack on   3/9/2013 9:24 AM

visit the following internet site

COFES Blogs - IBM and Dassault Systèmes: An Amiable Separation
# visit the following internet site

By TrackBack on   3/9/2013 9:28 AM
DISCLOSURE: The US Federal Trade Commission mandated in December of 2009 that bloggers must disclose any material connection and compensation received for blog posts to inform consumers of paid endorsements. The blog published here is completely my own and Cyon Research receives no compensation for its content. However, readers should assume that Cyon Research currently has, has had in the past and is likely to seek a business relationship with any company mentioned here. Likewise, Cyon Research employees may not directly own shares in any company reported on here. However, it is likely that mutual funds or other investment vehicles contain shares that are not under the direct control of company employees.
COFES Blog Search
©Copyright 2013 Cyon Research Corporation Terms Of Use | Privacy Policy
Site Credits