Taking a historical perspective is always an interesting experiment. I do it from time to time with my blog. In one of my very first Beyond PLM blogs back in 2008, I shared the idea of cloud services-based CAD tools using S3 storage to retrieve data. The concept sounds obvious now—yes, we can store data in the cloud and use it to manage our design projects. Another historical article from the same period discusses What PLM Can Do with MS Excel and SaaS/Cloud Services, exploring the idea of connecting Excel-like user experiences to PLM databases. What was considered unachievable in 2008 is now desired and widely appreciated by customers. The examples of cloud native services such as Autodesk Platform Services, Onshape, OpenBOM, and others can demonstrate your capabilities of new services and applications. But, this is just a beginning and more is coming. Let’s talk about it today.
In my 2025 PLM Trends insight published earlier this week, I discussed AI agents and co-pilots that have the potential to revolutionize everyday activities and business tasks. This is particularly intriguing because today, an “agent” that collects information and orchestrates an Engineering Change Order might still sound like science fiction.
Evolution of SaaS
Microsoft CEO Satya Nadella shared his vision of SaaS evolution a few weeks ago. I highly recommend watching this short video—it’s just a few minutes long and provides valuable insight into the future direction of business software:
Here’s a quick summary of his vision:
Satya Nadella envisions the “end of SaaS” as a shift from standalone applications to an AI-driven, interconnected ecosystem seamlessly integrated into workflows. Traditional CRUD (Create, Read, Update, Delete) operations, once confined to discrete apps, will evolve into dynamic, AI-enhanced processes embedded across platforms. This transformation emphasizes hyper-connectivity, personalized insights, and contextual intelligence, breaking down silos to deliver smarter, more adaptive user experiences.
In this paradigm, SaaS becomes a composable set of building blocks within interoperable digital ecosystems. CRUD functionality transforms into a unified layer, enabling users to manage and manipulate data effortlessly across their workflows. AI-powered tools make these operations intelligent, proactive, and outcome-focused, embedding intelligence at every layer of technology to enhance productivity and collaboration without the friction of switching between isolated systems.
Where is PLM SaaS in This Story?
The evolution of AI agents and multi-storage CRUD services is fascinating, especially when considering the realities of modern PLM applications. Traditional PLM systems relied on RDBMS databases, much like the legacy systems described by Nadella. Modern PLM platforms, however, bring polyglot persistence data architecture, utilizing multiple databases.
Using multiple databases is just the beginning. Consider Collaborative Workspace applications for change management , which I discussed a few weeks ago. These applications integrate data from multiple sources and provide a foundation for decision-making and collaborative processes, often enhanced by co-pilots and AI agents.
So, where does PLM SaaS fit? Here’s the interesting part: traditional PLM SaaS applications will evolve into services that can be recombined by Collaborative Workspace solutions to deliver data. In this approach, a Collaborative Workspace becomes a “data canvas,” much like Nadella’s vision for Excel + Python integrations.
Future CAD Stack and AI
I recommend checking out Baukunst’s second Study Group, “Contours of CAD and AI”, published in September 2024. It explores how emerging AI and machine learning technologies could revolutionize computer-aided design (CAD) across industrial design, engineering, and construction. The discussions also highlight opportunities for startups to create innovative tools and establish sustainable businesses in this evolving landscape.
Picture credit Baukunst VC fund
The study includes a compelling visual representation of the product development process, showcasing how multiple applications combine to deliver integrated information. This aligns with modern PLM platforms, which deliver collaborative services for design review, change management, cost assessment, and more, integrating data from CAD, PLM, ERP, CRM, and other business systems into a new AI-powered application layer.
Will PLM Platforms as We Know Them Die?
Remember when 3D CAD vendors predicted the demise of 2D drawings? Three decades later, 2D drawings remain integral to manufacturing processes. The lesson here is that change in manufacturing is slow.
PLM databases, much like CRM databases, represent a corpus of System of Record (SOR) data. This data is essential for organizations and won’t disappear overnight. However, the future belongs to a new generation of PLM services—like Collaborative Workspace Change Management—that integrate data from multiple sources and orchestrate the work of engineering and manufacturing teams.
What’s My Conclusion?
We are living in an exciting era of business application development. The focus is shifting from applications to data. Early examples of this trend include replacing traditional RDBMS-based PLM platforms (and even modern SaaS PLM systems) with services that leverage graph data models, integrate data from multiple applications, and orchestrate work using AI agents and co-pilots.
This shift serves as a critical reminder for PLM architects, CAD/PLM vendors, and industrial companies to prepare for modern PLM platforms that will complement existing SOR systems.
Just my thoughts…
Best,
Oleg
Disclaimer: I’m the co-founder and CEO of OpenBOM, a digital-thread platform providing cloud-native collaborative services including PDM, PLM, and ERP capabilities. With extensive experience in federated CAD-PDM and PLM architecture, I’m advocates for agile, open product models and cloud technologies in manufacturing. My opinion can be unintentionally biased
