PLM Prompt: What will be cloud cost of PLM?

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My short prompt today is about Cloud/SaaS infrastructure. Reading the following article by Dion Hinchcliffe comparing cost trends of leading cloudinfrastructure providers Amazon, Google, Microsoft. What will define cost of PLM on a cloud? How do you see PLM SaaS cost trends in the future?

My take on this:

1. Future PLM SaaS Applications will be significantly cheaper in comparison to today’s on premise offering.

2. Cloud/SaaS will remove overlaps and customer will pay per specific PLM feature.

3. Cloud service providers will compete on their complimentary offering as part of PLM solutions.

Just my opinion. YMMV. What do you think about it?

Best, Oleg.

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  • Keyur Kachhadia

    Hi,

    That is intresting and I used to wonder what it would be. Would like to know more on this….

    One say is per user per feature?
    Does current plm suits has licensing such that it allows to track / record / audit in such a way. it would not take long to jump on this if they donot have.

    Another factor in pricing I think would be whether
    – customer are to willing to keep their data on a system along with that of other customer using the same cloud application.
    or
    – whether they opt for seprate cloud or an sperate application instance in same cloud, the later I think is is what we have the current data center models.

    -Keyur Kachhadia

  • Keyur, Thanks for your comments! I don’t think today’s PLM systems are ready for per-use/record audit. From my side, I see “size” scale as promising. In the end we can manage “content size” or “traffic size” and drive usage from this. What do you think? Best, Oleg

  • Sumesh

    Oleg,
    Definitely, a cloud system is going to(or rather has to) offer significant cost advantages over the traditional architectural landscape. But I believe, the adoption curve would be shallow as I see the PLM world at least 4-6 years behind in terms of leveraging the business benefits of innovation by the trendsetters like google(yes, the future is the web), amazon, microsoft(they still have one of the best minds in the industry) etc..especially with the though of allowing somebody else to be the custodian of your IP.
    Yes, I too tend to be favourable to a measurement in terms of the “size” scale, more like the packets exchanged or bytes transacted etc.

  • Sumesh, I agree. Cloud is slowly rump up and PLM won’t be in the first line because of business specific. What is positive is good competition in this space. Thanks for your comments. Regards, Oleg

  • Keyur Kachhadia

    Hi Oleg,
    I do belive the “scale” to be a promising factor. Specially it makes many things easier as its mush simpler to get overall trafic and amount of content in the system.

    But at the same time I had couple of points in head. what’s your thought on them.

    – How would the the PLM vendors diffrentiate between feature costs (some costlier then others). would it mean providing all features to all and just charge them for traffic and content size or having diffrential charges for the traffics to diffrent features this would again lead us to restricting users to some features and allowing to some based on what they have opted. (another kind of licencing?)
    One of the e.g. i could think of where customer would not be willing to pay the same charges to access a application for all users is in a typical say manufacturing house, one would not be ready to pay the same access charges for users who are creators of the data (say design and engineering dept.) and and for those who just reads them (say shop floor).
    Currently we do see that PLM customers wanting to have light weight user licences etc…

    – Whats your thoughts on revenue sharing between the cloud provider and PLM vendors.

    Regards,
    Keyur

  • Keyur,
    1. Cloud offering won’t be different from what we are trying to achieve today – to have differentiate portfolio with right package granularity. General trend is toward simplification in everything and this is a challenge in current enterprise soft. Licensing schema can be different -size of storage, traffic, logical access to functions.
    2. Today we share revenues with RDBMS providers, OS providers and sometime even hardware providers. Why it should be different?
    Regards, Oleg.