SA国际传媒

Boston-based , a publicly-traded computer software services company, has scooped up Cambridge-based .

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Onshape offers a subscription-based product that combines computer aided design (CAD) with data management. The deal was approximately $470 million and is expected to close in November, .

by a multitude of CAD entrepreneurs. It has raised over $150 million in funding to date.

At its core, Onshape helps designers, engineers, suppliers and contractors develop product. It claims that the cloud workspace it provides makes product developers speedier, thanks to collaboration tools and real time analytics. Other features include risk mitigation and IP protection. With subscription-as-a-service (SaaS), customers can have faster roll out and lower costs.

鈥淲ith traditional file-based CAD, your product designs and intellectual property are subject to unauthorized duplication, data breaches, or even accidental sharing,鈥� according to Onshape鈥檚 . Onshape combats this by basing itself on 鈥渁ny modern web browser,鈥� avoiding downloads, installations, or license codes. Additionally, it has strong authorization and authentication methods.

So why does PTC, a startup born in 1985 that has over 28,000 businesses worldwide, need this startup under its wing?

The Industry Moves

For software services, subscription models these days feel like part of the DNA from day one. There鈥檚 the big ones like Slack, a recently-public messaging platform, Flexport, which helps with logistics and freight, and Snowflake, which creates a home for an organization鈥檚 data.

And there鈥檚 also the smaller startups integrating SaaS as a business imperative. Think , which offers a retail management system for cannabis shops, o , which helps check a user鈥檚 language for typos and other literary nuance.

Yet within CAD and product management, the SaaS model hasn鈥檛 quite caught on in comparison to the slew of startups above. For example, PTC just transitioned to offer a subscription licensing option in January 2019.

The acquisition, per the press release, is part of PTC鈥檚 larger strategy to grab new customers and 鈥渃apitalize on the inevitable industry transition to SaaS.鈥�

Plus, as told us in the past: 鈥淥ne of the attractive aspects of software that鈥檚 sold on a service model (rather than, say, a one-time purchase of a cardboard box) is that, from an accounting perspective, it converts periodic large capital expenditures into more incremental operational expenses.鈥�

already, PTC鈥檚 latest acquisition shows us that despite a big footprint it鈥檚 looking to diversify, and innovate within its stable world.

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