Plant Software in the Cloud Fact vs. Myth

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1 Plant Software in the Cloud Fact vs. Myth Andy Chatha President ARC Advisory Group

2 Manufacturing Performance Improvement Levers Systems People Processes Information Things 2

3 Transformational Technologies Grow Your Business By Embracing the New IT Cloud Lower cost Security Reach Expandable Server Virtualization In-Memory Technology Social Collaboration Access to Expertise Effective Teams Effective Projects New Architecture New Opportunities New Business Models Competitive Advantage Analytics Better decisions Optimize performance Deeper understanding & business insights 3D Virtualization Mobile, IoT Realtime, Interactive Location independent Simple interface Safety, incident reporting M2M These 4 Technologies will converge in 2012 to transform industries 3

4 Cloud Defined NIST definition: Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models." 4

5 Cloud Deployment Models 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- 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. Microsoft, AT&T, and Amazon are well-known examples of public cloud providers. Hybrid cloud The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load balancing between clouds). 5

6 Cloud Service Models Software as a service (SaaS) Users access existing applications in the cloud Platform as a service (PaaS) Users create and run applications in the cloud Infrastructure as a service (IaaS) Users run any application on selected cloud hardware 6

7 Moving to the Cloud Technology Stack Application Platform Infrastructure SaaS PaaS IaaS 7

8 Ownership Moving to the Cloud Application Deployment Models Lease App Cloud/SaaS App Own Rent License O/S Leased App runs on local hardware App O/S Hosted O/S SaaS App runs on external hardware; configured and managed by 3 rd party at their discretion; often multi-tenant App O/S Licensed App runs on local hardware Licensed App runs on external hardware; managed by 3 rd party per user s direction Internal Technology Hosting External* * 3 rd Party or Corporate 8

9 Characteristics of Cloud Computing On-demand self-service Broad network access Resource pooling Rapid elasticity Measured service 9

10 Cloud Computing Benefits Immediate access to best in class solutions Pay as go, predictable cost Easy to maintain, provider responsibility Standard system vs a custom solution No need to hire IT staff Always access to latest solution Easy to share best practices across multiple plants 10

11 Cloud Computing Risks Security VPN & SSL connections are generally available Availability Most cloud solutions offer 99.9% availability Performance Most cloud solutions are scalable Interoperability Hybrid configurations are available Trapped Always have an option to move back to on-premise 11

12 Plant Software Cloud Computing in Operations and Engineering Business Collaborative Manufacturing Management ERP PLM/S SRM CRM Customers Suppliers PLM/D Engineering Ops Mgmt Operations Automation Production 12

13 Cloud Computing in Manufacturing The Plant is but Part of a Manufacturing Value Network Today manufacturers operate within one or more networks of companies that work together to provide goods and services to end consumers Construction Sales Logistics Customers In order to compete effectively, better IT tools are being utilized throughout the value network to speed and optimize innovation, production, and delivery of goods and services Engineering Plant & Equipment Design Service Engineering Product & Plant Supplier Network Distribution Purchasing Operations Manufacturing Network 13

14 Forecast: Very Cloudy Indeed 14

15 A 3-Platform Architecture Enterprise Technology Platform SCM Content ERP FIN EAM Enterprise Apps Platform CRM Eng. & Design Apps Platform Operations Apps Platform PDM Drawings Models Eng & Design P&IDs Equipment Specs Technology Platform Data CPM/Automation PAM Equipment Operations LIMS WMS TMS Technology Platform 15

16 A 3-Cloud Architecture? Enterprise SCM Content ERP FIN EAM Enterprise Apps Platform CRM Eng. & Design Apps Platform Operations Apps Platform PDM Models Drawings P&IDs Equipment Specs Data PAM CPM/Automation Equipment LIMS WMS TMS Eng & Design Operations 16

17 Regional Cloud Infrastructure e.g. a Cloud for the Americas, EMEA, and APAC 17

18 Where Plant and Cloud Meet Plant Business Operations & ERP Production Definition Production Capability Production Plan Production Information Manufacturing Operations & Support Control & Operations Monitoring Continuous Batch Logic On-premise =connected to the pipe Sensors, Actuators and Logical Devices Process Real-time Process Control excluded from Cloud 18

19 A Manufacturing Cloud Case Study Private Cloud Data Center (150 Apps) On Demand ERP Deal Capture SaaS Downstream ERP Salesforce CRM , Calender Public Cloud Performance Monitoring SaaS Loop Performance SaaS MBO, Planning and Scheduling EAM Operator Logs SaaS 19

20 Sample Cloud Providers 20

21 Summary The cloud is coming to the plant Manufacturers need a cloud strategy today Technology providers can help 21

22 Thank You. For more information, contact the author at or visit our web pages at 22

23 Drive Performance Three Business Imperatives for a Changing Marketplace Be Proactive Be Responsible Be Effective Dynamic Value Creation Collaboration Business Innovation Product Innovation Mfg Process Innovation Mobile, Social, Cloud Extend & Transform Current Business Innovation Governance & Compliance REACH Emissions Mgt Carbon Tracking 21CFR part 11 MTSA etc Support Corporate Citizenship Compliance Operating Excellence Enterprise Visibility & Control Quality, Flexibility Efficiency & Cost Control Asset Performance Energy, Resource Mgt Risk Mgt & Safety Optimize Performance Execution Transformative Innovation is Required to Achieve Highest Enterprise Performance 23

24 Virtualization of Process Automation Most Automation Suppliers have made progress in application virtualization. If You have virtualized your applications they are now portable. 24

25 Cyber Security Cyber Attacks and Vulnerabilities are threatening both On-premise and Cloud. 25

26 Technology Convergence Drives New Business Opportunities Cloud Computing will play a key role Systems Cloud, Virtual People Social Processes Information Analytics, 3D Things Mobile, IoT in driving down costs and extending business models 27

27 Cloud 28

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