Why all PLM software will be SaaS soon?

November 26, 2014

plm-cloud-dream

I’ve be sharing many of my thoughts about how different cloud technologies can be used to implement PLM. Nevertheless, once in a while, I’m also getting comments and questions about acceptance of cloud PLM for large companies. Usually, it comes in the intersection of security and readiness of large manufacturing companies for cloud (SaaS) software.

TechMVP article – The benefits of SaaS transformation: both the obvious and non-obvious shows some very interesting perspective on that topic. Let me go straight to security question:

The second common objection stems from the thought process amongst large enterprise CIOs regarding whether to allow certain applications to live outside of the enterprise’s firewall. IT managers and executives – sometimes speaking about legitimate security concerns and sometimes speaking to protect their jobs – stand in the way of core applications moving to the cloud via a SaaS vendor. At the same time, these same decision makers have adopted Salesforce.com for CRM, and allow unencrypted email between employees and non-employees, thus calling into question the sincerity of their argument against other SaaS applications. The successful adoption of CRM in the cloud has opened the floodgates for virtually all other types of applications to move to the cloud even over the objections of certain IT managers.

Towards this end, we have seen in recent years the advent of ERP (FinancialForce, Workday), Marketing Automation (Eloqua, Marketo), and Software Development or ALM (GIT and Rally Software) in the cloud. These types of applications manage information that is often considered the “crown jewels” of corporate data, and thus are the types of applications that some thought would never take root in the cloud.

I can observe a significant growth of SaaS software adoption by manufacturing outside of pure engineering domain. You can see software in different categories – ERP, CRM, marketing, project management, software lifecycle management and many others. Imagine manufacturing product with software code managed using GIT? What will be the point to reject PLM system managing engineering bill of materials in the cloud?

Another interesting perspective is related to creation of new software companies. The graph below demonstrate a complete dominance of news business starting SaaS companies.

saasapps

One more data point is coming closer to PLM business and related to implementation of ERP systems. Panorama consulting solutions published an interesting 2014 ERP report, which speaks about type of ERP systems implemented in 2013. As you can see SaaS and hosted system is accounting together for 96% of all systems.

type-of-erp-software-2013

What is my conclusion? I wonder what percentage of new PLM systems implemented in 2014 will be SaaS. The number is probably not very high. However, traditionally, it takes long time to decide about PLM system. My hunch, that broad adoption of SaaS software in other domains will push manufacturing companies to evaluate more PLM systems and make their decision faster than before. SaaS lower risks and upfront cost, which can be an additional factor for manufacturing companies to taste cloud PLM sooner than later. Just my thoughts…

Best, Oleg

photo credit: Robert Hensley via photopin cc


The definition of cloud PLM

November 7, 2014

cloud-plm-def

PLM industry is moving towards broader adoption of cloud solutions. More people these days are asking how to implement cloud. It becomes more and more clear that devil is in details and cloud environment can be very different. It comes in variety of aspects related to infrastructure, support of browsers, the need to have elements of software installed on your desktop and mobile devices. It depends on many options. I’ve been touching some of them in my earlier blog – PLM cloud options and 2014 SaaS survey.

As part of overall eduction about cloud technology, it is not unusual to get a question about what is definition of cloud solution in general and more specifically – cloud PLM. I’ve been reading CIMdata commentary – Next Generation Cloud-Based PLM Solutions. I found the following passage as a good summary of cloud PLM definition:

1- On-demand solutions with new cost models that have lower upfront costs for software licenses, subscriptions, or rights-to-use, allowing smaller companies to afford PLM

2- Hosted computing services and environments that do not require investments in infrastructure, providing access to information for anyone at any time while minimizing administrative overhead

3- The ability to add and increase scope of capability and the performance of the solution and processes without requiring additional investment in the underlying IT infrastructure

4- Global access to required application functions, information, and processes

CIMdata’s cloud PLM definition combines some technical aspects blended with business and licensing characteristics of PLM solutions. In my view it is clear indication that cloud PLM story is not pure technology. Customer demands are to find solution that solves multidisciplinary problem of system – technological, business, licensing. It is also shows the fact customers are dissatisfied with today’s business practice of PLM software licensing.

What is my conclusion? The technology and business are going together. Cloud PLM is about to solve customer problems in different aspects – improved business models, low cost and better experience. However, in my view, an interesting part of cloud PLM innovation can be related to the part of PLM system implementation. For many years, implementation was one of the most complicated element of PLM. It takes time to adjust system, capture business processes and set up tools to run and optimize product development. The first PLM vendor who will crack how to leapfrog PLM implementation using cloud business model and technology can gain a significant competitive advantage. Just my thoughts…

Best, Oleg

photo credit: JD Hancock via photopin cc


Cloud PDM hack with Google Drive and other tools

November 6, 2014

google-drive-app-launch

Earlier this week I talked about future of ubiquitous CAD cloud drives. My hunch CAD and other engineering software companies will be trying to use new cloud technologies to improve the way people collaborate on design. The question what tool to use for CAD file collaboration is not simple. I discussed it last year – Top 3 pros and cons to have a special CAD file sharing tool.

Engineering software vendors are trying to bring values such as collaborative viewing, redlining and even project collaboration. At the same time, companies focused on generic file sharing and collaboration are in a full swing to improve their mainstream solutions as well.

Some interesting news came from Google yesterday. Read Google blog post – Launch desktop applications from Google Drive in Chrome. The story is quite simple – Google is chasing Dropbox in the way how to make Google Drive even more transparent to work with desktop tools.

But here’s the catch: when it comes to browsers and installed applications working well together, they aren’t quite on the same page. To change that, today we’re launching a new extension for Chrome that lets you open files from Google Drive directly into a compatible application installed on your computer. This includes apps like advanced image and video editing software, accounting and tax programs, or 3D animation and design tools. So, no matter what you keep in Drive, using the web to access and manage files doesn’t mean you’re limited to using applications that only work in your browser.

Unfortunately, CAD files are not in the list of supported file types. I guess, it may change in the future. A transparent sync of files between cloud and local file storage can open a new opportunity and hack the way to simplify future cloud PDM solutions. Still, majority of tools used by engineers today are desktop tools.

One of the biggest challenge I can see here is speed of synchronization and work with multiple dependent files. It can create an opportunity for cloud PDM vendors to innovate. Some of these problems can be solved by software technologies – cloud PDM and Dropbox Streaming Sync. CAD vendors are looking how to innovate in cloud PDM as well. Example – Autodesk adds PDM functionality to PLM360. Alternatively, I can see some potential in hardware solutions to create virtual cloud file system. Here is one possible example of such solution – Panzura Global File System.

What is my conclusion? Cloud to desktop transparency is a big deal. There is no magic. If you want to use desktop tool you need to sync files. However, technology that can make it transparent can simplify user experience and make users unaware about actual location of files and the way files are going to be synchronized. It will allow to use existing CAD tools but and manage and collaborate using cloud. Just my thoughts…

Best, Oleg


The path towards ubiquitous CAD cloud drive

November 4, 2014

cad-files-cloud-drive

I’ve been talking about future of cloud file system and CAD data trajectories the other day on my blog. It goes back and connected to multiple discussions about future of file system. What will be future of file systems and file paradigm. Can we announce the death of file system? So, file system is dead, long live cloud file system. The cloud eco-system is developing fast and I wonder how CAD companies will keep up with the speed of changes, environment, technologies and adoption. One of the things is related to cloud storage. Navigate to one of my earlier posts to read more – CAD companies and cloud storage strategy. One of the main points – storage is a temporarily market.

It looks like CAD companies are certainly following the trend. Autodesk just recently released a completely refreshed version of Autodesk A360 Team version of project based collaboration tool. Navigate here and you learn more about how to share documents and cloud storage. Here is a short passage, which summarize A360:

Our customers are in the business of creating things and they organize people and data around their business and their projects. A360 is a tool that brings together people, design and project data, ensuring everyone is informed and involved.

a360-1

a360-2

My attention was caught by another announcement few days ago – MySolidWorks Drive. According to SolidWorks blog MySolidWorks drive provides a way to collaborate on data located on public cloud – Google and Dropbox.

Connects cloud-based file storage services, such as Dropbox and Google Drive with MySolidWorks. MySolidWorks Drive enables SOLIDWORKS users to view their designs online with the eDrawings online viewer and easily share large designs files with manufacturers, colleagues and vendors from anywhere.

I captured few screenshots showing more details about MySolidWorks drive from Michael Lord’s blog.

solidworksdrive-1

solidworksdrive-2

Both examples made me think again about transition of design environment to the cloud. The biggest challenge here is to operate in the environment with mixed data. Existing design data is heavily persisted on engineers desktops and company shared network drives. At the same time, new products are providing customers with the opportunity to improve design collaboration using new modern cloud environment. The third factor is related to mainstream cloud providers. Cloud storage is a temporarily market and cost of storage is decreasing very fast.

Autodesk and SolidWorks examples are not unique. Recently, on my blog, I was talking about cloud file sync features developed by Kenesto. In addition to that, you might remember by discussion with Hardi Meybaum of GrabCAD about CAD file sharing collaboration tools.

What is my conclusion? We are coming to the point of potential collision between CAD vendors strategies and giant cloud vendors strategies. Customers are tempted to move their data to Dropbox, Google Drive, Microsoft One Drive, Box.com and other non-CAD specific cloud storage. At the same time, CAD and other engineering software vendors are developing cloud collaboration software with specific value proposition tailored to engineering and CAD specific data. How new CAD collaboration and data management products will navigate in such environment? This is a good question to ask. My hunch, cloud file collaboration will be in a focus of all CAD vendors in a near future. Just my thoughts…

Best, Oleg


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.

saas-2014-plm-delivery-options

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

dockers-containers-cloud-plm

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.


Follow

Get every new post delivered to your Inbox.

Join 261 other followers