While Product Lifecycle Management vendors make good on delivering solutions that meet customer needs, the promise of PLM is starting to resonate with manufacturers of all sizes. At least, that's the consensus from PLM market watchers, who cite strong year-end earnings announcements from two of this sector's leaders as proof that PLM is finally starting to take root.
UGS (Plano, Texas) posted year-end sales of $1.01 billion, with claims that it's the first PLM vendor to break the billion dollar mark. On the other hand,
Dassault Systemes (Surenes, France), another top vendor in the PLM space, also benefited from steady demand in 2004. Total revenue (including software and services) hit €796.6 million in 2004. In response, to UGS' claims of being the first to pass the $1 billion mark, Dassault officials pointed to the company's long-standing agreement with IBM, which resells Dassault's PLM suite. They said combined revenues from PLM products and services had easily sailed beyond the $1 billion mark.
No matter which company got there first, analysts said the strong financial results were a positive sign for the PLM category as a whole. Moreover, both UGS and Dassault experienced steady growth outside of the United States and Europe, in Asia/Pacific in particular.