PTC's strategy for getting into Big Auto

Analyst: Do you think there is more opportunity now for churn [change of CAD vendors] in automotive?

James E. Heppelmann (PTC ceo): If you look at the different segments, you'll see an interesting story, which is that not many major automotive OEMs really want to switch CAD tools.

You see an occasional situation like Daimer that had some special circumstances around it. But by and large, the automotive industry is not switching CAD tools.

There is a certain amount of them, though, that are reconsidering what their PLM strategy is, and this has actually forced some companies to reconsider what they're going to do for PLM, and that raises some opportunity for us.

But when you switch from that discussion to ALM [Application Lifecycle Management] and SLM [Service Lifecycle Management], this is greenfield [new customers]. There is hardly any major automotive company that isn't interested in an SLM or ALM conversation. And it doesn't really matter which CAD and PLM tools they use.

I see us having a very large opportunity in automotive, particularly around ALM and SLM, which are areas that PTC's traditional competitors in CAD and PLM don't match up against us and don't necessarily have even the means to block us from entering some of their best accounts.

So I think that's where the real opportunity lies: not so much in CAD, some in PLM, lots of opportunity in ALM and SLM.

Source:
seekingalpha.com/article

Comments

[Kevin]

Just what we need, more acronyms!