With the new version of ESRI's ArcGIS for AutoCAD software, CAD users are provided a simplified means of storing coordinate system definitions inside AutoCAD drawings, eliminating the complexities of maintaining external companion files. The new version of ArcGIS for AutoCAD now also supports AutoCAD 2008.
With ArcGIS for AutoCAD, CAD users can define the coordinate system they are using within AutoCAD. When they connect to an ArcGIS Server map service in a different coordinate system, the map is automatically projected on the fly to display in the proper AutoCAD location. This greatly increases the usefulness of the map service, as users can work in their chosen coordinate system without transforming their CAD drawings or converting the GIS data.
The new version of ArcGIS for AutoCAD includes tools to list, assign, export, and remove coordinate system definitions from the AutoCAD drawing. Beginning with ArcGIS 9.2 Service Pack 3, ArcGIS will continue to recognize the companion file to define the coordinate system of AutoCAD drawings, but it will also recognize AutoCAD drawings that have implemented the new coordinate system definition with ArcGIS for AutoCAD. Other geospatial industry software, such as Safe Software's FME extraction, transformation, and loading (ETL) tools, will also recognize this internally stored coordinate system definition.
Source : http://www.esri.com
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