UGS NX 5: Does it Have to Cost So Much?

With ease of use improvements in its latest software, UGS seems not to be content with just jousting with high end CATIA and Pro/E but seems to want to take on SolidWorks, Inventor  -- even its own Solid Edge.

But with a starting price of $8700 (in US*) NX 5 is about twice the starting price of midrange MCAD products.

UGS deals with many Fortune 500 companies. For example, UGS has 30,000 seats in General Motors. UGS would argue that its users are not price sensitive. Large firms may consider design software that costs around $10K or above the cost of doing business. Also, companies that only a decade ago paid $20K per seat will think $8700 is quite an improvement.

But what of the ma and pa operations, the 10 engineer firms? For TenLinks new service, Innovate3D, the cost of acquiring licenses of CAD software was far and away the biggest single cost of setting up the operation. In fact, we are limited in the amounts and types of services we can offer because of the cost of software.

Despite the push towards the SMB market, it's hard for me to see NX 5 becoming the dominant player with the existing price structure. As the CAD market becomes increasing global, the path to world domination must include a cost that is low enough to be absorbed by small businesses, both domestic and overseas.

*UGS has mentioned a lower cost in foreign markets but at as of this time no price list has been provided.

Comments

[Jason]

More than that unless the Nx5 pricing has changed greatly. There are a lot of modules in UG and no one would need them all...Automotive stuff, Cam, FEA, wiring, etc.

[ralphg]

Anil:

$22,000, I believe -- similar to Pro/E and Catia with bells + whistles.

[Anil]

Have any Idea how much UGS NX5 cost with all the modules?

[Jason]

Dave, a lot for your bucks? They charge an arm and a leg. An entry level UG bundle doesn't do everything Solidworks does yet costs twice as much.

Overall, UG does more...but you are really going to pay for it. Luckily, most people don't need everything UG does....so why pay for it.

[Dave Cuttlebuck]

Hey Andy, fair comment about Works beleiving they are dominant - but who's technology is it built on? Why, UGS's.
Yes, NX5 is pricey, but you get a lot for your bucks.

[andy clarke]

remember guys, the dominant player in the smb market is solidworks, the ease of use and pricing structure cannot be matched, leave the price where it is on ug, small businesses see ug as a big player at big money anyway and that will not change in the next few years ,they should stick to what they know!

[Luc]

Price do matter but in the end if you are able to archive what you need the price become secondary.

To put a picture on that, i usually say that SMB have to deal with few dozen of paycheck some time one or two hundred. GM have to produce thousand if not million of paidcheck. It's the volume of actions that make the difference and that justify the price to paid for a system.

(Whitout going in detail)SMB subcontrat job so they have just a part of the whole picture to deal with. Major company deal with thousand subcontractor providing thousand if not hundred thousand of part....

Another point is..Taking over Solid Edge...hummmm not sure. we often see one or two seat of NX back by 5 seat or more of Solid Edge. We have to look at all the design chain cover by those two product.

The interaction betwen the two software that are able to work in the same environement semlessly make the combination worth it's price.

Hope i will not start a to big debate :):)