How PLM can leverage Azure analytics?

November 13, 2014

azure-ml-microsoft-plm

Analytics is a hot word these days. You can hear it everywhere. It sounds and feels sweet and smart. You can think about crunching data and getting results. It sounds very Googley? Indeed, Google is spending lot of money making Google cloud platform more affordable. Google provides some interesting online services that can be used to crunch significant amount of data and draw insight. Learn more here – What is BigQuery?

Actually, Google is not alone in the goldrush for data and analytics. VentureBit article – Microsoft gives out free access to its Azure Machine Learning service. I think, it is a very good news for enterprise software developers. To have a competition between two giant companies will make service more affordable for long run. Another VentureBit article can give you more information about what is behind Azure Cloud. Here is my favorite passage:

Azure ML, which previews next month, will bring together the capabilities of new analytics tools, powerful algorithms developed for Microsoft products like Xbox and Bing, and years of machine learning experience into one simple and easy-to-use cloud service. For customers, this means virtually none of the startup costs associated with authoring, developing and scaling machine learning solutions. Visual workflows and startup templates will make common machine learning tasks simple and easy. And the ability to publish APIs and Web services in minutes and collaborate with others will quickly turn analytic assets into enterprise-grade production cloud services

The link to access Azure machine learning is here. You can try it with your real projects.

https://www.youtube.com/watch?v=SJtNJepz-pM

Azure ML made me return to one of my recent articles- What is potential of product lifecycle analytics? One of the scenarios I’ve been talking there was product forecasting as part of NPD (new product development) process. To launch new product is a big deal for manufacturing companies. It can lead to lot of expenses. What if you can make it by applying some analytics and get some insight on the future of new product, performance, sales, customer base, etc?

What is my conclusion? Cloud infrastructure companies are looking how to feed their platforms with data and scale to more customers. This is clearly the goal for Microsoft, Google and other companies in this domain. PLM companies are interested how to provide additional value to customers. Engineering and manufacturing companies are operating in a very dynamic businesses eco-system. For many of them, new product introduction is an essential critical part of business decisions. So, this is a note to established PLM companies. However, this is also an opportunity for engineering and manufacturing startups. Free services is a best way to check technology with real customers. It sounds like a common interest and technology to leverage. Customer will judge results. Just my thoughts…

Best,Oleg


Competitive edges of SharePoint and PLM collaboration

November 5, 2014

microsoft-sharepoint

SharePoint is an interesting product and technology. I’m following it already few years. I can see some kind of love and hate relationships between PLM vendors and Microsoft SharePoint business. You can catch up on some of my thoughts about SharePoint in my previous posts – SharePoint PLM Paradox; Why PLM should care of SharePoint?; PLM SharePoint thoughts. SharePoint technology was successfully used by some PLM products (eg. SolidEdge SP) and discontinued by others (eg. PTC ProductPoint). With these two extreme examples, I guess most of CAD/PDM/PLM vendors are keeping neutral position with regards to SharePoint. Most of them are supporting some sort of integrations typically done by partners and service providers.

One of the issues that makes many customers and vendors confused is a comparison and sometimes even competitive positions of SharePoint. With increased demand for enterprise collaboration and information sharing, many customers are concerned about how both technologies can interplay in the organization. I put some of my thoughts about that in my post last year – How to stop comparing PLM and SharePoint?

Real story group blog SharePoint is no longer a swiss army knife caught my attention and made me think about SharePoint and PLM again. Also, chart shows SharePoint usage by different type of application. It also made a highlighting of new, mature and light usages.

sharepoint-usage-survey

The following two categories – project oriented collaboration, document management and simple file sharing shows probably a dominant place of SharePoint mature usage. From my experience, these categories demonstrates why many companies are confused about PLM and SharePoint. For many of them, the initial phase of PLM – project collaboration and CAD file management can create a feeling of functional overlap.

The situation is getting even more interesting with new wave of cloud products developed by CAD/PLM companies and new startups. The focus of some of them is clearly to solve a problem of document management for engineers, file sharing and project collaboration. It is not obvious that these companies are going after the same market niche as Microsoft. At the same time, I can smell some levels of competitiveness there.

What is my conclusion? SharePoint is mature and successful technology. Microsoft has strong enterprise positions and with new Microsoft strategy for enterprise cloud can become even more dominant player. My hunch, PLM companies should make another round of thinking how to live together or compete with Microsoft SharePoint and connected social collaboration products. Just my thoughts…

Best, Oleg

Picture credit Microsoft SharePoint and RealStoryGroup


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


CAD companies and cloud storage strategy

July 7, 2014

cad-cloud-storage-strategy

Cloud storage is changing fast these days. From relatively small portion of our life limited mostly by online email, cloud storage is growing into space where majority of our activities are happening these days. Email, photo storage, online documents, calendars, shopping – this is only a short list. Changes are coming to corporate world as well. New York Times article Google, Microsoft and Others Delve Deeper Into Cloud Storage for Businesses speaks about trajectories of cloud storage and business. Here is an interesting passage:

Soon, keeping your digital goods will also be the means for tech companies to understand who does what inside a business, just the way they understand consumers by watching what they do on the web. “Storage is where the stickiness is,” said Jeffrey Mann, vice president for research at Gartner. “It’s how they hold a customer. If they store your stuff, they get to know you better.”

So, you may think the strategy is to hold data and keep customers as hostages for storage. It might sounds like a strategy for short term. However, web giants don’t see storage as something that will hold companies strategically. The following passage can give you a feeling of direction:

“Cloud storage is a temporary market,” said Scott Johnston, director for product management for Drive, Google’s online storage, document creation and collaboration business. “In the future it will be about elevating productivity: How do we look for patterns? What does it mean if a document is read by 10 percent of the company? What does it mean if you haven’t read it yet?" It’s a strategy that Microsoft is also pursuing with its OneDrive product. Dropbox, a storage site popular with consumers, and Box, a storage and collaboration site specifically for business, are both also working on ways to turn data storage into something that provides greater insight into how people are working. Dropbox started a business offering last year.

This point of view made me think about what can be a potential strategy of CAD companies related to cloud storage and operations of CAD systems. The majority of CAD business today is not in the cloud. CAD files and related information is stored on desktop computers and local area networks. How big this data and how easy and transparently companies can move this data to the cloud (private and public) and make it available for collaboration? The demand for better collaboration is huge. CAD vendors are working on cloud CAD systems. But this work is just in the beginning. Cloud storage of CAD files and seamless access by existing desktop CAD systems can be a short term CAD file management strategy. The most interesting part is coming next. If I will follow Google’s logic, companies can make analysis of massive amount of CAD data and use it for future product design improvement and better work organization.

What is my conclusion? Data is a fuel for future growth. Whoever will capture CAD data these days will have an ability to run analytic work and make that data part of future design strategy. In most of cases today, companies have very limited capability to re-use design, make analysis and predict future improvements. Cloud storage can be a first step towards future data-driven design. Just my thoughts…

Best, Oleg


Oslo & Office Graph – new trajectories in discovery and search?

June 18, 2014

microsoft-oslo-office-graph

Earlier today, Engineering.com article Search & Discover Solutions: A Google-Like Experience? introduced me to a new three letter acronym – SDS (search and discovery solution). Honestly, I don’t believe industry is looking for a new TLA. At the same time, the topic of information search is still unsolved for many manufacturing and engineering companies. Author pointing on two types of data – “structured” and “unstructured” and explains that the right solution should crunch both types of information to bring relevant results. Here is my favorite passage:

The sheer amount of unstructured data can be overwhelming, strongly suggesting administrative programs for improved searching, i.e., converting unstructured data to structured data. Then searching content in structured databases can be done with more precision; the time to find requested data is relatively faster.

What’s needed is analytic power to merge structured and unstructured data into one view, a task Google can do. Without an SDS, a company could replicate what Google does, using the same methodology as Google – but the cost would be huge. Google, however, achieves the perception of a structured view by using complex algorithms and millions of searches to present a structured view when no predefined structured view actually exists. Besides, there is simply not enough scale in a typical company to replicate this Google-like experience.

I’m not sure about how close is Google to crunch corporate data, product and part catalogs. At the same time, I found Microsoft is on track to bring some new stuff in the space of search and discovery tool. Called Oslo and Office Graph, this application and technology supposed to gather information from different “silos” and combine it together with intuitive user experience. What is very interesting is how Oslo anticipate the connection between different elements of data – websites, office documents, people, etc. and transforms it into connected explorable environment.

office-graph-plm

The following video brings a good review and perspective on what you can do with Oslo app (which is supposed to be available later this year):

Oslo/Graph took me back to my article – Will Microsoft Yammer Kill Social PLM? two years ago. It looks like Microsoft/Yammer deal starts to bring some fruits to evolving Microsoft Office /SharePoint ecosystem. The problem of information silos exists in all organizations – engineering and manufacturing are not the exclusion from the list. Oslo and Office Graph captures a significant portion of email and office social communication, which can be interesting layer for every IT organization to build solution.

What is my conclusion? I can see an increased amount of solutions focusing on how to capture graph semantics. More companies are discovering the way to capture a diverse set of data and relationships. Captured information can be used to develop new type of user experience. Will Oslo and Office Graph become a good foundation layer for CAD/PLM developers? This is a good question to ask. In the past some CAD companies had mixed experience with SharePoint based products. Time will show if Office Graph will shine as a layer to discover CAD and other product related data. Just my thoughts…

Best, Oleg


Will Yammerized Office help to shape CAD/PLM social future?

June 17, 2014

yammerized-office-356

To connect relevant pieces of information is one of the long time dreams developed by many PLM vendors. The pieces of data in design, engineering, manufacturing are intertwined. However, in many situations they are managed by different systems and/or located in different places. Communication behaviors are applied on top of these pieces of information. Lots of communication behaviors and data sharing was captured by social networks these days.

I’ve been following what Microsoft is doing with social systems earlier in early versions of SharePoint and later with Yammer acquisition. Take a look on some of my earlier write ups here – Will Microsoft Yammer Kill Social PLM… Not yet. I’ve been reading CRN article Microsoft Deepens Yammer Integration With SharePoint Online, OneDrive For Business during the past weekend. The article speaks about an interesting feature – Document Conversation. The following passage explains that:

Microsoft Tuesday unveiled a new feature called Document Conversations, which adds Yammer conversations to more than 30 different file types, including Office documents, images and videos. When a user opens a document, image or video file in their browser from SharePoint Online or OneDrive for Business, a contextual Yammer conversation pops up. From there, users can talk with other colleagues to get more insight about the file…

You can get more details in the Office blog article. The following video shows a little preview how it supposed to work.

Office/Yammer document conversation feature made think again about how important to have the ability to add contextual features applied to a specific content. By doing that, you have the ability to step down on the more granular level of communication between people. In the past, I’ve seen similar features applied in CAD and 3D model viewers tools as well. Navigate to one of my previous posts – From design collaboration to CAD social tools shows similar functionality in AutoCAD 360, Dassault UC tools and Vuuch design discussion.

One of the most important element of discussion is to have the ability to apply it to a specific “context” in the document / file / 3D model. It will make collaboration more precise and efficient.

What is my conclusion? The idea to make a contextual conversation applied to a specific content is the one that will allow to user to have a better, granular way to communicate. In the past world CAD/PDM/PLM world, “file” was the most granular communication medium. It is clearly not enough these days. To apply “document level” discussion and having the ability to identify granular context is the key. Just my thoughts…

Best, Oleg


Will PLM Vendors Jump into Microsoft Cloud Window in Europe?

April 11, 2014

european-plm-cloud

Cloud is raising lots of controversy in Europe. While manufacturing companies in U.S. are generally more open towards new tech, European rivals are much more conservative. Many of my industry colleagues in Germany, France, Switzerland and other EU countries probably can confirm that. Europe is coming to cloud systems, but much slower. I’ve been posting about cloud implications and constraints in Europe. Catch up on my thoughts here – Will Europe adopt cloud PLM? and here PLM cloud and European data protection reforms. These are main cloud concerns raised by European customers – data, privacy and specific country regulation. With companies located in different places in EU, it can be a challenge.

Earlier today, I’ve heard some good news about cloud proliferation in Europe coming from Microsoft. TechCrunch article – Microsoft’s Enterprise Cloud Services Get A Privacy Thumbs Up From Europe’s Data Protection Authorities speaks about the fact Microsoft enterprise cloud service meets the standards of data privacy in several European countries. Here is a passage that can put some lights on details and what does it mean:

But today comes a piece of good news for Redmond: the data protection authorities (DPAs) of all 28 European member states have decided that Microsoft’s enterprise cloud services meet its standards for privacy. This makes Microsoft Azure, Office 365, Microsoft Dynamics CRM and Windows Intune the first services to get such approval. The privacy decision was made by the “Article 29 Data Protection Working Party,” which notes that this will mean that Microsoft will not have to seek approval of individual DPAs on enterprise cloud contracts. In its letter to Microsoft (embedded below), chair Isabelle Falque-Pierrotin writes, “The MS Agreement, as it will be modified by Microsoft, will be in line with Standard Contractual Clause 2010/87/EU… In practice, this will reduce the number of national authorizations required to allow the international transfer of data (depending on the national legislation).”

Majority of PDM / PLM providers are friendly with Microsoft tech stack. Some of them are completely relies on MS SQL server and other Microsoft technologies. Most of them are supporting SharePoint. Now, these PLM vendors have an additional incentive to stay with Microsoft technologies for the cloud. It can be also a good news for manufacturing companies already deployed PDM/PLM solutions on top of Microsoft technologies and developed custom solutions.

What is my conclusion? The technological landscape these days is very dynamic. The time, one platform worked for everybody is over. In light of technological disruption and future challenges tech giants will be using different strategies in order to stay relevant for customers. Will European cloud regulation keep PDM/PLM players with MS Azure and other Microsoft technologies compared to alternative cloud technological stacks? How fast will take to other players to reach the same level of compliance? These are good questions to ask vendors and service providers. Just my thoughts…

Best, Oleg


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