Dassault Systèmes’ acquisition of IBM’s PLM operations recently closed, bringing Dassault 700 new employees and 1,000 new customers. DS should see immediate benefits from the acquisition.
Former IBM PLM chief Al Bunshaft becomes Managing Director of Dassault Systèmes’ Americas organization, as Dassault’s acquisition of the former IBM PLM sales organization closes. Bunshaft joins Dassault Systèmes after more than 25 years at IBM, much of that time spent in the PLM division. In his new position, Bunshaft will be responsible for the structure, management and evolution of American business operations for Dassault Systèmes.
Previously, Bunshaft served as global vice president of IBM PLM and led the company’s strategic partnership with Dassault Systèmes. In a prepared statement, Dassault says Bunshaft “played a critical role in leading a number of major automotive and aerospace manufacturers through the transition from physical to digital design. He was instrumental in the development of the first automobile designed through an all-digital process.”
The acquisition of IBM’s PLM sales operation, announced last year, closed on April 1. The $600 million transaction includes customer contracts and related assets. IBM will continue to support PLM integration through middleware, business transformation and application services and dynamic infrastructure, while Dassault will become—for the acquired accounts—the single vendor of its PLM line.
New Global Alliance
A new Global Alliance partnership is now in place between Dassault and IBM. Under this agreement both IBM and DS will continue to jointly invest in developing, deploying and supporting client PLM environments, delivering solutions to their clients worldwide. Both companies will cooperate on professional services, cloud computing, middleware, flexible financing, hardware, and sales and distribution.
The Final Analysis
“IBM is not a PLM company” an IBM insider told me years ago, and now they make it official. This acquisition should have happened sooner, but let’s not cry over the past.
Dassault gains direct access to its most important customers and gains an immediate bump in revenue that will soon make the $600 million purchase price seem like a bargain. IBM continues its retreat from being a reseller, to focus on more lucrative enterprise infrastructure and services. §