PLM cloud options and 2014 SaaS survey

October 24, 2014

plm-cloud-options-2014-saas

The number of SaaS businesses is growing these days. You probably had a chance to read my CAD, PLM and Top 500 cloud app vendors list few months ago. However, one size doesn’t fit all. This is certainly true about engineering software and PLM. As PLM companies are moving to the cloud, we want to learn more about possible options and strategies of how do we move to the cloud. Below you can find a list of my previous articles covering the diversity of cloud strategies from major CAD/PLM vendors – Autodesk, Dassault, PTC and Siemens PLM.

PLM vendors, large manufacturers and public cloud

Dassault is going to support all PLM cloud options by 2015+

Siemens PLM Analyst Event and PLM Public Cloud Strategies

The challenging face of dual PLM clouds

PLM Cloud Switch and PTC Final Click?

In my view, CAD and PLM companies are in a very active stage looking how to build cloud technologies and products. We can make an initial comparison of cloud PLM strategies of several CAD/PLM companies. Autodesk and Arena are fully embraced cloud as a primary way to deliver PLM solutions to customers. Siemens PLM and PTC are following IaaS strategies. Dassault Systems strategy is to support all cloud options by 2015. Aras plan to leverage cloud from both technology and business strategy.

PLM companies are joining growing population of SaaS businesses. It means we can start gathering some statistics about these companies, their performance and technical aspects of cloud delivery. If you considering to build your future PLM strategies around cloud, this is can be very valuable data point for your research.

My attention caught by 2014 SaaS Survey published by for Entrepreneurs blog by David Skok (@BostonVC). If you are in SaaS business, it is must read article. The following two charts caught my special attention. It gives you a perspective on how cloud (SaaS) applications will be delivered:

saas-2014-plm-delivery-options-2

Another one shows how delivery method changes as SaaS business is growing.

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Today, cloud PLM is only part of the business for all major CAD/PLM companies. It is hard to statistic from the research above to these businesses. However, it clearly gives you some perspective on business performance and aspects of how cloud PLM business will be developed in the next few years.

What is my conclusion? Cloud is here. There is no escape path. Manufacturing companies should look how to optimize their IT infrastructure and application delivery methods. I’m pretty sure, cloud PLM will become part of this optimization. It is probably a good idea to make yourself familiar with the aspects of performance of SaaS companies to create a foundation for future strategy meetings. A note for PLM IT managers and PLM architects. Just my thoughts…

Best, Oleg


Why to ask cloud PLM vendor about Devops and Kubernetes

October 23, 2014

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I want to continue the theme of how do we move to the cloud. While Amazon remains one of the major providers of elastic computing services, other options are emerging too. If you consider to move your PLM initiatives to the cloud, you might do some analysis about how actually cloud PLM can be made. Few weeks ago I was talking about large manufacturing and public cloud. Public cloud is an interesting option. At the same time, regulated manufacturing and companies with significant security restrictions can question this path. One of the alternatives for these companies can be just announced Azure Cloud System from Microsoft/Dell. It will take time for PLM vendors to support it, but Cloud PLM In Azure Box can become a reality soon.

Today I want to speak more about some trends in cloud computing and how it can be related to you future cloud PLM project. Remember my article What cloud PLM cannot do for you? The biggest achievements of cloud PLM today is removal of IT hassle and complexity. With cloud PLM you don’t need to think about servers, installations and even upgrades. However, here is the thing. The number of cloud applications is growing. Application lifecycle is getting more interesting these days. Large enough company can easy face the situation of management of multiple clouds – public and private at the same time. Complexity of manufacturing organization, supply chain, security or other IT-related reasons can easy bring you to such situation. These are not simple questions and it is very important to create a right strategy for your IT organization managing cloud PLM and other application providers.

Devops

You can consider “devops” as a new buzzword. It comes from a combination of “development” and “operations”. Bricks and mortar PLM software vendors were doing development only. They developed, tested and shipped CAD, PDM and PLM software on CDs and you had to hire IT specialists to install, configure and run it. Now, it is different with cloud software. By removing IT hassle from customer, software vendor is taking a role of IT too. It created a new paradigm of development+operations together. Think about engineering and manufacturing. They have to go together to make it work.

InfoWorld article Devops has moved out of the cloud speaks more about devops trend. I like the way it makes demystification of cloud by explaining how the same infrastructure can be used for both cloud and non-cloud development and IT environments. It also helps you to understand the importance of operation to achieve the quality of cloud services. Here is my favorite passage:

Many people attribute the rise of devops directly to the growth of cloud computing. The connection: It’s easy to continuously update cloud applications and infrastructure. For example, a SaaS application typically requires 1,000 lines or more of changed or added code each time you use it. Its functionality is continuously updated, which makes the cloud-delivered application, platform, or infrastructure more valuable to the users. Gone are the days when you received CDs or DVDs in the mail and had to manually update the servers. Although the cloud is certainly a better place for devops, I don’t believe that devops should be used only in cloud deployments. Instead, you should use devops approaches and enabling tools such as Puppet or Chef in most of the development you do these days — both cloud and on-premises.

Kubernetes

We need to thank Amazon EC and other IaaS vendors for incredible success of cloud computing we have today. However, technology doesn’t stay still. For the last decade public web companies learned many lessons how to manage infrastructure and software development on demand and on scale.

Kubernetes is an example how web companies can scale using cloud infrastructure. Navigate to ComputerWeekly article – Demystifying Kubernetes: the tool to manage Google-scale workloads in the cloud and spend some time even you will consider it a bit technical. In a nutshell it speaks about new technology of cloud deployment – containers, which comes to replace well-known VMs (Virtual Machines). Here is the most important passage in my view:

Kubernetes and Docker deliver the promise of PaaS through a simplified mechanism. Once the system administrators configure and deploy Kubernetes on a specific infrastructure, developers can start pushing the code into the clusters. This hides the complexity of dealing with the command line tools, APIs and dashboards of specific IaaS providers. Developers can define the application stack in a declarative form and Kubernetes will use that information to provision and manage he pods. If the code, the container or the VM experience disruption, Kubernetes will replace that entity with a healthy one.

containers-vs-VMs

While it may sounds too complex, the key issue here is related to the lifecycle of complex cloud PLM environments. At the end of the day, cloud PLM vendors will have to manage updates, introduce new features, maintain data and more. This technical example can show you the gap between new type of cloud infrastructure and opportunity to move an existing PLM server from your server room to the cloud.

What is my conclusion? We should move beyond “cloud PLM” buzzword. Enterprise software vendors are moving from shipping CDs towards selling software services. It simplifies customer experience, but creates new layers of complexity in vendor’s organization. It moves software development to devops and creates technologies that capable to manage application lifecycle easier. It ends up with the quality of PLM cloud service. Keep it in mind when you evaluate you future cloud PLM project. Just my thoughts…

Best, Oleg


PLM and Microsoft Azure Cloud In A Box

October 22, 2014

ms-azure-cloud

How do you move to the cloud? This is one of topics I’m discussing on my blog for the last year. The last time, I took a swing towards public cloud. Navigate to my PLM vendors, large manufacturers and public cloud article for more information. However, not everybody will move to public cloud. At least not very soon.

For those who is looking for alternatives, especially within private cloud zone, the last update from Microsoft can be a very good news. Navigate to the Business Insider blog – Microsoft’s Satya Nadella Just Fired A Shot At HP And IBM. Microsoft turns to Dell to create a new computer server. Here is the passage which provides more info:

The new computer is called the “Microsoft Cloud Platform System” and it will be a mini-version of Microsoft’s cloud, Azure, that enterprises can install in their own data centers. By using this server, enterprises can easily move applications from their own private data center to Microsoft’s cloud and back again. (In geek speak, this is called “hybrid computing”.)

Some more details came from CMSWire blog earlier today – Take a Seat Google, Amazon: Microsoft’s Cloud Wins the Day. So what is that Microsoft Azure Cloud in A Box. Here is the definition of a “Box”:

...new Azure-like appliance that Enterprises can deploy in their own data centers. It has been designed specifically to handle big data workloads (32 cores, 450 gigabytes of RAM and 6.5 terabytes of local solid-state drive storage). Officially named the Microsoft Cloud Platform System (CPS), powered by Dell it is, in essence, an “Azure consistent cloud in a box” with pre-integrated hardware from Dell and software from Microsoft.

I captured the following architecture shot from WinITPro article:

plm-azure-in-a-box

It made me think about what is the potential impact and opportunity for PLM vendors. For most of them, alignment with Microsoft can be very beneficial. In the case Microsoft will do hard work and promote their Cloud Platform System to CIOs of large enterprise companies, PLM can be the icing on the cake. So, on the surface it all looks good. Especially, for PLM vendors especially fully aligned Microsoft software stack. I guess Microsoft partnership programs can provide some additional benefits too.

The issue I’d like to question is related to data layer. Most of large PLM deployments today are running on top of Oracle database. Oracle has their own cloud plans – Oracle cloud PaaS will provide a magic button for PLM. The availability of Oracle DB as part of Azure Cloud Platform can be questionable and become an issue to move PLM systems to Azure.

What is my conclusion? The devil is in the details. This is the best way to describe the status of cloud PLM software architecture today. PLM vendors are developing their own cloud strategies. Manufacturing companies are looking for the easiest path to the cloud. We will see some interesting moves from both sides. A good time for PLM architects and tech advisers. Just my thoughts…

Best, Oleg

Note: I’m migrating my blog to http://beyondplm.com – you might consider to follow and comment there.


Kenesto revamp: does it change cloud PLM game?

October 17, 2014

kenesto-edm

It has been more than two years since I was reviewing Kenesto – an outfit founded by Mike Payne with the a strong vision to simplify process management. Navigate to the following article PLM, Kenesto and process experience to refresh your memories.

Steve Bodnar of Kenesto put comments on my blog about Google Drive and 3rd party apps with hints about some Kenesto functionality around file synchronization and cloud data management. It was a good alert that Kenesto is preparing some refresh. The following Kenesto press release caught my attention yesterday – Kenesto Extends Engineering Collaboration with New Vaulting and State-of-the-art Desktop File Synchronization. I found it interesting, since it moved Kenesto from process management cloud tool into something bigger – data management and vaulting. Back in 2012, I thought, that ability to handle engineering data is a big differentiation between traditional PLM system and cloud process management tool like Kenesto. The following passage from Kenesto press release can give a short description of the shift Kenesto made – it moved into data and file management space.

Kenesto today announced the full availability of its latest innovations – file vaulting and a pioneering file synchronization service – to enable mainstream design and engineering firms to more easily and effectively collaborate and manage their data. Kenesto’s latest capabilities also work well in conjunction with such design tools as Creo®, SolidEdge®, SolidWorks®, and Spaceclaim® for manufacturing customers and also Revit® for AEC customers, to enable file management and sharing across design workflows. This is all done while also ensuring proper handling of updates to component and assembly models connected to items and bills-of-material, for example.

I made a trip into Kenesto website. It presents a broad range of solutions – engineering design management, change management, procurement and supplier collaboration, program and project management. These are traditional PLM suspects. However, some of solutions are clearly outside of typical PLM domain – management of marketing program, PR and advertising, idea management.

Kenesto features are covering wide range of capabilities – projects, dashboard, reporting, document management, vaulting, web viewing, workflow and task management. My special attention caught Enterprise-class File Synchronization. This is an interesting feature and it made me think about cloud PDM functionality and cloud file sharing. My blog- Cloud PDM ban lifted. What next? speaks about growing interest of PLM and other vendors to apply cloud technologies to PDM – space that traditionally tried to avoid cloud-touch. So, Kenesto just joined the cloud of cloud PDM vendors and I need to add Kenesto in the list of companies open for cloud PDM competition.

kenestoDesktopSync

What is my conclusion? It looks like Kenesto decided to change the trajectory of Kenesto technologies and moved from process and workflow management to a full scope of product data management and lifecycle solutions. I guess Kenesto prefers not to use traditional PDM, PLM buzzwords. However, Engineering Data Management (EDM) acronym made me feel a bit nostalgia… At the same time, cloud sync and in-browser office files editing tools can provide an interesting differentiation in cloud-era. Just my thoughts…

Best, Oleg

Disclaimer: Kenesto didn’t sponsor and didn’t influence content of this blog post.


PLM vendors, large manufacturers and public cloud

October 14, 2014

google-data-center

Companies are moving to cloud these days. The question vendors and customers are asking today is how do we move to the cloud. I’ve been asking this question in my post few month ago – PLM / PDM: Why the cloud? Wrong question… I discovered multiple options for customers to start their move to the cloud – mainstream cloud productivity tools to share data and collaborate, to migrate existing PLM platforms to cloud using IaaS strategies as well as to build new type of platforms and tools using new type of cloud platforms and infrastructure.

Today, I want to show the perspective on public cloud from both sides – large provider of public cloud infrastructure (Google) and large manufacturing company (GE) and to see what is the intersection between their strategies.

Google – example of public cloud platform

My attention caught Google presentation – The next generation of Cloud. Navigate your browser to the following link to watch it. Besides the fact it was inspiring by the exact same question – “How to you move to the cloud”, it provided a very interesting insight on the aspect of Google public cloud platform.

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google-2

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google-4

Hardware cost is declining and Google is adjusting public cloud to match economic realities. Together with economic of scale and utilization, I can see a trajectory towards decreased of public cloud cost even more in the future.

Large manufacturers move to the cloud

So, what customers are thinking about public cloud? Inforworld article just published an article presenting GE strategy to go all-in with public cloud. Presented as an interview with GE COO Chris Drumgoole, article outlines his aggressive plans to migrate to public cloud services — and how they support GE’s organizational goals. Read the article and draw your opinion. Here is my favorite passage:

Drumgoole won’t talk specific numbers, but he claims that “north of 90 percent” of the apps deployed by GE this year have been in a public cloud environment. We’re big fans of the idea that everything ends up in the public cloud utility model eventually. “Eventually” is the big caveat, because some people within GE would argue that should be tomorrow, while others would tell you it’s 15 years from now. It’s a subject of good debate. But either way, the regulatory environment we live in right now prohibits it. In a lot of spaces, when we say technically that we think something should be public, and we’re comfortable with it being public, the regulatory environment and the regulators aren’t quite there yet and we end up having to do some sort of private or hybrid cloud. That’s probably one of the biggest barriers to us moving more public.

Drumgoole speaks about connected devices, big data and analytics as a significant driver to move data to the cloud. I reminded me one of my previous posts – IoT data will blow up traditional PLM databases (http://beyondplm.com/2014/09/23/iot-data-will-blow-up-traditional-plm-databases/). The amount of data is huge and it will certainly require new approach in data management. Here is the example of how much data produced by jet engine these days:

Take one of the jet engines we make, and if it’s fully instrumented. On a typical flight, it’s going to generate about two terabytes of data. Not everybody fully instruments them, but if you instrument it the way people would like in order to get predictive data, you’re talking about 500GB per engine per flight. A flight with a GE engine takes off or lands every three seconds. All of a sudden, the data gets very, very large very, very fast.

PLM vendors and public cloud

As for today, I’m not aware about any PDM/PLM software using Google Cloud as a platform. The majority of cloud PLM software built on top of infrastructure provided by collocated hosting services and variety of Amazon cloud infrastructure. Dassault Systems and Siemens PLM made few public statements about support of diverse set of cloud options and IaaS infrastructure. It would be interesting to see future evolution of PLM cloud platforms.

What is my conclusion? The technology and economic of cloud is changing these days. My hunch, it will pull more vendors and companies to use public cloud in the next few years. Software companies will try to balance between leveraging technological platforms and cost. At the same time, customers will try to balance between regulatory requirements and opportunities to make data accessible and scale without limits. Interesting time and significant opportunity. Just my thoughts..

Best, Oleg


How cloud pricing war will affect PLM?

October 3, 2014

plm-and-cloud-price-war

Large infrastructure cloud providers are slashing prices. TechCrunch article Nobody Can Win The Cloud Pricing Wars is providing some additional details about the situation. The same article speaks about the moment when CIOs won’t be able to ignore the pricing advantage:

Earlier this week, Google lowered prices 10 percent across the board on their Google Compute Engine cloud platform . The cost is getting so low, it’s almost trivial for anyone to absorb the costs of running infrastructure in the cloud, but you have to wonder as the cloud pricing wars continue, how low can they go and if it’s a war anyone can win.

In spite of the low prices, there are still plenty of companies talking about the cloud with disdain and fear, but the fact is how long can CIOs ignore pricing as it goes this low? It doesn’t make good business sense, and whatever risks a large enterprise believe they might face with cloud services, it has to be offset by the plunging costs.

Are you confused by comparison of cloud infrastructure prices? You are not along. GigaOM article provides one easy chart that will help you to demystify cloud prices.

RBC’s formula condenses cloud services into one unit price based on “total spend per GB of RAM,” which includes storage, compute, memory, I/O and other base features. That makes it easier to compare cloud pricing across vendors. Per a research note from RBC analyst Jonathan Atkin this week, the second half of 2014 saw less price cutting than the first half — which included a round robin of competitive cuts from Google, Amazon and Microsoft in March.

RBC-cloud-price-per-GB-RAM1

The devil is in details and I’m obviously interested to see how it will impact (or not) PLM vendors. When it comes to "cloud", not all PLM vendors are the same. While most of them are publicly announced cloud strategy, the diversity of cloud solutions is pretty much high – public cloud platform, leveraging IaaS cloud layer and developing of colo-hosting solutions.

It is important to see business aspects of cloud PLM. Thomasnet article by Verfi Ogewell PLM Market Faces Challenges, Hints at Possibilities provides an interesting perspective on PLM market and impact cloud PLM created. Read the following passage:

One problem in assessing PLM investments for 2013 and beyond has to do with the changing licensing models, a matter which to some extent is connected to merging technology platforms, like the cloud. Increasingly, vendors are moving from paid-up licensing models to subscription models. Paid-up models have annual maintenance fees in the range of 18 to 22 percent of the license purchase price. Subscription models demand payment each year that is in the range of 30 to 40 percent of today’s list software pricing.

Has the hype around PLM in the cloud resulted in customer investments? So far, the answer is no. In fact, it may be the other way around. The cloud has affected the pricing and results on the on-premise market negatively, plus, while many PLM vendors have offerings, most have yet to see any real returns on their investments. Meanwhile, the discussion of SaaS (software-as-a-service) has created expectations of at least more effective pricing models. This picture may change quickly if the new business models for delivery and support of PLM act as triggers for greater investments.

So, what will cloud infrastructure price drop means for PLM vendors? My hunch, this is a good news for PLM vendors hosting their solution on IaaS infrastructure. This is very costly option, especially with existing "on-premise" single tenant PLM architecture. Lower price will allow to PLM vendor to adjust their expenses. It can be even more beneficial for vendors building optimized cloud PLM multi-tenant architecture. However, it probably won’t impact vendors focusing on private and hybrid cloud infrastructure. While regardless on PLM architecture, 50% of PLM project is services cost provided by vendors and implementers, the overall impact of infrastructure cost will have less impact.

What is my conclusion? Cloud pricing war will impact customer mindset. It will increase customer demand to lower cost of PLM solutions. It will shift CIO’s perspective on how to leverage cloud infrastructure in their business. Low cloud infrastructure cost won’t make cloud PLM software free tomorrow. At the same time, it will help PLM vendors to adjust overall cost of PLM services and implementations. Better architecture of cloud PLM solutions will help vendors leverage offsets in infrastructure cost to bring more cost effective PLM cloud services. Just my thoughts…

Best, Oleg


Google Drive third-party apps and cloud PDM foundation

October 1, 2014

cloud-folders-z-drive-cad

Designers and engineers working in manufacturing, architecture and construction firms are familiar with the idea of Z-drive. Usually, this is a name of drive that accessible in your local network (LAN). Usually, the same drive can be available also via WAN, but it is not always reliable because of latency, which can make your CAD system fail. I guess every company experience the period of time CAD and other related engineering files are floating around via Z-drive. Some companies achieved a high level of sophistication by managing data using spreadsheets, PDF files and other files.

The work environment is different these days. The idea of "cloud" computing is changing the way we work. LAN, WAN and other old terms are dismissed by new technologies and tools. Sharing files online is getting more popular and not only for your private photos.

I already posted about Dropbox, OneDrive and pros and cons of specialized CAD sharing technologies. My attention caught by Official Google for Work blog post Google Drive + third-party apps = files at your fingertips. It speaks about how Drive for Works can integrate with 3rd party application while maintain security at the same time.

Drive for Work enables collaboration and content sharing for businesses large and small and helps them share and access their files — even from different cloud applications. Google Drive extends the reach of business applications by taking content that previously was only available in a single application, and making it available across multiple applications — all while maintaining security.

Google-drive-connect-app

The list of application is interesting – CRM, Project management and others. The idea of browsing documents managed by other systems is interesting and can provide advantages to engineers and other users of CAD tools. It made me think about CAD data is getting exposed to Google Drive via 3rd party. Navigate to Google Dev site to get some examples – What Can You Do with the Drive Platform?

open-app-from-drive

For long time, CAD/PDM topic was banned from cloud. Not anymore. Cloud PDM ban lifted and companies are going to explore how to manage CAD data by leveraging cloud in a most efficient ways. Google Drive and some other technologies from companies focusing on cloud file sharing can provide a foundation to make your native file system transparent to the cloud. Existing desktop CAD tools will leverage it by accessing files. Web API combined with CAD API can be used to develop new type of PDM solutions.

What is my conclusion? Technology will make difference. CAD vendors are on the path of bringing new cloud CAD systems (few examples – Dassault zero file strategy, Autodesk Fusion 360, OnShape). At the same time, desktop CAD systems represent mainstream community of engineers demanding better data management and collaboration tools. These tools have to require little to no IT and integration into existing cloud eco-system to share data. So, Google Drive for Work technology has a chance. Just my thoughts…

Best, Oleg


Oracle Cloud PaaS will provide a magic button for PLM

September 29, 2014

oracle-hq

Cloud PLM architecture and implementations is one of the topics I’m following for the last few years. It is interesting to watch dynamics of this space from initial ignorance to careful recognition and marketing buzz. I can see differences in how PLM vendors are approaching cloud. In my view, nobody is asking a question “why cloud?” these days. At the same time, we can see large variety of strategies in cloud PLM implementations and strategies. I guess PLM vendors want to answer on the question – How to implement cloud?

The element of infrastructure is important. The strategy of Siemens PLM – one of the leaders of PLM market is heavily relying on IaaS option. I covered in my post here. At the same time, Dassault is promising to support all PLM cloud options by 2015+.

I’m following Oracle Open World these days online. Gigaom article. Earlier today, the following article caught my attention – Oracle launches upgraded cloud platform with its database and Java available as a service. One of the key elements in Oracle cloud strategy is reliance of Oracle database.

oracle-db-paas

This is my favorite passage from the article:

Oracle detailed on Sunday evening its upgraded cloud suite that includes the ability for customers to use its flagship database in the cloud as well as on-premise. Executive chairman and CTO Larry Ellison talked about the new platform, now available, during his keynote session at Oracle’s annual OpenWorld conference. Ellison (pictured above) attempted to persuade the audience that Oracle’s rejiggered cloud platform can be the all-in-one shop for users to run Oracle applications, house their data and even build out their own applications while choosing whether or not they want any or all of those items to run on the cloud. “This new Oracle in the cloud allows you to move any database from your datacenter to the cloud like pushing a button,” said Ellison. Oracle’s cloud platform consists of a software-as-a-service (SaaS), a platform-as-a-service (PaaS) and an infrastructure-as-a-service (IaaS) in which all three are needed by Oracle to better serve its customers who have been clamoring for the company to provide cloud services, explained Ellison.

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multitenant-oracle-db

The point of moving any database from your data center to the cloud is fascinating. It made me think about future path to the cloud for many PLM vendors. Most of them are using Oracle database for core database functions. The specific architecture of each PLM product can be different, but to have Oracle responsible for running database in cloud environment can be an interesting opportunity to simplify cloud architecture. Instead of hosting databases using IaaS platforms, PLM products can use multi-tenant Oracle PaaS.

What is my conclusion? Major PLM vendors are looking how to “cloud-enable” their existing product and software architectures. The promise to move database from data center to cloud like pushing a button might be a bit on a marketing side. This is an alert for PLM software architects. IT managers responsible for PLM implementation can take a note to ask about how to move Enovia or TeamCenter into Oracle PaaS. To have Oracle multi-tenant database running by Oracle PaaS is an interesting option, for sure. Just my thoughts…

Best, Oleg


Cloud PDM ban lifted. What next?

September 24, 2014

cloud-pdm-pivoting

Once upon a time "cloud" was a taboo word in PLM domain. It was hard to believe manufacturing companies will share product information and manage processes using cloud tools. The situation is different today. For the last two years all major PLM vendors announced their support for cloud and developed their own cloud strategies. Some of my previous posts outlined my take on diversity of cloud PLM strategies: Autodesk enters PLM. Everything changed…; Why Siemens can develop PaaS option; Dassault is going to support all PLM cloud option by 2015+; PLM cloud switch and PTC final click. Some of CAD and PLM companies are mentioned on the top 500 cloud apps vendor list.

At the same time, one aspect of cloud and PLM was long time undeniable. It will be very hard (or even impossible) to think about using cloud system to manage CAD data. In other words, cloud PDM possibility was questionable. In the early days of On-demand (or SaaS) software, development of CAD integration between desktop CAD systems and web (on-demand) PLM tools was quite complicated. Several companies tried to do so, but results were questionable. Most of cloud collaboration and PLM tools developed for the last few years avoided management of CAD files and limited their functionality to publishing of CAD data mostly in CAD-neutral formats.

GrabCAD was first company eager to market cloud PDM solutions. GrabCAD Workbench was introduced earlier this year and focused on providing simple CAD data management solution to engineers in GrabCAD community and other companies.

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You can read one of my takes on how GrabCAD wants to disrupt CAD file management few months ago.

Last week, at Autodesk PLM360 customer event in Boston, Autodesk’s Brian Roepke made an early preview of cloud (PDM) document management capabilities. Navigate to my blog from last week to learn more. Below you can see few pictures from demonstration.

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By introducing PLM360 CAD data management capabilities such as versioning, relationships and embedded viewing, PLM360 is going to provide an alternative to traditional PDM systems. One of biggest challenges of the cloud is connection speed and ability to work with large files. Autodesk provided some hints on how the problem of large CAD files transfer will be solved. Trademarked as "Transfer Avoidance (TM)", this technology will optimize data transfer between desktop and cloud servers.

For long period of time, CAD and PDM integration was a very boring place. All PDM/PLM vendors developed their versions of CAD integrations. Competition was mainly focused on how to access CAD APIs in a timely manner as well as to support right versions and features of new CAD packages. I covered challenges of CAD/PDM integrations few months ago – How to re-invent CAD/PDM integration? After long period of time, GrabCAD was a first company introduced new concept of CAD integration. In my view, PLM360 document management capabilities open a new page in CAD/PDM innovation including new technological solution to optimize data transfer.

What is my conclusion? You cannot stop innovation. It was only matter of time for CAD/PLM companies to discover how to leverage cloud to improve CAD/PDM integration. My hunch, it is just a beginning of "cloud PDM" revolution. Cloud PDM ban lifted. Both GrabCAD and Autodesk are pioneers in this domain. I have no doubt, sooner than later, we are going to see what other PLM vendors will develop. There is a certain advantages to be "first mover". However, coming later to the game will allow to other PLM companies to learn from mistakes. Just my thoughts…

Best, Oleg

Disclaimer: I’m Autodesk employee. However, the views and opinions expressed in this blog are my own only and in no way represent the views, positions or opinions – expressed or implied – of my employer.


What cloud PLM cannot do for you?

September 19, 2014

no-cloud-magic-plm

It has been already few years since I started to discuss cloud PLM opportunities on my blog. I found one of my early blogs about PLM and cloud – PLM and cloud: hold the promise?

So, what changed since then? Actually, quite a lot… We’ve seen massive adoption of cloud and mobile by businesses in many domains. PLM cloud adoption is growing too. Cloud is on the roadmap of all PLM vendors. It is really a question of "how to implement cloud?" rather than a question of "do we need to support cloud"? We also seen few very interesting examples of cloud applications in CAD/PLM space. I want just to mention few of them – Autodesk design tool Autodesk Fusion360, Dassault SolidWorks Mechanical Conceptual, Autodesk PLM360. Siemens PLM made their TeamCenter PLM available from IaaS infrastructure. Aras announced cloud strategy and introduced cloud product available via partnership with Infor ERP – Infor PLM Innovator. Cloud PLM pioneers, Arena Solutions, introduced several new cloud tools (BOM control and Quality management). Last but not least, GrabCAD, an open community of mechanical engineers released cloud PDM tool – GrabCAD Workbench. Earlier this week, GrabCAD was acquired by 3D printing company Stratasys. According to TechCrunch, article the deal was around $100M. I’m sure missed few products and companies…

Here are things that I discussed back in 2010 – cost of the solution, delivery model, global access, faster implementation, scaling. We learned a lot of about PLM and cloud for the last four years. Today, I want to make a reality check for list of things I discussed before in lights of what cloud PLM can or cannot do.

1- Cost

Cloud PLM made a mental switch in everything we knew about PLM before. According to Engineering.com article, cloud affected negatively on-premise PLM market. Cloud PLM created expectations for alternative pricing models and pushed all vendors to think how to turn PLM into service offering. Today, you can buy cloud PLM subscription with no upfront cost and hardware investment, which is a very good thing. However, I don’t think, total cost of ownership is different if you will calculate it on the period of 5 years. I’d love to see and learn more about that and love if you can share your comments.

2- Deployment, scale and IT

One of the best thing delivered by cloud PLM is related to deployment and IT cost. You can buy and deploy it instantly – almost similar to how you can open a new Gmail account. As a customer, you don’t need to worry about servers, setup cost, ordering hardware. You don’t need to negotiate with IT installation time. However, you cannot eliminate IT completely, especially if you are large company. For most of situations, you will have to discuss and make an alignment with IT about issues related to security and information access.

3- Faster Implementation

So, you can buy cloud PLM without upfront cost, you can deploy it overnight. What about PLM implementation? Implementation is an interesting thing. I’d like to speak about two aspects of implementations – 1/Configuration and customization; 2/ Implementations of business processes.

Four years ago, many companies were concerned about capability of web/cloud applications to deliver the level of flexibility, customization and configurations similar to on-premise PLM deployments. It is true, for most of situations, you cannot hack your cloud PLM with simple SQL script. However, I think, the flexibility of cloud PLM tools today is similar to on-premise PLM systems. However, flexibility of cloud PLM tools cannot provide real advantages compared to on-premise tools. Thanks for virtualization and modern collaboration technologies you can run your implementation remotely also for on-premise PLM systems.

Implementation of business processes is an interesting aspect of PLM implementation. In practice it means to define data structures and business processes. Cloud PLM won’t provide any advantages here. It is all about people, processes and organizational changes. So, the ugly truth is that cloud PLM won’t reduce your need of implementation services. In case of on-premise PLM, implementation will be done on site and collaborate with IT – installing, configuring and debugging customized software. In case of cloud PLM, you will need to work with cloud PLM vendor or hosting provider.

What is my conclusion? Cloud computing changed a lot in our life. PLM on the cloud can do many things differently. With much lower upfront cost and simple deployment, it opens PLM doors for many companies that never thought can buy and implement PLM systems before. However, when it comes to implementation and services, cloud PLM won’t do much different from on-premise PLM systems. You still need to implement it. It will require business process planning and implementation cost. Just my thoughts…

Best, Oleg


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