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Understanding CATIA packaging

May 15, 2003 -- Dassault Systmes CATIA software line is divided into a complex
array of products and packages that potential new customers may find bewildering.
This article explains how the scheme is supposed to work and why it can create
unexpected costs for buyers.
In CATIA parlance, a product is not necessarily a piece of software capable of
working independently. Nor must it provide a solution to a particular class of design
or manufacturing problems. A product is simply a software module that requires a
separate license and for which IBM Corporation, the sole sales agent for CATIA,
levies an additional charge.
To simplify distribution, IBM sells CATIA products in packages with other software
products. Such packages (also called configurations) typically make up a fairly
complete set of tools for a particular activity. For instance, the Styled Mechanical
Design 2 configuration of CATIA version five contains 14 separate software
products for design and drafting of products that incorporate free-form surfaces.
Some of these are the Freestyle Shaper, Assembly Design 2, Generative Drafting 2,
Generative Shape Optimizer, and Healing Assistant 1.
Dassault Systmes is not alone in bundling an array of products into packages.
Parametric Technology also has separate product codes and prices for a variety of
Pro/Engineer modules that it groups into application-specific packages and sells at a
discount.

Platform portfolios
To further confuse potential customers, Dassault Systmes groups CATIA V5
products into three classes. So-called platform 1 (P1) products (designated by a
number one at the end of the product or package name) are intended for small or
medium-sized organizations.

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What Dassault calls P2 products, which make up the largest number, are intended for
CATIAs core customer base of large aircraft and automobile makers. A number two
following the product name indicates P2 products. P2 products and packages
generally have more sophisticated functions than P1 software. They also cost more.
Platform 3 products are specialized applications for high-value niches. Examples
include the Automotive Class A 3 product for creating visible surfaces of car bodies
and Automotive Body-in-White Fastening 3 for designing welded joints in vehicle
unibodies.
CATIAs platform designations are unique among the leading high-priced CAD
software. Neither Pro/Engineer nor Unigraphics segment individual products into
fully functional and junior varieties.

Method to the madness

Theres an underlying logic to Dassault Systmes seemingly uncontrolled
expansion of the number of CATIA products. If Dassault were to add capabilities to
existing CATIA products instead of creating new ones, it would not be able to
charge additional license fees for the new functions. For example, if Dassault
Systmes had added feature recognition to CATIA Part Design 1 and 2, it would
not be able to charge maintenance-paying customers extra for this capability.
However, by creating a separate product, it can do so.
Customers who purchase P1 applications may need to pay extra to obtain functions
that are included in the equivalent platform two product. For example, buyers of
CATIA Generative Drafting 1 who want to make drawings of CATIA V4 models
must upgrade their licenses to CATIA Generative Drafting 2.
One customer told us that Dassault Systmes charged his company $6,000 for a
CATIA STEP translator because it wasnt included in the packages the firm had
bought previously. And firms upgrading from CATIA version four to version five
may find that there is no upgrade path for some of their V4 packages. This means
they need to buy additional product licenses to obtain needed V5 functions.

Disadvantages for customers

The complex packaging strategies pursued by Dassault Systmes (and other
high-priced CAD firms) may not be a burden on large companies that employ
specialized workers for a variety of tasks. For instance, much money can be saved by
not buying drafting licenses for designers who work only in three-D. Conversely,
drafters who just make drawings of three-D models dont need full three-D design or
data-translation software.
For mid-sized organizations, however, CATIAs complex packaging makes accurate
budgeting difficult. Customers cant figure out in advance which products and
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configurations they need to get their work done. When new products are released,
managers wont know whether new functions they may need will be covered by
maintenance contracts or whether they must budget for additional licensing fees to
obtain them.
In contrast, buyers of mid-range products, such as SolidWorks or Solid Edge, are
assured that functional improvements to their basic design, drafting, and
data-translation capabilities will be supplied for a predictable annual license fee. For
example, when EDS added extensive surface-modeling capabilities to Solid Edge
version 14 (see Solid Edge reaches for industrial designers), EDS didnt try to
make a separate product of these functions even though not every Solid Edge
customer needs them.
CATIA marketing executives could simplify the product line by 40 percent by
eliminating the platform 1 products. Mid-sized organizations dont necessarily need
dumbed-down software. Indeed, many relatively small makers of tooling and
specialty equipment have sophisticated engineering needs.
Firms that pay premium prices for CATIA deserve the best engineering software
Dassault Systmes can make. The cost of distributing new software functions, once
they have been developed and tested, is free. There are no incremental material or
shipping costs. Indeed the cost of selling and supporting a stripped-down product is
arguably greater than the cost of providing all customers with the same high quality
software.

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