Cloud MES vs. On-Premise MES: A Direct Comparison

Cloud MES or On-Premise MES?

Many decision-makers in the manufacturing industry face this question when searching for a suitable MES system. The choice between a cloud-based and an on-premise MES (Manufacturing Execution System) is strategic – with far-reaching implications for your digitalization, IT resources, and competitiveness.

This direct comparison highlights all the differences, including specific costs, risks, and opportunities. Ideal for those facing an investment decision – and who want to test Cloud MES for free for 30 days before deciding.

Cloud MES vs On-Premise MES: The Basics

What is Cloud MES?

A Cloud MES is fully operated in the cloud and provided as Software-as-a-Service (SaaS). It runs device-independently in the web browser, requires no local installation, and is continuously updated.

What is On-Premise MES?

An On-Premise MES is installed and operated on the company’s own servers. The company is responsible for hardware, operating systems, updates, data backup, security, and maintenance.

Direct Comparison: 12 Key Criteria

1. Implementation Time

🏆 Cloud MES
✔ First machine digitized in 30–60 minutes
✔ Live KPIs after 1–2 hours
✔ Fully productive in max. 3 hours
✔ 30 days free testing without risk

⏰ On-Premise MES
✘ 6–18 months until go-live
✘ Hardware procurement, IT project, testing phases
✘ Complex internal coordination

2. Investment Costs (CAPEX)

🏆 Cloud MES
✔ No major project required
✔ From €850/month for 5 machines
✔ IoT Edge Devices from €350
✔ Low risk through test phase

💰 On-Premise MES
✘ €160,000–€600,000 upfront
✘ Sunk costs in case of wrong decision
✘ Hardware + license + service provider

3. Operating Costs (OPEX)

🏆 Cloud MES
✔ Hosting, updates, and support included
✔ Predictable and transparent
✔ No IT team required

💸 On-Premise MES
✘ Maintenance, updates, and IT operations costly
✘ Typically: €50,000–€150,000/year

4. Scalability

🏆 Cloud MES
✔ New machines activated in minutes
✔ Global rollout in days/weeks
✔ No additional IT resources needed

⚡ On-Premise MES
✘ Scaling = new project
✘ License costs + hardware + effort

5. Updates & Innovation

🏆 Cloud MES
✔ Monthly automatic updates
✔ New features immediately available
✔ Including AI functions from 2025

🔧 On-Premise MES
✘ Updates = standalone projects
✘ High risk of technological obsolescence

6. IT Effort & Resources

🏆 Cloud MES
✔ No internal IT team required
✔ 100% managed
✔ IT department can focus on core tasks

👨‍💻 On-Premise MES
✘ Manage own server operations and maintenance
✔ Backup strategy and monitoring required

7. Availability & Reliability

🏆 Cloud MES
✔ 99.9% uptime (Azure SLA)
✔ Redundant data centers
✔ Disaster recovery included

📉 On-Premise MES
✘ Availability depends on local IT
✘ No redundancy without additional costs

8. Security & Compliance

🏆 Cloud MES
✔ ISO 27001 certified
✔ GDPR-compliant
✔ Microsoft Azure security stack

🔒 On-Premise MES
✘ Full responsibility on company
✘ Own security infrastructure & audits required

9. Mobile Accessibility

🏆 Cloud MES
✔ Native apps for iOS & Android
✔ Web access from anywhere
✔ Mobile dashboards & alerts

📱 On-Premise MES
✘ Remote access only via VPN
✘ Limited mobility

10. Integration & APIs

🏆 Cloud MES
✔ Modern REST APIs
✔ OPC-UA Cloud Connector
✔ SAP & ERP integration out-of-the-box

🔗 On-Premise MES
✘ Proprietary interfaces
✘ Custom development efforts required

11. Support & Service

🏆 Cloud MES
✔ Premium support included
✔ Personal onboarding
✔ Tutorials, videos, and community

📞 On-Premise MES
✘ Support contracts cost extra
✘ Slow response times

12. Risk & Flexibility

🏆 Cloud MES
✔ 30 days free testing
✔ Monthly cancellable
✔ Data export possible anytime

⚠️ On-Premise MES
✘ Fixed contract terms
✘ High follow-up costs in case of wrong decision

Cost Comparison Over 5 Years (5 Machines)