PLM, ERP and enterprise cloud race

May 22, 2012

I was reading GIGAOM article Amazon and SAP put All-in-One in the cloud few days ago. According to the article SAP will soon make an appearance on Amazon EC2 cloud. Interesting enough it is connected to the fact almost all software of SAP rival Oracle is already available from the cloud.

Another interesting point is related to the fact Amazon is working to support product customization on the public cloud. It will remove another big barrier for deployment and implementation of enterprise software. Here is a very interesting passage:

The conventional wisdom is that big companies are wary of running ERP and other enterprise applications in a public cloud — because they tend to be quite customized and tied into other applications, which makes them difficult to forklift into the cloud. But Amazon is working to change that perception.

PLM and ERP: cloud race

In the past, CAD / PLM vendors lost the competition of C-level and IT visibility in the organization. PLM was considered as Engineering tools, and it took many years and significant effort to improve this perception (still not accomplish in full, from my standpoint). These days a typical “PLM on the cloud” discussion usually runs in too many questions about cloud PLM viability and security. At the same time, we can see how ERP vendors run their products on Amazon cloud.

PLM and Cloud / IaaS

When Amazon is considered as a definite leader in IaaS race, Aras PLM is thinking differently. During the ACE 2012 conference earlier this month, Aras announced Aras Spectrum – soon to be available on Microsoft Windows Azure platform. You can take a look on my post-ACE conference blog post – Aras PLM, Microsoft Azure and Cloud competition.

Autodesk (new PLM vendor these days) is playing with lots of “cloud toys” in the portfolio. One of the toys is PLM 360 -recently announced “cloud PLM alternative”. It is not clear what IaaS platform is using for their cloud development and deployment, for the moment.

What is my conclusion? Amazon is pushing to the enterprise by supporting major ERP vendors. Autodesk is playing with new cloud offering and probably going to make their IaaS choice later. Microsoft is experimenting with Aras PLM to provide Aras Innovator up and running on Azure Cloud. Dassault, Siemens, PTC… Are you watching?

Best, Oleg

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PLM Competition Toolbox

May 14, 2012

Normally, I’m trying to avoid the topic of PLM competition. Not very often, readers or attendees at conference are approaching me with the blunt question – what is better? TeamCenter vs. Enovia? Aras or Windchill? My typical answer – there are no “absolute advantages” for a specific PLM system. Enterprise and manufacturing companies are complicated environments. The level of complexity, strategy and current context can create a situation where each specific product will have his own advantages and disadvantages.

However, today, I want to talk about competition from the standpoint of PLM vendor. In other words, what can make PLM vendor competitive strategy more successful? To make this discussion interesting and provoking, I will use some examples of what happened in PLM market for the last 10 years. In the world where PLM buzzwords are getting very similar, I will try to answer on a single simple question – what can make PLM vendor competitive nowadays?

I can see four major strategies that can be used by vendors – discontinuity, marketing and branding, partnership and competitor’s mistakes. These are not specific characteristics for PLM companies and can be used for everybody. However, I will try to fill them with PLM context.

Discontinuity

Enterprise software is a complicated beast. PLM cannot be excluded from that list. It is complex, requires long time planning and implementation cycle. Once implementation it works for a long time,  replacement cost is high too. Add to this last 10 years of acquisition in this field and large vendor platform transformation and you will have a perfect place to play with discontinuity. Formally, nobody is discontinuing PLM/PDM products. Pro/PDM, Eigner, SmarTeam, Metaphase – all these products are supported and maintained by vendors on a certain level. Practically all PLM vendors are building a support network to deal with customers running outdated and retired systems. Therefore, these customers can become a strategic asset for competitors that will be able to propose them an interesting offer. Once the decision made, to change it will be even more complicated because of long processes, politics and corporate ego. Therefore, discontinuity play can be powerful and dangerous.

Partnership

To have good partners in business is like to have good friends in your life. If you have trusted and powerful partners, you can use it as an advantage in your competitive war. In PLM business, I can see two types of strategic partnership – service and sales channel partner (eg. IBM was such for many years in business with Dassault Systems), the parent company (eg. Siemens for Siemens PLM) or another business division (eg. SAP, Oracle, Microsoft). To develop and keep right partnership is very important. To know how to drop partnership is also one of the elements of a competitive game.

Marketing

To build a perfect marketing and branding story is another way to beat competition. Yes, I know… you are smiling and maybe even thinking – who is buying marketing PowerPoint presentations these days. Believe me or not, it happens all the time. If you are powerful and strong brand with billions of dollars in revenue, your marketing story can be very compelling. It will take time, resources and effort to sort it out. Yes, you are in danger to buy a dream. But it can be a very nice and well packed marketing. So, take it seriously. It can be 3D Experience, High Definition PLM, Instant On – dreams is an important weapon too.

Competitor’s mistakes

Last, but not least- the mistakes (or in this context – presents) made by your competitors. You need constantly and permanently watch your competitors. Low quality of a release, compatibility failure, channel problem – all these mistakes are weapon in your arsenal to build your marketing expansion.

What is my conclusion? The PLM competitive landscape becomes more dynamic than before. I can see some movements done by large companies (eg. Autodesk), smaller established companies with very innovative strategies (eg. Aras) and startup companies. As I said in one of my previous posts – PLM is a fun place again. Just my thoughts…

Best, Oleg

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Mobile PLM gold-rush. Did vendors miss the point?

April 6, 2012

One year ago, I posted – PLM and Post-PC era. It is interesting to read back and think about the same topics again. Mobile revolution. We are living in this now. Our personal life became much more mobile in the last 2-3 years. Post-PC era and revolution made by table computers changed the way we consume data and use it in our everyday life. CAD/PLM companies are on the run to create "mobile" and "tablet" applications for everything. However, I want to stop for a moment and think. Are we on the right track? Do we need to make "everything mobile" and "everything tablet". At the end of the day, I didn’t stop using my laptop since I started to use my iPad.

I’ve been reading CIO magazine yesterday. The article Why Mobile CRM are slow to take off? by David Taber caught my attention. Have a read and make you own conclusion. To me, it makes a lot of sense. The following reasons are why the enterprise mobile apps for CRM are not taking off quickly. Here is my favorite passage:

The Comprehensiveness Thing. Here’s a fine how-de-do: In the paragraphs above, I said the dedicated mobile CRM apps are too complicated for a small device. And now I’m going to say that the dedicated mobile CRM apps aren’t capable enough when used on a phone. If you need to look up something in the CRM, you’re likely to also need to look up something else or take some action in a related Enterprise app. Whether it’s accounting (Refund issued?), or ERP (inventory available to promise?), or an external logistics app (where is that FedEx tracking number?), users need to check systems that are outside the immediate purview of a CRM. So you’ll either need to have a hell of a lot of integration points (which would take a lot of custom coding inside some dedicated CRM mobile app) or you’ll need access to an internal portal. This all points to the need to use a multi-tabbed browser for access to multiple systems. So in most cases, the browser trumps dedicated CRM mobile apps.

This "comprehensiveness thing is very resonating with my thought about PLM and mobile. Most of the CAD/PLM vendors today create mobile and table applications that "kind-of identical" to their regular products. Windchill Mobile,TeamCenter Mobile, etc.

When it absolutely great that software can converge to mobile and tablet platforms, in my view it raises a concern – why people will move from large screens and comfortable keyboard to smaller tablet real estate. I think, a better idea for mobile and tablets is to think about applications that can be used to perform a specific task. I want to have ECO mobile app on my iPhone to make an approval when I’m on go. Alternatively, I can review my tasks list before working day or in the airport. Sales person or maintenance technician may have an app that can search for a particular drawing or visualization.

What is my conclusion? I think, vendors did miss the point in the overall mobile gold rush. To make "all tablet" won’t work for product development software. To stop and think about a specific productivity apps that can solve a particular problem is the right way to go. Just my thoughts…

Best, Oleg

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PLM: Data, Search and Future User Experience

April 4, 2012

Disclosure: As a co-founder of Inforbix, I understand that my opinion about PLM Data and Search can be unintentionally biased. Nevertheless, I believe the topic itself is very important, so I decided to share my thoughts anyway.

PLM Data. A lot of data. You are probably familiar with that. The amount of data is growing. I can say the same about the complexity of the products and product development processes. It creates significant challenges for everybody in the company – designers, engineers, manufacturing, marketing, sales and support. How to overcome the level of complexity and provide customers with easy and intuitive tools? This is one of the challenges I mentioned in my presentation few months ago during AU 2011.

In this article which is going to be unusually long, I’d like to explore trends and show examples of applications specifically focusing on user experience.

TeamCenter Active Workspace

Siemens just released videos and information about so-called TeamCenter Active Workspace. Per my understanding Active Workspace is a first module to implement so-called HD-PLM vision Siemens PLM presented last year. I caught the initial info about Active Workspace was in October 2011. I captured it in my Inforbix blog. The discussion was started on twitter by @dorasmith. In addition, you might be interested to read an early review done by Kenneth Wong of Desktop Engineering. The short definition of Active Workspace was like this “Active Workspace is like Internet search, simplifying PLM complexity”. I was listening to the following video by Chuck Grindstaff of Siemens PLM talking about Active Workspace.

Finally it came to the release. In the following video, you can see a first review of the product.

I find user experience quite comprehensive. In my view, it is clear simplification compared to a traditional PLM environment. According to my understanding Active Workspace is running on top of TeamCenter platform (as a module). So, where it provides a clear user experience simplification, customers still needs to take care of IT, installation and implementation cost.

Dassault System 3DExperience and Exalead SBA

DS has a concern about user experience too. DS started 3DLive product about 5 years ago as an innovative way to collaborate, visualize and navigate through product information. These days, DS is presenting something they call 3D Experience platform that allows people to experience real product in a virtual environment. According to Dassault, it will change the way innovators innovate with consumers. You can see a visionary video below. This is still a vision, in my view.

3D Experience platform contains many elements supported by other DS products. One of them, Exalead is a platform for Search Based Applications. DS acquired Exalead two years ago. Since that time, I’ve heard lots of talks about Exalead as a platform. According to Dassault, Exalead platform and applications can be embedded into other applications or used a platform for building new apps. Known as “French Google”, Exalead was a company founded back in the beginning of 2000 with some core roots in Alta Vista search platform. In my view, Exalead is a powerful toolkit. With all power it comes with, Exalead is a very generic and not related to PLM. In the video below, I found an application developed by DS partner – NovaQuest, which can be positioned as much as close as possible to PLM.

Autodesk PLM 360

The story of Autodesk PLM 360 is just in a very early beginning. Autodesk is presenting PLM 360 as a major breakthrough into changing the way people work in PLM including delivery and implementation (Instant On the cloud) and ending up with a user experience. I presented some of my thoughts about PLM 360 on my blog before. Navigate to the following link to read more. From the standpoint of user experience, PLM 360 is completely browser-based (except of Workflow designer)

It also provides some interesting capabilities for product information navigation.

Opposite to Siemens PLM and Dassault, PLM 360 is running in the cloud. User interface is a strong point of PLM360. It is also very flexible and customizable. At the same time, because of the cloud, connection with the data in the company, remains one of the weak points and the gap that Autodesk needs to cover.

PTC, Windchill and SharePoint

The last version of Windchill product put a lot of focus on the user experience. PTC mentioned it many times in their presentations. You can see a video of Windchill 10 demonstrating all usability enhancements. The core concept of Windchill UI is to combine the best desktop experience with the best web experience. How successful is that? Take a look on the video and tell me, please.

On the side of search, PTC relies on SharePoint infrastructure heavily. In the following video, you can see how PTC mixing SharePoint search with Windchill products.

Inforbix Product Data Applications

The big idea of Inforbix is to change the way how people in manufacturing company can access product data located in disparate locations (file vaults, local computer drives, database, PDM/PLM applications and other sources). Inforbix doesn’t require you to migrate data into a single database. Inforbix runs from the cloud (private or public), scans product data and helps you to search, find connected elements and create different reports and visualization. Learn more here. User experience plays one of the central roles in Inforbix. The following video shows Inforbix Search user experience that helps you navigate and discover product data.

This video presents Inforbix Tables user experience helping you to slice and dice data in virtual reports.

What is my conclusion? User experience is very important these days. What we learned from the internet and mobile space, one “extra click” can kill your product. The new motto – “don’t make me think” can be easy applied as the most important requirements nowadays. The idea of user experience started to proliferate to enterprise space. PLM companies are clearly interested how to make improvements and create new generation of tools, which will not look like ’95 anymore. Just my thoughts….

Best, Oleg

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Cloud PLM and “Made in Germany” Sticker…

April 3, 2012

Few weeks ago, back to my trip to Munich PLM Innovation Congress, I published post - Will Europe Adopt Cloud PLM? Navigate back to my article to listen to the speech by Neelie Kroes, European Commission Vice-President for the Digital Agenda, announcing a European Cloud Partnership help cloud computing through public procurement. Since that time, I started to follow “European cloud” story more closely. The following article caught my attention - Cloud computing ‘made in Germany’ stirs debate at CeBIT. Take five minutes of your time and read this article. It sounds like German IT and specifically Deutsche Telecom is playing an interesting cloud game. Security is a strong point they want to leverage. Here is an interesting passage:

The head of the German communications giant, Rene Obermann, told visitors to the CeBIT this year that “the ‘German Cloud’ could present a competitive advantage for us.”. Having lived through first a Nazi dictatorship, then a Communist one, Germans are especially sensitive when it comes to data protection and Deutsche Telekom hopes to leverage this to its advantage. “In Germany, the data protection laws are very strict. But several operators do not come from Germany and do not adhere to these standards,” said Obermann. He is aiming at the 3.6 million prosperous German small and medium sized firms who have not yet taken the leap to storing their data using cloud computing. Only 12 percent have done so. “It’s an enormous potential,” said Obermann, vaunting the advantage of his firm’s 30 giant servers or “datacenters” across Germany.

It made me think about future cloud PLM potential of German market. Two major CAD / PLM companies are permanent residents in EU - Dassault Systems and Siemens PLM. Dassault has significant cloud ambitions. Earlier last year, during DSCC 2011 event in Las Vegas, Bernard Charles mentioned that DS spent about $2B to develop the best in-class cloud online PLM platform. At the same time, Siemens PLM so far didn’t show up any cloud development and plans. All this happens in parallel with last development of Autodesk PLM 360 and Autodesk’s ambitions to establish themselves as a “Salesforce.com of PLM”.

What is my conclusion? I think, we are in the early beginning of cloud PLM race. As we’ve seen in consumer web, mobile, search and social networking, competitors will be using various tools to protect their interest and establish a better market position for their cloud products. Will “Made in German” sticker become one of them? Time will show. Just my thoughts…

Best, Oleg

picture credit domdeen / FreeDigitalPhotos.net

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PLM Perfect Storm 2012

February 28, 2012

I’ve been listening to Marc Halpern‘s presentation Executing PLM Strategy in a Disruptive Business Climate last week during PLM Innovation 2012 Congress in Munich. I found PLM Market Dynamics slide very interesting. However, let me speak about Gartner Magic Quadrants before. Gartner has a long history of Magic Quadrants (MQ) research methodology. For some unknown to me reasons Gartner didn’t publish MQ related to PLM during the last few years. The last one I found takes us back to 2007. What is very interesting is that this MQ doesn’t include any vendors in the quadrants of niche players, visionaries and challengers.

Gartner PLM Magic Quadrant 2007

PLM Market in 2012 is different from Gartner’s MQ circa 2007. Unfortunately, I haven’t had a chance to discuss it with Marc Halpern in Munich. I’m sure will do it soon. So, the slide Marc presented last week in Munich is below.

This diagram made me think about a very interesting situation we have today in the PLM market. Here are some of my thoughts.

Big PLM money – is it forever?

Top 3 CAD / PLM vendors are making good money these days. We have seen all financial reports went out during the past few weeks. At the same time, PLM vendors’ reliance on large customers becomes very clear to me. Dassault, Siemens and PTC were focused on the convergence of platforms and unification of portfolios. The examples of these activities areTeamCenter Unified, Dassault V6 and PTC Creo. In my view, all major PLM vendors failed to deliver scalable PLM solution for mid-range manufacturing companies and supply chain. This is a contradiction to the dynamics of manufacturing business these days. Manufacturing becomes more distributed and diverse and we see a larger number of small and lean manufacturing companies replacing large behemoths of the past. These companies are very concerned how to build lean and efficient product development practices. And from the standpoint of software, manufacturing companies are looking for a modern approach to PLM.

Large PLM vendors and Small Manufacturing companies

Despite the promises made by Dassault, Siemens and PTC, they didn’t deliver any PLM product to the market of small manufacturing companies. Dassault SolidWorks failed to deliver a full range of SolidWorks Enovia V6 based products,SolidWorks n!Fuze introduced last year was not very successful. During SoldiWorks World 2012 two weeks ago, SolidWorks was talking about n!Fuze V2 to be delivered later this year. PTC shutdown their Windchill ProductPointproduct. Siemens didn’t make any new product delivery in this segment of market for the last 2-3 years.

Autodesk and New PLM

The appearance of the Autodesk in the market of PLM was almost predicted. However, it wasn’t clear what path to PLM Autodesk will take. The development of consumer and web technologies created the situation when PLM on the cloud can be possible. I’m curious to see how Autodesk will keep cloud / on-premises balance in their way towards what I define asfinal step of cloud strategies. There are lots of challenges Autodesk can face before Autodesk PLM 360 becomes “salesforce.com of PLM world”. I’m going to attend Autodesk Media Summit later this month in San-Francisco and looking forward to hearing more about it from Carl Bass.

PLM Perfect Storm

You are probably familiar with the definition of “perfect storm“. Reading from wikipedia  ”perfect storm” is an expression that describes an event where a rare combination of circumstances will aggravate a situation drastically. The term is also used to describe an actual phemonenon that happens to occur in such a confluence, resulting in an event of unusual magnitude.

Two arrows on Gartner’s picture between Dassault, Siemens, PTC and Autodesk will form a situation of perfect storm. Today, no company claim they have a guarantied recipe of how to success with PLM at that place.

What is my conclusion? It is an interesting time to be in the PLM market these days. As I wrote in my recent blog -SolidWorks community and opportunity for PLM, there is a significant opportunity to deliver PLM solution to the white space market these days. Gartner’s PLM market dynamics slide is highlighting the same opportunity. It is clearly a perfect storm. Large PLM companies have a lot of money to play the future PLM game. They have a lot to win as well as to lose, in case something will go wrong. Who will take the best “stormy seat” in this game? An interesting question to ask. Just my thoughts…

Best, Oleg

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Software Vendors and PDM/PLM Evolution Steps

February 9, 2012

Earlier this week, I had a conversation with engineering IT manager of a manufacturing company. Without mentioning names, we’ve been discussing how manufacturing companies are adopting technologies in general and PDM/PLM technologies specifically. According to him, software companies largely misunderstood the way manufacturing companies perceive technology adoption. The conclusion we made, was that manufacturing companies are very slow to adopt any technologies. One of the key factors that impacts future evolution of PDM/PLM technologies will cost of implementation and changes. This conversation made me think about what will be the evolution of PDM / PLM systems for coming decades.

Cloud, Unification and Integration

I can define three things that will lead future evolution in PDM / PLM. It is unification, integration and cloud. I wrote about Unification and Integration few months ago. Navigate to the following article – From PDM to PLM: Unify or Integrate? to have a sense of this topic. The reality of manufacturing companies today are that they have lots of different software packages implemented. Siloed approach was dominant in the last two decades. The question of how to move forward to the next level is actively debated by many software vendors and customers. One of the options is to move to unified systems. When it sounds like an interesting option to cut cost of integration, the overall cost of migration stops many companies from taking this approach. On the other side, affordability of cloud-based software sounds like a good reason to move one and offer new type of solutions with a fraction of cost.

4 Steps of PDM / PLM evolution

In my view, cloud (private and public) will be playing a key role in the evolution of future PDM/PLM systems. On the diagram below, I pictured how I see the evolution of PDM /PLM systems. Four steps show how I think systems will be migrating from pure “on-premises’” solution to full cloud adoption.

PDM / PLM Evolution

 

I wanted to bring 3 factors that will become critical to define vendor’s success in this evolution – cloud/on-premises balance, system integration and file content migration to the cloud. Let me talk separately about each of these factors.

Cloud / On-Premises balance

The adoption of new technologies and products is very slow. Because of that, manufacturing companies will have to balance long time between existing and new solutions. The ability of vendor to bring systems gradually to solve real business needs in an affordable way, will be a key to success. Nobody will be able to replace all systems in a single shot.

System integration

I’ve been stated it many times already, but again, the ability to integrate cloud and on-premises solution will be another key capability. Today, the integration is very messy. It is costly and, in most cases, causes data duplication with a lot of inefficiency. The ability to build linked data grid of integrated solutions will create a competitive advantage for software vendors to introduce new PDM / PLM solutions and minimize implementation cost.

File Content migration

The absolute majority of product information such as CAD data is located on premises today. With the introduction of new solutions, this content will have to migrate to cloud in order to become available also for people (globally) as well as to be re-used by different cloud and on-premises solutions. The effectiveness of this migration is another key factor to success.

What is my conclusion? I see next 10 years of PDM / PLM evolution as a very interesting time. Old technologies and software packages will retire and new will be coming. What will be the future of PLM platforms is an interesting question. This question needs to be answered by well established PLM vendors like Dassault, Siemens, PTC and by newcomers such as Autodesk. Smaller companies will innovate to provide PLM solutions and technologies that potentially can disrupt and, at the same time, provide a competitive advantage to future evolution of PDM / PLM platforms. What is your take? Speak your mind, please…

Best, Oleg

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Future PLM platforms and SAP / Oracle technological wars

January 26, 2012

All existing PDM / PLM technologies were created 15-20 years ago. I hope I’ve got your attention :) . So, let me speak a bit more about technologies today. Past 10 years of web development for the consumer market created a significant technological foundation that cannot be ignored. Most of the enterprise software in production these days is running on the technologies created at least a decade ago.

Let’s talk first about major 4 PLM providers – Dassault Systems, PTC, Siemens PLM and the platform they use for their flagship PLM products. Enovia from Dassault technological foundation came from MatrixOne acquisition formerMatrixOne/Adra development 15-20 years ago. PTC is using Windchill coming back in 1998 from CV acquisition. Siemens PLM platform – TeamCenter is also coming from acquired and transformed product lines of Metaphase and IMAN.

Thinking about PLM platforms, you cannot avoid and not to speak about long time pure-PLM rivals coming from ERP software – SAP and Oracle. Oracle is leading the way towards full-fledged usage of Oracle Fusion platform. Despite multiple delays and re-orgs, it seems to me the way Oracle is thinking about business application platform for enterprise. Oracle is also leveraging their in-house innovation of database technologies.

I was reading an interesting article by ArnoldIT – SAP: Lemons from Lemonade for Search vendors. The article referencing technology coming from SAP called HANA. According to SAP blog:

HANA is the foundation and the core of all that we do now and going forward for existing products, new products and entirely new frontiers. We are transforming enterprise software with HANA, and we are transforming our entire product portfolio,” Sikka said in a statement earlier this week announcing that SAP HANA is now generally available worldwide. “But HANA is more than a product,” Sikka continued. “It is a new paradigm, an entirely new way to build applications. It is the basis for our own intellectual renewal internally at SAP—where we rethink how we design, build, deploy, service and sell products—and the basis for our customers’ and partners’ intellectual renewal—where we help customers rethink existing business problems and help them solve entirely new challenges using design-thinking.” (Source: The Top 10 Reasons SAP HANA Is Disrupting Larry Ellison’s Grand Plans]

Take a look on a very interesting video about HANA evolution.

Few screenshots I captured from this video (below) clearly shows the technological problem PLM vendors are trying to solve already for many years- creating a scalable business application platform capable of handling the complexity of data needed for product development and manufacturers.

Typical problem of enterprise applications.

The complexity of platforms and solutions today.

HANA way to solve the problem.

What is my conclusion? The complexity of enterprise PLM software is skyrocketing. PLM products are running on proven, but outdated platforms. My hunch – all major PLM vendors having some future technology platform projects on their back-burner. I don’t know if it comes as Enovia V7, TeamCenter Future or Creo Enterprise. What is clear to me is that PLM companies need to come with the next technological platforms to leverage last 10 years development of web and consumer space. Otherwise, they will be dismissed by newcomers. ERP vendors such as Oracle and SAP also keep stakes in this enterprise software game and need to be watched carefully by PLM players. Just my thoughts..

Best, Oleg

Freebie. SAP didn’t pay me to write this post.

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What 2012 holds for Product Lifecycle Management?

January 3, 2012

Beginning of the year is a time for New Year resolutions and "annual predictions". Few days ago, I shared my plans forBeyond PLM activities in 2012. To predict what is going to happen during coming year is usually very thankless work. In the middle of December, I’ve made my broad prediction that 2012 is going to be a year of PLM rock stars (ready my post The Enterprise and PLM will rock in 2012). Today, I want to share what I think will be in a focus of PLM companies in coming 2012.

Autodesk Cloud PLM

With no doubt, it is going to be "the PLM event" of the year. Autodesk is going to make Nexus 360 Cloud PLM available in the end of Q1/2012 or beginning of Q2. That was my impression from AU2011. The expectations are high and the level of speculation about what Autodesk will release is going to be on the same level. It is going to be a big challenge for Autodesk. Even if the majority of their initial customers are SMB manufacturers, because of volume, Autodesk can potentially generate much bigger numbers from their PLM products. However, Autodesk needs to watch carefully the level of expectation and the delivery to keep the promise of making PLM different.

Dassault SolidWorks V6

It seems to me, we are going to see SolidWorks V6 preview later this year during SWW 2012. Over the past two years, we’ve heard lots of pre-announcements from SolidWorks about their cloud platforms, Enovia-based development and future use of CATIA kernel. I believe some deliveries need to happen in February in San-Diego (SWW 2012 home town)

PLM Maturity and Unification by mindshare vendors

Top 3 major PLM providers – Dassault, Siemens PLM and PTC will continue their competition for platform unification and big names wins. These days, all large manufacturers are using pieces of software from one of these companies. In many cases, companies are using software from multiple vendors. All 3 vendors are coming with the idea how unify PLM implementations using their proprietary platforms. It becomes very complicated for large companies to keep going with multiple platforms. The trend of "unification" on a single platform will continue in 2012. Because of a very high cost of change, top PLM companies will continue to do all possible to convince customers to commit towards migration to new platforms. We are going to see more of such wins in 2012.

Emerging Trends: Social and Mobile

Even if both "social" and "mobile" are hot outside of PLM, I don’t believe these two words will generate big news in 2012 for PLM. After all, these two trends (or technologies) are just enablers for PLM implementations. I expect to see more mobile applications coming from existing and new vendors.

Product and Technological Shopping

I also expect main CAD/PLM vendors to continue their shopping spree. Money is not an issue for them. Even if the amount of new companies in the industry is not big, four dominant CAD/PLM companies will try to gain advantages by acquiring smaller companies with proven products or interesting technologies.

What is my conclusion? Enterprise has a potential to become "cool again" in 2012. There are many interesting things going outside of enterprise in consumer software and web development. These products and technologies can put enterprise IT on fire in 2012. Large scale data management, social web and mobile – these technological enablers will be dominant in the new PLM development in 2012. Mature software vendors will continue their fight for the future market share increase among their existing (and overlapped) install base. Just my thoughts…

Best, Oleg

Image: Vlado / FreeDigitalPhotos.net

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PLM Cloud: differentiation or “anti-cloud rant”?

December 22, 2011

After my publication PLM, Autodesk and Cloud Wars Club few days ago, I received few comments from my readers trying to figure out what is PLM vendors’ position with regards to the cloud. One of them, even tried to rank PLM companies on how they committed (or not) to the future of cloud computing. The funniest comment was by Jonathan Scott of Razorleaf – "I am waiting for someone at Siemens or PTC to come out with the "anti-Cloud rant" much like Carl Bass’ "anti-PLM" rant". About a year ago, I was writing about PLM vendors and cloud strategies. You can navigate to the followinglink to read my post from the last year. I think, some movements happened since that time, so I decided to make a second check on major PLM vendors about what they do on the cloud.

I’ve been reading an interesting article earlier this week. The Cloud: Worrying about the wrong things? written by Peter Bilello of CIMData. Peter is talking about different elements of cloud strategies and PLM. It is a good read, and I recommend you to spend few minutes and have a read. My favorite passage is about security, which is considered one of the biggest concerns of cloud software. Here is the quote:

IT chiefs in both the private and public sectors and some Internet industry analysts may be overly concerned about security. Worrisome Internet security breaches, though rare, are widely reported. By law, banks, credit card companies, and other online repositories of financial and personal data must report breaches. Two big outages were front-page news in April 2011: Amazon Web Service’s Elastic Computer Cloud (EC2) was down for a couple of days. Sony’s PlayStation Network was out for five weeks…. Amazon put its EC2 data loss at 0.07—seven-hundredths—of one percent. Some perspective: information online expands exponentially while the number of digital break-ins grows far more slowly. Adding in less nefarious security lapses, system errors, and human error still does not boost these problems out of the rare category

Another interesting passage about security is coming from Rackspace:

“Security is security, in the cloud or anywhere else,” according to Web hosting company Rackspace US Inc. in San Antonio, Texas. In a 2011 white paper titled, Five Reasons Why the Cloud is Ready for the Enterprise, Rackspace points out, “The same security issues apply to an enterprise data center or on-premise application as to the cloud. Everyone must be vigilant about security, no matter where their data is stored.”

Autodesk

It is clear, Autodesk is taking the cloud story as a major differentiation. As I mentioned yesterday in my post, Autodesk sees themselves "Cloud PLM" similar to how Salesforce.com can be recognized as "Cloud CRM". Autodesk introduced multiple products on the cloud. Their latest Autodesk Nexus PLM 360 supposed to be available somewhere between Q1 and Q2 next year. Here is Buzz Kross quote from Nexus PLM announcement last month:

"Our approach to PLM is a sharp contrast to the decades old technology in the market today," said Robert "Buzz" Kross, senior vice president, Manufacturing Industry Group at Autodesk. "Autodesk 360 for PLM will enable customers of all sizes to achieve the full promise of PLM with a scalable, configurable and intuitive solution. We believe it will help our customers achieve a measurable competitive advantage through better, more accessible collaboration and business information management."

Dassault System

DS is passionate about their cloud online platform. I’ve been reviewing what DS is doing about that during Dassault customer conference (DSCC 2011) last months in Las-Vegas. Enovia V6 is a power horse behind Dassault cloud story. Read my post from DSCC 2011 by navigating on this link. Here is the quote:

Dassault is presenting ENOVIA V6 as a big deal, the only one “unique online cloud platform”. In the first day, Bernard Charles shared the information about $2B investment into R&D effort that “converge” with all technologies under a single platform available on the cloud.

Siemens PLM

Siemens is providing a very modest cloud story. As a year ago, I wasn’t able to find many references on what is Siemens PLM cloud strategy. Few announcements and press releases I found pointing on the work Siemens PLM is doing with Microsoft Azure cloud platform. Navigate to the following Siemens’ press release – Siemens PLM Software to Create Industry’s First Quality Management Solution "in the Cloud". Here is the quote. Siemens

announced a joint project with Microsoft Corporation to create the PLM industry’s first cloud computing-based quality management solution. The solution will utilize Microsoft Windows Azure™ platform cloud computing services to securely run Siemens PLM Software’s Dimensional Planning and Validation (DPV) application, showing how cloud computing can enable a world-class quality management application to be cost effectively accessed and leveraged on an as-needed basis.

PTC

From my standpoint, PTC is probably less than other PLM vendors is focusing on how the cloud reshapes PLM industry. PTC was one of the first pioneering Whidchill availability as a hosted solution via IBM. However, besides that, I haven’t seen anything about future cloud product coming from PTC. Interesting enough, I was listening for Jim Heppelmann during Creo launch event in the beginning of 2011. According to this article, here is PTC’s opinion about cloud and other PLM vendors.

While Autodesk and Dassault Systemes appear to be running headlong into developing cloud-based applications, my recent conversations with PTC representatives indicated that, as customers were not asking for it and the benefits were not clear, PTC was not heading to the cloud anytime soon. Given the error in underestimating the move to Windows, I asked Heppelmann for his view of CAD on the cloud.

Here is the passage from Jim’s quote provided in the interview to Develop3D journal:

“So, we identified these key problems and then if I say, well which of those problems does the cloud solve? It doesn’t actually solve any of those problems! It solves some other problems – perhaps ease of installation, perhaps cost of ownership, things like that. But I’m not sure those are the key problems. So we’re not pro-cloud or anti-cloud, we’re just trying to solve what we see as the biggest problems, and we don’t see solutions to these biggest problems being in any magical way enabled by cloud technology.

What is my conclusion? Here is my summary about how leading CAD/PLM companies see their cloud strategies. Autodesk is the only one that built on top of the cloud as a differentiation factor. Dassault announced Enovia V6 platform as a true cloud online platform. Despite the fact Enovia platform has deep roots in Matrix One technology developed in the end of 90s, I believe DS invested a lot of resources to re-shape MatrixOne technologies. TeamCenter shows some interesting and trying cloud water with research projects. PTC is strongly neutral the cloud. As you can see all are different. It will be interesting to see how these strategies are evolving and adopted by customers. Just my thoughts…

Best, Oleg

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Posted by olegshilovitsky

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