Integration is holding back PLM cloud adoption

December 11, 2014

cloud-puzzle-integration

Cloud PLM adoption is growing. More PLM vendors these days are re-branding and re-building product and software architecture to keep up with fast moving cloud trend. This year I can see significant shift towards discussion about technical aspects of cloud implementation. The devils is in details and differentiate between variety of cloud implementation options is very important.

However, regardless on technological options, what do you think holding back all cloud implementations. In the past, the topic of security was one of the most debated among engineering software professionals and customers. Security is important. But what else

Forbes article Cloud Computing Adoption Continues Accelerating In The Enterprise speaks about different aspects of cloud business. I highly recommend you to read it -I’m sure you can find many interesting data points. My attention caught the following chart presenting top disconnects holding SaaS applications adoption:

The three biggest disconnects holding cloud-based infrastructure and applications back from greater adoption from an IT senior management perspective include concerns about the security (61%), integration challenges (46%) and information governance (35%). IT leaders perceive that line-of-business (LOB) leaders are most concerned about security (52%), difficulty measuring Return on Investment (ROI) and determining the accurate economic value of cloud solutions (37%) and a tie between information governance and cloud-based applications being able to meet enterprise and/or industry standards (32%).

cloud-software-disconnects-plm-forbes

Security is an obvious suspect. What was very interesting is to find Integration, standards and information governance as #2 and #3. As I posted few weeks ago, integration is one of the major challenges that influence broad PLM adoption and ROI. It looks like cloud applications adoption is even more dependent on the ability to integrate multiple SaaS and on premise applications.

What is my conclusion? Cloud adoption is growing. However, enterprise software landscape is complicated. Integration was always a challenge. However, cloud applications are bringing new type of challenges. PLM is data intensive with a lot of dependencies of data distributed between departments, databases and external companies-suppliers. New cloud technologies can make integration easier by leveraging modern web technologies. However, absence of standard and large amount of legacy software makes it really complex. Just my thoughts…

Best, Oleg

photo credit: Adam_T4 via photopin cc


More cloud PLM from Oracle and Aras. Are we in cloud rush?

December 10, 2014

plm-plug-in-cloud1

Cloud PLM is a trending topic among software vendors these days. As I mentioned earlier in my post, the question these days is not why should we do cloud PLM, but “how” to make it happen. PLM vendors are choosing different strategies and technologies for their cloud PLM solutions.

My attention was caught by two updates that came almost at the same time from Oracle and Aras. Both are related to cloud technologies and offerings.

Oracle blog article – How Oracle’s New PLM Cloud Solutions Help you Compete More Effectively speaks about Oracle PVC (product value chain) cloud, which contains there main cloud offering – product innovation cloud, product development cloud and oracle product hub cloud. The following passage explains it in details:

Start with one idea – or thousands. Select the best ideas that match product requirements using Oracle Innovation Management Cloud. Next, use the Oracle Product Development Cloud to classify and manage all the product’s components and manage costs and supply risk. The Oracle Social Network is included, so you can start conversations, find solutions, and make decisions fast. You’ll also have access to live infotiles, which provide the analytics you need to see when your product is ready for launch.When your product is ready to go, the Oracle Product Hub Cloud provides a single, protected view of your distribution, supplier, and channel partners. You can synchronize your commercialization network and launch new products on target.

oracle-pvc-cloud

The picture above gives you a visual impression. It interesting how magic word “cloud” added to every activity type that previously was just “management”. At the same time, we can see how Oracle product offering transformed. Navigate here to get more information about product service cost.

TenLinks article Aras Releases Microsoft Azure Certified Cloud PLM Suite is a second news in the domain of cloud PLM. Aras Corp was following their enterprise open source concept since 2007 is expanding and became available as cloud offering too.

aras-azure-cloud

The following passage highlight the advantage of cloud offering for global companies with the need to get fast ROI from PLM implementation.

Certified version of the Aras Innovator enterprise PLM solution in the Azure virtual machine gallery of cloud applications in the Azure Marketplace. The new Aras offering is ideal for global companies with an Azure account that need to quickly deploy a full PLM suite for the supply chain, joint ventures, fast moving product lines and other applications.

What is really interesting is to get more information about how many manufacturing global companies have Azure account. I wasn’t able to find this information. My hunch, Microsoft is actively focusing on large enterprises with cloud offerings.

Azure page with Aras offering is proposing to create virtual machine with Aras Innovator PLM suite 10. However, the information about pricing is somewhat confusing. Instead of almost traditional /per user /per month cost, it provides “computing cost” information. However, link “free trial” hints me that customers can do it for free at the beginning. More information is here.

What is my conclusion? It is fascinating to see how software vendors are shifting gears to leverage cloud technologies and change business models. Efficiency, competition, cost. These are things that absolutely important to manufacturing companies these days. Cloud PLM can be a technology and tool that will help customer to make it happen. PLM vendors are trying to turn cloud into their advantage. The technologies both Aras and Oracle are using are clearly different, but the underlining trend is clear. Just my thoughts…

Best, Oleg


Identity management in future PLM platforms

December 8, 2014

federated-sso

Identity is a topic that raises lot of attention over the course of last few years. As a number of cloud application is growing, the question of management of identity and access rights online becomes more important.

Federation was one of the topics that was discussed in my last posts about future PLM platforms. It is a broad topic. One of the aspects of "federation" is the ability to manage "federated identity". I’ve been reading DarkReading article Identity Management In The Cloud during the weekend. It is worth reading. It speaks about current practices of identity management through Active Directory (AD) and Lightweight Directory Access Protocol. It also speaks about importance of federated identity and integration of cloud application into federated SSO. Here is a passage I captured:

An employee using a federated single sign-on system is given one set of credentials to access multiple cloud accounts. This user is only authorized to use those cloud accounts permitted by the group he or she belongs to. For example, if a user is in the sales group in Active Directory, he or she would be given secure access to Salesforce.com as well as the enterprise’s in-house sales applications. This approach aids the rapid rollout of new cloud services to large groups of users. Even more importantly, using AD to aggregate identities in cloud environments speeds up the deprovisioning of cloud applications to employees when they leave the company or change roles. "Enforcing the use of federated SSO — and not using passwords with cloud apps — means that users can only log in to cloud apps if they have an account in AD," says Patrick Harding, CTO of cloud IAM company Ping Identity. "Terminated users are usually immediately disabled in AD by IT and will not be able to access any cloud apps."

The number of cloud identity management software is growing these days. You might noticed products from Amazon Identity Manager, Microsoft Azure Identity and Salesforce. Startup companies are entering the space of IAM as well.

I captured the following diagram showing current status of cloud identity usage.

plm-federated-sso

It made me think about growing usage of cloud services for design, engineering and manufacturing. Modern transformation of product lifecycle will require usage of multiple online services. To integrate them together using singe security access layer can be a significant challenge.

What is my conclusion? I can see identity management as an important first step in the future PLM platforms. The ability to manage access to diverse data sets (on premises and using cloud applications) will become a first test of future PLM platforms in their ability to manage federated data. Just my thoughts…

Best, Oleg


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 on-premise 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


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