ANDOVER, MA, USA, Sep 16, 2024 – Aras, a leader in product lifecycle management (PLM) and digital thread solutions, announced the latest findings from its report, “Spotlight on the Future 2024,” finding that cloud-based software-as-a-service (SaaS) is fast becoming the dominant deployment model for enterprise PLM.
The report also found that there are several advantages and benefits industrial companies are expecting to realize from the adoption of cloud-based software, chief among them the ability to offload the task of maintaining one’s own infrastructure. Half of the companies surveyed cite automatic updates and ease of maintenance as key advantages of the cloud. Easy access to new features (41%) and increased flexibility (40%) also ranked high for industrial companies, with high security standards (39%), greater functionality (37%), and lower costs (35%) following closely.
“While organizations have been slower to adopt cloud-based solutions for PLM than they have for other enterprise software, we are seeing an acceleration over the past 12 months,” said Roque Martin, CEO of Aras. “These findings reflect what we are seeing in the market: cloud-delivery of PLM and digital thread enhances organizational agility and delivers real economic value.”
Strengthening PLM with the Cloud
For applications that rely on data exchange, or make one possible in the first place, cloud-based technology is a game-changer. In fact, 93% of industrial companies responded that a flexible and adaptable PLM solution is important to them. “With a modern PLM solution, companies can respond dynamically to customer demands, integrate technological innovations into production more quickly, and meet stricter regulatory requirements,” added Martin.
Integrating AI Applications with the Cloud
With the shift to the cloud, the industrial sector gains flexibility and the ability to simply move faster. “Applications today need to integrate seamlessly into the corporate landscape and adapt to market changes in the shortest time possible. Classic on-prem infrastructure simply can’t provide this,” said Martin. “Cloud applications are better suited to provide interfaces or integrate innovations like AI.”
International Breakdown
While 81% globally believed cloud was the new standard for industrial companies, there were some international differences. In the DACH region (Germany, Austria, Switzerland) and France, the approval rate for the cloud is exceptionally high at 91%. In the UK, it’s 88%, and in the US, 82%. The outlier is Japan, where only 60% of industrial companies believe cloud software is the new standard.
About the Study
Aras’ “Spotlight on the Future 2024” study, conducted in December 2023, surveyed 835 executives from Europe, the US, and Japan. Survey participants work in companies with a minimum turnover of 40 million euros in the automotive, aerospace & defense, mechanical engineering, medical technology, chemicals, pharmaceuticals and food industries. Download the full study here.
About Aras
Aras is a leading provider of product lifecycle management and digital thread solutions. Its technology enables the rapid delivery of flexible solutions built on a powerful digital thread backbone and a low-code development platform. Aras’ platform and product lifecycle management applications connect users in all disciplines and functions to critical product data and processes across the lifecycle and throughout the extended supply chain. Visit www.aras.com to learn more and follow us on YouTube, X, Facebook, and LinkedIn.
