Many business-applications in HR, customer relationship management and healthcare are widely adopting the Cloud today. While the PLM marketplace as a whole are making this move a bit slower, it seems that PTC PLM customers are taking full advantage of the vast benefits and competitive advantages of cloud agility. For the 2016 fiscal year, PTC reported 7 of its top 10 new PLM bookings were cloud deployments.
In a recent benchmark report by Blue Hill Research, results showed a growing importance of cloud services for PTC customers. The report found that it is important for businesses to understand and embrace the potential of cloud services as they transition to a more dynamic business model based on the Internet of Things (IoT).
Currently, the most significant driver of cloud services deployment is enabling enterprise IT teams to better service internal clients. However, there is the potential for customers to see Total Cost of Ownership (TCO) and Return on Investment (ROI) benefits as well.
“In today’s enterprise technology world, utilizing third-party cloud computing services offers an array of benefits especially for companies adopting an IoT strategy,” said Tony Rizzo, entrepreneur in residence, Blue Hill Research. “PTC is doing a great job listening to its customers and the market in developing and offering its cloud options and is seeing momentum in cloud adoption not only by customers embracing IoT, but also increasingly by its longer-term customers with solutions like PLM.”
The results of the benchmark are in line with PTC’s observations around cloud acceptance. PTC continues to gain momentum in its digital engineering offerings, particularly in its cloud-based product lifecycle management (PLM) solutions. The rising need for integrated PLM solutions, effective management of supply chain, and increasing adoption of IoT are driving the cloud PLM market. “PLM Cloud Services doubled this year compared to the previous year, which equates to 10x market growth,” said Kevin Wrenn, divisional general manager, PLM, PTC. “It is encouraging that both independent research and customers are recognizing the value and potential of the cloud.”
The benchmark report found that almost 70 percent of customers surveyed responded that the ability to easily deploy PTC Cloud Services played a key role in the company’s decision to purchase PTC products, indicating the value of simultaneously investing in both PTC products and PTC Cloud Services.