7 Reasons to Move Your PLM to the Cloud
In 1985, the American Motors Corporation (AMC) pioneered Product Lifecycle Management (PLM) systems.
Looking for a way to compete with its bigger, deeper-pocketed rivals, it introduced integrated CAD design, centralized data storage, and collaborative communication systems.
When AMC was bought by Chrysler, it extended PLM systems to every single person involved in designing and building its vehicles. Chrysler achieved the lowest production costs in the US auto-industry.
PLM revolutionized vehicle production. And it wasn’t long before it extended to nearly every industry you can think of. It’s now considered one of the four pillars of manufacturing IT.
In this blog post, we’ll explore seven compelling reasons why making the move to cloud-based PLM is a strategic decision that can revolutionize your approach to product development and management. From eliminating infrastructure costs to embracing scalability and remote collaboration, these reasons present a compelling case for businesses seeking to innovate and streamline their processes.
What makes cloud PLM so significant?
Cloud-based PLM systems offer several advantages over their on-premises counterparts. Firstly, cloud-based PLM allows for greater scalability and flexibility. With a cloud-based system, businesses can easily scale up or down based on their needs without the limitations imposed by physical server infrastructure. This scalability is particularly important as organizations expand their operations or face fluctuating demands.
Additionally, cloud-based PLM systems facilitate collaboration and communication across teams, departments, and even different geographical locations. With the ability to access PLM data and collaborate in real-time, teams can work more efficiently, reducing time-to-market and improving overall productivity. This level of collaboration is essential in today’s global and interconnected business environment.
Cloud service providers invest heavily in securing their infrastructure, employing various security measures to protect data from unauthorized access. By leveraging the cloud, businesses can alleviate concerns about data breaches and data loss, allowing them to focus on their core operations.
1. Zero infrastructure costs
On-premise PLM systems are a sinkhole for capital
They require enormous arrays of expensive servers and sufficient real estate for storage. On top of that, the whole lot needs upgrading every few years.
But with an on-cloud implementation, that’s all taken care of elsewhere.
The cost is spread among the clients of the cloud provider, making it substantially cheaper for each. In an example cited by Forbes magazine, many organizations are able to save 30-50% when migrating to a cloud infrastructure.
2. Fast implementation
Every day counts when getting your product to market
Implementing a tailored, on-premise PLM from scratch can be a time-consuming process that can take months to complete. This is because it involves hardware procurement, software installation, data migration, customization, and extensive testing before it can be fully operational.
On the other hand, on-cloud PLM implementations offer a much faster and more streamlined process. With on-cloud PLM, all you need to do is complete the purchase order, and within 48 hours, you’ll receive your licenses and be ready to go.
The speed and simplicity of on-cloud PLM implementations can save your business valuable time and resources. It eliminates the need for complex infrastructure setup and maintenance while providing you with immediate access to all the features and benefits of the PLM system.
Additionally, on-cloud PLM solutions are often designed to be user-friendly and intuitive, so you can start utilizing the system’s capabilities without extensive training or technical expertise.
3. Instant scalability
Every company’s workload fluctuates
Sometimes you need all hands on-deck for a big project. Sometimes you have to hire contractors. Sometimes you need more licenses for your CAD, CAM, CAE and PLM software. Occasionally, all those extra instances necessitate more servers.
So, when it gets quiet and you don’t need all those servers and licenses, you’re stuck with the cost.
On-cloud PLM systems work on a subscription basis. Need more users? Just add them. Instantly. Quiet period? Cancel the excess. Only pay for what you need.
4. Always up-to-date
Technological developments never stop
And PLM software is no different. Updating on-premise, perpetual licensed PLM systems is a critical decision. The upgrade cost of the software, but also the server changes required, and all the ensuing IT support time. But if you fall behind on the updates, you’ll fall behind the competition. It’s a delicate cost-benefit balance.
On-cloud PLM systems usually include software updates in the cost of subscriptions. And all the infrastructural IT concerns are outsourced to the provider. So, you can always be first with the latest features.
5. Remote working
Now you can log in anywhere, anytime
On-premise servers can often be accessed remotely using VPNs to preserve data security, but VPNs tend to be slow. In many cases, it’s so slow as to render meaningful remote work impossible.
This applies to external collaborators, too. Firewall security concerns can hold IT departments back from opening up the entire network to suppliers.
Using the cloud, staff and suppliers can be given access to the server from their browser. And security is often better than you could manage on your own. Just ask the CIA, which spent $600 million with Amazon Web Services.
6. Lower support costs
Why simply maintain when you can upgrade?
57% of a typical IT budget is spent on maintenance. That’s money that could be spent building custom applications, improving processes, and helping users make better use of their IT.
By moving your PLM to the cloud, you export a great deal of that maintenance requirement to someone else, freeing your IT staff to innovate. Ultimately, that means getting more value out of your IT spend.
7. Predictable expenditure
Subscription service models provide you with peace of mind.
Running your own servers is like owning your own home. The control gives you a sense of security, but when the boiler breaks, you have to pay for it. When you’re renting, someone else foots the bill. You pay the same amount every month, regardless.
The same applies for cloud services. There are no surprise upgrade fees. No server expenses. No untimely repair bills. And because cloud providers usually run at least one backup server, you’re less likely to lose your data in a disaster.
In Our Experience…
When AMC first developed their PLM system, they initiated a paradigm shift that’s affected every sector of manufacturing.
Transitioning your Product Lifecycle Management (PLM) system to the cloud offers a wealth of advantages for product development and change management. It eliminates the need for on-premises infrastructure, reducing costs and enhancing product design.
With swift cloud deployment, you can effortlessly implement PLM in the cloud, applying best practices for streamlined operations.
Cloud PLM ensures scalability, always keeping your product data and PLM system up-to-date and facilitating efficient change management.
Remote collaboration is made seamless, reducing support expenses and enabling predictable expenditure models.
Embracing PLM in the cloud is not just a strategic move; it’s a transformative leap forward for product development, where innovation meets cost-efficiency on a platform primed for growth and progress.
Want to discover more about the benefits of cloud-based PLM software? Join us at the TECHNIA Software PLM Innovation Forum!
