A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

PLM Cloud Switch and PTC Final Click?

PLM Cloud Switch and PTC Final Click?
Oleg
Oleg
10 September, 2013 | 2 min for reading

Few weeks ago, I posted Dassault IFWE and PLM Cloud Switch. It was a time for Dassault System to announce their cloud product strategy and intent to deliver the entire portfolio of products via cloud. Back that time, PTC was the only company from “CAD/PLM big 4” formally denying cloud option. My hunch, it was a result of PTC conservative strategy multiplied by past bittersweet experience with IBM Windchill hosting… who knows?

BAM, BAM…Here is new development on PLM cloud horizon. Earlier today, PTC announced about acquisition of their long time partner – NetIDEAS. NetIDEAS was working with PTC over the decade by providing hosting and consulting. You can navigate to NetIDEAS website to get an idea of what was offered to customers – Windchill on Demand. NetIDEAS is working with SunGard Data Systems (NSYE:SDS) for hosting in order to provide SAS70 and other required hosting certifications.

GraphicSpeak published a short writeup about PTC-NetIDEAS acquisition. Article mentioned that NetIDEAS is specializing in remote hosting as well as speculated about purchase price “cloud have been as high as $63M” based on 5% of PTC revenues (since prices wasn’t announced). Here is an interesting passage from the article:

NetIdeas is a remote hosting specialist, the older brother of cloud deployment. Bringing NetIdeas inside PTC gives the company a better foundation to offer multiple deployment options, including cloud deployment. In April PTC CEO James Heppelmann told Wall Street analysts it is finding a “wait and see” attitude toward cloud deployment of PLM from its largest customers. Whether the slow uptake is based on reduced spending or a reluctance to deploy new technology, the move into cloud computing is an unstoppable platform transition and PTC must be a fully equipped player.

What is my conclusion? Cloud era is coming and PTC better to equip themselves with some cloud specialists at home. We have now all big four CAD/PLM providers committed to the cloud. However, strategies are different. Yesterday, I’ve been writing about Siemens cloud IaaS option. PTC hosting is a different strategy out of four possible options – public cloud, private cloud, hybrid cloud and collocation. All options are valid. My hunch is that evaluation of  “cloud option and technologies” will become a standard step in every PLM purchase pretty soon. So, senior PLM consultants can take a note and learn few cloud buzzwords asap :). Just my thoughts…

Best, Oleg

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