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Why take a PaaS?

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Over recent years we have seen a preference of PLM and ERP suppliers to work with a few large System Integrators to implement their products within large customers who demand special attention and substantial resources, often in spikes of demand.

Now, with the demand of manufacturing companies for industry specific solutions, proliferation of the cloud, and the attractiveness of Software as a Service pricing models, Mirus in turn sees the Platform as a Service (PaaS) model as the next tidal wave in product delivery for System Integrators. Delivery of a preferred solution, customized and maintained to customer requirements and paid for monthly, without huge capital outlays; at prices lower than pure custom-built solutions, is an attractive customer value proposition.

Combine this with the need for System Integrators to truly add value as they seek to differentiate themselves from the ultra-competitive “body shop” world they live in today and a PaaS position is a natural extension of current models.  PaaS combines IP with custom services to create a unique, yet repeatable solution with margins far better than just bodies for hire.

Even offshore, where hourly labor rates are gradually rising, there is so much competition that this edge can provide superior margin and shorter time to market.  Despite the internal challenges of shifting mentality from delivering bodies only to adding value through IP delivery, we are already seeing SI’s making strategic purchases to enable delivery in this method and smartly take a PaaS when available for purchase.  For more information on this topic “click here” to see our recent report on Mergers and Acquisitions in Manufacturing Automation 2014.