Cloud PLM debates are over. Every single PLM vendor can do it today. Even, Siemens, which is a very conservative company, can do it. If you read the following article from Siemens PLM Teamcenter blog, you will learn that you can get up and running with Teamcenter in the cloud for more or less 10 days. How is that possible?
Teamcenter customers around the world are discovering the value of deploying product lifecycle management (PLM) on the cloud using Amazon Web Services (AWS). Teamcenter is certified for cloud deployment to address the growing need for our customers to manage PLM as an operational expense, rather than an up-front investment in hardware, software, and consulting. Cloud deployment gives customers the world’s most widely implemented PLM software at an appealing price for many small to medium sized businesses.
NP Innovation, a developer of water treatment solutions, was one such company. With minimal IT staff and budget, and zero up-front investment, they recently implemented Teamcenter on the cloud using Amazon Web Services (AWS) in just 10 days.
Everything sounds really great. So, I wonder what will be the cost of the solution. I found an answer on Siemens website. Navigate here to learn more. The solution cost is 300$ / month, for pre-configured version of Teamcenter integrated with Solid Edge on premise.
The devil is in details. So, I’ve made few more clicks and found that the solution will cost $3990 / year for 10 users (minimum purchase).
What it gives you? It is hard to say. I captured the following passage from the website:
Solid Edge is a portfolio of affordable, easy-to-use software tools that address all aspects of the product development process including 3D design, simulation, manufacturing and design management. Teamcenter Rapid Start SaaS for Solid Edge on premise provides users with instant access to preconfigured product data management capabilities.
The Teamcenter Rapid Start SaaS delivery provides a simplified PDM user experience based on common best practices and the expertise of Siemens PLM Software. Solid Edge software is run on the local device, and CAD files are cached locally to optimize the user experience for designers working with complex parts and large assemblies.
It made think about cloud PLM story from a different perspective. I guess you can take any existing PLM product and deploy using Amazon servers. It will work to a certain degree, but the real potential benefit for company is cost. In such a way, the only option to take cost down is to cut product functionality by eliminating customization and setting up pre-configured simplified set of best practice. It won’t work, because even for smaller company, there are bunch of things that needs to be adjusted and I wonder how Teamcenter Rapid Start is doing it.
One of the strongest values of cloud is to improve data access, sharing and collaboration. According to Siemens PLM blog, AWS based deployment allows to people to collaborate from multiple cities. That would be a real benefit of cloud deployment, but I wonder how it will work assuming Teamcenter is still the same software, but running from Amazon box.
What is my conclusion? Will $4K annual subscription justify not buying hardware, installing Windows, SQL server and IT cost? This is a good question. Otherwise, Teamcenter is still the same Teancenter. Actually even less than a normal Teamcenter. Because cloud will make it pre-configured without ability to modify and customize it. If customers won’t buy such solution, it will be another confirmation about PLM technology not capable to scale down. However, if customers will buy this solution, it will be a confirmation of huge potential market for cloud based PLM. Just my thoughts…
Best, Oleg
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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
