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Special Section Articles

Economic Benefit Analysis of Cloud-Based Design, Engineering Analysis, and Manufacturing

[+] Author and Article Information
Dazhong Wu

Center for e-Design,
Iowa State University,
Ames, IA 50010
e-mail: dwu@iastate.edu

Janis Terpenny

Center for e-Design,
Iowa State University,
Ames, IA 50010
e-mail: terpenny@iastate.edu

Wolfgang Gentzsch

The UberCloud,
Los Altos, CA 94024
e-mail: wolfgang.gentzsch@theubercloud.com

1Corresponding author.

Contributed by the Manufacturing Engineering Division of ASME for publication in the JOURNAL OF MANUFACTURING SCIENCE AND ENGINEERING. Manuscript received November 17, 2014; final manuscript received March 25, 2015; published online July 8, 2015. Assoc. Editor: Xun Xu.

J. Manuf. Sci. Eng 137(4), 040903 (Aug 01, 2015) (9 pages) Paper No: MANU-14-1607; doi: 10.1115/1.4030306 History: Received November 17, 2014; Revised March 25, 2015; Online July 08, 2015

From a business perspective, cloud computing has revolutionized the information and communication technology (ICT) industry by offering scalable and on-demand ICT services as well as innovative pricing plans such as pay-per-use and subscription. Considering the economic benefits of cloud computing, cloud-based design and manufacturing (CBDM) has been proposed as a new paradigm in digital manufacturing and design innovation. Although CBDM has the potential to reduce costs associated with high performance computing (HPC) and maintaining ICT infrastructures in the context of cloud computing, it is challenging to justify the potential cost savings associated with design and manufacturing because of the complexity in the economic benefit analysis of migrating to CBDM. In response, this paper provides important insights into the economics of CBDM by identifying key cost factors and potential pricing models that can influence decision making on whether migrating to the cloud for computationally expensive analyses that are commonplace for design and manufacturing (e.g., computer-aided design (CAD)/computer-aided engineering (CAE)/computer-aided manufacturing (CAM)) is economically justifiable. This work, for the first time, identifies the key economic benefits required for a comparative study that supports organizations in determining when traditional in-house design and manufacturing versus CBDM is most appropriate. Several comparative case studies and a hypothetical application example are provided to demonstrate and quantitatively validate decision support methods. Finally, key issues and road blocks for CBDM are outlined.

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References

Figures

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Fig. 1

Data center cost portfolio [24]

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Cost breakdown for CBDM

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The main body and propeller of the mini drone [30]

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Break-even analysis for cost

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