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Does PLM Belong in the Cloud?
26 Jan, 2012 By: Eric MarksAccessing data, processes, and business intelligence in the cloud can help global companies leverage critical resources and manage complex analytics — if it's done correctly.
There is a lot of talk about cloud computing today, and its exponentially growing presence among enterprise technologies, particularly product lifecycle management (PLM). The adoption rate of PLM "in the cloud," however, has been slow. Customers are having a difficult time deciphering when, how, and even whether to use PLM in a cloud. Some users feel apprehension about moving sensitive information — such as that managed in PLM — to the cloud. Adoption is gradually gaining momentum, however, as more customers learn about the available options and advantages.
PLM software is branching out from its traditional stronghold in engineering-intensive discrete manufacturing and moving aggressively into process-oriented industries such as energy, food and beverage, and consumer goods, according to a study released by the ARC Advisory Group in November 2011. Cloud-based PLM is garnering more support and higher adoption as these industries start to deploy newer technology and more evolved IT computing environments.
However, there is still quite a bit of education about cloud-based PLM — and specifically, about how can it benefit enterprises — needed in the market. The easiest way to visualize cloud computing is to think of it as a grouping of remote computers. You can harness the power of those computers on an as-needed basis, regardless of where the computers reside, who owns them, who can access them, etc.
As for the benefits for PLM customers, PwC Principal Technology Leader Tom Degarmo explained it best: "Cloud computing accelerates innovation and improves time-to-market successes and offers added flexibility within PLM applications. Overall it can improve connections across a company's network of suppliers, time zones, and cultures. It enables an extendable enterprise."
Four Cloud-Based PLM Strategies
According to Omnify Software President and CEO Chuck Cimalore, "Product lifecycle management is a set of diverse business strategies, processes, and applications. To identify the right projects, processes, and problems that can be solved by introducing cloud-based PLM solutions can be a tall order when you factor in the importance of addressing ownership, location, and privacy/security issues." Many analysts agree, and are working with PLM customers who are grappling with the concept of cloud computing and how best to address these issues.
Analysis firm Frost and Sullivan reports that most people refer to public clouds when they talk about cloud computing. However, public clouds are just one of the strategies being deployed in PLM applications:
- Public clouds are typically systems that are shared by multiple customers who use the system, and who have no control over who their fellow users can be.
- Private clouds, in contrast, are available for the sole benefit of a single company/entity where cloud data is secure and protected.
- Community clouds incorporate only specially selected companies with common or related goals (such as partners, channels, and supply/design chain members).
- Hybrid clouds extend a private cloud onto a public cloud for specific activities and on an as-need basis. The benefit of a hybrid approach that incorporates a public cloud is that it provides extra performance scalability for the private cloud.
Identifying Types of Cloud Services
In addition to the four types of clouds described above, there are three segments of cloud-based technology: SaaS, PaaS, and IaaS.
SaaS. Short for software as a service (also known as software on demand), SaaS is deployed over the Internet and is made available to users when requested. It is usually purchased through a payment-per-use plan or on a subscription basis. According to Forrester Research, SaaS is the oldest and most mature segment of cloud computing; examples include salesforce.com, Netsuite, and Google Gmail, among others.
PaaS. This acronym stands for platform as a service, a combination of a development platform and solution stack that is delivered as a service on demand. Forrester describes it as an infrastructure that can be used to develop a new software app or extend existing ones without the initial costs of buying and implementing additional hardware and software. PaaS often can extend the capabilities of existing SaaS solutions, such as Forrester's examples: Force.com (from Salesforce.com), Google App Engine, and Microsoft Azure.
IaaS. Infrastructure as a service provides an environment for running user-built virtualized systems, sometimes termed as a platform virtualization environment. It encompasses service, software, data-center, and network equipment delivered as a single bundle. Forrester cites Amazon EC2 (Elastic Compute Cloud), GoGrid, and Flexiscale as examples of IaaS environments.
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