CIMdata's 2003 PLM Market Pricing Analysis Report Sheds Light on Understanding PLM Investments

ANN ARBOR, Michigan, March 4, 2003—CIMdata announces the availability of its 2003 PLM Market Pricing Analysis Report. The Report provides an overview of different packaging and pricing strategies and approaches taken by major worldwide PLM technology providers. Detailed data is presented on thirteen PLM solutions, including many industry leaders and a number of up and coming providers.

Peter Bilello, CIMdata Senior Consultant and author of the Report, said, “One of the major initial cost factors in deploying Product Lifecycle Management (PLM) solutions is the cost of licensing the client software. And as the number of users of PLM solutions has expanded, the licensing mechanisms used by the solution providers have come under increasing scrutiny.” Bilello explained, “For many years companies have struggled with the perception that the cost of named user licenses for PLM solutions are inherently higher than the costs associated with concurrent PLM solution licenses. In the past, companies who preferred the concurrent licensing model had multiple options, since a majority of the comprehensive PLM technology providers offered their solutions in that manner.” However, according to the PLM Market Pricing Analysis Report, over the past few years the PLM solution licensing landscape has evolved to where the vast majority of today's comprehensive PLM technology providers offer a named user license model.

“The movement back to named user pricing has gained momentum and doesn't seem to be losing any steam,” said Mr. Bilello. “What is most interesting, is that the perception that named user licensing results in a higher cost of ownership is still prevalent in the market despite the dominance of the named user licensing model.” According to Bilello, companies need to remember that named user licensing schemas force them to manage licenses down to individuals. As a result, they will only buy what they really need if they proactively add and remove users as the business dictates. This administrative effort is frequently viewed as an additional maintenance expense, but one that should be overcome by not allowing unused licenses to exist.

Mr. Bilello stated that the newly released PLM Market Pricing Analysis Report “allows companies to understand the primary pricing and packaging details for most of the world's leading PLM technology providers plus CIMdata's analysis on various aspects related to PLM implementation that goes beyond software purchase.”

About the PLM Market Pricing Analysis Report
The PLM Market Pricing Analysis Report is available from CIMdata for US $1,495. In addition to an overview of different packaging and pricing strategies and approaches taken by major worldwide PLM technology providers, the Report presents detailed data on thirteen PLM solutions, including many industry leaders, such as Agile Software, EDS, IBM, SAP, MatrixOne, and PTC, and a number of up and coming providers, such as Arena Solutions (previously bom.com). The reviewed PLM solutions provide all of the basic PLM functional capabilities, and often include visualization and collaboration tools and out-of-the-box applications within their solution suites. Additionally, they may include consulting and implementation services. These PLM technology providers have track records of providing solutions focused on supporting the entire product definition lifecycle throughout an extended enterprise with production ready, scalable product suites.

The pricing analysis includes software, maintenance, discounting, integration with CAD and MRP/ERP systems, training, documentation, implementation and professional services, and regional pricing practices. Cost for implementation and deployment are given for pilot, single-site, and multi-site PLM solution installations.

About CIMdata
CIMdata, a leading and independent worldwide strategic consultancy is dedicated to maximizing an enterprise's ability to design and deliver innovative products and services through the application of PLM solutions. CIMdata works with both industrial organizations and suppliers of technologies and services seeking competitive advantage in the global economy.
CIMdata helps industrial organizations establish effective PLM strategies, assists in the identification of requirements and selection of PLM technologies, helps organizations optimize their operational structure and processes to implement solutions, and assists in the deployment of these solutions.

For PLM solution suppliers, CIMdata helps define business and market strategies, delivers worldwide market information and analyses, provides education and support for internal sales and marketing teams, as well as overall support at all stages of business and product programs to make them optimally effective in their markets.

CIMdata provides world-class knowledge, expertise, and best-practice methods on PLM solutions. These solutions incorporate both business processes and a wide-ranging set of PLM enabling technologies including product data management (PDM), visualization, collaboration, digital manufacturing, computer-aided design/manufacturing (CAD/CAM), and numerical control (NC). CIMdata also provides expertise in the integration of PLM with other business solutions such as customer relationship management (CRM), supply chain management (SCM), and enterprise resource planning (ERP).

In addition to consulting, CIMdata provides industry education through international conferences in the US, Europe, and Japan that focus on PLM. The company also conducts research, provides PLM-focused subscription services, and produces several commercial publications. CIMdata serves clients worldwide from locations in North America, Europe, and Asia Pacific.

To learn more about CIMdata's services, visit our website at 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