An On-Premises MES (Manufacturing Execution System) is manufacturing software installed and operated on a company’s own servers.
It bridges ERP systems (ISA-95 Level 4) and shopfloor operations (Level 3), collecting and processing real-time data locally without cloud infrastructure.
For decades, this has been the default model for industrial IT—offering control and customization at the cost of flexibility and scalability.
A typical On-Prem MES setup includes:
According to ISA-95 (IEC 62264), MES operates between:
Integration relies on standards such as OPC UA, REST APIs, or B2MML, often requiring project-specific customization—one reason On-Prem deployments are time-intensive and costly compared to modern cloud-based systems.
Despite the cloud trend, On-Prem MES remains relevant in specific contexts:
1. Full Data Control
All manufacturing and quality data remain within internal infrastructure—important for confidentiality and regulatory compliance.
2. Offline Operation
Production continues even during network outages—critical for sites with limited connectivity.
3. High Customization
Systems can be tailored to unique workflows, data models, and proprietary interfaces.
4. Legacy Machine Integration
Local systems can more easily connect to older, non-networked equipment.
The drawbacks are mainly economic and operational:
According to IoT Analytics (2024) and Gartner, the global share of purely On-Prem MES solutions continues to decline as cloud-native models grow by double digits each year.
| Criterion | On-Prem MES | Cloud MES |
|---|---|---|
| Deployment | Local servers | Cloud infrastructure (e.g., Azure) |
| Investment Model | CAPEX (hardware + licenses) | OPEX (SaaS subscription) |
| Implementation Time | Months – years | Hours – weeks |
| Maintenance | Manual, internal | Automatic, vendor-managed |
| Scalability | Per site | Global, elastic |
| IIoT / AI Integration | Limited | Native |
| Data Security | Internal control | Certified data centers (EUCS, ISO 27001) |
See also: Cloud MES: Architecture, Benefits & Implementation in Manufacturing
However, most industrial SMEs are now shifting toward cloud or hybrid MES models to enable real-time analytics, global scalability, and lower total cost of ownership.
On-Prem MES remains a proven model for companies requiring maximum data control and internal governance.
Yet market dynamics clearly favor cloud-native MES architectures, which deliver faster deployment, scalability, and integration with modern IIoT ecosystems.
A gradual transition—via hybrid scenarios—lets manufacturers preserve existing investments while gaining the agility of SaaS solutions.