Did you pay attention what happened to cloud storage? I’m sure you did. The cost is racing to zero. You can get basically any storage size you want today. Even more, cloud giants like Google and Apple are promoting additional services with unlimited storage capacities.
Cloud giants are building their businesses on top of free cloud storage businesses. The following article by TechCrunch can give you a short explanation about that – The race to zero is awesome. Here is my favorite passage:
In cloud storage, the large players are working to build apps on top of their storage stack, so that they can have a unique value proposition when the price of storage itself finally reaches nil. In cloud computing, it could be that the value add that the large players will use to compete will be their app environment. If you build for, say, Google’s app ecosystem, your cloud compute might be free. If Google’s app ecosystem is the best, you’ll want to work over there, but you wouldn’t if Google didn’t offer competitively priced cloud computing; smaller players could use that to their advantage, and potentially hem in on Google’s business. So compute prices would be pretty uniform across the industry, falling in near unison. That is, of course, precisely what we have seen with cloud storage prices.
You may ask how does it connect to CAD and PLM? Here is the thing- I think there is a disruptive play in creating applications and business models. It will result in changing of fundamental functional and business behaviors. Free storage is convenient – many of us are using free storage to keep our information. It is accessible and reliable. It is getting better in terms of security.
In my earlier article last week, I’ve been talking about “unicorns” – startup companies valued by private investors for $1B and more. Engineering community got its own unicorn – Onshape. The interesting aspect of Onshape is a new business model – you can use Onshape for free if you agree to limit the number of projects to ten (as I’m writing this article, but the original number when Onshape just released their beta was five). Another important aspect of Onshape functionality is product data management. Onshape keeps the history of all updates and allows you to back to any point in a history of your CAD models. In my view, this is an example of how to combine a desired business functionality with free storage.
I can see a direct correlation between cost and new technologies. The scale and ability to grow elastically can be a game changer for CAD and PLM technologies to grow faster and cost less than before. Another place where we can see a significant growth these days is IoT and hardware development. The cost of hardware components is going down. The cost of prototyping using 3D printing and other online services is going down tool. The result – a growing number of hardware companies and manufacturing services. It will demand new type of software tools – cloud, agile and cost-effective.
What is my conclusion? Storage is an essential component in business. In my view, Onshape is just first example in a row of CAD / PLM companies building solutions on top of cloud platforms. Two PLM examples – Autodesk PLM360 and Arena solutions. Both products are only available as cloud SaaS services which allows to optimize it for cloud infrastructure. Free cloud storage can become disruptive platform to build cloud solutions that can grow and adapt elastically to the demand of users. It brings huge potential to develop new solutions we never seen before. Just my thoughts…
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