The definition of cloud PLM

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