Brad Holtz

Dassault Systemes to Acquire IBM's PLM Business Unit

brad.holtz@cyonresearch.com — Tue, 27 Oct 2009 05:00:00 GMT

A look at the next stage of the IBM-Dassault Systemes "marriage"

Data Reshaper for Microsoft Excel

brad.holtz@cyonresearch.com — Sat, 15 Aug 2009 05:00:00 GMT

Brian Seitz and I developed this data reshaper to get our survey data ready for Tableau Software. It still could use an error rountine. Be sure to read the notes and assumptions. Comments and improvements are welcome.

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Second Data Reshaper for Microsoft Excel

brad.holtz@cyonresearch.com — Sat, 15 Aug 2009 05:00:00 GMT

This is a data reshaper for Excel for data that does will need to be moved into two columns: one for the column name and one for the data. It still could use an error rountine. Be sure to read the notes and assumptions. Comments and improvements are welcome.

Qualifier - This IS for data that does not reflect the column.

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Cyon Research 2009 Survey of Engineering Software Users just published

brad.holtz@cyonresearch.com — Sun, 02 Aug 2009 05:00:00 GMT

Last week, Cyon Research published its 2009 survey of engineering software users. The survey takes a deep look at buying preferences and practices. Lots of detail and deep insight. More information on the $2000 survey is available from info@cyonresearch.com.

Here's the executive summary:

The economic outlook has never been more uncertain. When will customer spending on engineering software and related hardware recover?

Is the worst over, or can we expect further declines? What is the risk to recurring software maintenance or subscription revenues? How many of your firm’s competitors have already begun investing in their engineering software tools to prepare to gain market share in the eventual recovery? What factors are driving customer spending priorities in the post-recession period? How do you identify the companies that are likely to be the first to increase investments in engineering software?

Cyon Research’s recently completed survey of technical software users helps answer these questions and others like them. This survey is based on validated responses from nearly 600 users of CAD, CAM, CAE, and PLM software and focuses on customer purchasing policies, practices, and spending expectations.

For instance, approximately 29% of the respondents reduced technical software expenditures in the first half of 2009. For the first half of 2010 only 19% expect further spending cuts and even fewer expect to cut expenses in 2011. These figures suggest the worst cost-cutting is behind us, but there are potentially larger reductions overhanging the market if the world economy continues to falter.

Roughly 42% of customers are considering or are about to cut spending on new software and hardware acquisitions. Similarly, 40% of those surveyed may reduce spending on software maintenance if their business continues to decline. Since much of the CAD software industry relies on recurring revenue to cover ongoing expenses, this news is of exceptional concern.

When software buying accelerates again, which criteria will be most important in selecting new software and hardware? The highest ranked criterion is the impact new systems would have on improving product quality. This belief is consistent with how the respondents view their companies. Those companies that differentiate themselves through superior products are most likely to identify improving product quality as the most important criterion. Improving product quality was followed closely by total cost of ownership and the ability to reduce engineering and product development costs.

The channels through which customers acquire their software are changing rapidly. The number of customers buying at least some engineering software from websites nearly doubled to 18% compared with a similar survey in 2008. Firms purchasing in excess of 1,000 software licenses buy more often from system integrators than from software manufacturers.

Beyond the financial outlook and discussion of software selection criteria, this report explores the relationship between how firms differentiate themselves from competitors and what they find important about their engineering software tools. Other issues covered include an examination of the relationship of MCAE tools to spending; control of the master BoM; and customer sentiment on new software from Dassault Systemes (V6), Siemens PLM Software (Synchronous Technology), and Autodesk (Inventor Fusion).

The above data are merely samples of the wealth of decision-support material in the 2009 survey. Cyon Research’s Survey of Engineering Software Users is an ongoing project, intended to capture market trends early. Cyon Research customers on annual subscription receive this and other updates as part of their subscription.

Drop me an email note at info@cyonresearch.com if you're interested in more information.

Vleeschhouwer on Chrysler's Impact on Dassault Systemes

brad.holtz@cyonresearch.com — Fri, 13 Mar 2009 05:00:00 GMT

Had an intersting chat today with Jay Vleeshhouwer, formerly of Merrill Lynch. For those few of you that don't know him, Jay is a grand master "sell-side" analyst, on of the few who actually cover our industries as a market, rather than just dabbling in a few of the stocks from our sector. The conversation turned to the economy, the automotive sector, then to Chrysler and the recent NY Times article about Chrysler's cutback in its design staff. Jay made the following interesting observations:

"These changes at Chrysler may put, or has already put, some pressure on Dassault’s US auto recurring revenues (for CATI, its largest product), albeit low-single digit percent of total business…..maybe offset to some degree with non-US usage. Dassault Systemes is probably the most heavily exposed to auto as a vertical. Generally speaking, for the group, besides the obvious pressures on new license sales, we’ll need to keep an eye on maintenance too. It’s conceivable for instance that in the April quarter, Autodesk’s maintenance-paying subscriber base, which had a net increase of a mere 8000 users in 4QFY09 (90,000 new 2D/3D seats were sold), could decline sequentially."

Jay and I will be release a new survey next week. We'd appreciate your input and opinion when it opens.

--Brad

COFES 2009 - Hotel Sold Out

brad.holtz@cyonresearch.com — Sat, 21 Feb 2009 05:00:00 GMT

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Shiftables

brad.holtz@cyonresearch.com — Fri, 13 Feb 2009 08:00:00 GMT

I saw an amazing presentation while I was at TED last week. Several amazing ones actually, but this one is both relevant to our community and available for viewing. Take a look at David Merrill’s Shiftables at http://www.ted.com/index.php/talks/david_merrill_demos_siftables_the_smart_blocks.html

Radio Interview with the inventor of the floppy disk and PLC

brad.holtz@cyonresearch.com — Tue, 27 Jan 2009 05:00:00 GMT

Our own Dick Morley is interviewed on NCMS Radio. Listen to him talk about the invention of the floppy disk, the PLC, etc. It's an interesting chat.

http://www.ncms.org/blog/post/09-ncmsradioep5.aspx

Push-back on Maintence Contracts

brad.holtz@cyonresearch.com — Mon, 26 Jan 2009 08:00:00 GMT

Information Week just published an article on users who are choosing to abandon their maintenance contracts for Oracle and SAP

http://www.informationweek.com/news/software/erp/showArticle.jhtml?articleID=212902014&pgno=1&queryText=&isPrev=

Our industry is also at risk for this type of push-back. Do you know how much of your maintenance fee is rolled back into development? Ask your vendor. Let me know how we're doing as an industry.

CAD/PLM Survey published

brad.holtz@cyonresearch.com — Mon, 26 Jan 2009 05:00:00 GMT

Last week, Cyon Research published its 2008 CAD/PLM Survey. The survey takes a deep look at industry buying preferences. Lots of detail and deep insight. More information on the $1,995 survey is available from info@cyonresearch.com.