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Cloud

PLM and Microsoft Azure Cloud In A Box

by Oleg on October 22, 2014 · 0 comments

ms-azure-cloud

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 very soon.

For those who is looking for alternatives, especially within private cloud zone, the last update from Microsoft can be a very good news. Navigate to the Business Insider blog – Microsoft’s Satya Nadella Just Fired A Shot At HP And IBM. Microsoft turns to Dell to create a new computer server. Here is the passage which provides more info:

The new computer is called the “Microsoft Cloud Platform System” and it will be a mini-version of Microsoft’s cloud, Azure, that enterprises can install in their own data centers. By using this server, enterprises can easily move applications from their own private data center to Microsoft’s cloud and back again. (In geek speak, this is called “hybrid computing”.)

Some more details came from CMSWire blog earlier today – Take a Seat Google, Amazon: Microsoft’s Cloud Wins the Day. So what is that Microsoft Azure Cloud in A Box. Here is the definition of a “Box”:

...new Azure-like appliance that Enterprises can deploy in their own data centers. It has been designed specifically to handle big data workloads (32 cores, 450 gigabytes of RAM and 6.5 terabytes of local solid-state drive storage). Officially named the Microsoft Cloud Platform System (CPS), powered by Dell it is, in essence, an “Azure consistent cloud in a box” with pre-integrated hardware from Dell and software from Microsoft.

I captured the following architecture shot from WinITPro article:

plm-azure-in-a-box

It made me think about what is the potential impact and opportunity for PLM vendors. For most of them, alignment with Microsoft can be very beneficial. In the case Microsoft will do hard work and promote their Cloud Platform System to CIOs of large enterprise companies, PLM can be the icing on the cake. So, on the surface it all looks good. Especially, for PLM vendors especially fully aligned Microsoft software stack. I guess Microsoft partnership programs can provide some additional benefits too.

The issue I’d like to question is related to data layer. Most of large PLM deployments today are running on top of Oracle database. Oracle has their own cloud plans – Oracle cloud PaaS will provide a magic button for PLM. The availability of Oracle DB as part of Azure Cloud Platform can be questionable and become an issue to move PLM systems to Azure.

What is my conclusion? The devil is in the details. This is the best way to describe the status of cloud PLM software architecture today. PLM vendors are developing their own cloud strategies. Manufacturing companies are looking for the easiest path to the cloud. We will see some interesting moves from both sides. A good time for PLM architects and tech advisers. Just my thoughts…

Best, Oleg

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kenesto-edm

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 party apps with hints about some Kenesto functionality around file synchronization and cloud data management. It was a good alert that Kenesto is preparing some refresh. The following Kenesto press release caught my attention yesterday – Kenesto Extends Engineering Collaboration with New Vaulting and State-of-the-art Desktop File Synchronization. I found it interesting, since it moved Kenesto from process management cloud tool into something bigger – data management and vaulting. Back in 2012, I thought, that ability to handle engineering data is a big differentiation between traditional PLM system and cloud process management tool like Kenesto. The following passage from Kenesto press release can give a short description of the shift Kenesto made – it moved into data and file management space.

Kenesto today announced the full availability of its latest innovations – file vaulting and a pioneering file synchronization service – to enable mainstream design and engineering firms to more easily and effectively collaborate and manage their data. Kenesto’s latest capabilities also work well in conjunction with such design tools as Creo®, SolidEdge®, SolidWorks®, and Spaceclaim® for manufacturing customers and also Revit® for AEC customers, to enable file management and sharing across design workflows. This is all done while also ensuring proper handling of updates to component and assembly models connected to items and bills-of-material, for example.

I made a trip into Kenesto website. It presents a broad range of solutions – engineering design management, change management, procurement and supplier collaboration, program and project management. These are traditional PLM suspects. However, some of solutions are clearly outside of typical PLM domain – management of marketing program, PR and advertising, idea management.

Kenesto features are covering wide range of capabilities – projects, dashboard, reporting, document management, vaulting, web viewing, workflow and task management. My special attention caught  Enterprise-class File Synchronization. This is an interesting feature and it made me think about cloud PDM functionality and cloud file sharing. My blog- Cloud PDM ban lifted. What next? speaks about growing interest of PLM and other vendors to apply cloud technologies to PDM – space that traditionally tried to avoid cloud-touch. So, Kenesto just joined the cloud of cloud PDM vendors and I need to add Kenesto in the list of companies open for cloud PDM competition.

kenestoDesktopSync

What is my conclusion? It looks like Kenesto decided to change the trajectory of Kenesto technologies and moved from process and workflow management to a full scope of product data management and lifecycle solutions. I guess Kenesto prefers not to use traditional PDM, PLM buzzwords. However, Engineering Data Management (EDM) acronym made me feel a bit nostalgia… At the same time, cloud sync and in-browser office files editing tools can provide an interesting differentiation in cloud-era. Just my thoughts…

Best, Oleg

Disclaimer: Kenesto didn’t sponsor and didn’t influence content of this blog post.

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How cloud pricing war will affect PLM?

by Oleg on October 3, 2014 · 4 comments

plm-and-cloud-price-war

Large infrastructure cloud providers are slashing prices. TechCrunch article Nobody Can Win The Cloud Pricing Wars is providing some additional details about the situation. The same article speaks about the moment when CIOs won’t be able to ignore the pricing advantage:

Earlier this week, Google lowered prices 10 percent across the board on their Google Compute Engine cloud platform . The cost is getting so low, it’s almost trivial for anyone to absorb the costs of running infrastructure in the cloud, but you have to wonder as the cloud pricing wars continue, how low can they go and if it’s a war anyone can win.

In spite of the low prices, there are still plenty of companies talking about the cloud with disdain and fear, but the fact is how long can CIOs ignore pricing as it goes this low? It doesn’t make good business sense, and whatever risks a large enterprise believe they might face with cloud services, it has to be offset by the plunging costs.

Are you confused by comparison of cloud infrastructure prices? You are not along. GigaOM article provides one easy chart that will help you to demystify cloud prices.

RBC’s formula condenses cloud services into one unit price based on “total spend per GB of RAM,” which includes storage, compute, memory, I/O and other base features. That makes it easier to compare cloud pricing across vendors. Per a research note from RBC analyst Jonathan Atkin this week, the second half of 2014 saw less price cutting than the first half — which included a round robin of competitive cuts from Google, Amazon and Microsoft in March. 

RBC-cloud-price-per-GB-RAM1

The devil is in details and I’m obviously interested to see how it will impact (or not) PLM vendors. When it comes to “cloud”, not all PLM vendors are the same. While most of them are publicly announced cloud strategy, the diversity of cloud solutions is pretty much high – public cloud platform, leveraging IaaS cloud layer and developing of colo-hosting solutions.

It is important to see business aspects of cloud PLM. Thomasnet article by Verfi Ogewell PLM Market Faces Challenges, Hints at Possibilities provides an interesting perspective on PLM market and impact cloud PLM created. Read the following passage:

One problem in assessing PLM investments for 2013 and beyond has to do with the changing licensing models, a matter which to some extent is connected to merging technology platforms, like the cloud. Increasingly, vendors are moving from paid-up licensing models to subscription models. Paid-up models have annual maintenance fees in the range of 18 to 22 percent of the license purchase price. Subscription models demand payment each year that is in the range of 30 to 40 percent of today’s list software pricing.

Has the hype around PLM in the cloud resulted in customer investments? So far, the answer is no. In fact, it may be the other way around. The cloud has affected the pricing and results on the on-premise market negatively, plus, while many PLM vendors have offerings, most have yet to see any real returns on their investments. Meanwhile, the discussion of SaaS (software-as-a-service) has created expectations of at least more effective pricing models. This picture may change quickly if the new business models for delivery and support of PLM act as triggers for greater investments.

So, what will cloud infrastructure price drop means for PLM vendors? My hunch, this is a good news for PLM vendors hosting their solution on IaaS infrastructure. This is very costly option, especially with existing “on-premise” single tenant PLM architecture. Lower price will allow to PLM vendor to adjust their expenses. It can be even more beneficial for vendors building optimized cloud PLM multi-tenant architecture. However, it probably won’t impact vendors focusing on private and hybrid cloud infrastructure. While regardless on PLM architecture, 50% of PLM project is services cost provided by vendors and implementers, the overall impact of infrastructure cost will have less impact.

What is my conclusion? Cloud pricing war will impact customer mindset. It will increase customer demand to lower cost of PLM solutions. It will shift CIO’s perspective on how to leverage cloud infrastructure in their business. Low cloud infrastructure cost won’t make cloud PLM software free tomorrow. At the same time, it will help PLM vendors to adjust overall cost of PLM services and implementations. Better architecture of cloud PLM solutions will help vendors leverage offsets in infrastructure cost to bring more cost effective PLM cloud services. Just my thoughts…

Best, Oleg

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Oracle Cloud PaaS will provide a magic button for PLM

September 29, 2014

Cloud PLM architecture and implementations is one of the topics I’m following for the last few years. It is interesting to watch dynamics of this space from initial ignorance to careful recognition and marketing buzz. I can see differences in how PLM vendors are approaching cloud. In my view, nobody is asking a question “why […]

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What cloud PLM cannot do for you?

September 19, 2014

It has been already few years since I started to discuss cloud PLM opportunities on my blog. I found one of my early blogs about PLM and cloud – PLM and cloud: hold the promise? So, what changed since then? Actually, quite a lot… We’ve seen massive adoption of cloud and mobile by businesses in […]

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3 security related questions to ask your PLM cloud provider

September 12, 2014

Cloud is getting wider adoption these days. An interesting trend I observe for the last year – customer are asking less questions about security. It was different 3-5 years ago. Everyone got concerned about cloud solutions security. Specifically for PLM domain, customers got concerned about company IP (drawings and other engineering-related materials that can be […]

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CAD, PLM and Top 500 cloud app vendors list

September 5, 2014

The cloud is growing. Few years ago, some of us had a concern if cloud is fad and it will over fast. Since that time, we can see many new companies in cloud space as well as many companies turned their development efforts completely towards the cloud eco-system. If you like research, ranks and comparison […]

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What the Dropbox price drop means for engineers and cloud PDM?

September 2, 2014

Cloud storage is an interesting place these days. In my article CAD companies and cloud storage strategy few weeks ago, I discussed the aspect of cloud storage business. Cloud storage companies want your data and for that purpose they will make it very easy for you to sync your data into cloud storage. Dropbox just made […]

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PLM upgrades, release cycles and legacy software

August 19, 2014

Do you know what is legacy software? Earlier today,  Marc Lind of Aras Corp. challenged me by his twitter status about companies complaining about legacy PLM systems and upgrading. Here is the original passage from twitter here and here. “a lot of people complains about legacy PLM and a lot of companies that have legacy PLM […]

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Why now is the right time to reinvent PDM?

August 15, 2014

Product Data Management (PDM) isn’t a new domain. The first PDM systems were invented 20-30 years ago with a simple objective – to manage product data. The scope of PDM was heavily debated and included design, engineering BOMs, ECO and even supply chain. However, the most widely accepted role of PDM is to manage CAD […]

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