What is a Cloud MES?
Cloud MES is a Manufacturing Execution System delivered as a Software-as-a-Service (SaaS) via public, private, or hybrid clouds. The MES vendor provides the software application, while the cloud vendor maintains the hardware, infrastructure, and internet access.
Cloud MES software removes the burden of physical infrastructure and extended IT staff. Instead, technology is offloaded to the cloud, making it affordable and practical for most manufacturers.
By the end of 2023, over half of MES will be deployed on public or private clouds. (source)
Why are Manufacturers Moving to Cloud-Based MES?
Cloud-based MES is changing the playing field for manufacturers, because it lowers the cost and risk of entry. This means that even smaller and emerging manufacturers can now afford to use world-class MES solutions.
The Cloud MES market is forecasted to reach $2.34 billion by 2026. (IOT Analytics)
Of course, manufacturers aren’t choosing cloud MES just because the technology is practical. Modern MES is needed in order to be competitive in today’s global marketplace. The cost-savings, operational improvements, and overall agility of cloud MES can’t be matched by paper systems or old technologies.
What’s the Difference Between Cloud-Based MES and Cloud-Native MES?
Not all cloud-based solutions are equal and it’s important to understand the difference. Cloud-based is a general term that applies to any application that’s available over the cloud on a subscription basis.
Why does it matter? Because some applications available on the cloud are simply legacy applications that have been migrated over. They offer the advantages of a subscription, but not much more.
Cloud-native applications, on the other hand, are designed from the ground up to take full advantage of the cloud and all the modern technologies. They are future-ready by design. Based on microservices technology, a cloud-native architecture offers many benefits over traditional, monolithic applications, including improved scalability, reliability, and maintainability.
You can read more about cloud MES architecture.
Benefits of Using a Cloud-Based MES
There are many benefits to using cloud MES, but one of the most important for growing manufacturers is the ability to convert CapEx to OpEx spending. Subscribing to a SaaS solution, instead of purchasing and maintaining it, does more than reduce the cost of technology. It frees up much-needed capital that manufacturers can use for R&D, production capacity, and other essential activities.
Benefits of Cloud MES Include:
Faster Deployment
Cloud solutions deploy quickly, resulting in cost savings and faster time to value compared to an on-premises counterpart.
Low Cost of Entry
Subscriptions to SaaS applications are affordable for most manufacturers
Low Risk
Without having to make major investments in hardware and software, manufacturers can deploy in careful stages over the cloud, eliminating most of the risk.
24/7 Support
SaaS solutions operate globally and provide 24-hour remote support services.
Scalability
Cloud solutions can be scaled quickly since they require no infrastructure investment.
Lightweight
Lower resource demands free up IT teams to focus on more important tasks. Cloud MES requires much less oversight after deployment, and upgrades are streamlined and automatic.
Model-Based Enterprise
Cloud MES is a key prerequisite for a Model-Based Enterprise strategy, in which everyone in a company utilizes a unique digital model for every product.
Accessibility
Cloud solutions make it possible for users to authenticate and securely access MES software from anywhere with an internet connection.
Deploying a SaaS-Based MES Solution
SaaS-Based MES solutions are delivered over the cloud by subscription, so deploying to new users or plants is relatively easy. It removes most of the risk as well as initial costs of most deployments. By leveraging the cloud, you can pick and choose the applications and functions you need, then easily add or update them as needed.
Cloud applications can be deployed quickly too, whether adding new features or deploying to a new factory. Again, you don’t buy the infrastructure, you just subscribe to the solution. In this way, cloud MES improves a manufacturer’s overall operational agility. Often, a deployment or upgrade is as simple as “flipping a switch.”
Deploy in Stages & Fund as You Go
Cloud deployment is ideal for managing digital transformation because it allows you to plan tech adoption in clear increments based on your needs and the projected ROI of each step. You can start by deploying to a single line, department, or plant, and then roll out further deployments when you’re confident of success.
Read more about cloud MES deployment.
What About Cloud MES Security?
Major cloud service providers such as Microsoft and Amazon provide a high level of security—often higher than most manufacturers could achieve on their own. Some cloud providers even offer DoD IL5 security as an option.
However, security should never be taken for granted. iBASEt’s Solumina MES is deployed on an AWS Virtual Private Cloud (VPC), which keeps all resources labeled and privately within that network. There is a dedicated virtual channel from the iBASEt corporate ISP to AWS VPC that hosts Solumina instances. As a result, all information stays under customer control.
Remember, cybersecurity depends on the manufacturer following best practices, not just on the software or the internet. Establish and enforce strong security measures so that only approved personnel have access to your systems.
Cloud MES or On-Premise: Which is Right for You?
While cloud MES offers many advantages, some manufacturers may still choose on-premise solution for reasons of security, control, regulatory compliance, or internet availability. Sometimes organizations land in the middle. Hybrid deployments use elements of both to let manufacturers maintain their own infrastructure while also using cloud technology.
There’s no one answer to whether you should choose cloud or on-premise MES, but here are some issues to consider:
Accessibility
Cloud MES is accessible to everyone with an internet connection. That includes most people, but not all. For businesses in remote or rural areas with limited or unreliable internet connectivity, on-premise computing might be the only practical option.
Up Front Costs
The decision of cloud or on-premise might be a financial one. On-premise solutions require substantial capital to fund hardware, software, and supporting staff, while cloud MES is available simply by subscribing to the solution of your choice.
Technical Debt
Technical debt is the long-term cost of technology, which can be in the form of ongoing maintenance and upgrades, but also the burden of aging technology. Cloud MES ensures that you won’t be stuck with old technology.
Security
For an enterprise with strong cybersecurity teams, on-premise systems can be the most secure choice. However, a cloud-based MES solution can offer greater security than many manufacturers would be able to provide themselves.
Scalability & Flexibility
On-premise applications can’t equal the cloud when it comes to scaling and agility. This may be one of the strongest arguments for cloud MES.
You can read a more in-depth discussion of cloud vs. on-premise.
