Selecting the right software deployment strategy is a crucial decision for industrial manufacturers. With growing digitalization, businesses rely on intelligent software solutions for process optimization, predictive maintenance, quality control, supply chain optimization and many more. An essential question that arises very frequently since years is: should companies host their software on-premise or migrate to the cloud? Each approach offers distinct advantages, and the best choice depends on a company’s specific needs.
In this article, we’ll explore the benefits of on-premise and cloud-based software deployments and illustrate the impact of cloud migration for a medium-sized company as an example from the plastics manufacturing industry.
The Advantages of On-Premise Deployment
Traditionally, industrial companies have relied on on-premise software solutions. In this setup, all data and applications run on company-owned servers, offering several advantages:
- Data Control & Security: Sensitive production and customer data remain within the company’s internal network, reducing the perceived concern about external breaches or compliance issues.
- Customization & Integration: On-premise deployments provide greater flexibility to tailor software to specific operational needs, ensuring seamless integration with existing infrastructure.
- Reliable Performance: Since data processing occurs locally, on-premise solutions avoid latency issues that can arise with cloud-based applications, which is particularly important for real-time machine control.
- Regulatory Compliance: Industries with strict data protection laws may require the storage and processing of data in-house to meet legal obligations.
However, on-premise solutions come with challenges such as high upfront infrastructure costs, complex maintenance, and the need for in-house IT expertise.
The Benefits of Cloud-Based Software
In recent years, cloud computing has revolutionized industrial software, offering a more scalable and efficient alternative to on-premise deployment. Cloud computing comes with distinct benefits, the greatest are:
- Scalability & Flexibility: Cloud-based software can easily adapt to changing business needs without requiring costly hardware upgrades.
- Lower Maintenance Costs: Cloud providers handle updates, security patches, and system maintenance, reducing the IT burden for companies.
- Remote Accessibility: Cloud solutions enable real-time data access from any location, supporting distributed teams and remote monitoring.
- Data Security: Many method and algorithms ensure sage data transfer and storage for the participating companies.
- Enhanced Collaboration & AI Integration: Cloud platforms facilitate seamless data exchange across different departments and locations.
Many providers of cloud-cased solutions already comply with industry regulations, and offer the selection of additional external service providers in case of high data sensitivity.
Case Study: Agathon’s Journey from On-Premise to Cloud
A prime example of a successful transition from on-premise to cloud deployment is Agathon GmbH, a manufacturer of high-precision chocolate molds. Initially, Agathon deployed OSPHIM’s industrial software on its own servers to retain full control over its production data. However, the company encountered several challenges:
- Managing system updates required VPN access to internal servers, creating potential security risks.
- Expanding computational resources demanded continuous hardware investments.
- IT maintenance and troubleshooting placed a strain on internal resources.
To overcome these obstacles, Agathon migrated its software infrastructure to OSPHIM’s cloud platform, hosted on Microsoft Azure. This transition resulted in several improvements:
- Cost Efficiency: Cloud deployment eliminated the need for local server management and reduced maintenance expenses.
- Seamless Updates & Security: OSPHIM’s cloud-based platform ensured automatic software updates and robust encryption for data security.
- Enhanced AI Capabilities: Agathon leveraged cloud-based machine learning models for real-time process optimization, improving product quality and efficiency.
Conclusion: Making the Right Choice
Both on-premise and cloud-based software deployments have their merits, and the optimal choice depends on a company’s priorities. On-premise solutions offer unparalleled data control and reliability, while cloud platforms provide flexibility, cost savings, and access to advanced AI-driven analytics.
Agathon’s decision to migrate to the cloud demonstrates the transformative potential of cloud-based software in industrial settings. By reducing IT complexity and leveraging AI-powered process optimization, companies can drive digital transformation and maintain a competitive edge in an increasingly data-driven world.