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The Economic Times  Feb 23  Comment 
Cyinet said that the lab brings together Cyient’s expertise in service design, delivery&operational excellence with ANSYS’s market-leading engineering simulation solutions.
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Ansys (ANSS) designs engineering simulation software used in such industries as aerospace, automotive, manufacturing, electronics, biomedical and defense. Simulation software reduces the time it takes to move products from the design stage into manufacturing because it allows for much of the necessary product testing to be simulated rather than tested on prototypes. Ansys licenses its technology to businesses, educational institutions, and governmental agencies.

On May 1, 2006 Ansys acquired one of its largest competitors, Fluent. Total consideration was $598 million, of which $274 million was represented by 6 million shares of common stock. The company has also made several smaller acquisitions over the last several years.

Distribution

Ansys distributes its products through a global network of channel partners and also through direct sales offices in certain key locations. The sales cycle, or typical period between an initial sales inquiry and closure of the sale, is very long - particularly for large orders. As a result, sales can be quite lumpy from quarter to quarter depending on the timing of large deals.

Sales through distributors amounted to 36%, 49% and 49% of total revenue for the years ended 2006, 2005 and 2004, respectively. Sales through the top two distributors represented 12%, 18% and 18% of total revenue in the same years. The decline in distribution sales as a percentage of total revenue is due to the acquisition of Fluent, which primarily utilized a direct sales model.

Competition

The market for engineering simulation software overlaps with adjacent market segments such as computer aided design (CAD) and product lifecycle management (PLM). In addition, many firms in the industry are privately held. Reliable market share information is not readily available.

Some sources list the primary competitors in the "Technical and Systems Software" industry as Dassault Systemes, S.A. (DASTY), MSC.Software (MSCS) and Parametric Technology (PMTC).[1] The relative sales among Ansys and the other three is presented in the following chart.

Image:Simulation_Market_Share.jpg

Although the chart shows Ansys as having a 12% market share by 2008, its market share in some segments is much higher. For example, it is estimated to have a 50% market share in Fluid Dynamics[2].




References

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