Written by Megan Jenkins on August 20, 2019
February 7th, 2018
approx reading time
4 Minute Read
When taking a software purchasing decision, the financial advantages are among the top criteria considered, especially for freelancers, startups, and SMEs. With cloud-based and SaaS solutions emerging, the cost of technology has been dramatically reduced in many sectors, making the market more competitive and the choices for the final investment decision more numerous.
Besides the solution’s purchase price, other essential factors also influence the final buying decision. Hidden costs related to maintenance, upgrade, cross-grade, IT support, training, TCO (Total Cost of Ownership), and ROI (Return on Investment) are new metrics considered by CIOs, CTOs, and CFOs. Generated by the business needs for better solutions, quick delivery, and cost reduction, the cloud model is a better alternative to traditional software, mainly because of its accessibility and financial advantages. In the article “10 Reasons Why Cloud-Based CAE is The Better Option”, the main benefits offered by cloud-based solutions, compared to license-based software are compared. In this article, the focus is on the financial arguments of CAE software based 100% in Cloud.
Any purchase request should have solid technical, economical, and productivity-related arguments. When the purchase is an engineering simulation software, this process gets more complicated, as there’s a lot at stake. With on-premises CAE software, the cost includes both hardware and individual licenses for each simulation type — Computational Fluid Dynamics, Finite Element Analysis, or Thermal Simulation — and can easily go above $40k. This compared to cloud-based CAE software which costs around $5,000 for a year. Considering the difference in accessibility and the time savings, it’s logical that companies, start-ups, and SMEs, are reviewing their options.
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Why move to a cloud-based CAE solution? There are plenty of strong arguments but here are 5 financial advantages to convince CFOs:
In-house hardware, software, and associated services necessitate high upfront capital costs. With cloud-based solutions, financing that capital investment is someone else’s problem. The cloud eliminates the need for a CAPEX investment offering a more flexible and predictable operational expenditure (OPEX) based on a service subscription model. The SimScale simulation platform, for example, has a flexible pricing model able to fit the different needs of organizations. This relaxes the financial balance by moving the whole model cost from CapEx to OpEx. SimScale’s customers can choose the best subscription model depending on the project’s complexity and the available financial resources. With 3000 core hours to use for private projects, access to all the simulation features — CFD, FEA, and thermal simulation) —, and customer support, the Professional Plan is the most cost-efficient option on the market. Upgrading to the Enterprise level can get you unlimited core hours and users, based on your needs.
Running simulation software is computationally-intensive. Big CAD data volumes, complex algorithms, and repetitive optimization iterations need powerful graphic processors, volume storage space, and large bandwidth connections. Besides making your computer unusable for the simulation running time, this also implies high costs. Moreover, any powerful workstation should usually be renewed, on average, every 3 years. Cloud-based solutions eliminate the need for supplementary investment in hardware and networking infrastructure. As a SimScale user, only a web browser and Internet connection are required to run very complex simulations, on up to 32-core machines.
Time is money. Using traditional CAE software can lead to delays and frustrations, with detrimental consequences for the manufacturing schedule. The collaboration between different engineering, design, and development teams need to be carefully managed in order to keep to the project deadlines and being dependent on a machine with no or limited collaboration options make it hard to avoid delays. Any communication error and collaboration between people and teams can generate delays in product delivery, with supplementary time and cost expenses. With the SimScale platform, you only have to estimate the simulation running time. Any new user has instant access to the software with no complicated configuration. The easy upload of your pre-designed CAD design allows testing in the shortest time possible. Moreover, the sharing options on SimScale allow rapid collaboration between team members. From any location, and from multiple devices, it is possible to share or present your work.
An ROI evaluation is a must for any project. Using on-premises simulation software, any misfunction, misfit, and unpredicted cost could generate supplementary investment and final delivery delays, making it even harder to recover the initial investment. SaaS solutions allow a fast recovery of operational costs. Small rental fees, management flexibility, predictability, and fast delivery of products to market contribute to this. By no longer having to worry about constant server updates, hardware replacement, software updates, and supplementary IT resources, engineering teams are free to focus on innovation and product quality.
Whether you are working for a startup, a small or medium company, or a large corporation, your management team should explore how full-cloud CAE solutions can enable these dramatic savings, while simultaneously improving your entire design and manufacturing process.
Learn more about SimScale’s plans and costs here: Plans & Pricing.
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