Stronger PLM Foundation for ERP Market: Siemens PLM

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Last week Siemens PLM announced that it will acquire the TESIS PLMware. TESIS PLMware is part of TESIS group that primarily provides PLM software solutions-services and vehicle/engine simulation. The financial terms and conditions of this acquisition have not been disclosed. My analysis in this blog piece covers the future strategy of Siemens PLM  as related to the TESIS PLMware acquisition, the impact it will have on the bigger PLM market and its players.

Why TESIS PLMware?

 TESIS PLMware has been a partner of Siemens PLM since 1992, SAP partner since 1997 and Oracle gold partner. Software services provided by TESIS PLMware are primarily in automotive space around Siemens PLM’s Teamcenter and NX.  Though Siemens PLM has not disclosed the financial details of this transaction, I believe this acquisition is not targeted to acquire existing customer base but rather at the intellectual property of TESIS PLMware. TESIS PLMware brings decades of ERP-PLM integration, consulting and implementation experience. At the surface, Siemens PLM could have tapped into its various partners to get similar portfolio of expertise as TESIS PLMware. TESIS PLMware has gained the experience in extending the Teamcenter platform working on the unified Teamcenter architecture; it has developed the Teamcenter Gateway for SAP (T4S), and Oracle EBS (T4O) products that are fairly stable and proven. TESIS PLMware has also developed the generic Teamcenter Gateway for Enterprise Application (T4EA) for other enterprise systems. With this acquisition SPLM(Siemens PLM)  will exclusively own these products and is expected to enhance its services offerings. SPLM stands to own and gain from the  practical integration experience of TESIS PLMware team for targeting revenue generating fields such as MRO (maintenance repair and overhaul), mechatronics, SCM (supply chain mgmt.), CRM (customer relationship mgmt.) and MES (manufacturing execution systems).

Impacts on ERP-PLM vendors and end-users ? 

In my PLM implementation experience, clients have accepted Teamcenter as an enterprise PLM offering. Siemens PLM (SPLM) strategy to acquire an integration implementation partner that has automotive industry background indicates that SPLM is looking to take a leadership position in ERP deals targeting PLM implementation. It is expected from Siemens PLM to productize the Teamcenter Gateways and further enhance its enterprise PLM position. The scope of this acquisition is narrowed by PLMware industry specific offering, but overall one can expect Siemens PLM to offer fierce competition amongst the ERP vendors competing for PLM implementation in the long run. End-users can expect further enhancement of Teamcenter’s integration offerings and simpler sales cycle working  directly with SPLM.

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