Corporations were less sure about these little ISVs (independent software vendors). As one corporate buyer asked me over lunch at A/E/C Systems '86, "What happens if we buy AutoCAD with an add-on, then that little vendor goes under?" He prefered to stick with the safe names of the day, like Computervision and Intergraph. These CAD vendors sold the core CAD product, and the vertical market add-on, and all the hardware to run the software on.
That corporate buyer's prediction came true -- at least partially. Many of those early "little" vendors went under, particularly those selling customized digitizer overlays. A small number of ISVs became large and powerful: Cyco, SoftDesk, Eagle Point, and others.
Autodesk itself dabbled in selling add-on software, products that had names like CAD/camera and AutoCAD AEC. The problem was that the programmers were external to Autodesk, which meant it could not control its development; Autodesk simply marketed the products. By the early 90s, Autodesk changed it focus to become _the_ graphics company. It shed its add-on products, and instead went on a purchasing spree of all software graphical: educational, presentation, low-cost CAD, clip art, animation, etc.
By the mid-90s, Autodesk changed its focus back to its core competency: CAD, and the notable exception of 3D Studio. With CAD, Autodesk began to get back into the add-on business. This time, Autodesk purchased the technology so that it could control the development: drawing management, mechanical, architectural, civil, etc.
Throughout the life of AutoCAD Release 14, Autodesk tacked on more and more add-ons. By the time AutoCAD 2000 was announced, Autodesk had put together a master plan called "Design 2000." Press releases describe the Design 2000 strategy this way:
"Under the Design 2000 initiative, Autodesk is introducing AutoCAD [insert vertical product name here] 2000 software as part of a new series of products based on the AutoCAD 2000 platform for the architecture, land development, GIS, and mechanical marketplaces. Many of the new features in AutoCAD [vertical product] 2000 extend the power of AutoCAD 2000 to make tedious and repetitive tasks much simpler and easier."
Last Wednesday, the Autodesk share price fell 17% to 23 9/16, within a couple of dollars of its 52-week low. The cause? Autodesk had told financial analysts that expected earnings for its first quarter would be 10 to 15 cents per share, instead of the expected 40 cents per share. (A year ago, earnings were 55 cents a share; final financial results for the first quarter will be announced on May 27, 1999.) Autodesk shares have since risen to an even 26. A number of financial analysts immediately downgraded Autodesk shares.
What is causing the lower than expected earnings? Brenon Daly of CBS MarketWatch said Autodesk's lowered profits were due to "a tepid reception to the company's new flagship product [AutoCAD 2000]." Tim Klasell, analyst at Dain Rauscher Wessels, said, "the expected upgrades to AutoCAD 2000 did not occur. Autodesk also blamed Year 2000 concerns on the delay of some purchases in North America."
Why are customers delaying their purchase of AutoCAD 2000? Autodesk ceo Carol Bartz provides this answer: "Autodesk customers are in a transition throughout our product line, whether it's purchasing the recently shipped AutoCAD 2000 or anticipating the upcoming new vertical market product offerings in mechanical, GIS, and AEC." Translation: customers won't upgrade to AutoCAD 2000 until their vertical market product becomes available. Here is a road map of when some add-on products will be ready for AutoCAD 2000:
May 3: AutoCAD Map 2000 software for CAD-based mapping and geographic
information system (GIS) software.
May 28: Volo View Express (a free product).
Summer: AutoCAD Architectural Desktop.
Summer: AutoCAD Mechanical Desktop.
Late summer: CAD Overlay 2000, raster editing software for AutoCAD.
Early fall: Volo Explorer and Volo View (currently in alpha
testing).
Early fall: AutoCAD LT 2000
Autodesk is suffering from linking too closely its add-on products with its core product. The tie-in occurs in three areas: (1) AutoCAD is typically sold with the add-on software as a single product; (2) the add-on product makes use of AutoCAD's proprietary Proxy objects; and (3) the add-on requires AutoCAD's proprietary ObjectARX programming interface.
This means that customers could upgrade to AutoCAD 2000, but they won't because their vertical app is not yet ready. (The R14 version of their vertical app does not work with AutoCAD 2000's specialized features.) So, the customer waits until the "full" upgrade (AutoCAD + add-on) becomes available. Some of Autodesk's vertical apps will ship as much as six months after AutoCAD 2000. At that point, customers may decide to wait a few months longer, to confirm the effect of 1 Jan '00 on their software systems.
This drawback to the Design 2000 strategy is not unexpected. A year ago, a similar thing happened to PTC. Share prices fell in half when PTC "didn't make the numbers" because of customers waiting for its late WindChill product to ship.
The agreement with BuildSoft is consistent with BricsNet's strategy to become a worldwide provider of software, services, and content for the building industry. The company developed the core technology for Bentley System's TriForma architectural design software. BricsNet intends to release new products for AutoCAD and IntelliCAD later this year.
After 3 months, IMSI plans to charge users at that time on a pay-per-use or subscription basis. Additional file formats and content will be added as HijaakPro.com shifts to a commerce site. Currently, you can upload an unlimited number of files that are 3MB or less in size.
When I checked out the site, I found that http://www.hijaakpro.com/help/h_formats.htm lists raster, metafile, and vector formats. The page is useful because it provides a paragraph description of each format. It is, however, not useful for CAD users since it lacks any and all CAD formats.
Autodesk
Beta 1 of Mechanical Desktop R4 and AutoCAD Mechanical 2000 are due
to become available for some Autodesk Beta Gold sites next week. VIP and
AUGI members may order the Preview Beta 2 software online.
Autodesk Land Development Solutions users
SHOULD
NOT USE the drawing batch converter that is a part of the AutoCAD 2000
Migration CD-ROM. The proxy graphics of some land objects fail to
be displayed by AutoCAD 2000 after the conversion. Instead, users should
open LDDT/ACD drawings directly in AutoCAD 2000 with the standard
File
| Open command.
Autodesk says the 3D Studio VIZ user base
is now more than 25,000.
Cadis a.s.
The first mechanical CAD application for AutoCAD 2000, called MechSoft-PROFI
for AutoCAD 2000, is now available with tools for creating 2D mechanical
engineering documentation. Available worldwide as a multi-platform license
for Windows 95, 98, and NT platforms in English and Czech, Japanese and
German versions will soon follow.
Eagle Point
Eagle Point will award one
Visio Technical Design Suite each day of the A/E/C Systems show held May
25-27 in Los Angeles CA USA. Visitors register for the drawing at the Eagle
Point booth #2137.
EMT
Auto-Z 2.0, by EMT Software, is
the latest version of Auto-Z for AutoCAD R2000 and R14, as well as MDT
3.0 and the upcoming MDT 4.0. The program creates a true, 3D solid model
from 2D multi-view drawings.
FIT
Cadvance v6.5 has been re-released
-- free -- "to make CAD software available to all." Originally released
in 1995 at US$1,950, it is now available to anyone completing and submitting
the official request form. S&h of US$10 will apply; offer available
only in the domestic US, Canada, and Mexico. Contact cadvance@fitinc.com
for more info.
Parametric Technology
Intercim announced that PTC will
integrate Intercim's G-POST post-processor with PTC's Pro/ENGINEER 2000i
NC programming software. The combined cost is under US$12,000.
Unigraphics
Paper Machine Manufacturer, Voith
Sulzer, will deploy 500 seats of 3D Solid Edge during the next two
to five years, replacing its existing 2D CAD system.
UGS announced record results for Parasolid
activities during the first quarter of 1999. The total number of commercial
Parasolid licensees rose by 29%.
IMSI said Martin Sacks, formerly the chief executive and president, had been named chairman. The appointment was part of a management reshuffle that reflected IMSI's emphasis on the Internet. Chief financial officer Costa John was appointed chief executive. Geoffrey Koblick, formerly chief operating officer and chairman, retired from both posts. Robert Mayer, who continues as executive vice president of worldwide sales and marketing, has stepped down from the board of directors.
http://www.infograph.com/jmyriad
Informative Graphics Corp
A Java applet that views multiple CAD files over the Internet, with
printing and redlining.
http://dms-www1.netscape.com/cgi-bin/gx.cgi/mcp
Netscape
Communicator v5.0 includes smart searching, new customization features,
enhanced chat, easier to build a Web site, and the file size is small so
it will be a breeze to download using Smart Update.
http://www.wideman-one.com/gw/tech/Visio/bugs/index.htm
Wideman
A Web site dedicated to listing bugs in Visio
"I think Intergraph changed the name because Disney had already trademarked
Imagineer."
-- Kevin Biersdorff
"Great newsletter! Invaluable tool for staying current with CAD news
and trends."
-- Jeff Phillips