{"id":15483,"date":"2024-08-26T14:50:35","date_gmt":"2024-08-26T14:50:35","guid":{"rendered":"https:\/\/durolabs.co\/?p=15483"},"modified":"2024-12-16T19:56:24","modified_gmt":"2024-12-16T19:56:24","slug":"total-cost-ownership-plm","status":"publish","type":"post","link":"https:\/\/durolabs.co\/blog\/total-cost-ownership-plm\/","title":{"rendered":"Understanding the Total Cost of Ownership of PLM Software"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"15483\" class=\"elementor elementor-15483\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-13d74e98 posts-inner-container e-flex e-con-boxed e-con e-child\" data-id=\"13d74e98\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5b818161 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"5b818161\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Product Lifecycle Management (PLM) systems are integral for efficient hardware development. They help manage data across the product lifecycle, from initial concept through design, manufacturing, service, and eventual disposal. However, understanding the cost of a PLM platform may not always be straightforward.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Often, there&#8217;ll be hidden costs to address, as well as license and maintenance fees. Integrations, customizations, or the need for specialized staff can significantly increase the overall expenditure and aren&#8217;t always known about upfront.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Before businesses consider a PLM investment, they should determine the system&#8217;s role in business improvements and the Total Cost of Ownership (TCO) for a set period of time. In this blog, we&#8217;ll explore what contributes to the total investment for a PLM system, helping you confidently navigate these complexities.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-35f8a6f8 elementor-widget elementor-widget-image\" data-id=\"35f8a6f8\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/durolabs.co\/ebook\/the-plm-buyers-handbook\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1000\" height=\"124\" src=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/08\/PLM-Buyers-eBook-1-6.png\" class=\"attachment-full size-full wp-image-15350\" alt=\"PLM eBook\" srcset=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/08\/PLM-Buyers-eBook-1-6.png 1000w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/08\/PLM-Buyers-eBook-1-6-300x37.png 300w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/08\/PLM-Buyers-eBook-1-6-768x95.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1a61e4d1 post-anchored-tag elementor-widget elementor-widget-heading\" data-id=\"1a61e4d1\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Modern hardware teams face time pressures to get to market<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-af38f66 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"af38f66\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Modern hardware teams face pressure to build complex products where hardware and software increasingly overlap. Additionally, they must collaborate with geographically dispersed teams and siloed departments while facing pressure to reduce development costs and iterate faster. The push for sustainability and efficiency has placed an additional layer of responsibility on engineers to create designs that are not only functional but also environmentally conscious.<\/span><\/p><p><span style=\"font-weight: 400;\">Modern engineers require integrated software platforms that streamline workflows, facilitate communication, and provide access to real-time data and analytics to meet these evolving needs. Cloud technologies, collaboration tools, like Slack or video conferencing, and simulation software help facilitate rapid iteration and real-time design feedback. As a result, hardware companies can get more complex products<\/span><a href=\"https:\/\/www.durolabs.co\/blog\/time-to-market\/\"> <span style=\"font-weight: 400;\">to market faster<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Today&#8217;s hardware teams are constantly evolving and growing. Not only do they require easy-to-use tools, but they also need the ability to connect different applications to build a <a href=\"https:\/\/durolabs.co\/blog\/hardware-tech-stack\/\" target=\"_blank\" rel=\"noopener\">flexible tech stack<\/a> and share data that ensures accuracy across every function. Connecting different applications can significantly impact the TCO, which may involve lengthy consulting engagements.<\/span><\/p><p><span style=\"font-weight: 400;\">Understanding TCO is imperative for hardware companies to<\/span><a href=\"https:\/\/www.gartner.com\/smarterwithgartner\/use-zero-based-budgeting-to-rightsize-tight-budgets\"> <span style=\"font-weight: 400;\">evaluate budgets<\/span><\/a><span style=\"font-weight: 400;\">, stay on track with tight deadlines, and meet market demands.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-20b4abf post-anchored-tag elementor-widget elementor-widget-heading\" data-id=\"20b4abf\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is the total cost of ownership?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ca9ae49 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"ca9ae49\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Total Cost of Ownership (TCO) encompasses all direct and indirect costs related to the acquisition, implementation, and maintenance of a PLM system over its entire lifecycle. Unlike the upfront cost, TCO includes hidden expenses that can significantly impact the overall budget. The TCO will be higher than the initial purchase price of your software as it factors in all associated and hidden expenses, such as installation, training, support, and upgrades.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1fcd896a elementor-widget elementor-widget-heading\" data-id=\"1fcd896a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Benefits of understanding the total cost of PLM<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c22f37d post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"c22f37d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Understanding the <\/span><a href=\"https:\/\/www.cio.com\/article\/242681\/calculating-the-total-cost-of-ownership-for-enterprise-software.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Total Cost of Ownership<\/span><\/a><span style=\"font-weight: 400;\"> helps businesses budget for the future and avoid unexpected financial burdens. It also helps when evaluating different PLM platforms, as they&#8217;re not all created equal. For example, PLM systems that include heavy customization will have steeper implementation and maintenance costs, which need to be factored into the overall cost. In contrast, solutions that come out of the box with pre-built integrations will likely be quicker to implement but may require changing business workflows.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b529bf1 elementor-widget elementor-widget-image\" data-id=\"b529bf1\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"http:\/\/Product%20Lifecycle%20Management\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"2048\" height=\"627\" src=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/download-48.jpg\" class=\"attachment-full size-full wp-image-11955\" alt=\"\" srcset=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/download-48.jpg 2048w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/download-48-300x92.jpg 300w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/download-48-1024x314.jpg 1024w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/download-48-768x235.jpg 768w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/download-48-1536x470.jpg 1536w\" sizes=\"(max-width: 2048px) 100vw, 2048px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\"><\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-91cc9b2 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"91cc9b2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">The benefits of understanding the TCO of a PLM platform:&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Better budget planning:<\/b><span style=\"font-weight: 400;\"> Businesses can anticipate all costs upfront, including software licenses, integrations, customizations, and ongoing maintenance. Finance teams can create a more accurate and realistic budget, avoiding unforeseen expenses that could disrupt operations or strain financial resources later.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Better resource allocation:<\/b> <span style=\"font-weight: 400;\">Understanding the TCO helps teams determine how to allocate time and people, such as IT staff and project managers, to implement and support the project or maintenance staff and dedicated time for training. Other resources include servers and infrastructure, backups and storage, and potential consulting services.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long-term cost savings<\/b><span style=\"font-weight: 400;\">: Businesses can implement strategies to minimize related expenses over time. This could include optimizing system configurations to reduce maintenance costs, negotiating better contracts, or investing in training to enhance system utilization, ultimately leading to better long-term cost savings and a higher return on investment.&nbsp;<\/span><\/li>\n<li><b>ROI optimization: <\/b><span style=\"font-weight: 400;\">By anticipating and managing the total costs associated with a PLM system, businesses can maximize the platform&#8217;s long-term benefits, such as improved product quality, faster time-to-market, and enhanced collaboration across teams. These benefits, realized through a well-managed TCO and tracked over time, lead to greater profitability and a<\/span><a href=\"https:\/\/www.durolabs.co\/blog\/the-business-benefits-of-plm\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">more substantial ROI<\/span><\/a><span style=\"font-weight: 400;\"> for any investment.<\/span><\/li>\n<\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ba589bd elementor-widget elementor-widget-heading\" data-id=\"ba589bd\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">The most important measure \u2013 time to value<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4d7a15e post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"4d7a15e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">As discussed, modern hardware teams are under significant pressure to get their complex products to market quickly while ensuring quality and meeting requirements and market expectations. Time to Value (TTV) is when a business starts<\/span><a href=\"https:\/\/www.durolabs.co\/blog\/five-steps-to-ensure-business-results-from-your-plm\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">realizing the benefits<\/span><\/a><span style=\"font-weight: 400;\"> and returns from an investment like a PLM platform.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">TCO is directly related to delivering value to the engineering team. Implementation times, customizations, defining and sticking to project scope, investing in training and support, and utilizing the PLM platform itself all impact the time to value. Any downtime or lost productivity will impact ROI and the effectiveness of your PLM platform.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ec624a9 elementor-widget elementor-widget-image\" data-id=\"ec624a9\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/durolabs.co\/success-story\/astroforge\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1000\" height=\"124\" src=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/AstroForge-CTA-2.png\" class=\"attachment-full size-full wp-image-16240\" alt=\"AstroForge Case Study\" srcset=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/AstroForge-CTA-2.png 1000w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/AstroForge-CTA-2-300x37.png 300w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/AstroForge-CTA-2-768x95.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1a0d4db post-anchored-tag elementor-widget elementor-widget-heading\" data-id=\"1a0d4db\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How to calculate the TCO?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c0c4b43 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"c0c4b43\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Calculating the total cost of ownership for any <a href=\"https:\/\/durolabs.co\/blog\/product-lifecycle-management\/\" target=\"_blank\" rel=\"noopener\">product lifecycle management<\/a>\u00a0system begins by identifying all initial costs, such as software licensing, implementation fees, customization fees, and third-party services like consultants. Next, account for ongoing expenses such as maintenance, user training, system upgrades, and vendor support over the life of the PLM platform.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Finally, don&#8217;t forget to consider hidden costs like downtime, integration with other systems, scaling the platform and staff to manage and optimize the PLM system. Select a timeframe for how long you anticipate using the software, for example, a five-year period. Here\u2019s a detailed breakdown of all the potential costs you may incur.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4ca3d87 elementor-widget elementor-widget-heading\" data-id=\"4ca3d87\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Upfront Costs<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4f9e232 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"4f9e232\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Initial expenses incurred when first purchasing a PLM system typically include:<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Annual software license fees: <\/b><span style=\"font-weight: 400;\">These<\/span> <span style=\"font-weight: 400;\">typically include<\/span><span style=\"font-weight: 400;\"> access for a set number of users and file storage. Vendors may also include training and onboarding.<\/span><span style=\"font-weight: 400;\"> access for a set number of users and file storage. Training and onboarding are occasionally factored into this number.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Implementation costs:<\/b><span style=\"font-weight: 400;\"> This may be included in the license price for out-of-the-box software but check to see what the vendor provides and whether there are add on fees. You may need to hire consultants if the platform requires tailored workflows and lengthy installation processes.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customizations and add-ons<\/b><span style=\"font-weight: 400;\">: Add-on functionality, such as customized workflows, tailored CPNs, additional licenses, quality tools, or integrations, may be extra.<\/span><\/li><li><b>Hardware and infrastructure to run the software: <\/b><span style=\"font-weight: 400;\">These costs will depend on whether you deploy your PLM application in the cloud or on-premises. Cloud-based software, like Duro, doesn&#8217;t require additional hardware if you deploy it in a multi-tenant environment. <\/span><\/li><\/ul><p>\u00a0<\/p><p><span style=\"font-weight: 400;\">However, <\/span><a href=\"https:\/\/durolabs.co\/blog\/itar-compliance-checklist\/\"><span style=\"font-weight: 400;\">ITAR customers<\/span><\/a><span style=\"font-weight: 400;\"> or those running a dedicated instance on-premises will incur additional hardware costs. On-premises software will require additional on-site infrastructure.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-43af179 elementor-widget elementor-widget-image\" data-id=\"43af179\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/durolabs.co\/aerospace\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"124\" src=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/ITAR-banner-1-1.png\" class=\"attachment-full size-full wp-image-13450\" alt=\"ITAR Compliance\" srcset=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/ITAR-banner-1-1.png 1000w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/ITAR-banner-1-1-300x37.png 300w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/ITAR-banner-1-1-768x95.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b4b1a18 elementor-widget elementor-widget-heading\" data-id=\"b4b1a18\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Ongoing Costs<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-54db7f9 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"54db7f9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Along with the upfront costs, recurring expenses arise after the initial setup, such as training employees, providing ongoing support, and maintaining and updating the PLM system to ensure its effectiveness.<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Training:<\/b> <span style=\"font-weight: 400;\">Add time and training costs to ensure administrators and product users are fully trained to use the PLM system effectively. Consider the cost of training when the new software is first implemented, as well as regular updates for staff and when new team members join. Find out whether the PLM provider includes training and support in the license price.\u00a0<\/span><\/li><li><b>Maintenance and updates:<\/b> <span style=\"font-weight: 400;\">This covers the regular software updates, bug fixes, and maintenance activities necessary to keep the PLM system running smoothly and securely over time. Cloud-based solutions should incorporate regular updates for all users, but for on-premises solutions, the responsibility lies with whoever is in charge of managing the application in-house. <\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-92b0dbf elementor-widget elementor-widget-heading\" data-id=\"92b0dbf\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Hidden Costs<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4306218 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"4306218\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Don&#8217;t forget to consider unexpected expenses and longer-term upgrades that may not be as obvious when purchasing software the first time.<\/span><\/p><ul><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Consultants<\/b><span style=\"font-weight: 400;\">: <\/span><span style=\"font-weight: 400;\">If you require consultants for your PLM implementations, be aware that they will increase TCO through high fees for customization, integration, and support. They can help tailor the system to your specific needs but often extend timelines and raise total costs. Frequent updates or adjustments can further add to long-term expenses.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Downtime and productivity during implementation: <\/b><span style=\"font-weight: 400;\">This is the cost of disruption to daily operations when the PLM system is being installed and configured.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Integration with other business systems: <\/b><span style=\"font-weight: 400;\">You&#8217;ll want to connect your PLM platform to CAD tools, <\/span><a href=\"https:\/\/durolabs.co\/blog\/why-plm-must-come-before-erp\/\"><span style=\"font-weight: 400;\">ERP<\/span><\/a><span style=\"font-weight: 400;\">, and manufacturing execution systems (MES) to ensure an accurate data flow across departments and stages in the development lifecycle. Check to see whether there are add-ons or require additional service fees.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Staff to manage the PLM:<\/b><span style=\"font-weight: 400;\"> This includes the cost of hiring or reallocating staff to oversee the PLM system&#8217;s deployment, manage the project, and handle ongoing system administration.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Project expansion: <\/b><span style=\"font-weight: 400;\">Over time, you may wish to add capabilities to your PLM platform, such as additional integrations, new functionality, or customizations. Don&#8217;t forget to factor in additional licenses for new users as your team grows.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fee increases: <\/b><span style=\"font-weight: 400;\">Consider annual increases for subscription fees and support costs. Ask vendors how the pricing will change over time so you&#8217;re not surprised when the system is up for renewal. You may want to calculate a five-year TCO, so add these yearly increases to your financial model.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Data migration: <\/b><span style=\"font-weight: 400;\">Migrating <\/span><span style=\"font-weight: 400;\">your entire dataset from an older PLM platform can be time-consuming and potentially introduce errors. You&#8217;ll also need to assign time to cleaning and transferring data from existing platforms. Add any time spent and human resources into the cost calculations.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customizations<\/b><span style=\"font-weight: 400;\">: <\/span><span style=\"font-weight: 400;\">Customizing the PLM system to fit your organization&#8217;s specific processes incurs costs and extends implementation time, delaying time to value. While tailored features can better align the system with your business needs, it&#8217;s important to consider ongoing expenses and maintenance, as these can burden the organization with technical debt.<\/span><\/li><li><b>Hardware maintenance:<\/b> <span style=\"font-weight: 400;\">For on-premises or self-hosted PLM solutions, there&#8217;s a cost for maintaining and upgrading physical servers and other hardware, along with the software applications and operating systems required to run the PLM system. You&#8217;ll also want to prepare for planned and unplanned server outages.<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9f70978 elementor-widget elementor-widget-image\" data-id=\"9f70978\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/durolabs.co\/case-study\/gilmour-space\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"124\" src=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/08\/Gilmour-updated-banner-1.png\" class=\"attachment-full size-full wp-image-15323\" alt=\"Gilmour Space Case Study\" srcset=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/08\/Gilmour-updated-banner-1.png 1000w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/08\/Gilmour-updated-banner-1-300x37.png 300w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/08\/Gilmour-updated-banner-1-768x95.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b4af88e post-anchored-tag elementor-widget elementor-widget-heading\" data-id=\"b4af88e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Duro keeps your TCO low and increases time to value <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-267f7c7 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"267f7c7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/durolabs.co\/blog\/the-duro-difference\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Duro&#8217;s out-of-the-box PLM platform<\/span><\/a><span style=\"font-weight: 400;\"> is designed to be implemented quickly, allowing companies to get up and running in days rather than months. It keeps your Total Cost of Ownership (TCO) low by eliminating the need for external consultants or systems integrators to implement or set up integrations. Plus, a low learning curve encourages adoption and makes it easy for new team members to get up and running quickly with the platform.<\/span><\/p><p><span style=\"font-weight: 400;\">One of Duro&#8217;s customers, <\/span><a href=\"https:\/\/www.astroforge.io\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Astroforge<\/span><\/a><span style=\"font-weight: 400;\">, had just 12 months to build and launch a breakthrough space-mining vehicle. The company chose Duro as its PLM platform as it needed to minimize downtime and start centralizing the management of part numbers, assemblies, and revisions. After the implementation, Astroforge can now get change orders submitted within seconds, saving time for the entire release process.<\/span><\/p><p><span style=\"font-weight: 400;\">Additionally, every Duro user gets access to free out-of-the-box CAD integrations. The platform comes with add-ins for Solidworks and<\/span><a href=\"https:\/\/durolabs.co\/blog\/nx-plm\/\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">NX<\/span><\/a><span style=\"font-weight: 400;\"> so mechanical engineers can stay within their CAD environment and quickly release their BOM into Duro PLM, avoiding disruption to their workflows.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-48705a1 elementor-widget elementor-widget-image\" data-id=\"48705a1\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/durolabs.co\/integrations\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1212\" height=\"588\" src=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/new-stack-image.png\" class=\"attachment-full size-full wp-image-13967\" alt=\"Duro Tech Stack\" srcset=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/new-stack-image.png 1212w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/new-stack-image-300x146.png 300w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/new-stack-image-1024x497.png 1024w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/06\/new-stack-image-768x373.png 768w\" sizes=\"(max-width: 1212px) 100vw, 1212px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Duro integrations<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d3b471 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"2d3b471\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">An open API and availability within the Prismatic marketplace allow users to quickly set up and configure integrations themselves, bypassing the need for costly, complex IT projects. Companies like Gilmour Space and <\/span><a href=\"https:\/\/durolabs.co\/case-study\/rapid-robotics\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Rapid Robotics<\/span><\/a><span style=\"font-weight: 400;\"> can quickly and efficiently sync their entire hardware stack, from CAD tools to<\/span><a href=\"https:\/\/www.netsuite.com\/portal\/resource\/articles\/erp\/erp-tco.shtml\" target=\"_blank\" rel=\"noopener\"> <span style=\"font-weight: 400;\">ERP systems<\/span><\/a><span style=\"font-weight: 400;\">, giving every team data accuracy at every stage of development.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Duro significantly reduces ongoing operational costs, ensuring businesses can maintain and expand their PLM capabilities without the financial burden or tech debt often associated with larger, complex PLM systems.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2ef4753 post-anchored-tag elementor-widget elementor-widget-heading\" data-id=\"2ef4753\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Schedule a TCO consultation<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d6a9f69 post-text-block elementor-widget elementor-widget-text-editor\" data-id=\"d6a9f69\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Duro recommends performing a TCO analysis for a five-year period when considering your purchase of a new PLM solution. Understanding the Total Cost of Ownership ensures you&#8217;re fully aware of all associated costs over the system&#8217;s lifespan. It can help you avoid unexpected expenses and maximize your return on investment.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">Duro provides a user-friendly, cost-effective PLM solution that keeps TCO low with easy integrations and quick implementation time.<\/span><a href=\"https:\/\/durolabs.co\/request-demo\/\"> <span style=\"font-weight: 400;\">Reach out to our team<\/span><\/a><span style=\"font-weight: 400;\"> to explore our PLM offerings and request a TCO consultation so we can help you plan for the future.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1adb6e7 elementor-widget elementor-widget-image\" data-id=\"1adb6e7\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/durolabs.co\/request-demo\/\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"124\" src=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/05\/Case-study-banners.webp\" class=\"attachment-full size-full wp-image-12073\" alt=\"\" srcset=\"https:\/\/durolabs.co\/wp-content\/uploads\/2024\/05\/Case-study-banners.webp 1000w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/05\/Case-study-banners-300x37.webp 300w, https:\/\/durolabs.co\/wp-content\/uploads\/2024\/05\/Case-study-banners-768x95.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Product Lifecycle Management (PLM) systems are integral for efficient hardware development. They help manage data across the product lifecycle, from initial concept through design, manufacturing, service, and eventual disposal. However, understanding the cost of a PLM platform may not always be straightforward.\u00a0 Often, there&#8217;ll be hidden costs to address, as well as license and maintenance [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":15548,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Understanding the Total Cost of Ownership of PLM Software","_seopress_titles_desc":"Evaluate the Total Cost of Ownership (TCO) for PLM software, including hidden costs, integrations, and long-term maintenance, to help maximize ROI.","_seopress_robots_index":"","footnotes":""},"categories":[93],"tags":[],"resource-tag":[77],"class_list":["post-15483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","resource-tag-plm"],"acf":[],"_links":{"self":[{"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/posts\/15483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/comments?post=15483"}],"version-history":[{"count":116,"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/posts\/15483\/revisions"}],"predecessor-version":[{"id":17636,"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/posts\/15483\/revisions\/17636"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/media\/15548"}],"wp:attachment":[{"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/media?parent=15483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/categories?post=15483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/tags?post=15483"},{"taxonomy":"resource-tag","embeddable":true,"href":"https:\/\/durolabs.co\/wp-json\/wp\/v2\/resource-tag?post=15483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}