SPACECLAIM: A new entrant,
with exceptional human assets, in a challenging market.
The Mechanical CAD market, valued at
approximately $5 billion, is one of the oldest enterprise software
markets and one of those very rare big markets which has been kept in
the hands of experts. Actually, none of the MISO (Microsoft, IBM, SAP,
Oracle) is playing a strong role in the $12+ billion PLM market,
leaving space for DAPU (Dassault Systemes, Autodesk, PTC and UGS). This
is most likely not going to change. Trials from SAP and later by Oracle
to enter in the PLM market from the collaborative PDM window has not
been as successful for those giants of software is in their other
enterprise software initiatives so far; DAPU (at least PTC and UGS)
managed to leverage their PLM solutions in the recent years in the high
end markets.
One
may observe that the CAD part of the PLM market is not growing that
much any more. Besides, several new products/vendors have entered the
market in the past 10 years while some older vendors try to survive.
Even some executives (although not among the most visionary ones)
stated that the CAD market has “no more unsolved problems”
and their company is going to reduce focus on CAD (see declarations
from PTC’s Dick Harrison a few years ago).
However,
with a closer look at the CAD market, you notice that if the MCAD
market seems flat in terms of growth, its because of some heavy old
products, representing the High-End segment (Catia, NX or even
Pro/Engineer to some extent) which are actually declining more or less
in terms of licences revenue year-over-year. The growth engine for the
MCAD market comes from newer products mostly targeted to the mid-size
manufacturers (Inventor, Solidworks, Solid Edge,…). The growth
rate for this mid-range segment is over 20% annual right now, reaching
a global market of approximately $2.5 billion which has become bigger
than the high-end market.
Spaceclaim
is going even further. Priced at around $1500 per year, the product is
classified in this growing mid-range CAD products, but the company is
targeting more than just mid-size manufacturers. Convinced that there
are still tons of “non-resolved problems” in CAD which can
improve life for CAD users, engineers, analysts, suppliers,
manufacturers, and other extended enterprise actors, Spaceclaim is
trying to remove human and psychological barriers for use of CAD. This
is not an easy task as one of the reasons why the extended enterprise
is not using CAD is because the concepts of mechanical design are
sometimes hard to approach for non-engineers. Now, even if you offer
the easiest tool, you still need a high level of collaboration between
engineers and the rest of the enterprise to smooth the processes. And
that’s where an extended CAD tool together with collaborative
tools can ensure shorter design cycles for products with higher quality
and better compliance.
Another
challenge in targeting the extended enterprise is that several other
vendors are already in that space with tools enabling the management,
visualisation and collaboration of the digital mock-up, DMU. Cimmetry
and Adobe (Acrobat 3D) are among those who are successfully marketing
their software to this same target. The question is: do this target
need just visualization, collaboration and first level manipulation, or
the more sophisticated functionalities that Spaceclaim is starting to
offer?
But
Spaceclaim has exceptional assets and that’s the experience and
the track record of its founders and management. As co-founders of PTC,
they drastically changed the way Engineers used CAD in late 80s
creating a product (Pro/ENGINEER) which is still widely used around the
world and became a historical reference in CAD technology. They
restarted with Solidworks which became another best-seller in CAD as of
the mid 90s. Trustable management attracts solid investors and usually,
even if the initial positioning is not perfect, the right funding
(seems to be there) in the right market (seems to be there) will enable
the company fine-tune its strategy during the first quarters of sales,
and find its way to success.
Darius Lahoutifard
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