Ask This Before Hosting Your Service Parts Solutions in the Cloud



With more than 90% of businesses having adopted the cloud in some capacity, the IT landscape is changing. How? IDG Enterprise's 2016 Cloud Computing Survey found 47% of organizations move to the cloud to reduce the cost of owning applications and other IT resources.

Deploying and managing enterprise applications can be challenging, costly, and time consuming, especially when IT organizations are already stretched thin and security is a concern. Choosing cloud-based solutions enables you to focus on your business while allocating resources more efficiently.

Will my data be secure?

Data integrity and security are top concern for any business. Data security vulnerabilities can cause untold damages, both financially and to reputation. With the increase in data breaches affecting business continuity, organizations are scrambling to make sure their data is secure. Manufacturers and OEMs working in highly regulated environments like medical devices and aerospace and defense have to comply with an even greater standard of security.

It may seem counterintuitive, “giving up” your data to a software solution in the cloud, but research from McAfee shows that 74% of organizations store some or all of their sensitive data in the cloud. Why? Because on premise security is only as good as your laxest employee. In contrast, cloud solutions that meet the standards of cloud security certifications, like ISO 27001 or FedRAMP, are constantly updating their protocols to keep up with the latest security threats. Cloud services providers live, know, and understand security, with dedicated resources. Manufacturers and OEMs focused on running their primary business may not have the capacity or expertise to be fully compliant with security certifications that are dynamically evolving and changing.

How will a cloud-based solution evolve with my business?

Cloud-based software solutions allow manufacturers and OEMs to be agile and scale their businesses quickly. A service organization that has locations strewn across the globe using an on-premise service software solution will take a long time to deploy the solution to every location. This process also has to contend with functionality issues, compatibility with on premise technology, and more. Site-based software solutions can also use up significant IT resources to manage and support.

Even better, upgrading a software solution in the cloud is much faster, and involves porting over data from one iteration to the newer one. Updating or upgrading on-premise software can be a lengthy, costlier process to deploy. Manufacturers and OEMs want to spend their valuable resources on their business and customers, not on software solutions.

What will my cost of ownership be?

The cost of ownership of a premise-based software solution can vary from month to month. The cost of maintaining hardware, servers, server security, and IT resources fluctuates, making costs unpredictable. Depending on the size and scale of your service organization, these cost fluctuations can be significant. A cloud-based subscription service has predictable, recurring costs that are easier to manage into a business forecast. Not only that, but you’ll save money from simply having to manage fewer budget items.

In order to evaluate and plan the move to the cloud, all involved parties in your organization, no matter if large or small, need to understand the benefits for their specific role in the organization. See what value cloud services can bring to each of them in our analyst report.

Metso Minerals actually implemented a cloud-based service parts management solution across 39 global locations. The case study below details how the company executed that project:

PTC Service Cast Study


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