Whoa… PTC is selling 70% of its PLM on the cloud

Whoa… PTC is selling 70% of its PLM on the cloud

Earlier this year, I learned from CIMdata that cloud PLM is not doing very well. CIMdata announced collaborative research sponsored by major PLM vendors to learn about cloud PLM adoption. Check this link. According to Stan Przybylinski, Vice President of Research, CIMdata, vendors should be more vocal about benefits of new approach and also present clear differentiation between on-premise and various cloud options.

I was very much surprised when I’ve seen PTC webinar with the introductory note that 70% of new PTC PLM deployment are actually happening on the cloud. PTC probably learned something important from CIMdata research.

Hear why 7 out of 10 of PTC’s new customers chose PLM in the Cloud over the past year. Watch the webcast to see why our PLM Cloud solution is the industry’s most flexible, scalable and superior PLM Cloud solution. See how you can: 1/ Innovate through data-driven product design.; 2/ Activate PLM capabilities faster in a secure environment.; 3/ Scale PLM with the needs of your business.4/ Establish your IoT foundation with industry leading PLM… Complete the form to watch the on-demand webcast.

At the time that I wrote this blog, the information is available on the following link. You can reply the webinar and get information about PTC PLM cloud configurations and options, cost and deployment methodologies. I signed with my email and got all these slides that I, of course, cannot share in my blog.

PTC is hosting Windchill to get it down with different configurations as well as selling you a-la-carte options for additional price. PTC is not publishing prices in an open way, which, in my view, is not a typical practice in SaaS business. However, by providing your email on the following page, you can get prices. I gave my Beyond PLM consulting email there and got prices. Navigate here  to get them too. There is no simple way to calculate subscription cost, but for large automotive supplier, I can easy get to $1M annual subscription cost. And small manufacturing OEM can go with $100-200K annual subscription. The devils is in the details, but PLM isn’t cheap. Tell me if you agree with my assessment after you look on PTC PLM cloud prices.

Which made me think about PLM cloud development strategy. You probably remember my earlier post – Cloud PLM: From servers to multi-tenant applications. I want to remind you this picture.

PLM vendors (and PTC is a great example) are clearly moving towards hosting PLM servers and providing services with dedicated hosting to their companies. It simplifies deployment, eliminate IT cost and removes burden of PLM upgrades from customers to vendors. And a result is new PLM cloud silo created for each manufacturing company combined with highly priced subscription cost.

What is my conclusion? PLM vendors are moving from PLM on premise to vendor owned PLM cloud silos. It will provide advantages to manufacturing companies (low IT cost and complexity of deployment and migrations), but it will not eliminate two major PLM challenges – how manufacturing companies can work together in a distributed environment and how to make PLM simple and affordable. Just my thoughts…

Best, Oleg

Want to learn more about PLM? Check out my new PLM Book website.

Disclaimer: I’m co-founder and CEO of OpenBOM developing cloud based bill of materials and inventory management tool for manufacturing companies, hardware startups and supply chain. My opinion can be unintentionally biased.

picture credit ptc.com


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