A blog by Oleg Shilovitsky
Information & Comments about Engineering and Manufacturing Software

PLM Cost and Enterprisey Clouds

PLM Cost and Enterprisey Clouds
Oleg
Oleg
29 December, 2011 | 2 min for reading

PLM is a costly piece of software. Software licenses, installation, implementation, support, services. All these components of PLM software make the decision of manufacturing companies to adopt PLM software questionable. In the past, out-of-the-box solutions promised by software vendors claimed to decrease PLM software TCO. However, it was only a promise. These days “cloud” perceived as something that can make this change. If you listened to Autodesk Buzz Kross recently, you probably noticed the following passage from Autodesk Nexus 360 announcement:

“Our approach to PLM is a sharp contrast to the decades old technology in the market today,” said Robert “Buzz” Kross, senior vice president, Manufacturing Industry Group at Autodesk. “Autodesk 360 for PLM will enable customers of all sizes to achieve the full promise of PLM with a scalable, configurable and intuitive solution.

The following slide presented a month ago during AU 2011 shows that Autodesk approach is to provide much more affordable PLM solution.

Cloud and IT’s bluff

I was reading blog article by David Linthicum. One of the topics discussed there was related to efforts made by cloud providers to provide solutions acceptable by enterprise companies. The questions of security and data replications are probably on the top of the list by many providers. One of the solutions mentioned was Google’s high availability data replication (so-called high-Replication Datastore). At the same time, according to David, introducing multiple “enterprisey” features can remove a potential to provide affordable enterprise-cloud solutions. Here is the passage:

The problem I have with this process is that much of what’s valuable in the world of cloud computing is the simplicity and cost advantage — which is quickly going away as cloud providers pile on features. The good news is that enterprises won’t have an excuse not to move to cloud computing, and adoption will accelerate in 2012 and 2013. However, as cloud offerings appear to be more and more like enterprise software, the core cost advantage of cloud computing could be eroding.

What is my conclusion? The key to make cloud solution cost effective is to keep the right balance between enterprise IT requirements and capabilities of cloud-based software. Some of these “enterprisey” cloud requirements are reasonable, and some of them are typical “red-herring”. We are going to watch the process of balance finding in the next few years. Just my thoughts…

Best, Oleg

Image: scottchan / FreeDigitalPhotos.net

Recent Posts

Also on BeyondPLM

4 6
24 October, 2016

Customization is a bad word in jargon of PLM implementations. The modern lingo brings us a new politically correct word...

23 June, 2020

My yesterday post about Teamcenter X and SaaS PLM raised a significant number of comments online and offline. Many of...

13 April, 2017

While PLM research and analytic companies are running cloud PLM surveys to understand what causes slow cloud PLM adoption, manufacturing industry...

12 September, 2012

CAD and PLM means a lot of data these days. Thinking about growing complexity of products, the amount of information...

30 November, 2015

Culture is eating strategy for breakfast and technology for lunch. While to create new technology and develop tools is an...

21 August, 2012

As you probably know, Excel (or spreadsheets) is one of my favorite topics. Despite the multiple efforts of software vendors...

1 February, 2011

The conversation about cloud is trending these days. Earlier last week, during SolidWorks World 2011, I had a chance to...

26 March, 2012

I’ve been reading twitter stream during my short weekend at home. One of the tweets from Randal Newton caught my...

26 June, 2009

Well, Product Lifecycle Management sounds like a very profound concept. I can see organizational benefits, values, etc… etc… But I’m...

Blogroll

To the top