CIMdata PLM Industry Summary Online Archive
8 November 2012
Top Story
Siemens PLM Software to Acquire LMS: a CIMdata Commentary
Siemens PLM Software’s announcement to acquire LMS International (LMS) is an important event in the PLM industry. The result will be the joining of one of the premier simulation, analysis, and test solutions and services providers with a major player in the larger PLM space. Siemens PLM Software stated that their intention is to “provide closed-Loop, systems-driven product development solutions.” This closed loop concept, combined with the ability to improve quality through the integration of LMS’ simulation, analysis, and test capabilities together with Siemens PLM Software’s product lifecycle management solutions should provide broad benefits to the customers of the joined companies. Siemens has been developing systems engineering capabilities for many years. This acquisition supercharges that effort, giving them technology and, more importantly, a large team experienced in implementing a systems engineering approach, often at Siemens own customers. The combination also enables systems engineering to be applied more broadly, across the disciplines of mechanical and electrical design, software, and controls spanning the very beginning of a product’s concept all the way through to the end of design and on into manufacturing.
The two companies share compatible visions as well as compatible cultures, as witnessed by many years of working together to provide systems engineering and software solutions to their common customers. Their customer bases overlap, especially in automotive, but in other industry segments as well. The acquisition is expected to help LMS gain access to other vertical markets they do not currently cover. Siemens PLM Software has stated a commitment to continue to support LMS’ use with other PLM suites such as those from Dassault Systèmes and PTC.
Synergies can be expected as the organizations determine how to take advantage of LMS’ physical testing support tools and services and Siemens PLM Software’s ability to apply Teamcenter to test data management. This will enable users of LMS and Siemens PLM Software solutions to improve the integration of validation and quality management throughout the product development process. While it may not be possible to realize 100% virtual simulation, analysis, and testing, Siemens PLM Software will have a potent set of tools and services to support the goal of reducing reliance on testing.
The acquisition transaction is expected to close in early 2013. After closing, Siemens PLM Software has said they will provide more information about organizational issues and their product roadmap.
About CIMdata
CIMdata, an independent worldwide firm, provides strategic management consulting to maximize an enterprise’s ability to design and deliver innovative products and services through the application of Product Lifecycle Management (PLM). CIMdata provides world-class knowledge, expertise, and best-practice methods on PLM. CIMdata also offers research, subscription services, publications, and education through international conferences. To learn more about CIMdata’s services, visit our website at http://www.CIMdata.com or contact CIMdata at: 3909 Research Park Drive, Ann Arbor, MI 48108, USA. Tel: +1 734.668.9922. Fax: +1 734.668.1957; or at Oogststraat 20, 6004 CV Weert, The Netherlands. Tel: +31 (0) 495.533.666.
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