STEM Connection

Siemens PLM Gives $1B in Software to Virginia Colleges

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Re: How much did you say?
ttemple   7/8/2014 5:06:52 PM
While $1B may be the "commercial value" of the gift, it will not be the "writeoff" value to the government for tax purposes.  The writeoff has to be justified by the cost basis, not on some assigned value of the software.  This is for sort of obvious reasons.  Any company could effectively wipe out all profits by giving things away and assigning higher than cost basis values to them.

For example, I could pay some developer $5000 to write some software.  I could try to sell (license) the software for $1000 per copy.  I could give away 10 licenses to some college, and try to write off $10,000.  That won't fly.  I would have to prove that I have $10,000 of unrecovered cost in the software.  (you have to actually spend money to write it off)

If Siemens isn't actually spending $1B to give the software away, they can only write off what they can show as cost basis.

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Re: How much did you say?
naperlou   7/8/2014 12:02:30 PM
Battar, there really is value involved here.  This is not play money.  It is not what the company forgoes, but the commercial value of the "gift". 

While I fully support this type of activity, the reality is that the companies could take workers with the required background and train them is using the 3D software.  That is what companies used to do. 

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RE: A Big Step towards Producing the Next Generation Workforce.
AnandY   6/28/2014 5:56:34 AM
By Siemens PLM giving the money in software to colleges, the company is establishing a future work force that is capable of taking technology to another level. The move also tends to fill the lack of engineering workforce by making sure all the jobs are taken by highly skilled workers not just students who have graduated as engineers. Manufacturing in plants will be taking place at a high rate.

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How much did you say?
Battar   6/24/2014 9:25:03 AM
Your can't put a meaningful cash value to a grant of a software license.

The actual license has no manufacturing or distribution cost, and a grant doesn't represent lost sales income (the college would not have purchased the license for 1 gadzillion dollars, would they?).

The "1B$" headline is meaningless. 

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