On-premise installations, license keys on dongles and RS-232 cables to transfer g-code to machines. While many modern CNC machinists have moved beyond these technologies, so many of the innovations of the 80s and 90s still have prevalence in the contemporary machine shop. These breakthroughs allowed huge productivity gains for machinists, providing a significant competitive advantage. However, in many instances, these same environments that were once ripe for innovation have stagnated on their legacy platforms. This article identifies accessible, proven innovations shaping the future of the machine shop and driving enormous monetary benefit to the top and bottom line.

The Paradigm Shift from On-premise to SaaS

Software as a Service (SaaS), has revolutionized industries. Instant utilization, free trials and browser-based access have allowed new technologies to spread quickly and pivot control and power to the user, with a commercial model underpinned by the customer’s success and derived value, and thus their willingness to renew. Historically, CAM software was hosted on local servers, requiring heavy investment in IT infrastructure, maintenance, and cyclical upgrades. However, the transition to cloud solutions symbolizes a broader trend of machine shops prioritizing scalability, accessibility, collaboration and innovation which have made the embracement of SaaS an obvious choice.

This shift is perhaps best exemplified by Autodesk Fusion 360, a manufacturing SaaS application, specializing in CAD and CAM capability. It includes all the tools that you need to go from design to production, seamlessly, and is hastening the movement towards cloud-based manufacturing software platforms. Files can be accessed and altered from around the world, reducing the reliance on a traditional base and allowing businesses to harness collaboration between departments and between customer and manufacturer regardless of location. The breadth of customers using Fusion 360, with well over five million global users, demonstrates a ubiquity in the increasing digitization of the manufacturing sphere. 

The collaborative nature of Fusion 360 and the emphasis on data management ensures all communication occurs on one platform, reducing the likelihood of misinformation and simplifying the process for businesses and clients alike. There is also the advantage of increased traceability and the ability to identify how best to optimize results. Compared to legacy systems, the integrability of Fusion360 is a key component of the SaaS ecosystem

Manufacturing SaaS is expected to be worth $19.7 billion in 2026, and the transformation from on-premise to cloud-based solutions is evident in the M&A strategy of the leading manufacturing software conglomerates. Boston behemoth PTC Inc., the cradle of the MEDDICC sales methodology that helped inspire the growth journeys of software sales organizations worldwide, built their multi-billion dollar company around their desktop-based CREO application. However, in 2019, PTC’s $470m acquisition of OnShape represented their recognition of the growing cloud-CAD market, and the urgent need to have a proven, market-ready solution.

With the rise of remote working, the requirement to connected decentralized R&D departments and gain competitive advantage in a manufacturing space where the rate of innovation is ever-increasing, the transition to a SaaS-based toolset that facilitates these key deliverables, is rapidly becoming a non-negotiable for manufacturers.