Parametric Technology Corp (NASDAQ:PMTC)
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Develops, markets and supports product lifecycle management and enterprise content management software solutions and related services that help companies improve their processes for developing physical and information products.
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CAD and PLM are experiencing increased demand. PMTC's acquisition strategy and strong sales force are helping them lead the way, while two of its largest competitors navigate through rocky times. UGS is seeing an upheaval in its business and management team, while DASTY looks to transition away from its reliance on IBM, a move that could be very detrimental for DASTY and very positive for PMTC (they are getting closer to IBM as a result).
Increased demand may be experienced but at what cost. PTC has for some time a flawed opinion of the value of its products to the middle market. They all but lost the mid-priced CAD solution to DASTY and their Solidworks product. The PLM strategy revolving around the Windchill product puts too much burden on small companies infrastructure to implement. An OOTB solution is needed and PTC's only OOTB for the CAD market has been replaced. While the Windchill and its vertical "link" products provide a power tool to large companies they have yet to show medium to small company success stories.