Majority of Companies Surveyed View SaaS as Standard for PLM

Aras reports the latest findings from its report, “Spotlight on the Future 2024,” finding that cloud-based software-as-a-service (SaaS) is becoming the dominant deployment model for enterprise product lifecycle management. 

The report also found that there are several advantages and benefits industrial companies are expecting to realize from the adoption of cloud-based software, primary among them is 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 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%) close behind. 

“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,” says 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, cloud-based technology is an influencer. 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,” adds 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,” says 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 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 United States, 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. 

Sources: Press materials received from the company and additional information gleaned from the company’s website.

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