Why manufacturers are shying away from cloud computing

Posted on 7 Dec 2017 by The Manufacturer

The way you’ve worked in the past has brought you great success, so why would you change it? Within the manufacturing industry, a reluctance to move away from familiar working methods can be common.

However, this mentality can lead to stagnation, which we know is bad news for any business. Manufacturing is fast-paced and constantly changing, so standing still could mean you get left behind.

Cloud Computing Stock - image courtesy of Datawright
Costs can actually reduce by over half by simply implementing a cloud-based manufacturing software – image courtesy of Datawright.

Cloud computing is a recent but not necessarily new technology. However, many manufacturers still haven’t implemented it to their operations.

Here, Andy Gough, general manager at manufacturing software specialist and cloud computing service provider Datawright, discusses why some are slow on the uptake and how implementation should be high on their list of priorities.

High security risks

Some manufacturers prefer the familiar, so the very thought of operating within a digital sphere fills them with dread. Security can often be a key concern.

Many of these concerns stem from the remoteness of the cloud. Despite research actually showing the opposite, manufacturers believe that storing information and data locally means it is safer.

As with any new technology or way of working, issues can arise. Because the cloud is so ground-breaking, many of these issues were amplified through press and media coverage, leading to the belief that the cloud is actually insecure.

What many neglect is that these initial issues have actually acted as a learning curve, leading to the development of a secure, reliable system.

In a typical manufacturing company, IT is just one of many departments. Cloud providers make IT their only department, meaning they have the skills, knowledge and resources on-hand to deal with your IT needs.

Fear of a new technology replacing the cloud

Ask the many manufacturers who are currently using the cloud and they’ll likely say that it is the foundation of how their business operates both now and in the future. However, others are reluctant to invest due to the fear that trends will change.

Software as a service (SaaS) eases the pressure on you, giving you the advantages of the software without the responsibility of keeping it up-to-date. Updates are carried out automatically, reducing any chance of you losing your competitive edge as a result of outdated software.


For any new technological development, you would naturally assume it would come with a high entry cost. However, cloud software has been proven time and time again to offer generous cost savings.

Because the cloud is a type of SaaS, it eliminates the cost of expensive software upgrades, hardware and product licenses. For any manufacturer, these cost-savings can be huge and offer great potential across their business.

As we’ve already mentioned, cloud computing minimises the need for specialist IT skills, with one survey finding that costs can actually reduce by over half by simply implementing a cloud-based manufacturing software. Clearly then, the benefits the cloud offers are certainly worth considering.

Datawright are a manufacturing software and cloud computing specialist.

For more manufacturing insights and trends, read Andy Gough’s blog: https://blog.datawright.com/author/andy-gough