Historians and Production Management as Cloud Applications

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1 Historians and Production Management as Cloud Applications Harry Forbes Senior Analyst ARC Advisory Group

2 Emerging Technologies Enable Information- Driven Manufacturing Big Data Analytics Insight: Process and Market Knowledge Cloud Information Infrastructure Internet of Things Intelligent, Connected Assets Mobility Portability, Real-time Interactions Social Community Knowledge Virtual Display Presentation, Accessibility 2

3 Agenda Characteristics of Cloud Computing Business Values of Cloud Computing Data Historians as Cloud Applications 3

4 Characteristics of Cloud Computing Uses remote, networked, virtualized resources Software, storage, compute power, networking, etc. DIVERSE service models (SaaS, PaaS, IaaS) DIVERSE deployment models (Private, Public, and Hybrid Clouds) Useful features On-demand self-service (e.g. provisioning) Broad accessibility (many available clients) Measured service (pay-for-use models vs. capital investment) Whiz-bang technology, but how does it deliver business VALUE? 4

5 Characteristics of Cloud Computing: Different Service Models and Services 5

6 Characteristics of Cloud Computing: Address Different Customer Segments 6

7 Characteristics of Cloud Computing: Service Models - Cloud Computing Private (On- Premise) Infrastructure (as a Service) Platform (as a Service) Software (as a Service) Managed by user Applications Data Runtime Middleware O/S Virtualization Servers Storage Networking Managed by user Applications Data Runtime Middleware O/S Virtualization Servers Storage Networking Managed by user Managed by supplier Applications Data Runtime Middleware O/S Virtualization Servers Storage Networking Managed by supplier Applications Data Runtime Middleware O/S Virtualization Servers Storage Networking Managed by supplier Higher Capital Cost, More Control Lower Capital Cost, Higher Agility 7

8 Business Values of Cloud Computing It s a cloud, cloud, world! Data centers are now an $80 billion/year worldwide business Cloud services supported by MAJOR IT/Internet/software firms Business value propositions Reduced Capex cloud cost models tend toward pay-for-use Rapid deployment replaces in-house IT deployment crud Elasticity Easier scale-up and scale-down Mobility Easier to serve mobile client devices Cloud computing represents a huge disruption Enterprise IT services models Software development, distribution, and fee models OK for IT, but how will it impact our PLANTS? 8

9 Business Values of Cloud Computing: Potential Business Values Feature: Benefit: Owned by Provider Maintained by Provider Upgraded by Provider Monitored by Provider Shared Infrastructure Rental Pricing Model Rapidly Scalable On-demand service Managed by Provider Clustered Infrastructure Service Level Agreement Capex to Opex Lower maintenance costs Faster upgrades High service levels Economies of scale Pay-for-use price No Capex cycles Faster implementation Less in-house special skills High availability Guaranteed Availability 9

10 Business Values of Cloud Computing: Elasticity of Cloud Applications 10

11 Data Historians as Cloud Applications Historian apps were early movers from DCS to IT IT networks: Were more de-coupled from manufacturing operations Had more resources Were easier to expand and update Were where the apps reside Automation and MES companies thinking cloud ABB AspenTech Honeywell Invensys Operations Management OSIsoft Rockwell Siemens Others 11

12 Data Historians as Cloud Applications To Read More 12

13 Thank You. For more information, contact the author at or visit 13

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