Autodesk Enters PLM: Everything Changes… for Autodesk

There are at least two issues that, in my opinion, will make usage of any "real" cloud PLM (i.e. not a web based PLM system installed in-house) extremely limiting in the nearest future (i.e. next several years):
1) absolute majority of manufacturing companies are VERY reluctant (mildly speaking!) to put their data on cloud. In fact, I've almost never seen a company (except really small ones) that is ready to do this.
2) although the term "PLM" in general is pretty broad and covers many aspects of overall manufacturing process the most PLM-related sub-processes typically automated by manufacturing companies requires heavy customizations. As the result:
  a) in order to be able to evolve (i.e. provide upgrades) the core of the cloud PLM must cover only the common denominator of all customized PLM systems that are built on top of it. Because each customization is extremely unique the common denominator could end up being negligibly small or even absolutely useless. 
  b) a cloud PLM must provide adequate tools that allow users to implement their customizations, test them, etc. Implementation of such tools could be more challenging then implementation of the cloud PLM itself.

AK, thanks for your insight! Topics you raised are absolutely important. Security and customizations for a long time remain two most important factors impacting cloud-apps adoption. Enterprise organizations are not exclusion. However, I believe the clear trend is towards the cloud solution make "security statements" not as strong as before. Many of them are just "red-herring" and provoked by large IT organizations. In parallel, the technologies are improving as well. We can see a growing amount of cloud applications (also in enterprise domain). The support of large companies (Autodesk is one of them) can become a game changer.

Let me talk about customization. What you said was absolutely true 5-6 years ago. However, web technologies are different now. Amazon and salesforce.com are a perfect example to demonstrate the power and capability of cloud apps.

Just my thoughts... Oleg

Well ... You probably right about "red-herring" but ... try to talk to IT organizations of any reasonable size (leave along large) company - you can spend hours explaining them that their data will be more secure in cloud (and you'll be right!); they we'll listen, nod their heads and will NEVER allow their data outside their (not very secure) data center. This has nothing to do with technology - it's pure psychology. Unfortunately to cloud PLM human psychology is changing WAY slower than technology; I personally don't see any significant changes in this approach in the near future.

As for customization: it's excusable for Carl Bass who, as you mentioned yourself, just recently absolutely denied a PLM necessity to use salesforce.com as an example. Let's excuse him - he's a big nob in a CAD company that just recently didn't even have PLM strategy. But you can't compare level of customizations that salesforce.com provides with the level of customizations required for a _decent_ PLM system. Note that I absolutely agree that salesforce.com and Amazon (and many other cloud apps) demonstrate huge value and power of cloud approach. Unfortunately it has very little to do with PLM (at least at this point).

Do I think that PLM will never move to the cloud? Absolutely not! It'll gradually move into this direction but it'll take longer than Autodesk hopes for and not because of technology. I also think that from Autodesk who just recently didn't have any PLM strategy it's a good _marketing_ move to announce "cloud PLM". I just think that it has absolutely nothing to do with real customers and real PLM product from Autodesk that any of them can use in the nearest future.

AK, absolutely agree with you. It is a good thing for Autodesk to announce "cloud PLM". It is clear differentiation in the industry. Now, Autodesk has a long period of time to improve their solution via their own development and acquisition of other technologies and companies.

I think, the main driving force behind the move to the cloud for PLM will be cost. Today, cost of PLM solutions is extremely high. If somebody discovers alternative business models in PLM (and enterprise) it can be a very interesting move. The analogy I'm using is how Google uses ads money to provide Google apps for free. Will something similar happen in enterprise /PLM, I don't know? We will watch it... Thanks for comments and insight. Best, Oleg

What is the potential danger for Vault/Nexus bundle, and also SolidWorks n!Fuze? It's interesting to see Autodesk separates the module of CAD-related PDM from other business process workflow. The newly announced Aras EPDM for SolidWorks Enterprise PDM  uses the same strategy, but Nexus is cloud-based, which would attract more attention!

-Frank

Frank, I'm not sure understand your question with regards to "danger"?

The separation of a business process from CAD data management is an interesting opportunity. The question of integration cost and efficiency will be a key. Autodesk strategy is to keep alive Vault business and reduce the risk of Nexus PLM.

Aras story is different. Aras offering is a pure business/channel move. They discovered an opportunity to sell PLM via SolidWorks VARs that have no PLM solution at their hands today. So they do.

Best, Oleg

Hi Oleg - thanks for covering this important PLM announcement.  I read a couple of the blog posts you listed and was wondering if the Nexus product covers the Engineering Change process or if that is somehow left to the vault product.
Can you clarify?  Thanks - Steve

Steve, My current understanding is that ECO process left in the Vault product. Change management was mention in Autodesk research as one of the top 3. However, it wasn't in the list of Nexus PLM apps mentioned during the announcement. See slides. 

In the post PLM controversy about process vs. data management Lars Taxén made a good point. "In a contextual perspective, both are needed, and moreover, they are tightly interdependent in all but trivial cases." I know we joke about what leads all the time but really this statement is the truth. We have had the best success with Good process mapping, followed by good use case development with users present (provides the context), at the same time solid master data architecture (System of record and system of control decisions based on process steps) working with IT and finally interface configuration and presentation back to the users for confirmation. This iterates until optimized and then can be deployed. So this marriage of data/process is required to reap the benefits. I also think this is why PLM efforts run just by IT or R&D in a vacuum fail often because they are approached from one side or the other, but really must be approached in unison to get the full results. 

Dave, thanks for pointing to Lars' comment. It is indeed important to be able to set the context (data) right for process organization. I would love to learn more about what you did. Best, Oleg

This is really exciting and indicates a big shift in the industry in my opinion. I also see a similar model developing in the software development space where code is housed internally (PDM function) and the lighter weight project management process data is organized in a cloud based solution (example Rally Software). So this is a emerging trend in the R&D space in my opinion. 

With the data required to coordinate resources globally in the cloud, process steps can become more efficient and people can participate more rapidly. We have found that cloud application suppliers can react more quickly and we can get updates more rapidly to our applications. So this is an exciting time! BTW, I can understand how organizing based on process would be interesting to you! :-) (Luke come to the dark side.......) 

Dave, thanks for comments and insight! Agree - mixed environment is an interesting trend. At the same time, it opens lots of challenges and... opportunities. Best, Oleg 

What I'm really concerned about is Buzzsaw that is included in adsk bundle. In my view it's a bit outdated (although it's rather good) in its interface and performance. It doesn't change a quite long time. This part of adsk announce contains to much marketing and no innovation. And it's a sort of sign for me. I'm convinced that Buzzsaw should be optimized first. Give a try to use Buzzsaw and you will feel its complex way for managing information.
For instance Inforbix suggests more elegant and smart way, but in another realm.

Evgeny, I think, the main reason why Autodesk included Buzzsaw in the announcement was to provide a balanced marketing message between manufacturing and AEC environment. Autodesk is looking how to unify BIM and PLM (long run, of course). I'd not be surprised to see it coming. Remember my old post about PLM and BIM? -- http://plmtwine.com/2008/12/22.... Best, Oleg