PTC Announces Strategic Collaboration Agreement with AWS to Help Companies Design Products Faster and Easier with Onshape

Rhea-AI Summary

PTC (NASDAQ: PTC) has announced a Strategic Collaboration Agreement with Amazon Web Services (AWS) to accelerate the growth of its Onshape cloud-native CAD and PDM solution. The collaboration focuses on advancing product enhancements, customer adoption programs, and AI initiatives. Key priorities include:

1. Onshape Discovery Program: Allowing qualified users to try Onshape Professional for free for up to six months.
2. Onshape AI Advisor: An AI-powered tool to assist users in designing products faster, expected to launch by the end of 2024.
3. CAD and PDM Conversion Tools: Expanding capabilities to simplify switching to Onshape.
4. Onshape Government: A new option complying with ITAR and FedRAMP requirements.

The collaboration aims to get Onshape into more designers' hands, accelerate product enhancements, and showcase AI's role in product development.

Positive

• Strategic collaboration with AWS to accelerate Onshape's growth and product enhancements
• Introduction of Onshape Discovery Program allowing free trial for up to six months
• Development of AI-powered Onshape AI Advisor to assist in product design
• Expansion of CAD and PDM conversion tools to simplify system migration
• Creation of Onshape Government option to comply with ITAR and FedRAMP requirements
• Increasing commercial adoption with notable companies using Onshape
• Regular product enhancements through three-week release cycles
• Strong growth in education sector with over one million new signups per year

Negative

• None.

Insights

Financial Analyst

This strategic collaboration between PTC and AWS marks a significant milestone for PTC's Onshape platform. The partnership aims to accelerate growth and enhance product offerings, which could potentially drive revenue and market share for PTC in the CAD and PDM space. Key initiatives like the Onshape Discovery Program and AI Advisor could lead to increased user adoption and customer retention.

The collaboration's focus on CAD and PDM conversion tools addresses a critical barrier to entry, potentially facilitating easier migration for new customers. This could result in expanded market penetration and revenue growth. The development of Onshape Government, compliant with ITAR and FedRAMP requirements, opens up new market opportunities in the government sector.

While specific financial projections aren't provided, the partnership with AWS, a leader in cloud services, lends credibility and scalability to PTC's cloud-native strategy. This could positively impact PTC's competitive position and long-term growth prospects in the $21.4 billion market cap company.

Tech Expert

The collaboration between PTC and AWS represents a significant technological advancement in the CAD and PDM industry. The cloud-native approach of Onshape, coupled with AWS's infrastructure, promises enhanced performance, scalability and reliability for users. The planned Onshape AI Advisor, leveraging Amazon Bedrock, showcases the integration of cutting-edge AI capabilities into the design process, potentially revolutionizing how engineers and designers work.

The focus on intelligent data migration toolsets is crucial, as it addresses one of the main challenges in CAD system transitions - preserving complex parametric features and sketch information. This could significantly reduce switching costs and time for potential customers, making Onshape more attractive to a broader market.

The rapid release cycle (three weeks) mentioned for Onshape indicates an agile development approach, allowing for quick feature additions and improvements. This agility, combined with AWS's cloud infrastructure, positions PTC well to respond to evolving market needs and technological advancements in the CAD/PDM space.

Collaboration to Drive PTC's Onshape Initiatives Including Discovery Program, Onshape AI Advisor, and CAD and PDM Conversion Tools

BOSTON, Sept. 25, 2024 /PRNewswire/ -- PTC (NASDAQ: PTC) today announced entry into a Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to accelerate the growth of its Onshape^® cloud-native computer-aided design (CAD) and product data management (PDM) solution. This collaboration will focus on advancing Onshape product enhancements, customer adoption programs, and artificial intelligence (AI) initiatives, all of which are aimed at helping product designers and engineers create new, high-quality products faster and more efficiently.

The Onshape team and AWS will collaborate on several product and go-to-market (GTM) priorities, including:

• Onshape Discovery Program: The Onshape Discovery Program allows qualified users to try Onshape Professional at no cost for up to six months. This allows engineering teams to experience the unique speed and collaboration benefits of the Onshape cloud-native CAD and PDM solution for an extended period before making the decision of whether to adopt Onshape. Companies interested in applying for the Discovery Program can learn more here.
  
  
• Onshape AI Advisor: Onshape AI Advisor will allow users to design products faster by cataloguing the vast Onshape resource library of text-based documentation and videos and answering questions or making recommendations during the design process. While designing, users will be able to type a question in simple, conversational language and the Onshape AI Advisor will respond with an answer or recommendation based on the resource library and provide links to additional information. The Onshape AI Advisor will run on Amazon Bedrock and is expected to be released by the end of 2024.
  
  
• CAD and PDM Conversion Tools: In response to the growing demand from companies to switch to Onshape, this collaboration will allow the expansion of the capabilities of Onshape intelligent data migration toolsets. These toolsets reduce the complexity of switching systems by preserving the parametric features and sketch information of CAD models during translation.
  
  
• Onshape Government: Onshape continues to be adopted by companies that need to accelerate their product development timelines and have elevated security requirements. A new Onshape Government option will deliver this security footprint to comply with The International Traffic in Arms Regulations (ITAR) and The Federal Risk and Authorization Management Program (FedRAMP) requirements.

"Onshape continues to disrupt the CAD and PDM market, with product companies of all sizes choosing to switch and experience the speed, collaboration, and productivity benefits of the cloud-native approach," said David Katzman, General Manager of Onshape and Arena, PTC. "Our collaboration with AWS outlines some key priorities that will help us get Onshape in the hands of more designers and engineers, accelerate the delivery of some important product enhancements, and demonstrate how AI can assist in the product development process."

"Using Onshape has allowed us to make our product development process faster, easier, and more collaborative," said Wilfried Dufaud, Co-founder, Executive Director & Head of Airworthiness, AURA AERO. "We're always working on the latest version of our design, we no longer deal with lost work or system crashes, and we're now automating many of our repetitive CAD tasks, which saves us significant time. In addition to these day-to-day benefits, PTC and AWS give us high confidence in the availability, security, and reliability of our cloud-native approach to product development."

Onshape's growth has been fueled by its goal to help companies switch CAD and PDM systems to a cloud-native solution, an increase in commercial adoption, notable product enhancements, and significant traction in the education space. Leading companies such as Trek Bikes, Garmin, K2, Garrett Motion, and AURA AERO are all designing products with Onshape. As part of its three-week release cycles, Onshape has added functionality such as Render Studio, PCB Studio, Onshape Simulation, new surfacing, modeling analysis, and mixed modeling capabilities, and the Onshape-Arena connection for a seamless CAD-PDM-PLM experience. In education, from K-12 through university, Onshape is now generating more than one million new signups per year. Leading universities, including The Ohio State University, Rochester Institute of Technology, the University of Washington, and Penn State University, are all teaching Onshape as part of their engineering curricula.

"PTC's Onshape team and AWS will work together to expand technical and go-to-market collaboration to support the market evolution of engineering design tools moving to the cloud," said Chris Grusz, Managing Director of Technology Partnerships at AWS. "Together, we will evolve PTC's Onshape cloud-native CAD and PDM solution, supported by technology powered by AWS, and bring new AI/ML-powered capabilities and value propositions in a scalable and cost-effective manner to businesses around the world and the next generation user base in education."

To learn more about Onshape, please visit www.onshape.com.

About PTC

PTC (NASDAQ: PTC) is a global software company that enables industrial and manufacturing companies to digitally transform how they design, manufacture, and service the physical products that the world relies on. Headquartered in Boston, Massachusetts, PTC employs over 7,000 people and supports more than 30,000 customers globally. For more information, please visit www.ptc.com.

Media

Greg Payne
gpayne@ptc.com 

Investors

Matt Shimao
mshimao@ptc.com 

PTC, Onshape and the PTC logo are trademarks or registered trademarks of PTC Inc. and its subsidiaries in the United States and other countries.

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SOURCE PTC Inc.

FAQ

What is the purpose of PTC's Strategic Collaboration Agreement with AWS for Onshape?

The collaboration aims to accelerate the growth of Onshape by advancing product enhancements, customer adoption programs, and AI initiatives to help product designers create new products faster and more efficiently.

When is the Onshape AI Advisor expected to be released?

The Onshape AI Advisor is expected to be released by the end of 2024.

What is the Onshape Discovery Program offered by PTC?

The Onshape Discovery Program allows qualified users to try Onshape Professional at no cost for up to six months, enabling them to experience the benefits of the cloud-native CAD and PDM solution before deciding to adopt it.

How is PTC (NASDAQ: PTC) addressing government security requirements with Onshape?

PTC is developing a new Onshape Government option that will comply with The International Traffic in Arms Regulations (ITAR) and The Federal Risk and Authorization Management Program (FedRAMP) requirements.

What are some of the companies using PTC's Onshape for product design?

Leading companies such as Trek Bikes, Garmin, K2, Garrett Motion, and AURA AERO are designing products with Onshape.