PTC's Acquisition of Synapsis Accelerates Green PLM Trend

G00164335

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Summary

PTC's purchase of Synapsis' assets will enable PTC customers to streamline environmental compliance during product development. Non-PTC customers using Synapsis are protected today, but will likely face longer-term risks.

News Analysis

Event

On 10 December 2008, PTC announced it has acquired the business assets of Synapsis Technology, a privately held company based in Springhouse, Pennsylvania, with approximately 25 employees. Synapsis provides environmental regulatory compliance solutions to manufacturers. PTC did not disclose the financial terms of the acquisition.

Analysis

PTC's acquisition of Synapsis' assets is part of the trend toward vendors including or planning to include more environmental intelligence within design software and, more generally, within product life cycle management (PLM) applications.

With this deal, PTC gains environmental compliance software and expertise, offering PTC's customers greater possibilities to improve environmental compliance support. PTC will likely migrate Synapsis Environmental Material Aggregation and Reporting System (EMARS) software for regulatory compliance to its Windchill platform. Manufacturers using PDMLink for data management, PartsLink for managing part data libraries, and PTC's supplier management application will benefit most from improved access to environmental data. Gartner does not anticipate such Windchill software will be available before 2010.

Synapsis customers are likely to benefit from this deal since PTC, a more viable vendor, can protect long-term investment in EMARS better than Synapsis. However, Synapsis customers that use non-PTC PLM applications face long-term risks. For example, Synapsis' partnership with PTC competitor Siemens produces Siemens' Teamcenter Environmental Compliance. Although Siemens and PTC both express interest in continuing the Siemens-Synapsis relationship, Gartner believes there is now a greater chance Siemens will pursue a replacement for Synapsis over time. If this scenario happens, PTC's support for Teamcenter Environmental Compliance will erode as Siemens shows less interest and PTC completes the migration to Windchill.

Recommendations

  • All manufacturers interested in environmental compliance: Investigate EMARS and assess its ability to work within your PLM infrastructure.

  • All PTC customers: Consider Synapsis software as a top candidate for environmental compliance support.

  • Joint PTC and Synapsis customers: Anticipate changes in Synapsis maintenance, enhancement, and support terms and conditions, particularly at the time the Windchill-based application becomes available.

  • Siemens Teamcenter Environmental Compliance customers: If Siemens pursues other options, plan on pursuing those options as an alternative environmental compliance solution.

Recommended Reading

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© 2008 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

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