upFront.eZine
  t h e   b u s I n e s s   o f   C A D

a publication from
upFront.eZine Publishing

Issue #503   :  :  January 30, 2007


C o n t e n t s

UGS Sold to Siemens (Soon)

  • Paraphrased Q&A

Vista: Do Not Seek the Treasure
        

Below the Radar, and the other regular columns.


Write the editor!

Through Paypal, consider donating $25 in support of upFront.eZine.

Access daily CAD commentary at our Weblog, WorldCAD Access.


< Previous Issue

Next Issue >



 


UGS Sold to Siemens (Soon)

The three private equity firms who took UGS private (from EDS, two years ago) have now profited handsomely by selling the third-largest CAD company to Siemens of Germany. (I had an uncle who was a high-power salesman for Siemens. Until his heart attack.)

Even though UGS had been hinting it would go public this year, in actual fact it was in talks for the last six months with two industrial giants, one unnamed, the other Siemens. "We had a checklist every quarter that had internal factors and external factors [for going public]," UGS CEO Tony Affuso told the Dallas Morning News. "When we felt we had all 20 bright green, we were ready to go; but we never got there." Mr Affuso says it was Siemens who approached UGS last year. My guess is that it was UGS's mounting debt that made the IPO [initial public offering] difficult.

Assuming the sale is approved by American and European regulators, Siemens plans to pay US$3.5 billion, of which $1.4 billion goes to pay off UGS's debt. When the purchase is completed by June:

  • UGS becomes a business unit of Siemens' Automation and Drives Group. (Siemens has two other divisions:e Energy & Environment and Healthcare.)
  • UGS's primary office stays in Plano TX USA.
  • Its 7,300 employees join the 70,000 of the A&D Group.

The group president of A&D, Helmut Gierse, says that mechanical design and control design will converge in the next the years. http://www.siemens.com/automation  

It appears the scheme is as follows:

  1. 1. Siemens designs a new plant for you using UGS NX, etc.
    2. Siemens sells you the equipment that it builds into the plant.
    3. Siemens licences you the UGS PLM software to oversee the plant.

 

Paraphrased Q&A

During last week's conference, call, an analyst asked Siemens management, "What's the benefit to the customer?"

The paraphrased response from Mr Gierse: "It will be scalable; in today's market, it is not scalable. Today, you have a disruption between the mechanical design [with CAD] and the production [factory floor]. All these broken interfaces will go away. It has always been the A&S philosophy that the customer gets the complete package from Siemens, if he wants it. Or he can get it from system integrators."

 

Another analyst asked about competitors: "Who are the ones and threes?"

Response: "One is Dassault, and three is PTC [Siemens sees UGS as #2]."  Mr Gierse says he plans to go after the process industries next, such as pharmaceutical, "because they have the same problems. In the future, we will see the complete simulation of the pharmaceutical factory."

He likes that GM and Ford is doing poorly, because that puts pressure on them to become more efficient by buying more software and hardware from Siemens/UGS.

 

At WorldCAD Access, John wonders, "I'm interested to see how large corporate users of UG (GE, for example) that compete with Siemens will react to this information."

Siemens isn't worrying about this yet: "A&D will thus become the first supplier for the manufacturing industries to provide an end-to-end software and hardware portfolio encompassing the complete lifecycle of products and production facilities," enthuses the company. ('Hardware portfolio' is a reference to the manufacturing products, electrical installations, machine tools, and automobile factory automation.)

For those of us who cover UGS, the new owners will prove frustrating. What will happen is that the amount of information about UGS will slow to a trickle as the once-third-largest CAD company disappears into the Siemens behemoth. UGS again becomes a slim sliver of the overall revenue picture, as it was with EDS.

- - -

The A&D Group has an online mall here:
mall.automation.siemens.com/CA/guest/index.asp?aktTab=5&lang=en&nodeID=1000000  

Information about bribery and embezzlement allegations and the EC's largest-ever price-fixing fine against Siemens is here:
www.dw-world.de/dw/article/0,2144,2326912,00.html

The Motley Fool is unimpressed:
www.fool.com/investing/international/2007/01/29/get-ready-for-the-fall.aspx

Article by Dallas Morning News is here:
www.dallasnews.com/sharedcontent/dws/bus/stories/DN-ugs_26bus.ART.State.Edition1.1cc022e.html

 


Vista: Do Not Seek the Treasure

In the movie, "Oh Brother Where Art Thou?," Pete warns his two companions to not seek the treasure. Instead of the location hiding $1.1 million, it's hosting a renegade sheriff determined to hang all three.

Now that Microsoft's MPAA-approved Vista operating system is available, and SolidWorks has the first CAD package available for it, it's time to ask the question: should your organization upgrade to Vista?

No.

According to those who have been working with Vista, you should consider thee strategies:

  • Resist installing Vista on existing computers, including those sold before Christmas as Vista-ready, due to driver delays and hardware upgrade costs. Many Vista features are available for XP and Server 2003, including IE 7, Avalon, WinFX, and the RSS platform.
  • Vista's harsh DRM allows Microsoft to disable your computers remotely.
  • The Vista license includes a clause that allows Microsoft to change the terms of the license. What you agree to upon installing the software is not what you'll be licensed for some time later. Industry observers wonder if Microsoft has crossed the line in creating an illegal license: You have to agree to terms not described at time of purchase. newsletter.infoworld.com/t?ctl=15CF424:C49220C15D44729E5AB57F74B2AFFA42EFF29049075316B4
  • If you upgrade, you'll be alone. Almost 64 percent of CIOs surveyed don't plan to move to Office 2007 or Vista, but will spend their budgets on hardware, storage, and security instead. www.pcworld.com/article/128360-1/article.html?tk=nl_dnxnws

 

In short, Microsoft has specified that Vista reduce the functionality of our personal computers and our legal rights. Think Zune*.

 

References

Windows Vista Review by Paul Thorrot
www.winsupersite.com/reviews/winvista.asp

Cost Analysis of Windows Vista Content Protection by Peter Gutmann
www.cs.auckland.ac.nz/~pgut001/pubs/vista_cost.txt

CNET notes that if you pay US$400 for Vista Ultimate, your computer might end up running the equivalent of Home Basic ($199) if the installer decides your computer doesn't have the hardware needed.
news.com.com/Buying+Vista+Get+a+guarantee/2100-1016_3-6154150.html?tag=nefd.top

Gen Kanai describes  a real-world Windows monoculture environment, and its inherent dangers:
www.kanai.net/weblog/archive/2007/01/26/00h53m55s

The 5 sins of Vista by IntelliAdmin:
www.intelliadmin.com/blog/2007/01/5-sins-of-vista.html

- - -

(*) Credit: www.theinquirer.net/default.aspx?article=37091


Below the Radar

A summary of CAD industry news you may not have read elsewhere, or that I found interesting:

- - -

VRcontext is beta testing software-only rendering of massive models using multi-core CPUs. The new ProcessLife software features realtime ray tracingon AMD's HyperTransport eight-core CPUs on nVidia motherboards. [I had been wondering what software could possible take advantage of eight CPUs, and now I know.] www.vrcontext.com

Enact Technology's speak4 voice recognition software (US$149.95 - $199.95) works with AutoCAD, Inventor, SolidWorks, SketchUp, Photoshop, and InDesign. Requires a USB headset. www.speak4CAD.com

China-based ZwCAD Software offers its IntelliCAD-based ZwCAD 2006i free for 30 days from www.zwcad.org  . Price is US$450 plus US$160 annually for updates, maintenance, and tech support.

In related news, IntelliCAD-based CADopia 6 SP3 is now shipping with true color and color book support, PDF export of multiple layouts, 3D DWF export, , COM API enhancements, and more. www.cadopia.com/about_us/news/cadopia6sp3_released.asp  [Get the Pro edition, and you get my "CADopia Customization Guide" and "Inside CADopia 6" ebooks on the CD.]

Cimmetry Systems releases AutoVue for SharePoint Server 2007. Or, more accurately, "AutoVue 19.1c1 Client-Server, Web Edition for SharePoint Server 2007, Windows SharePoint Services (WSS) 3.0 and Office SharePoint Server (MOSS) 2007." www.cimmetry.com/sharepoint  

SYCODE launches three more file export plug-ins for AutoCAD: STL Export,  OBJ Export, and Points Export (text file). www.sycode.com/products/index.htm

 - - -

 These news items were posted during the last month at the WorldCAD Access blog < worldcadaccess.typepad.com>:

  • 33K of free SE 2D
  • Autodesk Duz Plants
  • Open File Formats
  • Changes in the Wind
  • TIPS: AutoCAD Keyboard Modifiers
  • Sold!!! UGS Goes to Germany's Siemens
  • IBM-DS Relationship Continues to Change
  • Google Promotes 3D CAD at Universities
  • Dritte Teil: Fix Those Press Releases!
  • More Translators for Acrobat 3D -- Free!
  • TIP: AutoCAD Dynamic Viewing
  • PMTC: Up 15%
  • Par Deux: Fix Those Press Releases!
  • Fix Those Press Releases!
  • DS Improves Press Release Language

   


Seminars & Conferences

CIMdata 2007 PLM Vendor Forum is in Detroit MI USA on March 29; in Stuttgart, Germany on April 19; and in Tokyo, Japan on April 25. www.CIMdata.com

ARCHIBUS 2007 International Users’ Conference is April 22-25 Marco Island Marriott Resort FL USA. www.archibus.com/usersconf  

2007 Green Roofs Conference is Apr 29-May 1 in Minneapolis MN USA. www.greenroofs.org

  


People/Companies on the Move

Bentley Systems acquires Germany's KIWI Software and its ProSteel 3D software.

Bentley Systems promotes Bhupinder Singh to senior vice president of Bentley Software.

Autodesk dealer Hagerman & Company acquires Jim Prewett's Spectrum Technologies, as of Wednesday.

PTC dealer Enser Corporation merges with Redbolt Technologies, another PTC dealer.

ICEM open a west coast office in Orange County CA USA, and appoints Kim Kirley as Western Regional Sales Manager.  

AfterCAD Software appoints Rob Cruickshank to its board of advisors. Mr. Cruickshank is the president of the British Columbia Technology Industries Association.

IronCAD sponsors research by Georgia Institute of Technology into visibility-based visualization of highly complex CAD models.

Advantage Business Media promotes Robert Langford to inside sales manager of the manufacturing group of magazines:  Production Technology News, IMPO, Product Design & Development, and Manufacturing.net.

The Radan Sheet Metal Software division of Planit Solutions moves to new offices in Forest Lake MN USA.

Autodesk dealer K-TEK Solutions names Cathy Wagenaar president and chief operating officer.  


Market News

AVEVA Group announces revenues of £45.9 million [US$90 million] during the six months ending September 30, up 58% over same period in 2005. The company is now listed on the FTSE250.

 


Brand New CAD Books/eBooks

"SolidWorks 2007 Tutorial" by D & M Planchard
Published by Schroff Development Corporation
400 pages; paper US$59.95
http://www.schroff.com

"AutoCAD 2008 Fundamentals" by Elise Moss
Published by Schroff Development Corporation
551 pages; paper US$59.95
http://www.schroff.com

"Engineering Design with SolidWorks 2007" by D & M Planchard
Published by Schroff Development Corporation
712 pages; paper US$59.95
http://www.schroff.com

"Engineering Graphics Theory & Problems" by Timothy Sexton
Published by Schroff Development Corporation
174 pages; paper US$$59.95
http://www.schroff.com

"Tailoring AutoCAD Rendering" by Ralph Grabowski
 Published by upFront.eZine Publishing
140 pages; PDF US$21.00
http://www.upfrontezine.com/tar

 


WorthWhile Web

money.cnn.com/2007/01/19/technology/fastforward_parallels.fortune/
Fortune Magazine
Windows on the Mac changes everything

www.robgalbraith.com/bins/index.asp
Videos on sports photography (thx to Don Beaton).

 


Letters to the Editor

Re: PTC's Media Access Day

"I'd like to provide some input on the use of the term 'outsourcing.' It has been used for many years by North American manufacturers to describe a supplier relationship, both domestically and internationally. Outsourcing does not necessarily mean that 'your company is using other's resources overseas,' as indicated in this week's issue. American companies outsource to many other American companies."
        - Terry Wohlers
        Wohlers Associates

- - -

"You have given me years of satisfaction reading your ezine."
        - Bob Johnson

 


Spin Doctor of the Moment

"It is recommended that a graphics manufacturer go beyond the strict letter of the specification and provide additional content-protection features, because this demonstrates their strong intent to protect premium content."
        - Microsoft, "Output Content Protection and Windows Vista"
        http://www.microsoft.com/whdc/device/stream/output_protect.mspx   


Spin Doctor of the Moment

"A key principle to our advertising creative is authenticity, in that the Zune brand is about celebrating great artists and the real people that enjoy it."
        - Peter Kingsley, group manager for Zune brand marketing.
        
news.com.com/Microsoft+doesnt+want+Zune+lost+in+the+Shuffle/2100-1041_3-6142799.html?tag=nefd.lede

 


Notable Quotable

"There is way too much obsession with search, as if it were the end of the world. Google equals money equals search equals search advertising; it all gets combined as if this is the last great business model."
        - Esther Dyson
        
www.nytimes.com/2007/01/01/technology/01search.html?ex=1168232400&en=ad47077c00fe61f4&ei=5099&partner=TOPIXNEWS

 


 


Copyright 2007 by upFront.eZine Publishing, Ltd. All rights reserved worldwide

Article reprint fee US$250.0 and up.

All trademarks belong to their respective holders. "upFront.eZine," "Talking About CAD," and "On your desktop every Tuesday morning" are trademarks of upFront.eZinePublishing, Ltd.
Letters to the editor may be reproduced in an edited form for clarity and brevity. Opinions expressed in letters are not necessarily shared by upFront.eZine Publishing, Ltd.