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Geoffrey Moore Langdon
CADENCE AEC Tech News # 21 (March 2, 2000)
News
The official release of DataCAD Plus is scheduled for April 2000, according to DataCAD Applications Engineer Richard C. Morse. An upgradeable beta is available now for $1995; current DataCAD customers can upgrade for $995.
Also planning an April release is Revit Technologies, which can now be found at www.revit.com (replacing www.myrevit.com). Revit offers an innovative approach to architectural CADD software.
Users of Cadvance, by FIT, Inc., have reminded me that there is also a fully functional, limited-time evaluation version of Cadvance available at the Cadvance website (www.cadvance.com).
Another worthwhile web stop: the impressive ArchiCAD portfolio at the Drawing Studio (drawingstudio.com).
Ramifications of the Nemetschek Buyout of Diehl Graphsoft
After being subjected to much speculation and many sorts of rumors concerning the ramifications of this buyout, I decided to go directly to the source and interviewed the top people actually involved. Robert Anderson, Vice President of VectorWorks Architectural Development, assured me that it involves no hidden agenda or intrigue and that the facts are as publicly stated.
According to Diehl President Richard Diehl (now also a Nemetschek board member), the buyout had been in the works for some nine months. Diehl believes the fit between the two companies is a very good one and that their respective and various products can complement and mesh well with one another. He also noted that Nemetschek has many products other than AllPlan FT, their architectural CADD software, including office and
drawing management software, digital terrain modelers, and space planning software.
"Selling Nemetschek products through the Diehl Graphsoft channels in the
US does not mean selling AllPlan--in fact, AllPlan is specifically excluded from this agreement," said Diehl, who went on to add that "there is no plan to try to merge VectorWorks and AllPlan--in fact, Nemetschek's strategy is specifically to make use of VectorWorks as a 'midrange' solution, which we really like." Thus, in the US at least, the deal does not directly affect AllPlan, positively or negatively, though it may of course indirectly benefit from added name recognition.
Key reasons for the deal, say sources, include:
o Access to the significant Japanese market, among others
o Shared technology (DWG translators, rendering, etc.)
o User interface improvements
o Acquisition of a very profitable company in a good position
o Access to the Mac market and multiplatform expertise
o Consolidation of the European market for Nemetschek
o US savvy for marketing Nemetschek products in the Americas
Nemetschek seeks to become the largest provider of architectural software, where "architectural" really means "A/E" (as it normally does in Europe)--i.e., covering the entire construction industry. This deal should help achieve that objective, since VectorWorks is already the top selling program in several markets. It will also help Nemetschek grow into other areas of CADD and design software for such groups as builders, interior designers, landscape architects, surveyors, theater lighting designers, and others.
Nemetschek is also very interested in the intuitive and user-friendly interfaces that Diehl Graphsoft has developed, which will be important in breaking into new markets. The company also believes that VectorWorks objects can be smarter with more parametric functionality than, for instance, ArchiCAD; this technology is essential to developing profession-specific software. "Nemetschek wants to take part in a progressively new approach to architecturally intelligent objects," notes Diehl.
From a fiscal perspective, Nemetschek made its move at the right time. "Diehl Graphsoft is a very profitable company--worth much more than the NASDAQ stock price indicated at the time," Diehl added.
(Even though I am a strong advocate of the view that all design offices should have
at least one Mac, my initial response to the comment in the press release indicating that another reason for Nemetschek to make this move was to gain access to the Mac market with some skepticism. Although it is true that the Mac-based architectural CADD market is enjoying rapid growth, particularly in Europe, conventional wisdom, particularly among CAD companies that only offer Windows-based products, is that the Mac-based market is relatively insignificant.)
Nemetschek's motives, continued Diehl, include a desire to "challenge Autodesk's position in the architectural CADD market." If this impulse has an effect on Graphisoft's ArchiCAD, "that would only be an interesting secondary benefit," he said.
Diehl's first concerns are to work on shaping a strategy for the South American market and to learn more about all Nemetschek design office productivity products. He also wants to make sure that the Nemetschek website is accessible in English and other languages, not just German. And he is considering whether and how to sell Palladio X, Nemetschek's 3D modeling add-on for AutoCAD.
Diehl has not yet decided if the Diehl Graphsoft name stays or becomes the name of a division of Nemetschek. Interestingly, the VectorWorks Team challenge for the Architectural CADD Cup in the Designers 3D CAD Shootout had just appeared as of this writing, carrying the Diehl Graphsoft name on it, so it looks as though Diehl Graphsoft will remain the company name for the time being.
Finally, any fears that the buyout might impact the price of VectorWorks, or put its future in doubt, are unfounded and should be put to rest. In fact, it could have just the opposite effect and make VectorWorks stronger than ever.
Links:
Datacad Plus = http://www.datacad.com
Revit = www.revit.com
Cadvance = www.cadvance.com
ArchiCAD = www.graphisoft.com
Drawing Studio = drawingstudio.com
Nemetschek = www.nemetschek.com
PalladioX = www.palladiox.com
Diehl Graphsoft = www.diehlgraphsoft.com
VectorWorks Architect = www.vectorworksarchitect.com
About Geoffrey Moore Langdon, AIA
Prof. Langdon is a registered architect and is the principal of Architectural CADD Consultants, a firm that specializes in helping architectural firms with computing and CADD. He has taught Design, Solar Energy, and Architectural CADD at a number of colleges in the Boston area. He is the author of Architectural CADD: A Resource Guide to Design and Production Software Appropriate for Architects, a guest speaker at many AIA events, and the founder and organizer of the Designers 3D CAD Shootout competition. contact him at aectechnews@architecturalcadd.com, or through his website: http://www.architecturalcadd.com
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