Google vs. Microsoft at General Motors: What does it mean for PLM Cloud?

Cloud big time… It is probably coming to General Motors. Google is fighting against Microsoft to supply 100’00 license deal for GM. Navigate your browser to the following article – GM is the latest battleground between Microsoft Office and Google Apps. Read the story. Automaker is running 100’000 seats of Notes. Will the number moves to Google or Microsoft? The following passage is interesting:

If GM were to deploy Google Apps to the 100,000 seats it has apparently contracted to study, it would be a huge win for Google. No other customer approaches that scale: The City of Los Angeles signed a contract for 30,000 Google Apps seats two years ago, but only 17,000 seats have been rolled out, with the LAPD still stalling. Genentech has about 15,000 users; KLM about 11,000 users, Valeo about 30,000, the U.S. General Services Administration about 17,000, and Rentokil about 35,000.

Think about the numbers. Also, think about other customers mentioned above. Does it ring the bell? I think it does.

How PLM software vendors can leverage Google Cloud?

It is always good if somebody fights your fight. The story about Google vs. Microsoft GM Cloud fight made me think about what PLM vendors got to do with regards to this? Companies like GM are very conservative. You need to spend a huge deal of money to convince behemoths to change their strategies. Assuming Google will convince GM and other automotive companies to shift towards Google App from Microsoft SharePoint and Office. It can turn up an opportunity window for PLM and other engineering and manufacturing solution providers into GM-like deals. Is it going to work? I think, it is hard to say, for the moment. However, long term Google has a huge potential. Will Microsoft be ready to protect their home turf? I’m sure they will. It will come as a bundle of W8, Skype, Office and other solutions. They have a chance to keep the territory.

What is my conclusion? The battle about cloud solutions is still in the future. PLM companies are trying shallow water by playing cloud with a small amount of customers. For most of them, it is about how to check technologies and solutions. Company like DS already spent huge chunks of money for R&D cloud efforts. Autodesk is still preparing to come to PLM space and surprise everybody. It is not much known about Siemens and PTC. In the past CAD/PLM companies leveraged their partnership with Microsoft, IBM and other large technological partners. How to choose the right partner for the future cloud battle is a good question to ask. Just my thoughts…

Best, Oleg

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9 Responses to Google vs. Microsoft at General Motors: What does it mean for PLM Cloud?

  1. Shaun White says:

    Good conclusions

    Shaun

  2. Rahul Deshpande says:

    Oleg,

    This also throws a big opportunities to the PLM service providers to integrate Goolge App (including Goolge DOC) with PLM. Today Microsoft office is integrated with majority PLMs.
    My view is apart from putting the PLM on cloud, it throws opportunities in other areas of enterprise integrations – My views

  3. Still Google need to do lot to come level of Microsoft….Google offers very basic functionality with limited capabilities with with Office App where Microsoft Office Web Apps bring streamlined versions of Word, PowerPoint, Excel, and Microsoft Office OneNote to the browser to help users maximize productivity when they are away from their PCs…as Rahul said there is no as such feature which will support with PLM Application like Teamcenter or other app….

  4. Rahul, I think PLM vendors are neutral now with regards to Google Apps integration. As you said, Microsoft stays in focus as an absolutely pre-req. I don’t see companies are asking for Google Apps integration. I agree with you – this is a potential opportunity. Best, Oleg

  5. Sandip, thanks for commenting. It is clear Google Apps are the main rivals of Microsoft Office. What will be interesting is to see Google App in 5 years. Google is clearly thinking about more enterprise deals. Just my thoughts… Oleg

  6. Gil says:

    Finally, GM decided to go with exchange on premises.

  7. Gil, do you have a link that point on this decision? Tnx, Oleg

  8. […] Google vs. Microsoft at General Motors: What does it mean for PLM Cloud? (PLM Think Tank) […]

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