Who Will Be The First To Put PLM On Amazon?

April 5, 2010

I was reading on ebizQ during the weekend – Lawson Puts Full Function ERP system on Amazon Web Service Cloud. Actually, Lawson has PLM product  – PLM For Apparel and Footwear.

During the last few months, or even more, I’ve heard so much discuss about cloud and PLM. Lots of pros and cons were raised? Security, IP, availability, etc. I don’t think I can add something to this discussion for the moment. However, it sounds like a lot of discussion, but nobody wants to try it out. Sometimes try and fail (or not) can be a very good approach. My question – who will be the first to move their complete PLM offering and host it on Amazon AWS?

Maybe you know a company which did it already?
Just my thoughts…

Best, Oleg

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PLM and The Future Of Files In Organizations

March 30, 2010

Thanks for one of my readers who sent me the link to Wrench Enterprise. Their presentation about project collaboration and file sharing, made me think about files in enterprise organization. I think, even after many years of web oriented applications and implementations, files remain a very important piece of every enterprise organization. The collaboration between different people in the organization with involvement of files is growing, in my view. I see few interesting trends in the future of files in the engineering and enterprise organizations.

First, let’s where all these files are coming from. The significant piece of files comes from CAD/CAE applications. They have been targeted by multiple PDM Applications for the last 15-20 years with variable success, in my view. Another significant chunk of files comes from Office applications – Emails, Word, PowerPoint and, of course, the King of the road – Excel (or an alternative spreadsheet application). The third big part of files is various outcomes / reports from multiple engineering and enterprise applications. So, what will happen with all these files in the future? What organizations will do with this huge amount of files?

Here is my take on this. I can see possible three trends related to the future of files in the engineering organization – (1) Dissolve in Web Apps; (2) Acquisition by Content Servers; (3) Migrate to Cloud Storage(s).

Dissolve in PLM Web Applications
This trend will present the future move to web type applications from desktop applications. In my view, it represents a strategic move, but at the same time it will be a relatively slow process. Enterprise and engineering organization is very conservative, and it will take a lot of time until the majority of web apps in the organization will be web based.

Acquisition by Enterprise Content Servers
This is an interesting one, in my view. Content Management can grow in enterprise organization. Content Management has a small presence in engineering compare to the traditional PLM folks. The growing amount of SharePoint-like solution, reminds me about the the future movement in this direction.

Migrate to Cloud Storage
The most un-realistic for the short term. Organization in general and engineering organization specifically wants to keep their data closely and this is directly related to IP protection. The security concerns are still high. However, I’d expect an interesting trend for small organizations to outsource and host their servers. And it means the solution will become a very practical soon.

I’m interested to hear your comments and thoughts, as usual.
Best, Oleg

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PLM, Cloud, SaaS and Software Upgrades

February 25, 2010

I’m continuing to discuss various aspects of PLM on the Cloud and SaaS. The issue I wanted to discuss today is related to the software upgrades. This topic is considered as a painful in the enterprise software and requires additional significant investment and effort. Let think what SaaS/Cloud can change potentially? In my view, there are two separate aspects we need to analyze: technological and business.

Technology of SaaS/Cloud
From the technological standpoint, moving to cloud or SaaS solution still doesn’t mean change in comparison to what we have today when we run software on premises. If your PLM solution, for example, will be delivered on dedicated servers hosted in data centers, you are not going to experience any change in comparison to the web solution deployed in the orgnization. These servers will run the specific version of PLM software installed on them and you (or your provider) will need to care to upgrade them in the same way you are doing it today. However, if PLM solution will be delivered in the multi-tenant architecture, and you’ll share instances of the servers with other customers, you have a potential to experience non-stop migration between software versions deployed by vendors. Even in this case, the question of how it will happen to be heavily dependent on details of the system implementation, data modeling aspects and many others. So, in my view, the devil of SaaS/Cloud technology is in details. You’ll need to watch it closely and understand what can be supported by your software provider. Certainly, some of the software aspects related to data modeling will still require “upgrade point” anyway.

Cloud / SaaS as a business model
This is another aspect that I’d not connect directly to the technology of an upgrade. The most widely accepted situation when moving to SaaS model is to get software licenses paid by a subscription fee and not by license fees. These change of the business model will likely move your software expenses to a monthly/yearly payment. I had chance to read some interesting observation about that business from Burton Group blog yesterday. You can find it here. (http://ccsblog.burtongroup.com/collaboration_and_content/2010/02/a-.html). However, even this subscription looks like a big change, in practice, lots of SaaS contracts that promoted actively as monthly payments, will be considered as 1-2 years contracts. So, forklift event, Burton’s blog is writing about, will be created by vendor.

What is my conclusion today? Marketing is doing a great job around SaaS and cloud software. However, not all marketing presentations are translated into practical realities. It can stay in the power point slides. Even if SaaS/Cloud computing is providing an option to be different from software on premises, you need to watch details of a specific solution you are going to move to.

These are just my thoughts… What is your opinion on that?

Best, Oleg

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CAD/PLM On The Cloud and Vendor Lock In

February 24, 2010

I found a very interesting Forbes Magazine’s story – The Future of Enterprise Software. The author is writing about coming Cloud Software revolution. The write up is saying- Cloud Applications are coming and vendors won’t be able to lock in customers with the specific software. Customer will be “free to stay” or “free to go” and use any software from cloud.

“While concern over lock-in has a long history in hardware and services, it’s relatively new in enterprise application software. Companies always figured they owned the software because they put so much work into customizing it. Now, it appears, they are willing to forgo that level of ownership for the ability to move freely among cloud providers for the lowest possible cost or the best security benefits”.

This article made me think more about lock in and CAD/PLM software. The story behind customer lock in with enterprise software is not simple. And this is because of massive software customization that happens in the enterprise. Customers are building enterprise solutions based on software provided by enterprise vendors – MRP, ERP, CRM, SRM. The resulting solution is something to create strong affiliation between customers and software vendors.

However, in the context of CAD and PLM is even more interesting. In addition to customization and solution building on top of software products, customer creates intellectual property (IP) that dependent on CAD and PLM software. So, this IP in the forms of CAD models, drawings, Bill of Materials, etc. is an additional strong link between software vendor and customer. This dependency always discussed by CAD and PLM industry as “the interoperability” issue. I think, this issue will come back as soon as we’ll enter to the era of cloud CAD and PLM software.

Let’s try to understand what is the fundamental behind vendor lock in. I think, the ugly truth behind this is the cost of new customer acquisition. It is very high. To get a new customer on board is an expensive process and vendors are trying to keep customers not only by providing them more value and additional products, but also by putting additional cost them to walk out and use alternative products. This cost is translating of CAD models, export engineering and product data. This process is not always straightforward and requires experience, deep knowledge of software on both sides.

Now, let’s turn back to the cloud software. What is that about? I think, on the fundamental level, this is also about how to decrease new customer acquisition costs. Cloud software as services can simplify a selling process, can provide an easier way to demo software and provide free trial versions available for customers. In the end, fewer vendor bucks will be spent to get another happy customer on board. Done deal! What’s next? Do you think customer’s walk away from cloud software will be different than a similar process with software installed on premises? No, I don’t think so… The rest is very similar, in my view. Customer’s data, customization and many other factors will keep users on these systems exactly in the same way as it was before.

So, what is my conclusion today? Cloud is the way to software vendors to simplify the selling process. This is a huge advantage. In addition to that, there are many additional advantages related to the software on cloud. However, vendor lock in is with us to stay….

Just my thoughts… What is your view? What are your expectations from cloud software business relationships on both sides – vendors and customers?

Best, Oleg

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PLM in the Cloud: Opportunity or Threat?

February 12, 2010

Recent SolidWorks World Event brought a significant splash of discussion about cloud based applications. It is interesting to see different voices mentioned by PLM providers with regards to the growing buzz of cloud. I had chance to put bulk of blog posts on my cloud week about a year ago. For those who haven’t had chance to read them last year, you can see links below:

PLM: How to Enable your Cloud Relationship

Microsoft’s Cloud-y Future, SharePoint and PLM Collaboration

The Biggest PLM Challenge on the Cloud

Where is the PLM shortcut to the cloud?

Where is PLM on Industry Cloud Map?

However, I’d like to get back to the cloud story now and analyze what are the potential relationships of PLM and Cloud as well as figure out what I see as the opportunity for PLM cloud applications.

Computational and Storage Horses

I see a significant potential in application of cloud technologies to remove the limitation in both directions – computing power and storage. Despite the strong trend making CPU and Storage cheaper everyday, I think cloud can propose something different in this space for CAD and PLM applications. Software manufacturers need to re-think design, analyzes and simulation solutions and sees how to surf on top of potential availability of hundreds servers for the specific engineering task. The same about storage – think big, you can store whatever you need and have it accessible at any time.

Global Availability

Cloud can bring to small companies and individuals luxury of availability without limits. What was available yesterday only to the big corporations as part of WANs and other exclusive network services, can be now part of the global net in the cloud. It can change work habits of engineering companies in the way can manage their workforce, optimize supply change. Such global availability can open new markets for applications that before had limited availability to be distributed to end users.

Power of Integration

Cloud can be an opportunity for PLM companies to step into the integration process. I wrote few days ago- Do I need an invitation to CAD/PLM Cloud?. Integration of data and engineering information can be much easier when information will be available online and in more webish form. However, this is also the political issue. Today companies see integration in the very protective way. I believe influence of web and available web technologies can make shift in this area too.

Building Business Case of Cloud for PLM

And finally, what about money? How PLM companies and customers will be able to shift into new business models. What is clear for me, this is going to be a significant change. Cloud opportunity will provide cheaper resources and as a result new companies can use it as a threat for existing big vendors. The potential of new business models can be in renting and using services on demand. It can create some very interesting business cases. As a result, I can expect increased competition in the space that was heavy impacted by M&A of smaller companies by bigger vendors.

So, what is next?

I think PLM industry needs to spend some time to digest cloud revolution. Stop saying – we are doing it for years and also wait and not claim engineers as last people that will move their IP and information on cloud. I think dynamic of the next 2-3 years will be very interesting and will expose some emerging trends in cloud adoption by CAD and PLM.

Just my thoughts…
Best, Oleg

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Do I Need An Invitation To Join CAD/PLM Cloud?

February 5, 2010

Last week was very cloudy in Southern California. I’m sure you understand…  I’m talking about SolidWorks World 2010 in Anaheim, CA. It was time when SolidWorks presented their technological preview and first SolidWorks PLM on the cloud (SolidWorks Product Data Sharing). However, I want to start from a very interesting twitter message I’ve got at the time SolidWorks presented.


I can understand this twitter message from Arena. Arena was the pioneering cloud PLM solutions since early 2000s. It was called OnDemand back that time.  Finally, cloud apps started to appear in the mainstream presentations of vendors like Autodesk and SolidWorks. However, read Arena’s message and blog. Arena is looking how to organize work between SolidWorks’ new cloud solution and Arena’s Bill of Material products online. And this is very interesting turn that requires future discussion and understanding.

Interoperability Tabu and Cloud Openness
This is one of the most widely discussed and prohibited topics in CAD/PLM industry. In the very competitive world, CAD and PLM companies have hard time to maintain communications, formats and data exchange to provide a solution to their customers. However, introducing of cloud can bring a new voice in the story of interoperability. Internet and cloud, obviously perceived as the most open space. It will be very interesting to see how CAD/PLM solution on cloud will develop their openness skills in the future.

How Many Clouds Do We Need?
This is the question that I had in my mind when I’m thinking about future PLM cloud solutions. What will be the communication in the cloud and between clouds? How customers using SolidWorks will be able to use Arena PLM solutions? How SolidWorks on cloud will work with apps from Salesforce.com? How multiple CAD systems on cloud can be connected to the cloud solution from PLM and ERP vendors that I’m sure will depart to the cloud universe?  Those and many other questions I have in my mind. I’m sure we are about the right time to start discussing it.

What is my conclusion today? In my view, the cloud time is coming. We will see massive introduction of first solution on the cloud from CAD and PLM vendors. However, I hope we will not create multiple “PLM clouds” in the way we created multiple CAD files and PLM Databases. I hope, we’ll find a better solution to do so. Just my thoughts…

I’m looking forward to have more cloud-related discussions with you. And I posted about cloud before. If you haven’t had chance to see them, take a look below:

Cloudy PLM: Roadmap Into The Future

PLM Architecture: Get Off My Cloud?

Where is PLM on Industry Cloud Map?

Where is the PLM shortcut to the cloud?

Should PLM take Excel to the Cloud?

Host PLM Data using Cloud Services

How will PLM applications change when they move to a cloud?

Best, Oleg

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Five Online Technologies for PLM in 2010

January 22, 2010

The world of computing is very unpredictable these days. However, I’d like to bet and put some of my thinking towards something called “online” or “connected” technologies in 2010. As usual, I’d be watching these technologies in the prism of PLM with some flavor of going beyond PLM acronyms trying to understand how it can impact product design, development and manufacturing.

Cloud Computing. I think, since last year, we can hear word “cloud” more and more often. However, this is also time to think what practical benefit we can take out of this in 2010.  When most of the customers trying to cross the “cloud” with “SaaS” and imagine how all Intellectual Property they are developing is going to Google-like space, in my view, 2010 benefits will be coming differently. Existing vendors and new companies will be discovering new ways to use cloud computing power to do calculation, rendering, analytic. Another possible alternative will be to use cloud space for collaboration, but here some security questions can be raised. We need to think about effective models to secure collaboration online for engineering. This is an open call, in my view.

Business Intelligence. More specific, in comparison to cloud computing, but very frustrating, for the moment. BI is complex and expensive. Multi-core machines, double digit GB RAMs, multi-display configurations. This is still a reality in BI world, but I think this state of mind will not fit engineering and manufacturing world. Operational BI trend is interesting, and I’d expect some development happens in this space too.

Enterprise Mashups. I’m a little optimistic with regards to mashup story this year, in comparison to the previous one. I hope you had chance to read my post “Is PLM too Complex to Mashup“, but I think demand for mashup is growing and some delivery will be possible. In my view, the opportunity will come from inside of companies as much as companies will go to private clouds and advanced web architectures. This will be the important exam for all PLM vendors, since they will be requested to share information using open API, SOA and other available infrastructure.

Social Software and Networking. This is a continuation of Enterprise 2.0 trend and an opportunity to capitalize on Facebook and Twitter maturity inside of the organization. I think, we’ll see lots of Facebook-clones for enterprise PLM and community collaborative experience will be replicated many times inside of organization. However, not all of them will be successful. The biggest problem is the question: “How many social platforms we need for enterprise?“. And, unfortunately, this question will keep enterprises busy without moving forward.

Unified Communication (UC). Mail, Phone, Laptop, iPhone, Messenger, Facebook, Twitter… Too many devices, in my view. How we can navigate between all these devices in the optimal way. I think UC, finally, will become mature and corporation will try to move forward in optimizing communication. While call designers over the wall using the phone, when you can chat in the 3DLive or similar collaborative application?

So, I will be interested to discuss with you my thoughts and have your feedback. Does it fit your organizational plans or development roadmaps? Do you see similar requests coming out of your communication with customers and partners?

Best, Oleg


Is Google Docs A Good Place To Store CAD Files?

January 15, 2010

I was reading Google Enterprise Blog - Store and share files in the cloud… My hunch is that PLM eco-system needs to be prepared in potential leak of users going to collaborate via Google accounts. So, I decided to put my pros and cons for this scenario.

The pros of this scenario are obvious to me. The store is online, access is in everyplace. You don’t have to think about devices, backups, USB drives, etc .. However, CAD-related environment is not there (yet). To see a potential, you can take a look on Google 3D Warehouse.

What is potential cons. Size is one of them. At the time when the cost of external hard drives is going sharp down, cost of online storage can definitely a question. The second (and first asked everytime you speak about online) is security. However, it will depend on the type of customers. I do believe, initial adoption will be going bottom up and smaller customers will less care about the security topic. The missing piece in Google App chain is a solution for viewing of CAD files. The question if some of Viewing Solutions, available on the market, can be adopted to Google App? This can be a very interesting turn.

What is my conclusion today? The interest for online storage for collaboration and data sharing will grow. Based on good consumer experience with online services, customers will start to ask questions about how to adopt similar practices in the companies. What is your view on that? Will you be interested in the cloud based collaborative apps?

Best, Oleg


PLM Prompt: How to Present Cloud PLM Solutions?

November 20, 2009

How you can explain to customers about PLM on cloud (or on demand)?

Quite many times, I’m hearing a phrase “Cloud is not for PLM”.The cloud and on-demand topics were discussed multiple times, and I actually can find some very compelling reasons why cloud is good for PLM. I think everything starts from a good explanation. I found the following video (thanks Josh!) about Google Chrome OS as a very good explanation of why our life will move to cloud.

By the way – lesson #1. We don’t have to say “cloud”. It sounds complicated. Say – Internet! Do you like Internet? Yes, of course, we all like Internet.

Best, Oleg


3D Warehouse Parade

November 19, 2009

I think 3D Warehouse becomes a hot topic. Number of 3D Content is growing. Yesterday I had chance to try out Autodesk Content 3D Warehouse BETA. So, finally, I got the sequence of the following products which are almost similar (or expected to be similar).

Dassault Systems 3DVia
Google 3D Warehouse
SolidWorks 3D ContentCentral
Autodesk Content 3D Warehouse


Initial impression. Superior 3D performance of 3DVia, Google is absolutely stunning from the speed standpoint. SolidWorks have a very good a practical set of search options including classification, which make it practically useful. It is too early to say something about Autodesk, since it is beta. I need to play more with this product.

What is my conclusion? We will see more content online for the next few years. Significantly more. And this is, in my view, will be the turning point that will move PLM from proprietary formats to open communities. What do you think about?

Best, Oleg


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