Arena Solutions Announces Nine Consecutive Quarters of 30% Growth, with Annual Growth Rate Over 300%
Foster City, Calif., Jun 11 - Arena Solutions, Inc., the leading provider of on-demand Product Lifecycle Management (PLM), today announced growing market adoption of its web-based, hosted solution for managing complex design and manufacturing product information and processes. Arena has achieved nine consecutive quarters of at least 30 percent growth and annualized revenue growth of more than 300 percent during the 12-month period ending March 31, 2004.
With over 150 customers, Arena is now the fastest-growing PLM provider in the industry, adding more new customers per month than its larger, entrenched competitors. No other company can match Arena’s value proposition of a robust, highly secure and fully featured PLM solution delivered as a web-based service. Arena PLM can be implemented almost immediately and accessed by standard web browsers across an entire chain of manufacturers, suppliers and outsourcing partners without the up-front software and hardware costs, ongoing IT management requirements and overall complexity of client-server software.
“With the increasing trend toward outsourced manufacturing and globally dispersed engineering and development teams, companies are realizing the need to implement PLM solutions quickly and cost-efficiently,” said Michael Topolovac, CEO of Arena Solutions. “We attribute our company’s impressive results to the growing acceptance and understanding of the benefits that an on-demand approach delivers to customers.”
“Arena’s success is derived not solely from the inherent value of the on-demand or software-as-a-service delivery model; Customers are choosing Arena PLM because it provides all of the critical functionality and tools needed to conquer the complexity of managing the product lifecycle,” Topolovac added. “The reduced cost and ease of implementation of the on-demand model now bring this product functionality to a broader range of companies.”
Arena PLM can be implemented in a matter of days, rather than months or even years with client-server applications. The Arena solution is allowing manufacturers to reduce time-to-market by up to 50 percent, enabling the effective use of outsourcing partners, increasing operational efficiencies and lowering overall product costs.
“Choosing Arena PLM was essentially a no-risk proposition,” stated Michael Repetto, Director of Program Management at Air International (US) Inc, a tier-one supplier to the world’s automotive industry. “AIUS broke even on its investment in Arena PLM in just two months.”
Since December 2003, Arena has added 50 customers across a variety of industries, and serves more than 150 clients including Network Associates, Intuit, First Alert, Align Technology, Bio-Imaging Research, Sierra Wireless, Deepsea Power and Light, Stanford University, and Radio Systems Corporation.
Arena is addressing a critical and growing issue for the global manufacturing sector. According to analyst firm AMR, companies will spend approximately $2.3 billion this year on PLM application suites. IDC forecasts a compound annual growth rate for the PLM market of over 25 percent during the next five years.
Arena’s on-demand model is resulting in close to 100% percent annual retention rates and net renewal revenues of well over 100 percent. “Customers appreciate both our product and our business model. The business model lowers the risk of adoption by allowing them to buy only what they need and are comfortable with. However, after using our product, they usually come back for more and implement it in other parts of their organization,” added Topolovac “We see the on-demand model as the way of the future not only in the PLM market, but in the broader enterprise software market as a whole.”