This morning, Dave Gower, senior director of PLM for Microsoft presented to the analysts. It was interesting to hear about the hardware side of the software giant. It’s kind of the inverse of Siemens PLM – we’re the software side of a hardware company. Here are some notes from his presentation.
Dave is responsible for Microsoft’s PLM strategic direction across four hardware organizations:
gaming & services
This includes their associated manufacturing and supply chain operations. My kids aren’t quite old enough yet for the Xbox 360 but considering the penetration of that gaming device, I’m sure to see it on their wish list in the future. Microsoft has sold 31 million and they have 20 million Xbox Live subscribers.
Dave noted that volume drives both risk and opportunity. Consider the inherent risk in those volumes. Yet if you produce 10 million units a year, the cost savings from just $1/unit savings.
Their PLM has a high degree of horizontal integration and rigid intellectual property control. The business objectives for PLM include: ensuring product integrity and continuity as well as reducing product cost.