Should Your Manufacturing Software be Cloud vs. On-Premise?

April 20, 2023
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As data and software becomes increasingly paramount to manufacturers, figuring out where to store it is an important decision. Explore the pros and cons of manufacturing software being in the cloud or on-premise in this informative overview.

It’s an age-old question – cloud-based or on-premise software? Well, perhaps not. Still, more and more manufacturing organizations are weighing the benefits and drawbacks of using cloud-based vs. on-premise software in their production processes.

The decision to use on-premise or cloud-based software is going to be personal for each individual organization. In this article, we’ll discuss the pros and cons of on-premise and cloud-based software to provide you with the information you need to consider before your next manufacturing software purchase.

What’s the Difference Between Cloud vs. On-Premise Software?

Cloud and on-premise manufacturing software refer to the environment where the software network is managed and hosted. As the name suggests, on-premise software is typically managed on local servers and built on an organization's existing devices and IT infrastructure.

Cloud-based software, on the other hand, is hosted on an external web hosting platform and is typically managed by a third-party vendor. Unlike on-premise hosting, cloud-based software can be accessed from any device or location as long as users log in with approved credentials.

Does Cloud vs. On-Premise Matter in Manufacturing Software?

The simple answer is: it can! Although there are several factors to consider when selecting cloud vs. on-premise software, the choice will primarily depend on the size of the company and its IT resources – as well as the level of security necessary to manage and perform manufacturing processes.

For organizations with stringent security protocols, on-premise is worth the additional investment and maintenance. However, for small and mid-sized companies, cloud-based or dedicated cloud servers provide ample security and scalability at a fraction of the cost.

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