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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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


Will GE give a birth to a new PLM company?

July 9, 2014

ge-datamanagement-initiative

Navigate back into histories of CAD and PLM companies. You can find significant involvement of large aerospace, automotive and industrial companies. Here are few examples – Dassault Systemes with Dassault Aviation, SDRC with US Steel, UGS with McDonnell Douglas. In addition to that, involvement of large corporation as strategic customers, made significant impact on development of many CAD/PLM systems for the past two decades. Do you think we can see something similar in the future?

Inc. article GE’s Grand Plan: Build the Next Generation of Data Startups made me think about some potential strategic involvement of large industrial companies in PLM software business. The following passage can give you an idea of how startups will be organized.

A team from GE Software and GE Ventures has launched an incubator program in partnership with venture capital firm Frost Data Capital to build 30 in-house startups during the next three years that will advance the "Industrial Internet," a term GE coined. The companies will be housed in Frost’s incubator facility in Southern California.

By nurturing startups that build analytical software for machines from jet engines to wind turbines, the program, called Frost I3, aims to dramatically improve the performance of industrial products in sectors from aviation to healthcare to oil and gas. Unlike most incubator programs, GE and Frost Data are creating the companies from scratch, providing funding and access to GE’s network of 5,000 research assistants and 8,000 software professionals. The program has already launched five startups in the past 60 days.

This story connects very well to GE vision and strategy for so called Industrial Internet. The following picture can provide you some explanations of what is the vision of GE industrial cloud.

industrial-internet-applications

What is my conclusion? Industrial companies are looking for new solutions and probably ready to invest into ideas and innovative development. Money is not a problem for these companies, but time is very important. Startups is a good way to accelerate development and come with fresh ideas of new PLM systems. Strategic partnership with large company can provide resources and data to make it happen. Just my thoughts…

Best, Oleg

Picture credit of GE report.


PLM and Big Data Industrial View

December 7, 2012

Last week, I followed Gilbane Conference Boston online. Navigate here to dig for more info. Gilbane conference focus is content, web and mobile. My primary interest was about content. Let me say differently – growing content in organization and online. This is not a surprising topic these days. You can see many charts these days online presenting a growing content online and in enterprise organizations. Another trending word is "big data". I’m sure you’ve heard this buzzword before. Nevertheless, here is Wikipedia definition from this article.

In information technology, big data[1][2] is a collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools. The challenges include capture, curation, storage,[3] search, sharing, analysis,[4] and visualization. The trend to larger data sets is due to the additional information derivable from analysis of a single large set of related data, as compared to separate smaller sets with the same total amount of data, allowing correlations to be found to "spot business trends, determine quality of research, prevent diseases, link legal citations, combat crime, and determine real-time roadway traffic conditions."[5][6][7]

One of Gilbane’s presentations about big data caught my attention – Big Data for Enterprise and Marketing Applications — Three Views. CMS article Big Data Explosion Offers Value provide a good write up of this presentation. What was interesting to me is to see how the value of Big Data presented beyond the point of Twitter data analyzes and other web-oriented application. The following paragraph focuses on Big Data and Industrial view by GE’s GM Brian Courteny:

Brian Courtney, GM of Industrial Data Intelligence for GE, discussed a critical but less-publicized aspect of Big Data — its role in automating the monitoring and analysis of industrial data. He said GE uses both batch processing, the offline analysis of “massive repositories of data for patterns and insights,” and stream processing, the real-time analysis of “web-scale data to identify trends and anomalies as or before they occur,” to determine data patterns that indicate likely failures in GE technology such as electricity-generating turbines and airplane engines and then monitor equipment for those patterns in real time.

Another article GE, Industrial Internet and radical efficiency is providing more examples about how GE is planning to leverage Big Data technology to improve their products. Here is my favorite passage:

Something important is going on here. GE’s new focus is about “the convergence of the global industrial system with the power of advanced computing, analytics, low-cost sensing and new levels of connectivity permitted by the Internet." It’s about how "the deeper meshing of the digital world with the world of machines holds the potential to bring about profound transformation to global industry, and in turn to many aspects of daily life, including the way many of us do our jobs.”

The examples above make a lot of sense to me in the connection to PLM, product development and manufacturing. Monitoring of products in a real life becomes an interesting and fascinating topic. It can provide significant impact of design improvements and help manufacturers to innovate. Sounds like a primary role for PLM these days – to boost innovation among manufacturing companies. Think about data trend analyzes that can prevent potential failure of systems in a car that can alert customer to approach server center. Dream? I’m not sure and think we will see it soon.

What is my conclusion? Monitoring products in a real life is a interesting topic. However, most of the limitations today are related to inability to analyze a massive amount of data produced during the monitoring. Relational databases used by majority of PLM platforms cannot scale. BigData technologies can change it. It is an interesting application of tech originally developed in a consumer space. Just my thoughts…

Best, Oleg

pic is courtesy GreenBiz article.


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