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Cloud

Why all PLM software will be SaaS soon?

by Oleg on November 26, 2014 · 0 comments

plm-cloud-dream

I’ve be sharing many of my thoughts about how different cloud technologies can be used to implement PLM. Nevertheless, once in a while, I’m also getting comments and questions about acceptance of cloud PLM for large companies. Usually, it comes in the intersection of security and readiness of large manufacturing companies for cloud (SaaS) software.

TechMVP article – The benefits of SaaS transformation: both the obvious and non-obvious shows some very interesting perspective on that topic. Let me go straight to security question:

The second common objection stems from the thought process amongst large enterprise CIOs regarding whether to allow certain applications to live outside of the enterprise’s firewall.  IT managers and executives – sometimes speaking about legitimate security concerns and sometimes speaking to protect their jobs – stand in the way of core applications moving to the cloud via a SaaS vendor.  At the same time, these same decision makers have adopted Salesforce.com for CRM, and allow unencrypted email between employees and non-employees, thus calling into question the sincerity of their argument against other SaaS applications.  The successful adoption of CRM in the cloud has opened the floodgates for virtually all other types of applications to move to the cloud even over the objections of certain IT managers.

Towards this end, we have seen in recent years the advent of ERP (FinancialForce, Workday), Marketing Automation (Eloqua, Marketo), and Software Development or ALM (GIT and Rally Software) in the cloud.  These types of applications manage information that is often considered the “crown jewels” of corporate data, and thus are the types of applications that some thought would never take root in the cloud.

I can observe a significant growth of SaaS software adoption by manufacturing outside of pure engineering domain. You can see software in different categories – ERP, CRM, marketing, project management, software lifecycle management and many others. Imagine manufacturing product with software code managed using GIT? What will be the point to reject PLM system managing engineering bill of materials in the cloud?

Another interesting perspective is related to creation of new software companies. The graph below demonstrate a complete dominance of news business starting SaaS companies.

saasapps

One more data point is coming closer to PLM business and related to implementation of ERP systems. Panorama consulting solutions published an interesting 2014 ERP report, which speaks about type of ERP systems implemented in 2013. As you can see SaaS and hosted system is accounting together for 96% of all systems.

type-of-erp-software-2013

What is my conclusion? I wonder what percentage of new PLM systems implemented in 2014 will be SaaS. The number is probably not very high. However, traditionally, it takes long time to decide about PLM system. My hunch, that broad adoption of SaaS software in other domains will push manufacturing companies to evaluate more PLM systems and make their decision faster than before. SaaS lower risks and upfront cost, which can be an additional factor for manufacturing companies to taste cloud PLM sooner than later. Just my thoughts…

Best, Oleg

photo credit: Robert Hensley via photopin cc

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DIY Cloud PLM using Aras Innovator

by Oleg on November 14, 2014 · 2 comments

diy-cloud-plm

I’m continue to explore the topic of cloud PLM options. My last blog post about it covered delivery options for cloud PLM. It raised few interesting discussions showing that vendors are closely following up any opportunity to leverage a combination of existing PLM platforms and cloud infrastructure. IaaS is a technical buzzword behind this option. It researched by many PLM vendors. I discussed one of them in my Azure Cloud Box blog post.

Today, I want to speak about another option. My attention caught Minerva blog post - Tutorial : How to start an Amazon EC2 cloud server all prepared to install Aras Innovator! It provides step by step instruction how to make your first step in cloud PLM strategy. As I mentioned many times, Amazon Web Services (AWS) is remaining one of the most widely used option to deliver IaaS strategy. If your cloud PLM vision is mostly focused on how to reduce a burden of IT and infrastructure, you may consider “Do It Yourself” cloud option by deploying your existing PLM system to Amazon based servers. The following passage below says it is sometimes tricky to install Aras, but if you will follow steps explained in this blog, in 1 hour you will have Aras running from AWS cloud.

The Aras Innovator install is still extremely simple. Of course I say that because I already tried to install other solutions and I went in some training for other solutions and it has always been a disaster to uninstall these. The first day, you spend it installing the solution, the day after you copy the virtual machine of another trainee as it failed… This doesn’t happen in an Aras training. But Aras Install can fail sometimes, it always rely on your windows server and IIS configuration. But as long as you follow the tutorial you should be just fine. In less than 1 hour you should have Aras Innovator Up&Running starting from scratch!

The idea of Aras on AWS made me think again about IaaS approach in cloud PLM. The biggest advantage – you can get rid of infrastructure and IT by moving to Amazon. Aras Innovator is an interesting option. If you opt out Aras subscription and limit yourself to Aras enterprise open source, the cost of solution will be equal to your Amazon bill. Of course, I’m not counting implementation cost and cost to handle Amazon servers. It can give you some idea about fundamentals of cloud PLM economic related to potential of infrastructure sharing and servers utilization.

What is my conclusion? In the past, I’ve been discussing “DIY PLM option” by combining Excel spreadsheets, email and multiplying it by some database development skills. That was DIY PLM circa 1995. These days, cloud PLM also has its DIY option – to reuse existing PLM software from IaaS based cloud servers. This is a very real option you can explore to learn about benefits and pitfalls of cloud PLM. Just my thoughts…

Best, Oleg

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The definition of cloud PLM

by Oleg on November 7, 2014 · 2 comments

cloud-plm-def

PLM industry is moving towards broader adoption of cloud solutions. More people these days are asking how to implement cloud. It becomes more and more clear that devil is in details and cloud environment can be very different. It comes in variety of aspects related to infrastructure, support of browsers, the need to have elements of software installed on your desktop and mobile devices.  It depends on many options. I’ve been touching some of them in my earlier blog – PLM cloud options and 2014 SaaS survey.

As part of overall eduction about cloud technology, it is not unusual to get a question about what is definition of cloud solution in general and more specifically – cloud PLM. I’ve been reading CIMdata commentary – Next Generation Cloud-Based PLM Solutions. I found the following passage as a good summary of cloud PLM definition:

1- On-demand solutions with new cost models that have lower upfront costs for software licenses, subscriptions, or rights-to-use, allowing smaller companies to afford PLM

2- Hosted computing services and environments that do not require investments in infrastructure, providing access to information for anyone at any time while minimizing administrative overhead

3- The ability to add and increase scope of capability and the performance of the solution and processes without requiring additional investment in the underlying IT infrastructure

4- Global access to required application functions, information, and processes

CIMdata’s cloud PLM definition combines some technical aspects blended with business and licensing characteristics of PLM solutions. In my view it is clear indication that cloud PLM story is not pure technology. Customer demands are to find solution that solves multidisciplinary problem of system – technological, business, licensing. It is also shows the fact customers are dissatisfied with today’s business practice of PLM software licensing.

What is my conclusion? The technology and business are going together. Cloud PLM is about to solve customer problems in different aspects – improved business models, low cost and better experience. However, in my view, an interesting part of cloud PLM innovation can be related to the part of PLM system implementation. For many years, implementation was one of the most complicated element of PLM. It takes time to adjust system, capture business processes and set up tools to run and optimize product development. The first PLM vendor who will crack how to leapfrog PLM implementation using cloud business model and technology can gain a significant competitive advantage. Just my thoughts…

Best, Oleg

photo credit: JD Hancock via photopin cc

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Cloud PDM hack with Google Drive and other tools

November 6, 2014

Earlier this week I talked about future of ubiquitous CAD cloud drives. My hunch CAD and other engineering software companies will be trying to use new cloud technologies to improve the way people collaborate on design. The question what tool to use for CAD file collaboration is not simple. I discussed it last year – […]

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Competitive edges of SharePoint and PLM collaboration

November 5, 2014

SharePoint is an interesting product and technology. I’m following it already few years. I can see some kind of love and hate relationships between PLM vendors and Microsoft SharePoint business. You can catch up on some of my thoughts about SharePoint in my previous posts – SharePoint PLM Paradox; Why PLM should care of SharePoint?; PLM […]

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The path towards ubiquitous CAD cloud drive

November 4, 2014

I’ve been talking about future of cloud file system and CAD data trajectories the other day on my blog. It goes back and connected to multiple discussions about future of file system. What will be future of file systems and file paradigm. Can we announce the death of file system? So, file system is dead, […]

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PLM cloud options and 2014 SaaS survey

October 24, 2014

The number of SaaS businesses is growing these days. You probably had a chance to read my CAD, PLM and Top 500 cloud app vendors list few months ago. However, one size doesn’t fit all. This is certainly true about engineering software and PLM. As PLM companies are moving to the cloud, we want to learn […]

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Why to ask cloud PLM vendor about Devops and Kubernetes

October 23, 2014

I want to continue the theme of how do we move to the cloud. While Amazon remains one of the major providers of elastic computing services, other options are emerging too. If you consider to move your PLM initiatives to the cloud, you might do some analysis about how actually cloud PLM can be made. […]

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PLM and Microsoft Azure Cloud In A Box

October 22, 2014

How do you move to the cloud? This is one of topics I’m discussing on my blog for the last year. The last time, I took a swing towards public cloud. Navigate to my PLM vendors, large manufacturers and public cloud article for more information. However, not everybody will move to public cloud. At least not […]

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Kenesto revamp: does it change cloud PLM game?

October 16, 2014

It has been more than two years since I was reviewing Kenesto – an outfit founded by Mike Payne with the a strong vision to simplify process management. Navigate to the following article PLM, Kenesto and process experience to refresh your memories. Steve Bodnar of Kenesto put comments on my blog about Google Drive and 3rd […]

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