More cloud PLM from Oracle and Aras. Are we in cloud rush?

More cloud PLM from Oracle and Aras. Are we in cloud rush?

plm-plug-in-cloud1

Cloud PLM is a trending topic among software vendors these days. As I mentioned earlier in my post, the question these days is not why should we do cloud PLM, but “how” to make it happen. PLM vendors are choosing different strategies and technologies for their cloud PLM solutions.

My attention was caught by two updates that came almost at the same time from Oracle and Aras. Both are related to cloud technologies and offerings.

Oracle blog article – How Oracle’s New PLM Cloud Solutions Help you Compete More Effectively speaks about Oracle PVC (product value chain) cloud, which contains there main cloud offering – product innovation cloud, product development cloud and oracle product hub cloud. The following passage explains it in details:

Start with one idea – or thousands. Select the best ideas that match product requirements using Oracle Innovation Management Cloud. Next, use the Oracle Product Development Cloud to classify and manage all the product’s components and manage costs and supply risk. The Oracle Social Network is included, so you can start conversations, find solutions, and make decisions fast. You’ll also have access to live infotiles, which provide the analytics you need to see when your product is ready for launch.When your product is ready to go, the Oracle Product Hub Cloud provides a single, protected view of your distribution, supplier, and channel partners. You can synchronize your commercialization network and launch new products on target.

oracle-pvc-cloud

The picture above gives you a visual impression. It interesting how magic word “cloud” added to every activity type that previously was just “management”. At the same time, we can see how Oracle product offering transformed. Navigate here to get more information about product service cost.

TenLinks article Aras Releases Microsoft Azure Certified Cloud PLM Suite is a second news in the domain of cloud PLM. Aras Corp was following their enterprise open source concept since 2007 is expanding and became available as cloud offering too.

aras-azure-cloud

The following passage highlight the advantage of cloud offering for global companies with the need to get fast ROI from PLM implementation.

Certified version of the Aras Innovator enterprise PLM solution in the Azure virtual machine gallery of cloud applications in the Azure Marketplace. The new Aras offering is ideal for global companies with an Azure account that need to quickly deploy a full PLM suite for the supply chain, joint ventures, fast moving product lines and other applications.

What is really interesting is to get more information about how many manufacturing global companies have Azure account. I wasn’t able to find this information. My hunch, Microsoft is actively focusing on large enterprises with cloud offerings.

Azure page with Aras offering is proposing to create virtual machine with Aras Innovator PLM suite 10. However, the information about pricing is somewhat confusing. Instead of almost traditional /per user /per month cost, it provides “computing cost” information. However, link “free trial” hints me that customers can do it for free at the beginning. More information is here.

What is my conclusion? It is fascinating to see how software vendors are shifting gears to leverage cloud technologies and change business models. Efficiency, competition, cost. These are things that absolutely important to manufacturing companies these days. Cloud PLM can be a technology and tool that will help customer to make it happen. PLM vendors are trying to turn cloud into their advantage. The technologies both Aras and Oracle are using are clearly different, but the underlining trend is clear. Just my thoughts…

Best, Oleg

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  • Just remember that these are NOT cloud solutions. Hosting old technology does not a cloud solution make. Multi-Tenancy, Elastic scaling, Vendor owns all updates, etc… This is cloud. Buyer be ware of someone calling this cloud. What they’re really doing is trying to jump on a bandwagon with a 1/2 baked solution. In the end these “Faux Cloud” solutions will end up costing a company more money to deploy and maintain and you end up with almost zero benefit. (Other than your servers are farther away from you making your performance suffer…)

  • Kerrie Jordan

    First of all, great article as usual, Oleg.

    Second, I just wanted to take a moment to clear up any confusion – the recently announced PLM Cloud offerings from Oracle, branded “Oracle Product Value Chain Cloud” are new applications built for the Cloud and available as part of the fully integrated Oracle Cloud, not old technology being offered for hosting. Oracle does, however, offer its existing Agile PLM solutions as either on-premise or hosted solution offerings – we work with clients to determine which deployment model best fits their needs. I do agree that buyers should beware of vendors claiming “cloud” when it’s really just hosting existing technology because that’s been done for many years. But this solution that Oleg refers to here is indeed a brand new Oracle PLM offering designed, offered and built only for the Cloud. The press release announcement is here: http://www.oracle.com/us/corporate/press/2321478. Full disclosure, I am an Oracle employee, just wanted to clear up any confusion. Thanks!

  • Steve Bodnar

    As you know Brian, I agree with you completely! 🙂

  • beyondplm

    Kerrie, thanks for your comment, clarification and links! I will make an appropriate correction in the wording to mention it as “Oracle Product Value Chain Cloud”. I agree about making customer aware about technical details – cloud became to broad term. Therefore, it is important for customer to understand – there are different “clouds” and “cloud PLM” can be implemented differently.

  • beyondplm

    Brian, thank you for this comment! I agree with you- such characteristics as multi-tenancy, sale, upgrade transparency are absolutely important to architecture and run SaaS software. The devil is in details. Unfortunately, cloud became a very broad term. Too broad, probably… And often used by vendors to brand different product, technology and marketing innovations. I made a series of posts explaining that “how to implement cloud”. In my view, this is one of the most important topics these days to address issues you mentioned above. I just hope PLM vendors will do it in a clear way that won’t confuse customers. Certainly believe we can (as industry) avoid a discussion about what “true cloud” :). Best, Oleg

  • Niraj Singh

    Hi Oleg,

    Considering potential targets to be SMBs with user base in 100s, my thoughts on Oracle’s approach – they are taking a set of “must-have” functionalities out from the established PLM modules and making that as chunks of cloud offering. This will help Oracle expand their reach to customers with a focussed set of core and mix-and-match solutions – in a “ready to use” pack.

    Some observations:
    1) CNM >> Innovation management on cloud.
    2) Core functions of PC module >> Product development on cloud.
    3) Few functions of PPM module >> Project management on cloud.
    (https://cloud.oracle.com/project_portfolio_management?tabID=1383678931420)

    Few large enterprises have done Agile implementations on their on/off premise private cloud (virtualization model). And the vast major continue to be on traditional infrastructure.

    Finally, I’m sure Oracle is actively banking upon the full-blown PLM – outside the cloud. They ought to make hay when it’s sunny – not cloudy 🙂

    Cheers, Niraj

  • beyondplm

    Niraj, thanks for sharing your observations! I guess it confirms a growing demand of customers in new PLM solutions and business models. Cloud is probably the most interesting option. In addition to that, customers are looking into mobile and other trends.

  • Niraj Singh

    My bet is on mobility and analytics for the next set of growth areas. Oracle has already built solutions wrt Analytics around Agile PLM but I’ve not understood their direction with respect to PLM Mobility outside iOS devices.
    Cheers, Niraj