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.