How is your month going so far, everyone? Yet another month has gone by so fast. But before we get into all the busyness of the new month, it is time once again for our monthly news round-up of current events we thought you would find interesting.
This edition of Coffee Break News is quite different because instead of our usual habit of giving you tidbits of several different stories in the areas of CAD, engineering, design, architecture, technology, and other related fields, this month we are focusing on just one major event that took place this month: PTC’s acquisition of SaaS product development platform provider OnShape.
This major acquisition by PTC was just completed at the end of October, and it puts PTC in a unique and enviable position as a leader in the industry’s rapid transition to SaaS. PTC is an international software company with a global presence, with cutting-edge and market-leading products and services offered. According to PTC’s President and CEO Jim Heppelmann, “PTC has earned a reputation for successfully pursuing new innovations that drive corporate growth. Building on the strong momentum we have with our on-premises CAD and PLM businesses, we look to our future and see a new growth play with SaaS.”
OnShape, meanwhile, delivers computer-aided design (CAD) combined with data management and collaboration tools in a Software as a Service (SaaS) product development platform that is the first in its industry. OnShape was started in 2012 by notable CAD pioneers and tech innovators, including the inventors and former executives of SolidWorks: Jon Hirschtick, Dave Corcoran, and John McEleney.
The SaaS model is becoming more and more commonplace in the industry. OnShape’s software offering, for instance, is accessible from any geographic location or device with an active connection, thus lessening the need for additional hardware and expenses, and also reducing the workforce necessity. Because the software is in the cloud, collaboration is improved, efficiency is enhanced, and the amount of time needed can be lessened.
OnShape’s Hirschtick explained, “At Onshape, we share PTC’s vision for helping organizations transform the way they develop products. We and PTC believe that the product development industry is nearing the ‘tipping point’ for SaaS adoption of CAD and data management tools. We look forward to empowering the customers we serve with the latest innovations to improve their competitive positions.”
PTC’s Heppelmann explained further about the $470-million acquisition, “Today, we see small and medium-sized CAD customers in the high-growth part of the CAD market shifting their interest toward SaaS delivery models, and we expect interest from larger customers to grow over time. The acquisition of Onshape complements our on-premises business with the industry’s only proven, scalable pure SaaS platform, which we expect will open new CAD and PLM growth opportunities while positioning PTC to be the leader as the market transitions toward the SaaS model.”
The SaaS model has become the biggest trend in software markets and domains as manufacturers look to cloud-based solutions to support innovation-related processes, including design review, quality management, supplier cooperation, and service delivery.