Autodesk to Up its Unified PLM Cloud Game with the Acquisition of Upchain

Lionel Grealou posted 2021-04-20
Upchain is set to accelerate Fusion 360 as an onramp to its cloud platform, as announced by Autodesk. (Image courtesy of Autodesk.)

Autodesk describes itself as the company that “makes software for people who make things” or even “people who make anything.” It’s a great motto, which comes to light in specialized industries and creative sectors, from architecture, engineering, construction and manufacturing to media and entertainment. With its core data management platforms, Fusion 360 and Revit, Autodesk has specialized PDM and BIM solutions covered. Fusion 360 brings together mechanical, electrical and concept design tools, with a strong footprint in CAD, CAE, CAM, subtractive and additive manufacturing, and many other CAM extensions. Revit is one of the most popular design tools in the AEC industry, covering the full building lifecycle management, managing data such as design collaboration, projects, documents, bid process, digital mock-ups, assets, compliance, contractor information and more.

With the addition of Upchain to its product and service portfolio, Autodesk is set to access new cloud-based capabilities and to extend its remit into the world of cloud PLM. Per the company’s news release: “The acquisition positions Autodesk to deliver more value for engineers, manufacturers, suppliers and other product stakeholders by increasing collaboration across the decentralized product value chain, regardless of CAD system.”

Upchain has definitely welcomed the news and, as mentioned on their website, claimed that the acquisition is set to open the door to a world of opportunities, leveraging “Autodesk’s massive engineering and product development expertise to accelerate our roadmap, features, functionality and value the platform delivers, and to our customers.”

PLM or PDM, or both? Upchain has the basics covered for both with its unified cloud offering and solution portfolio: the announced acquisition by Autodesk is set to open the door to a world of opportunities for the Toronto-based start-up. (Image courtesy of Upchain.)

Synergies Between Autodesk and Upchain

“We’ve had a singular focus at Upchain to up-level cloud collaboration across the entire product lifecycle, changing the way that people work together so that everyone has access to the data they need, when they need it,” said John Laslavic, CEO and Founder of Upchain. “Autodesk shares our vision for radically simplifying how engineers and manufacturers across the entire value chain collaborate and bring a top-quality product to market faster. I look forward to seeing how Upchain and Autodesk, together, take that vision to the next level in the months and years to come.”

The mission of Upchain is to “up collaboration across the decentralized product value chain through the entire lifecycle,” providing capabilities such as item and document management, version control, change management, BOM management, compliance and CAD integrations. (Image courtesy of Autodesk.)

Managing complexity and enabling business resilience are the new PLM paradigms. “Resilience and collaboration have never been more critical for manufacturers as they confront the increasing complexity of developing new products. We’re committed to addressing those needs by offering the most robust end-to-end design and manufacturing platform in the cloud,” said Andrew Anagnost, President and CEO of Autodesk. “The convergence of data and processes is transforming the industry. By integrating Upchain with our existing offerings, Autodesk customers will be able to easily move data without barriers and will be empowered to unlock and harness valuable insights that can translate to fresh ideas and business success.”

Strategic Alignment: Autodesk to Bring PLM and BIM Together

Additionally, Autodesk declared their intention to “maintain Upchain’s open approach to data, supporting integration not only with solutions like Inventor, AutoCAD and Fusion 360, but also with other CAD systems commonly used in the manufacturing industry.” With this move, CAD/CAM integrations and extensions are clearly set to reach to wider enterprise data management cloud-based capabilities, possibly bridging further between the worlds of CAD, CAM, PDM, simulation, PLM and BIM.

Autodesk’s strategic rationale for Upchain expansion includes differentiated cloud PDM, modern SaaS architecture, data centric workflows and CAD integration allowing overlay with their existing product portfolio. (Image courtesy of Autodesk.)

In their 2021 Q4 and FY earning report, Autodesk highlighted a strong close to fiscal 2021, and a robust cash flow. The company also provided a strategic upgrade around the following three axes, with the first two clearly aligning with the Upchain acquisition:

  1. Accelerating digitalization in AEC: another step toward the convergence of PLM and BIM?
  2. Convergence of design and make in manufacturing: new market penetration and expansion?
  3. Monetizing non-compliant users and digitization.

Further to this, Autodesk re-enforced the strategic intent to build a modern PLM architecture and convergence across its portfolio, with a view to enter new markets, at both industries and enterprise data management scope levels.

Entering New Markets and Bridging Data and Process Management

Upchain’s focus on simplification and Autodesk’s focus on technical data connectivity is an interesting combination.

  • How will all components come together under a single eco-system and further close the PDM-PLM gap?
  • Is Autodesk aiming to close the gaps between PDM, PLM, BIM and ERP with the Upchain acquisition?
  • How will Autodesk combine or integrate the relevant pieces under a coherent and integrated Digital Thread umbrella?
  • What elements will be connected under the Fusion 360 Manage vs under the Upchain umbrella?
  • What level of openness will be maintained, allowing for a growing range of extensions, technical and enterprise application connectors, and to what extent will these extensions and connectors allow for new market penetration?

“The acquisition of Upchain is a big step toward meeting our customers where they are, removing the barriers to collaboration and bridging the gap between data management and process management technologies,” said Scott Reese, Executive Vice President of Product Development and Manufacturing Solutions at Autodesk.

Fusion 360 plus Upchain equals a disruptive end-to-end cloud-based manufacturing platform with multiple adoption onramps. (Image courtesy of Autodesk.)

Reese also explains that “disruption has become a constant in the world of manufacturing. Being equipped with instant access to data across the product value chain gives companies the ability to remain agile and bring compelling products to market quickly and efficiently.”

The transaction is expected to complete by the end of July 2021. It is likely to contribute to new or more market-share in non-CAD centric data management domains, for Autodesk to continue to develop its offerings beyond design, simulation and manufacturing data management capabilities.

What are your thoughts?



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