What cloud PLM cannot do for you?

by Oleg on September 19, 2014 · 3 comments

no-cloud-magic-plm

It has been already few years since I started to discuss cloud PLM opportunities on my blog. I found one of my early blogs about PLM and cloud – PLM and cloud: hold the promise?

So, what changed since then? Actually, quite a lot… We’ve seen massive adoption of cloud and mobile by businesses in many domains. PLM cloud adoption is growing too. Cloud is on the roadmap of all PLM vendors. It is really a question of “how to implement cloud?” rather than a question of “do we need to support cloud”?  We also seen few very interesting examples of cloud applications in CAD/PLM space. I want just to mention few of them – Autodesk design tool Autodesk Fusion360, Dassault SolidWorks Mechanical Conceptual, Autodesk PLM360. Siemens PLM made their TeamCenter PLM available from IaaS infrastructure. Aras announced cloud strategy and introduced cloud product available via partnership with Infor ERP – Infor PLM Innovator. Cloud PLM pioneers, Arena Solutions, introduced several new cloud tools (BOM control and Quality management). Last but not least, GrabCAD, an open community of mechanical engineers released cloud PDM tool – GrabCAD Workbench. Earlier this week, GrabCAD was acquired by 3D printing company Stratasys. According to TechCrunch, article the deal was around $100M. I’m sure missed few products and companies…

Here are things that I discussed back in 2010 - cost of the solution, delivery model, global access, faster implementation, scaling. We learned a lot of about PLM and cloud for the last four years. Today, I want to make a reality check for list of things I discussed before in lights of what cloud PLM can or cannot do.

1- Cost

Cloud PLM made a mental switch in everything we knew about PLM before. According to Engineering.com article, cloud affected negatively on-premise PLM market. Cloud PLM created expectations for alternative pricing models and pushed all vendors to think how to turn PLM into service offering. Today, you can buy cloud PLM subscription with no upfront cost and hardware investment, which is a very good thing. However, I don’t think, total cost of ownership is different if you will calculate it on the period of 5 years. I’d love to see and learn more about that and love if you can share your comments.

2- Deployment, scale and IT

One of the best thing delivered by cloud PLM is related to deployment and IT cost. You can buy and deploy it instantly – almost similar to how you can open a new Gmail account. As a customer, you don’t need to worry about servers, setup cost, ordering hardware. You don’t need to negotiate with IT installation time. However, you cannot eliminate IT completely, especially if you are large company. For most of situations, you will have to discuss and make an alignment with IT about issues related to security and information access.

3- Faster Implementation

So, you can buy cloud PLM without upfront cost, you can deploy it overnight. What about PLM implementation? Implementation is an interesting thing. I’d like to speak about two aspects of implementations – 1/Configuration and customization; 2/ Implementations of business processes.

Four years ago, many companies were concerned about capability of web/cloud applications to deliver the level of flexibility, customization and configurations similar to on-premise PLM deployments. It is true, for most of situations, you cannot hack your cloud PLM with simple SQL script. However, I think, the flexibility of cloud PLM tools today is similar to on-premise PLM systems. However, flexibility of cloud PLM tools cannot provide real advantages compared to on-premise tools. Thanks for virtualization and modern collaboration technologies you can run your implementation remotely also for on-premise PLM systems.

Implementation of business processes is an interesting aspect of PLM implementation. In practice it means to define data structures and business processes. Cloud PLM won’t provide any advantages here. It is all about people, processes and organizational changes. So, the ugly truth is that cloud PLM won’t reduce your need of implementation services. In case of on-premise PLM, implementation will be done on site and collaborate with IT – installing, configuring and debugging customized software. In case of cloud PLM, you will need to work with cloud PLM vendor or hosting provider.

What is my conclusion? Cloud computing changed a lot in our life. PLM on the cloud can do many things differently. With much lower upfront cost and simple deployment, it opens PLM doors for many companies that never thought can buy and implement PLM systems before. However, when it comes to implementation and services, cloud PLM won’t do much different from on-premise PLM systems. You still need to implement it. It will require business process planning and implementation cost. Just my thoughts…

Best, Oleg

Share

3 comments

plm-erp-competition

The information about Aras PLM OEM deal with Infor caught my attention yesterday evening. It looks like a big deal for Aras Corp. Aras PLM is well known by their innovative Enterprise Open Source model. If you are not familiar with Aras, check their website and blog. For the last few years Aras demonstrated solid capabilities to deliver full scale PLM solution. You probably remember my old blog – Aras lines up against Windchill, ENOVIA and TeamCenter 3 years ago. I think Infor-Aras partnership is a step in the same direction. More information about Infor-Aras partnership is here. Product offering will be re-branded as Infor PLM Innovator. The following passage explains how does it fit Infor PLM strategy:

Infor PLM Innovator – powered by aras – provides a full-featured, highly scalable, flexible and secure PLM solution built on industry best practices that easily adapts to your company’s changing business practices. Seamlessly integrated with Infor ERP, Infor PLM Innovator goes beyond the capabilities of standalone PLM products, to unite your entire product lifecycle for a single view of the truth, which provides actionable information from design and manufacturing to purchasing, quality, the supply chain and beyond.

What is specially interesting, Infor is going to offer Aras PLM as a cloud-service. Consilia Vector research put an interesting perspective on an opportunity related to Aras-Infor deal.

Word of mouth and an open source sales program has taken Aras quite far; this deal with Infor will be like moving from cars to airplanes. It also gives Infor what it craves, a customer checklist that more completely matches item for item with Oracle and SAP. Oracle bought Agile PLM several years ago, and SAP has assembled a PLM system from a variety of small purchases and in-house projects.

I found comments about SAP and Oracle quite remarkable. It looks like all three top ERP vendors recognized the value and importance of Product Lifecycle Management. I guess, manufacturing and enterprise companies are challenged how to support innovation with constraints of global product development and manufacturing. Therefore, adding PLM functionality to their product suites is an important imperative for all of them.

The notion of cloud in Aras-Infor deal is interesting. It is going to challenge cloud ERP providers too. If you noticed, leading cloud ERP provider Netsuite made a strategic partnership alliance with Autodesk about integration between Netsuite ERP and Autodesk PLM 360.

So, what about top three CAD-PLM providers – Dassault, Siemens and PTC? I think, strategic focus on these vendors is outside of ERP-PLM bundles. Dassault is focusing on 3DExperience. PTC is developing strategy for IoT. Siemens is broadening their TeamCenter PLM platform and applications.  All these vendors have some sort of partnership agreements with ERP vendors as well as love-hate relationships of selling PLM solutions to same manufacturing companies.

What is my conclusion? All ERP vendors are well armed with PLM weapon to provide a comprehensive product development and manufacturing solutions. It confirms growing adoption and interest of manufacturing companies of all sizes in PLM. It is time to grab some popcorn and get ready for PLM-ERP competitive performance. Just my thoughts…

Best, Oleg

Share

2 comments

Earlier today at Accelerate 2014 in Boston, Autodesk PLM360 team provided an update about PLM360 product, technologies, as well as an early preview of cloud document management for CAD and other files. The “invisible data management” solution supposed to solve the problem of customers looking how to implement end-to-end cloud PLM solution including CAD data management. This photo blog is a series of screen captures from slides and demo done during the event. Note, well known “safe harbor” statement was presented before slides. In simple language, it means not all features and functions demonstrated today will end up in PLM360 product as planned.

1- PLM360 is part of larger Autodesk eco-system of cloud products

0

2- Autodesk presents PLM360 “next next” generation

1

3- Autodesk PLM360 as part of bigger cloud software eco-system

2

4- Autodesk is using latest web tech to uplift PLM360 user experience

3

5- New PLM360 user interface

4

6- More… New PLM360 user interface

5

7- PLM360 mobile apps

6

8- PLM360 (cloud) PDM expansion

7

9- An alternative – Cloud PLM360 with PDM functions vs. on premise Autodesk Vault

8

10- Browser based cloud PDM integration

9

11- The challenge to move data to the cloud – Transfer Avoidance (TM)

10

12- More about Transfer Avoidance (TM)

11

13- How to achieve good performance when transferring large files to the cloud

12

14- Demo of PLM360 PDM capabilities

13

15- Cloud doc folders user interface in PLM360

1415

17- Cloud data transfer benchmark

17

18- Using web scale technologies

16

19- Support of multiple CAD systems

18

What is my conclusion? Autodesk PLM360 document management (cloud PDM) expands functionality to cover traditional PDM system. However, it takes a different – invisible data management approach. Technology wise, it leverage the power of open source consumer web tools and infrastructure. Doc management will complement existing PLM360 solution with new technologies and tool capabilities. New customers (especially cloud friendly ones) will appreciate the ability to have end-to-end PLM/PDM cloud solution.

Best, Oleg

Disclaimer: I’m Autodesk employee. However, the views and opinions expressed in this blog are my own only and in no way represent the views, positions or opinions – expressed or implied – of my employer. 

Share

1 comment

Accelerate 2014: PLM360 and the state of manufacturing industry

September 17, 2014

I’m attending Accelerate 2014 PLM360 event these days in Boston. This is the first ever live gathering of Autodesk PLM360 community. According to Ron Locking who kicked the event yesterday, it comes to a total number of about 200 attendees combined of customers, partners and industry analysts. So, why Boston? The welcome joke triggered by […]

Share
Read the full article →

How many parts will be in a 3D printed vehicle?

September 16, 2014

3D printing is buzzing trend these days. If you are not up to speed with the trend, you probably should. Because it changes everything around. Start today from Wikipedia article about 3D printing (aka as additive manufacturing). Today’s announcement about GrabCAD acquisition by Stratasys- leading 3D printing company is another confirmation about important role additive manufacturing […]

Share
Read the full article →

What is the potential of product lifecycle analytics?

September 15, 2014

The aim of PLM is to improve product development processes and lifecycle. One of the biggest challenges to make it happen is to deal with disparate enterprise applications and tools. The cost of system integration is high and many companies are not ready to make an investment in integration projects that will have a questionable […]

Share
Read the full article →

3 security related questions to ask your PLM cloud provider

September 12, 2014

Cloud is getting wider adoption these days. An interesting trend I observe for the last year – customer are asking less questions about security. It was different 3-5 years ago. Everyone got concerned about cloud solutions security. Specifically for PLM domain, customers got concerned about company IP (drawings and other engineering-related materials that can be […]

Share
Read the full article →

Part management is stuck between PLM and ERP

September 11, 2014

Few days ago, the discussion about PLM revenue model took me into part management route. This is not entirely related to revenue and business models, but my readers mentioned part cost reduction as one of the most visible ways to present PLM ROI. I have to agree, to manage parts is a critical element of […]

Share
Read the full article →

PLM and Zero BOM errors: the devil is in details

September 10, 2014

To manage Bill of Materials (BOM) is not a simple job. Often you can hear a simple definition of bill of material as a “list of component needed to build a product”. However, in reality, BOM is much more complex and contains information about product structure, the ways product is manufactured, maintained and even disposed. […]

Share
Read the full article →

Will future PLM order parts for makers?

September 9, 2014

Have you heard about “makers”? If you are in manufacturing business, you probably should pay attention to that. You may hear about “makers movement” these days as a new industrial revolution changing the way people are making stuff. I can recommend you Chris Anderson’s book to read more about that. New digital technologies are going to change […]

Share
Read the full article →