Cloud PLM: understanding its challenges, benefits, and limitations
In an industrial world undergoing major change, marked by accelerating innovation and growing product complexity, the cloud has become a pivotal lever for companies.
Product Lifecycle Management (PLM) is following this trend, with increasing adoption of cloud solutions.
Organizations today must collaborate faster, across multiple sites, with distributed teams and ever-growing volumes of data.
In this context, cloud PLM stands out: more agile, more accessible, it addresses new challenges in managing the product lifecycle.
Let’s look at what a cloud PLM solution really is, its benefits, its limitations, and how to choose the right one.
What is cloud PLM?
Cloud PLM is a product lifecycle management solution accessible via the internet, without heavy local installation. There are two main types:
• Hosted PLM (IaaS): a traditional PLM software version installed on private or public cloud servers. It offers some flexibility but often retains the complexity of on-premise versions.PLM
• SaaS (Software as a Service): a cloud-native solution, designed from the outset to be used online. Lighter, more agile, with automatic updates.
Benefits of cloud PLM
Flexibility and scalability
Cloud PLM makes it easy to adapt usage to the company’s needs: number of users, activated modules, geographic locations, and more. Unlike on-premise solutions, where each change often requires a request to the provider (with extra lead times and fees), cloud solutions let users configure certain settings autonomously. An ideal option for growing or multi-site organizations.
Fast deployment and automatic updates
No infrastructure to install: a simple browser is enough. Updates happen automatically, without mobilizing internal teams, ensuring constant access to the latest features.
Global collaboration and real-time accessibility
Teams can collaborate remotely, access the same data in real time, and track product changes without breaking the information chain.
Reduced time to adoption
Modern, intuitive interfaces in PLM SaaS simplify adoption: less training required, less resistance to change, and therefore higher usage that generates more value for the company.
Cost reduction
No servers to purchase or maintain, no heavy maintenance fees: the cloud model is generally more economical, especially for SMEs and mid-sized companies. Cloud PLM often offers an all-inclusive, transparent economic model that improves cost predictability.
Drawbacks and limitations
On-premise heritage poorly adapted to the cloud
Some so-called “cloud” solutions are merely hosted versions of on-premise software. They retain their complexity and heaviness and do not fully leverage SaaS advantages.
Network-related constraints
A stable internet connection is essential. For industrial sites with poor connectivity, this can be an issue. We strongly recommend evaluating network performance before deployment.
Security of cloud PLM solutions: a reliable, proven framework
Security remains one of the main barriers to cloud adoption, especially in industry where the confidentiality of technical data is strategic. Yet modern cloud PLM solutions today offer a level of security at least equivalent to, and often higher than, on-premise systems.
Cloud PLM vendors rely on certified cloud infrastructures (ISO 27001, SOC 2, etc.) and follow best-in-class data protection standards:
• Data encryption at rest and in transit;
• Strong authentication (SSO, MFA);
• Automated backups and geo-redundancy;
• Granular, role-based user access control.
Moreover, in a cloud environment, security responsibility is shared between the software vendor and the hosting provider (e.g., AWS, Azure, OVH). This ensures a structured framework, with specialized teams continuously safeguarding your data.
Finally, security updates are automatic, unlike on-premise where they can be postponed or neglected. This enables rapid remediation of potential vulnerabilities without service interruption.
Cloud PLM vs. On-Premise comparison
How to evaluate a cloud PLM solution?
Before committing, it’s essential to ask the right questions to ensure the solution meets your business, technical, and organizational needs:
• Is the solution cloud-native (SaaS) or merely hosted?
A truly SaaS PLM will offer greater flexibility, automatic updates, and integrated services than a solution simply migrated to the cloud.
• Is the provider certified against security standards?
Check certifications such as ISO 27001, as well as access management mechanisms, data encryption, and server location (e.g., GDPR).
• Does the solution integrate easily with your other software?
A good cloud PLM should interface naturally with tools already used in your company: ERP, CAD software, DMS, etc. These integrations are essential to avoid duplicate data entry, automate information flows, reduce human error, and ensure a smooth digital thread across departments.
• What level of support is provided?
Onboarding assistance, responsive technical support, ongoing training… all of which facilitate adoption and de-risk the project.
• Can you start with a limited scope and then scale up?
A modern cloud solution should allow progressive scaling without hidden costs or infrastructure changes.
• Can users configure certain settings themselves?
Unlike many on-premise solutions where each change requires provider intervention (often billed extra), a good cloud PLM gives you control over a wide range of configuration: workflows, access rights, your data structure, and more.
Cloud PLM is a modern, strategic alternative to on-premise solutions. It offers greater flexibility, rapid deployment, improved collaboration across teams, and reduced operating costs. However, to reap all the benefits, it’s crucial to choose a solution truly aligned with your needs and to ensure the vendor’s cloud maturity.
Among the benchmark players, Aletiq stands out as one of the leaders in cloud PLM solutions. The platform combines all the advantages of SaaS (simplicity, scalability, accessibility) with a high level of security (ISO 27001 certified) to support industrial companies in their digital transformation with confidence.
Frequently asked questions (FAQ)
What is the difference between hosted PLM and PLM SaaS?
Hosted PLM is a classic version installed on a cloud server. PLM SaaS is designed natively for the cloud, with clear benefits in agility, costs, and updates.
Is cloud PLM more secure than on-premise?
Cloud solutions are now very secure, often better protected than local installations, especially when certified (ISO 27001, etc.).
Does cloud PLM work without an internet connection?
No, a connection is required to access the solution. It is therefore important to assess network stability at your sites.
What are the typical costs?
Cloud PLM pricing is based on a monthly or annual subscription, generally calculated by the number of licenses. It often includes hosting, support, and updates.
Is it possible to migrate from on-premise PLM to cloud PLM?
Yes, absolutely. This transition is increasingly common, notably to benefit from a more agile, accessible, and scalable infrastructure. Migration requires careful preparation: auditing existing data, cleaning where needed, mapping structures, then progressively importing into the new system. Specialized vendors like Aletiq offer a structured approach to secure each migration step, minimize downtime, and ensure a smooth move to the cloud.
