PLM and Cloud Computing Business white paper
Cloud computing can deliver a wide variety of services to your business. In addition to software applications such as email, word processing, and calendaring, cloud-based services can replace network infrastructure (servers, routers, storage) and provide application development solutions. Cloud computing also eliminates the provisioning and management tools necessary to deploy and operate these services.
cloud technologies for PLM
Table of contents PLM and Cloud Computing Weighing the risks and rewards.................................3 What is Cloud Computing?........................................3 Cloud Services.........................................................4 Cloud Infrastructure...................................................4 Cloud Characteristics................................................5 PLM and the Cloud...................................................6 PLM and Cloud Concerns..........................................7 How HP Can Help....................................................9 Conclusion............................................................ 12
Product Lifecycle Management (PLM)
PLM is the management of product data over the entire life of a product. It can include the first creative ideas written on the back of a napkin, the multiple bill of materials (BOMs) used for design, and the manufacturing, shipment, retirement, and disposal of products. PLM services, supported by multiple layers of hardware and software, provide managed data to clients as required and on demand. Weighing the risks and rewards
What is Cloud Computing?
Many of us use cloud computing for personal and professional purposes every day. Social networking, media storage and sharing, and collaboration tools are hosted in the cloud on servers connected to the Internet.
One way to examine cloud-computing applications is by comparing them to the traditional software model. Traditional software applications are installed and operated on your computer’s hard drive or your organization’s servers. Cloud-based software and services exist on third-party host systems and are generally delivered and operated over the Internet with standard technologies such as a Web browser.
Enterprise and business applications are also moving to the cloud, becoming a source of highly scalable, global-class services that can be easily accessed over the Internet on an as-needed basis. Cloud computing introduces fundamental dynamics that together enable new kinds of services, new kinds of connections, and new kinds of business value. But how does cloud computing work as a solution in Product Lifecycle Management (PLM)? PLM application vendors have already announced or released cloud-based services. The promise of a highly scalable, pay-per-use PLM model and its affects on a company’s bottom line is intriguing. And the need for collaboration and communication in PLM-related business processes and with partners appears to fit the cloud paradigm. But the question remains: Is PLM ready for the cloud, and is the cloud ready for PLM? To answer this question, we first take a look at cloud computing concepts. We then address the role of PLM in the business and how it can fit within a cloudcomputing model. Key Points • PLM creates a continual need for speed and performance improvements, and cloud computing can bring an entirely new value to businesses. • With the critical nature of PLM processes to business, decisions related to PLM data and supporting infrastructure must be based on a clear understanding of business requirements, ROI, and the criticality of business processes and data. • Cloud computing for PLM has the potential to provide rewards and a competitive advantage.
With the traditional model, you purchase software or services at a one-time, relatively high cost. You may also purchase new versions as vendors release upgrades of their products. With cloud computing, you normally pay for software and services on an asyou-go or transactional basis based on usage. Maintenance and support of traditional software and services are your responsibility, whether you do it yourself, rely on in-house IT staff, or employ application management services. By contrast, cloudbased software and services are hosted, managed, and backed by third-party service providers. The applications are generally easy to set up and administer, requiring little or no IT expertise. Finally, traditional software and services are closed systems limited to use by your organization. Cloud-based software and services offer standard applications that are available to other businesses and organizations—even globally. While cloud-based applications are accessible to others, your data, information, and files are protected. (Many cloudbased applications allow you to collaborate and share information with others, if you choose to do so.) In addition to software applications, cloud-based services can replace infrastructure components (servers, routers, storage) and provide application development solutions. We discuss the different types of cloud services next.
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Cloud Services As shown in Figure 1, the types of cloud services can include everything-as-a-service (EaaS), software-asa-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS). The broad category, EaaS, describes the transformation of IT from a physical, well-established environment to incorporate a wide range of cloud services—from computing power to business processes to personal interactions— delivered as needed. A good analogy is electricity. Although we all use it, we usually do not know the source.
Cloud Service Categories Many different types of services exist in the cloud. To help define their purpose and function, the industry categorizes the services: • EaaS (everything-as-a-service). Cloud services can become the platform that transforms IT from a physical, well-established environment into services—from computing power to business processes to personal interactions—delivered wherever, whenever, and however they are needed. • SaaS (software-as-a-service). Hosted software applications in the cloud generally run from a Web browser. Most are easy to implement and add to existing business and IT operations. • PaaS (platform-as-a-service). Platform services include cloudbased application programming, development, and testing environments, which may also require integration with a business’s existing network infrastructure and IT processes. • IaaS (infrastructure-as-a-service). Infrastructure cloud solutions deliver additional resources such as virtual machines, compute power, and storage on an as needed basis.
Cloud Infrastructure Although most of us think of cloud computing in terms of hosted services available over the Internet, cloud services can be hosted by your business. In addition to hosting services on site or off site, cloud infrastructure can be dedicated for use by only your company, shared within a community, or available publicly.
Figure 1: Cloud service categories
The cloud delivers application functionality through software-as-a-service (SaaS). Many businesses are already using SaaS for email, online collaboration, and communications capabilities such as chat and Web conferencing. Cloud-based enterprise and business applications include SalesForce for CRM (Customer Relationship Management) and Workday for ERP (Enterprise Resource Planning) functions including payroll, financial management, human capital management, and resource management services. Platform-as-a-service (PaaS) is a rich environment in which developers can create, test, and run Web applications. It can reduce or eliminate the need to purchase, install, and maintain development environments. Google App Engine and Microsoft Azure are examples of PaaS environments. Infrastructure-as-a-service (IaaS) is supplemental infrastructure capacity, such as data storage or processing power, all on-demand via the Internet. Businesses can tap into computing power when required and downsize as needed. An example of IaaS is the Amazon Elastic Compute Cloud.
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The cloud is not so much a low-cost alternative delivery model for existing enterprise applications and services, as much as it is a new kind of technology and delivery model that is additive—bringing new value to the enterprise, solving problems otherwise out of reach through traditional technologies and IT delivery models. Types of cloud infrastructure and deployments are shown in Figure 2 and include: • Private cloud. The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise, delivering ITenabled services to internal users through Internet technologies. • Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared workflows, such as design and supply chain. It may be managed by the organizations in the community or a third party and may exist on premise or off premise. • Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services. • Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) and traditional IT delivery services that remain unique entities but are bound together by standardized or proprietary technology. An example is keeping data locally but off-loading related computations to a public-cloud resource.
Cloud Characteristics
Private Cloud Enterprise owned or leased
Community Cloud Shared infrastructure for specific community
Cloud computing represents an entirely new value to your business. It lets your organization access highly scalable and flexible services using Internet technologies and a usage-based business model. Public cloud applications also eliminate the need to install and run applications in your own data center. This alleviates the burden of software acquisition, maintenance, ownership, and support.
Sold to the public, mega-scale infrastructure
In contrast to traditional software, hardware, and development environments, characteristics of cloud computing include:
Hybrid Cloud
• On-demand self-service. You can unilaterally provision computing capabilities, such as server time and network storage, as needed and automatically.
Public Cloud
Composition of two or more clouds Figure 2: Cloud deployment models
Because the cloud is not suited to run all functionalities required by the business, it fits in a larger environment that integrates the best of multiple worlds. IT and business can leverage the cloud when needed, and is best described by the hybrid cloud environment. In the hybrid cloud, IT services are provided by your own data center, outsourced, or hosted environments and the cloud. Table 1 illustrates this combination of traditional and cloud-based resources, located on and off premises. The ultimate objective is for IT to provide the required services allowing your business to achieve outcomes at the lowest possible cost, by sourcing from the most appropriate provider. Outsourced or cloud services should be considered alongside simplifying and reducing the cost of IT infrastructure and application landscape.
• Ubiquitous network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms, including mobile phones, notebook PCs, and desktop PCs. • Resource pooling. Computing resources are pooled using a homogenous infrastructure to serve all consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to demand. Resources include storage, processing, memory, network bandwidth, and virtual machines. • Rapid elasticity. Capabilities can be rapidly and elastically provisioned, and in some cases automatically, to quickly scale up and scale down as needed. • Measured service. Cloud systems automatically control and optimize resource use by leveraging a metering capability appropriate for the type of service. Resource usage can be monitored, controlled, and reported, providing transparency for both the provider and consumer of the service.
Cloud Resources
Traditional Shared Resources
Traditional Dedicated Resources
Private business services
Resources shared across workloads
Resources dedicated to each workload
Custom Web-based PLM applications running in an onsite data center
Traditional PLM applications storing data on virtual servers
Traditional PLM applications storing data on dedicated servers On premises Business-owned data center
Public business services SaaS PLM applications for BOM, change management, or collaboration
Service provider shares resources across workloads or multiple customers
Resources dedicated to each workload, such as managed or hosted multi-client data centers
Shared resources for hosted applications
Dedicated resources for hosted PLM applications Off premises Service provider’s data center
Table 1: Hybrid cloud and service delivery model
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Enterprise PLM System Requirements Whether your business is running PLM applications in the cloud or in your data center, you need PLM systems that include the following key capabilities:
Performance • File caching to improve performance • Dynamic scalability to support product launches, rapid product problem resolution, and other demand spikes • Business application metrics • Synthetic transactions to run in production test scenarios to assist with problem identification, resolution, and service-level agreement (SLA) compliance Integration • Integration with role/identity management systems for role-based work instructions • Integration with change control and asset management processes • Integration with enterprise and/or social collaboration platforms • Tight integration with tier 1, tier 2, and tier 3 support capabilities that link to the different business communities—both inside and outside the company
Security • Systems to support coarse-, medium-, and fine-grain resolution security functions • Workstation downloads for different classes of clients within PLM work processes, for example, design reviews and material procurement • Data archiving via product structure as opposed to time-based file structures Usability • End-user utilities to remove broken links, assess bad data, or remove bad data
• Support for utilities to compare before/after migrations, allocate more space to file volumes, and rerun data base transactions • In-process as well as out-of-process collaboration and other types of collaboration to accommodate business activities
PLM and the Cloud With an understanding of cloud services, infrastructure, and characteristics, we can examine how cloud computing relates to PLM solutions. We start by reviewing the role of PLM in business today, and then discuss common concerns and the potential rewards of cloud-computing technologies for PLM. The Role of PLM in Business
The promise of PLM for businesses is realized through lower product development costs, faster and more efficient access to data, and shorter time to market, resulting in increased competitiveness. There is the continual need for speed and performance improvements. Data must be readily available wherever and whenever it is needed. PLM systems must be scalable, resilient, and highly available.
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PLM systems are typically organically grown, meaning that they often start small as pilot projects. These small systems support a limited number of engineers or clients, and in the beginning, have relatively modest hardware requirements. However, the systems grow over time. Data management and storage requirements grow. More value is placed on the data, and it becomes more valuable than the hardware and systems that store and manage it. PLM data must be protected not just from hardware failure but also from theft. Security is a fundamental requirement. Companies use workflows to replace manual and slow business processes, thereby tightly integrating the PLM systems into the business, making it indispensable. The results are streamlined, more efficient, less redundant business processes, shorter time to market, increased competitiveness, and faster responses to customer demands for new products and features. The PLM data and the business processes become the foundation of the competitive industry.
PLM and Cloud Concerns PLM tools and workflows are more complex than standard office applications. With the critical nature of PLM processes to business, migrating to a cloud solution requires careful consideration. Any decision related to PLM data and supporting infrastructure must be based on a clear understanding of business requirements, ROI, and the criticality of business processes and data. Table 2 identifies common concerns for PLM in the cloud and possible solutions. Potential Rewards of Public Clouds for PLM
Despite the concerns, cloud computing for PLM has the potential to provide rewards and a competitive advantage. A number of SaaS PLM solutions exist today, offering CAD and other PLM components as cloud-based applications on the Web. A Web browser might be all you and your colleagues need to view, collaborate, and share design data, drawings, and product information with one another. IaaS and PaaS cloud solutions can also benefit PLM processes. The computing power, storage needs, and supporting infrastructure required for PLM can change over time. Offloading infrastructure to a hosted service or tapping into extra computing power as needed can be more cost effective and faster than relying on inhouse services. Hosted PaaS services can help IT staff become more productive by providing ready-made Web application development environments for PLM and other business processes.
• Anywhere, anytime access. Multi-location and even global businesses run the same applications, not different versions. You can access them from a single, Webbased location using a variety of devices including smartphones, PCs, netbooks, and mobile devices. • Less supporting infrastructure. Networking, databases, and supporting software may no longer be required because the infrastructure is handled in the cloud. • Professional datacenters. Service providers hosting cloud solutions supply redundancy, disaster recovery, security, and backup services, often at a higher level than in-house solutions. • More focus on the business. Dedicating fewer resources and less time to PLM technology solutions gives the business more time to focus on designing and developing products.
• Flexible/elastic services. Cloudcomputing lets you expand or contract Potential benefits of public cloud services for computing resources PLM include: as needed, paying • Cost savings. Pay-per-use or subscriptions generally only for what cost less than purchasing software licenses. Public cloud you use. solutions also require fewer IT staff and less hardware. • Self-service. Provisioning cloud applications is generally as easy as subscribing to the service, making them easy to deploy. • Ease of adoption. For companies wanting PLM technology without the staff or budget to support in-house solutions, cloud solutions can lower barriers to PLM technology adoption. • Enhanced collaboration. Cloud computing offers the potential to share drawings and view files with a browser and Internet connection, regardless of operating systems, installed applications, or other variables.
Businesses using PLM technologies can leverage cloud solutions to share and create designs and data, rollout collaboration tools, tap into extra compute power when peak workloads exceed capacity, or take advantage of the latest disaster recovery services. All of these services can be used without capital investment or long-term contracts.
Table 2: Addressing cloud concerns for PLM Concern
Description
Potential Solution
Performance
Many PLM system components, such as CAD and simulation tools, require robust resources. The network and Internet technologies used to access the cloud should meet or exceed traditional PLM application performance levels.
Cloud applications can use the computing power of a massive hosted infrastructure to perform application tasks simultaneously and more efficiently. Identify potential network bottlenecks caused by the amount of data moving into the cloud, and select applications that have the architecture and data transfer characteristics to work in a cloud environment.
Data protection and availability
Your critical product data must be protected from unauthorized users and available when you need it. You cannot afford to take any risks that may make your PLM system go off-line or be unusable for a period of time.
Service providers should have the resources to supply redundancy and backup services for their data centers, along with the expertise and dedicated staff to manage them. Determine how an outage would affect the provider’s services and your business.
Governance and compliance
The cloud service provider’s policies and processes must meet your regulatory obligations and quality standards.
Conduct security assessments to determine whether your application or data is ready for the cloud. The best service providers will determine which compliance regulations you’re subject to and help you meet them.
Identity management and access control
Your own data authorization policies may be exceptionally strict. But your service provider’s policies may be beyond your control.
Service providers and standards organizations, such as the Computing Software Alliance, have developed best practices for cloud security, identity management, and access control.
Integration
PLM applications need to interoperate with other business applications to accommodate workflows and business requirements.
Cloud services are designed to be open and flexible. Hosted applications should include customization capabilities so they can combine with other business services and applications.
Potential Rewards of Private Clouds for PLM
An internal private cloud is owned by the company and operates behind the company firewall. The goal is to create dynamically available resources based on a highly virtualized, tightly integrated, converged infrastructure. For PLM applications, an internal cloud offers your business more control over security and compliance policies. Table 3 compares characteristics of private and public clouds. To support private clouds, PLM applications must be ready to run on operating systems that are scalable, and they must be tested and certified to operate on virtual machines. Data centers can be upgraded, consolidated, and implemented with technologies to provide a centralized service and a pay-per-use model to other business units within the corporate domain. Even though private cloud services are highly leveraged and based on easy access per user, businesses must assess capacity requirements and performance characteristics. Issues of security and
EaaS: The future of cloud computing With everything-as-a-service (EaaS), a wide range of cloud services— from business to entertainment to community—will be personalized and context aware to create richer experiences. This is a fundamental transformation in a world where everything becomes digital, mobile, networked, virtual, and personal. HP is investing today to help lead this industry shift. “Through the cloud, we can foster the information economy, address issues like the information explosion, globalization, and environmental sustainability, and drive growth deep into the 21st century.” —Shane Robison, Executive Vice President & Chief Strategy and Technology Officer, HP
Characteristic
Private Cloud
Public Cloud
Highly scalable
Yes
Yes
Fast service rollout
Yes
Yes
Security
Behind company firewall
Must rely on vendor security
Architecture
Single tenant
Multi-tenant
Capital expense
Yes; company must buy hardware
No; vendor owns hardware
Operating expense
Infrastructure operating costs
Pay-per-use billing
Table 3: Comparing an internal private cloud and public clouds
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privacy and the assurance that corporate intellectual capital will not be compromised also require careful guidance and evaluation. Depending on the internal structure and the intent of the private cloud, you may need to properly aggregate services and bill them to divisions or departments. You also need to define controls and governance, along with approval processes with workflow to initiate support policies.
How HP Can Help Unlocking the benefits of the cloud while mitigating potential risks is a daunting challenge. As you consider the opportunities and issues presented by the cloud, you can look to HP for assistance. With our combination of deep expertise in PLM solutions and cloud-computing experience, HP is uniquely positioned to help you evaluate whether cloud solutions are right for your organization. We can also help identify the types of cloud services and infrastructure that fit your product development and PLM practices.
HP Point of View: Cloud Computing in Manufacturing Large companies will not move everything to the cloud but rather use the cloud as an extension to their current IT environments, enabling a more efficient use of their data centers. Key areas of interest for the cloud in manufacturing are ecosystem backbones, crossenterprise collaboration, MES/ERP integration, and high-performance computing. —Christian Verstraete, CTO, HP Manufacturing and Distributions Industries Worldwide Cloud Computing in Manufacturing, June 2009
PLM Technology Expertise
Broad Cloud Computing Experience
HP has years of experience working with PLM solutions and technology. We partner with a variety of PLM vendors and understand the needs of the product development process and lifecycle. No one is better equipped to help your company evaluate PLM technology and processes than HP.
HP has been involved with the cloud even before it was formally defined throughout the industry. We’ve developed deep shared services and service management expertise, and we understand the service-centric model at every phase—strategy, design, transition, and operations.
HP can help you streamline product development, improve product lifecycle management systems and processes, and enable your virtual engineering teams to collaborate in real time. By offering a full range of product lifecycle management capabilities—from consulting to business process improvements to managing complex IT engineering applications—we can help cover your product development needs from end to end.
Rather than focus on pieces of cloud computing, we provide a comprehensive framework for you to work toward a cloud future that addresses people, process, and technology. And through HP Converged Infrastructure architecture and technologies, we enable tight integration and synergy among previously siloed servers, storage, networks, and management software—making the cloud infrastructure real.
Not only will we help you develop a strong plan but we’ll implement and modernize your applications, integrate your systems, and fine-tune your product development environment. With HP’s proven solutions, program management expertise, skilled resources, and manufacturing experience, we can equip you to capture market opportunities and achieve measurable results.
Whether you are considering in-house service modernization, conventional outsourced services, or a cloud-based service model, our professionals can help. We can design a strategy that helps clarify your goals, determines the business’s needs, and identifies and implements the most effective service delivery model to meet your needs.
Cloud Management and Infrastructure Services
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HP understands the entire cloud picture—from the back-end infrastructure that enables cloud-based services, to the enabling technologies that allow technology organizations to build, manage, and deliver quality services. HP Cloud Assure
HP Cloud Assure is a SaaS offering from HP that helps your organization take advantage of the speed, flexibility, scalability, and cost effectiveness of cloud services. This solution leverages nine years of SaaS expertise and advanced service-level performance. It delivers four of the attributes analysts believe are key to reliable cloud computing—security, performance, availability, and cost control. Our team of experts provides you with ongoing visibility into the availability of your cloud services. They help diagnose and report on potential performance and security issues before they can impact your business. Whether you utilize cloud services for infrastructure (IaaS), platforms (PaaS) or software (SaaS), this solution helps you validate and assess: • Security by scanning networks, operating systems and Web applications and performing automated penetration testing
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HP Cloud Workshop
We believe that most enterprises are likely to have a hybrid sourcing model in the long term and that the mix across internal, private, and public sourcing will evolve over time. That is why we start with a strategic workshop covering all of the different options. Through the workshop, we help you gain clarity on cloud concepts, identify the cloud initiatives that can work for your business, discuss how a converged infrastructure can lay the foundation for the cloud, and subsequently draw actionable next steps. The one-day workshop provides: • Education on the cloud and multi-sourcing service delivery strategies • Explanations of the possibilities, risks and business implications of the cloud • Recommendations for using the cloud HP Cloud Roadmap Service
HP Cloud Roadmap Service helps you lay out your next steps, so that you can realize the benefits, scope, scale, and all critical success factors of the cloud: • Identify opportunities where your business and IT can benefit from the cloud
• Performance by testing for bandwidth, connectivity, scalability and the quality end-user experience
• Identify the most appropriate cloud delivery and deployment models
• Availability by testing and monitoring web-based application business processes and identifying and analyzing performance issues and trends
• Recommend the ideal service strategy, governance, and program model for incorporating cloud capabilities
• Cost optimization by allowing you to right size your footprint by providing resource, code, and end-user performance metrics
• Provide a practical, step-by-step roadmap for cloud adoption
HP Cloud Design Service
The most critical limitation to the business value potential of the cloud is poor infrastructure design— one that does not reflect strategic intent. HP Cloud Design Service takes a structured, proven approach to designing and deploying scalable, cloud-based infrastructures that smoothly evolve from your virtualization, automation, and data center designs. In addition, by using HP Reference Model for Cloud, our design principles enable your cloud infrastructure to support a hybrid sourcing model that includes private and public cloud options. HP Cloud Security Solutions
The dynamic nature of cloud services creates new possibilities for a broad range of users. But at the same time, it can lead to potential security, compliance, and data protection issues. By being aware of the latest cloud security threats and ways to address them, you can implement a security strategy that covers assessment, monitoring, and management. With HP Cloud Security Analysis Service, you can review the security of the infrastructure, platforms, and applications that make up your cloud environment. And you can address your security gaps and meet your business needs with flexibility, using HP Secure Advantage. The solution offers a unified, integrated portfolio designed to help you manage risk, protect critical infrastructure, and enable the continuity of operations within your cloud environment.
As a member of the Cloud Security Alliance (CSA) and part of HP’s ongoing cloud research, HP sponsored a research report to identify the most urgent vulnerabilities that threaten to hinder cloud computing and expose private data to malicious hackers. A cross-section of industry experts designed and executed the research. The report describes situational awareness of the threats, the cloud security deadly sins, and high-level strategies to prevent them. For more information, see: www.cloudsecurityalliance.org/pr20100301a.html
Conclusion
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For most businesses, the goals of PLM systems and processes include incurring lower product development costs, creating faster and more efficient access to data, and getting products to market in less time. Businesses using PLM technologies can leverage cloud solutions to share and create designs and data, rollout collaboration tools, tap into extra compute power when peak workloads exceed capacity, or take advantage of the latest disaster recovery services.
HP CloudStart solution: www.hp.com/services/cloud
Although cloud computing can address opportunities and problems that traditional IT models can’t, it is only effective for PLM if it helps meet your business goals. The potential benefits and cloud types should be carefully evaluated within the context of your PLM business processes, partners, IT resources, performance requirements, security needs, enterprise application interoperability, and infrastructure.
HP BladeSystem Matrix: www.hp.com/go/matrix HP Cloud Service Automation for Matrix: www.hp.com/go/csa4matrix HP general cloud page: www.hp.com/go/cloud HP Cloud Services: www.hp.com/go/cloudconsulting
As your business considers the opportunities and issues presented by the cloud, you can look to HP for assistance. With our combination of deep expertise in PLM solutions and cloud-computing experience, HP is uniquely positioned to help you evaluate whether cloud solutions are right for your organization.
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© 2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. 4AA3-1522ENW, Created September 2010
