The cloud holds a lot of promise to help manufacturers reduce the total cost of ownership (TCO) of their enterprise applications and engineering tools. It lets them take advantage of economies of scale and shifts costs from capital expenditures to more manageable, operational expense items. It also reduces the load on the internal IT team.
But there’s more to the benefits cloud computing offers than cost and resource savings. Web-based services offer the potential for better performance than most companies can achieve on their own. They also reduce business risk through more flexible licensing strategies like subscription pricing (although there are other ways to achieve this) and allow companies to take advantage of new releases more rapidly. Our research even shows Top Performers (companies with better revenue growth, margin expansion, innovation, and cost reduction) are more likely to use cloud solutions.
Source: Exploring Cloud Options for Product Innovation and Development eBook
Is it Time to Answer the Call?
So it’s time to turn to the cloud for product innovation, product development, and engineering software, right? Maybe, but it’s not that simple of a decision. Is it ever? First, it’s time to develop a strategy. As our recent Exploring Cloud Options for Product Innovation and Development eBook concludes “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.”
It’s important to realize that moving to the cloud isn’t a “one and done” operation when you decide when and how to leverage cloud applications. The cloud isn’t an “all or nothing” proposition, it typically happens in stages. That relieves a lot of pressure because you don’t have to find a cloud solution that fits all of your needs at once. Companies have the opportunity to pick and choose which capabilities should reside in the cloud, and when.