Look at Autodesk, jumping head first into spending some coin. $34M for Algor, hmm, not sure what to say about that. It looks like Autodesk is falling in line with all of the other monsters out there and just gobbling up as much technology as possible. If you look back, they acquired Plassotech a few years ago and more recently Moldflow. They have been fairly slow to incorporate these two products into Inventor. Slow is all realtive, I suppose. But, the buzz has been fairly silent.
I just returned from Autodesk University and was a bit surprised that there wasn't more buzz along the lines of simulation. Tons of hype over "Digital Prototyping", but not as specific to simulation. Not overly surprising as Plassotech has historically been a fairly small player, at least in this part of the world. But Moldflow, was always the standard in mold simulation. I was expecting more "holy cr*p, look at that cool animation" type stuff at AU.
Now we look at Algor. Fairly well known, but always tagged (perhaps unfairly) as the low-end side of the market. Someone referred to them as "Wal-mart style FEA". Not sure that is fair, but still pretty funny way of putting it. After all, Wal-mart is kicking some tale in our little economic "crisis".
The rags are reporting that Algor had revenue of $12M and sold for $34M-- ~3x, not bad. What is the motivation of Autodesk to acquire "yet another" FEA code? Well, look at ANSYS. Why did they purchase CFX and a few years later, arch enemy, Fluent? Is it the technology, install base, potential revenue, future revenue? My hunch is that it is a little of all of the above. I think Autodesk is targeting the up and coming companies. Companies that are still transitioning from 2d to 3d. Companies that still live in a 2d/3d world. These are the same companies that want an introductory step into FEA and simulation. So, perhaps Algor is a fit?
Here is my slant on all of this stuff. I think it is fascinating to see all of these monster companies (Autodesk, ANSYS, Dassault Systems) swallow up all of the market and transition themselves as an all encompassing "solution provider". The concept of "one-stop" shop is great in theory. But it is all about the execution. Can a CAD company, successfully implement, support and develop mold simulation software? Can this same company successfully integrate a CAD system, with a mold simulation tool and work seamlessly with a thermal stress module? Maybe -- no easy task though.
Take ANSYS, for example, can a company founded on structural FEA simulation evolve into a CFD company powerhouse? Goose is getting fatter and fatter. Will it lay the golden egg? Time will tell.
Think back a few years ago. Our good friends at SDRC. They were a powerhouse in the world of CAD/FEA/PDM. Now? They are swallowed up inside of Siemens. Did you ever think that SDRC wouldn't be a major player in the future. Ok, arguably, they still are just with a different wrapper. My point is will we see another disruptive technology come along and make it an even playing field with a bunch of small independents fighting it out like it was in the 90s with SolidWorks and the like? Or will the monsters rule? Editors note: I loved the 90s. Personally, I hope we go back :)
How about our friends at PTC? Who is sleeping at the helm with regards to simulation? Will PTC stick it out and ride the PLM wagon? Suppose Pro/engineer was sold? Suppose PTC sold their CAD business or "retired" it and bet the farm on Windchill.
I know, I'm stretching it a bit. Some of my predictions from last year were way off. What do you want me to say? Such as life. Another famous list will come out in 2 weeks.
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