My earlier attempt to compare PLM vendors and cloud services raised many comments online and offline. I want to thank everybody who commented and shared your insight – it helps me to build a next version of comparison table. Also, I can see an importance of open discussion for the future of cloud PLM industry.
One of the most debate topic is the definition of SaaS. The questions and opinions are keep coming. Can we qualify a particular solution as SaaS? What are characteristic of SaaS product from technological and business perspective? And finally… can we define what is “true SaaS”? I want to step back and talk about SaaS first. Below is the definition by Wikipedia. You can learn more here – Software as a Service.
Software as a service (SaaS; pronounced /sæs/ or /sɑːs/) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”. SaaS is typically accessed by users using a thin client via a web browser.
This definition leaves a lot of flexibility and, of course, doesn’t reflect multiple aspects of product and technology – the core source of disagreement about what is “true SaaS”. I want to focus on some of them – product portfolio, subscription business model, IaaS and hosting, product versions and releases, upgrades and thin/think client access.
1- Product portfolio. This is a question about cloud and on-prem portfolios. Do you believe company can be providing both traditional PLM software and cloud (SaaS) software. For large companies it is mostly part of their strategy. It is a tricky balancing act of selling existing products and moving into the future. For smaller companies, it is a question about their focus.
2- Subscription business model. Most of subscription-based products are tagged with a price per user / per month. Is it a model you want to follow? Do you expect paying monthly? Is it just a way to advertise the price? What is the additional cost associated with product deployment, operation, support and services.
3- IaaS and Hosting. There are multiple sources of infrastructure for cloud software these days. You can run it using services like AWS and Microsoft Azure. Alternatively, you can host it using variety of hosting providers. If your business is large enough, the question about company datacenter can come .
4- Product versions and release. An important question about availability of multiple versions and configuration of your products. The option to keep a single version of truth for your cloud product has lot of advantages. But at the same time, it can raise a concern from IT folks thinking about how to make cloud product compatible with other software running by a company.
5- Upgrades. The topic of software upgrades is painful. Who is responsible to upgrade your environment when product is moving to the next release? Cloud software vendors are traditionally responsible for infrastructure and upgrades. But some specific customizations and configurations can complicate things.
6- Thin vs. Thick clients. Do you think “cloud” is equal “browser”? For some people, the answer is clear yes. Do you think browser access is an ultimate characteristic of “true SaaS” software? You can decide what is important for you, but consider the implication of managing software installed on mobile devices, laptops and desktop computers.
What is my conclusion? The devil is in details and SaaS definition brings many questions. I’m working on a next version of PLM cloud services comparison between vendors. It is a competitive space and vendors will have to work to explain their products and technology. To say “cloud” is not enough. SaaS has no simple definition. To understand multiple characteristics of SaaS is important to take a right decision about what is a right solution for you. Just my thoughts…
PS. If you have specific questions, please reach me out via email – oleg [@] beyondplm [.] com
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