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ingham, MA). In its “Cloud Computing in Manu- facturing” IDC Manufacturing Insights report, IDC found that 44.3% of manufacturing companies either have implemented or were evaluating cloud deploy- ments, while 22% already have installed cloud-based systems.


Moving Manufacturing to the Cloud ERP software developer Plex Systems Inc. (Auburn Hills, MI) has offered cloud-based systems exclusively for the last 12 years, said Patrick Fetterman, Plex Systems vice president, marketing. The 17-year-old company specializes in offering Plex Online, a SaaS/ cloud-based ERP system, to manufacturers in a wide range of industries including automotive, aerospace/ defense builders, food and beverage, medical device manufacturers and metalforming operations. “The term ‘in the cloud’ means a lot of different things to different people,” said Fetterman. “The first, and the easiest, step into cloud computing is what we call IAAS, or Infrastructure-as-a-Service. In this case, you still own the applications, but the hardware infrastructure is owned by somebody else.” Other models include Platform-as-a-Service (PaaS), which also offers users an application development


environment. “The third level and the one in where my company’s involved is Software-as-a-Service [SaaS]. This means we own everything up into the data in those accounts,” Fetterman said. “We own the soft- ware, and our customers simply access the software, they pay for access to it. They own their own data, they own control of the user accounts, etc., and everything else is controlled by the software as a service provider.” Several key technology and market forces coalesced to create an environment conducive for cloud comput- ing, Fetterman said. These factors include Moore’s Law, the phenomenon of computing power doubling every 18 months; virtualization, the ability to build large net- work infrastructures that become virtual servers on the same hardware; and the rise of data centers that have become attractive to companies looking to cut costs by outsourcing IT operations. “All those things have put in place the structure to


deliver cloud services,” Fetterman said, “and it just happened to take place at the time there were a bunch of market forces pushing it all in the same direction. We all know that IT budgets have been cut dramati- cally and resources have been cut dramatically—no IT department is the same size it was even three or four years ago.” Today, Plex Online includes triple-redundant systems, including a hot-standby-fail data center in Asheville, NC, to deal with any potential network out- ages, Fetterman said. “Most of our customers, because it is a mission-critical system to them—our system goes down, they stop manufacturing in the plants— will engineer a second redundant Internet connection between us and their factories. That kind of activity has gotten so inexpensive, you can put in a T1 for a few hundred dollars a month. “If our system is down, factories close. Even in the


The cloud-based Plex Online ERP offers shop managers a manufacturing-centric view of plant-floor operations.


Image courtesy Plex Systems Inc.


power outage that hit the East Coast in 2003, our data center was up and running, and if our customers had power, they could get access to the Internet and use the system.”


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