The Exploring Cloud Options for Product Innovation and Development eBook shares our thoughts about the cloud software choices available for product innovation, product development, and engineering software including PLM, PDM, CAD, CAE, and more. The eBook details the different software models available and provides considerations for each. It also helps put the various options into context with a sample flowchart on the decision to identify the appropriate deployment platform for a cloud solution, including how to consider your existing vendors’ solutions in the process.
Please enjoy the summary below, or click the report or title to download the full PDF (free of charge, no registration required thanks to our sponsor, Siemens PLM).
For more information on cloud computing please visit Siemens Offers Business-ready Cloud Solutions on the Siemens site.
Table of Contents
- It’s Time for a Cloud Strategy
- Understanding the Options *
- Comparing Your Options *
- Assessing Company Readiness *
- Sample Cloud Decision Tree *
- Reviewing Vendor Cloud Maturity *
- Special Cloud Opportunities for Product Innovation and Engineering *
- Weighing the Options, Looking at Timing *
- Next Steps
It’s Time for a Cloud Strategy
The shift toward cloud computing is undeniable. An increasing number of companies are transitioning to cloud solutions in order to take advantage of significant advantages, including:
- Cost reduction
- Reduced IT resource needs
- Scalability
- Agility
- Rapid deployment
- Shifting capital investments to expenses
Software for product innovation, product development, and engineering – including PLM, CAD, and CAE – has evolved toward the cloud at a cautious pace. This market is closer to the beginning of the cloud transformation than some others such as CRM and ERP where cloud adoption is already more prevalent. But it’s happening. Initial skepticism is fading away and companies are learning how to effectively manage cloud software.
The market is responding with the entry of new cloud offerings and incumbents evolving to the cloud. For manufacturers planning to implement or replace product-related software, it’s time to develop a strategy that reflects the reality of today’s market. The strategy needs to consider:
- Cloud delivery models
- Software capabilities and scope
- Timing and transition
This eBook is intended to provide education and insight to help manufacturers develop a practical strategy to leverage the cloud appropriately while supporting their product development processes.
Next Steps
The time is right to take advantage of the cloud, but it’s not a trivial decision or transition for product innovation, product development, and engineering software. The reality of the market maturity requires companies to develop a strategy that jointly considers vendor cloud maturity, company readiness, and the availability of needed capabilities.
A considered cloud transition is important to reap the benefits without major disruption. Most companies are taking a very deliberate, methodical approach to leverage the cloud. For most, a staged program with a hybrid mix of solutions will be the most reasonable approach, as few companies can justify wholesale replacement of existing systems.
Fortunately, companies may not have to do it all on their own. They can adopt a pragmatic, staged approach that coordinates with their vendor’s timeline. Many existing vendors have predefined relationships with cloud services companies and trained service providers. These partnerships can provide an IaaS or managed services approach that provides benefits without having to replace existing software. In addition, many vendors offer complementary solutions that provide unique opportunities only realistically available from the cloud. It’s important to understand the potential of these solutions in your transformation strategy.
The transition to the cloud is underway. It’s time for manufacturers to take a closer look and develop a practical strategy and timeline that works for their business.
*This summary is an abbreviated version of the report and does not contain the full content. A link to download the full report is available above thanks to Siemens PLM.
Jim,
I like the comparison and options you presented. Manufacturing companies need them.
At the same time, I feel cloud options are presented as a tradeoff between functions and probably cost. But is not clear from the table. Less customization and integration is true when you host existing PLM systems. New SaaS PLM software won’t have same limitations for customization and integration. I think to say “reduced” about the cost for all 3 cloud options is not right. There is a huge difference between cost of multi-tenant SaaS software and managed services hosting existing PLM infrastructure.
More of my thoughts is on my blog – Chasing the right PLM cloud (http://beyondplm.com/2016/10/06/chasing-right-plm-cloud/).
I’m happy to discuss it.
Best, Oleg
Oleg,
I’m not sure I’m following you 100%. Cloud options have multiple tradeoffs including cost, resource needs, and more. The table doesn’t cover everything.
As far as integration goes, it really depends on the type of integration we’re talking about. If the SaaS software makes the right APIs available, then integration can be relatively easy – see http://tech-clarity.com/cloud-plm-integration/2941. But you typically don’t have full control to add new APIs or go directly to the database. We could argue about whether or not you should integrate that way, but let’s face it there are always unique situations.
About the cost, you are correct that the cost savings for managed services are not as great as multitenant SaaS cost savings. I didn’t get very granular on the cost savings.
Did I miss any of your concerns?
Thanks for the discussion,
Jim
Jim,
I agree- integration for SaaS system is dependent on API, otherwise you need to hack the system and it is not always possible. From that standpoint hacking SaaS based system is not different from hacking SQL databases for traditional PLM systems. And, as you know, even you inject SQL queries into database directly by passing API, it is not 100% guarantee of success. Talk to any PLM service provider and they will give you long story how they do it for different existing PLM systems available in the market today.
I think, we are on the same page about “cost”. I can argue existing SaaS PLM systems are still expensive is because their architecture is not significantly different from managed services. Read last comment from Marc Lind on my blog here- companies are running pre-bought Azure machines. I’d not call it SaaS. This is IaaS based hosting.
Great discussion! Thank you,
Oleg