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Cloud vs. On-premises

Aug 25, 2025

Choosing the right deployment for Manufacturing with iTAC and Red Hat

In today’s digital manufacturing landscape, understanding the key differences between cloud computing and on-premises software is essential for making informed decisions that optimize performance, security, and scalability. Whether your business leans toward cloud solutions, premises software, or hybrid cloud environments, the right choice can significantly impact operational efficiency and future growth. Thanks to our collaboration with Red Hat, iTAC offers comprehensive, flexible industrial platforms tailored to meet these diverse needs.

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The advantages of cloud computing in manufacturing

Advantages of cloud computing

Cloud computing has revolutionized industrial operations by providing scalable and flexible solutions that support digital transformation. Key benefits include:

Cost efficiency: Reduce infrastructure and maintenance costs by leveraging cloud service providers.
Rapid deployment: Implement new manufacturing applications quickly across multiple sites with minimal IT overhead.
Scalability: Easily scale your cloud infrastructure, including cloud storage and cloud servers, in response to changing production demands.
Enhanced data management: Utilize cloud storage and cloud solutions for efficient data collection, processing, and analysis.
Business continuity: Benefit from disaster recovery options and high availability offered by cloud providers, ensuring operational resilience.

Deployment flexibility in cloud environments

Cloud solutions support various deployment locations, from private clouds in dedicated data center to public clouds managed by third-party vendors. Hybrid cloud models combine both, enabling seamless integration of on-premises and cloud infrastructure for optimal performance and security.

On-premises software: when and why it still matters

Advantages of on-premises infrastructure

Despite the growth of cloud computing, on-premises software remains vital for certain manufacturing scenarios. The key benefits include:

Low-latency performance: Essential for real-time control systems like PLCs and SCADA, which require immediate data processing.
Data residency and compliance: Maintain control over sensitive data, especially in regulated industries such as pharmaceuticals, aerospace, and defence.
Enhanced security: Local infrastructure provides robust premises security, reducing exposure to external threats.
Full infrastructure control: Manage your own hardware, network, and security policies within your on-premises data centers.
Reliable connectivity: Ideal for facilities with limited or unstable internet, ensuring continuous operation without dependency on external networks.

Use cases for on-premises deployment

Industries with strict regulatory requirements or sensitive data needs
Brownfield factories with tightly coupled real-time systems
Manufacturing plants with strong local IT teams and governance policies

Key differences between cloud and on-premises solutions

→ Understanding these differences helps businesses assess which solution aligns best with operational needs, regulatory compliance, and budget constraints.

The rise of hybrid cloud and multi-deployment strategies

Hybrid cloud combines the strengths of both cloud and on-premises environments, offering flexible deployment locations tailored to specific manufacturing requirements. For example, critical real-time systems can run locally, while non-sensitive data and analytics leverage cloud scalability.

Thanks to our collaboration with Red Hat, iTAC delivers cloud-native industrial platforms that support hybrid cloud architectures. This enables:

Deployment in edge clusters for localized control
Multi-site rollouts with cloud infrastructure
Cloud repatriation options, bringing workloads back on-premises when needed

This flexibility ensures that your manufacturing environment remains adaptable, secure, and future proof.

How iTAC enhances manufacturing performance with Red Hat

Who we are

iTAC Software AG develops the iTAC.MOM.Suite, a comprehensive Manufacturing Operations Management (MOM) platform. As a key enabler for smart factory environments, the iTAC.MOM.Suite integrates MES (Manufacturing Execution System) capabilities with advanced features such as production scheduling, analytics, process automation, and data services – fully modular and microservice-based.

Red Hat is the world’s leading provider of open source solutions. Its flagship hybrid cloud application platform, Red Hat OpenShift, sets the industry standard for hybrid cloud and Kubernetes deployments across sectors, including manufacturing.

Our collaboration with Red Hat:

The collaboration focuses on delivering a cloud-native, modular industrial platform based on the iTAC.MOM.Suite, running on Red Hat OpenShift. Key technical pillars include:

Deployment flexibility,: from Single Node and Compact Clusters at the edge to multi-node rollouts for multiple sites in the cloud
A microservice-based architecture that supports continuous delivery for manufacturing operations
Use of open source services and solutions like Helm, Apache Kafka, and PostgreSQL
GitOps and DevSecOps best practices for standardization, repeatability, and scalability

This technical foundation enables rapid, stable deployments across a wide range of manufacturing scenarios – from global automotive lines to regional electronics plants.

Our solutions leverage Red Hat OpenShift, the industry’s leading hybrid cloud application platform powered by Kubernetes, to deliver:

High performance: Microservice architecture optimized for manufacturing workflows.

Robust cloud security: Enterprise-grade security features, including identity management

Deployment stability: Automated updates, system management, and disaster recovery options.

Flexible deployment: Support for both premises and cloud infrastructure, including private and public cloud solutions.

The combination of iTAC’s modular MES & MOM services with Red Hat OpenShift, the foundation for Red Hat's advanced compute platform, enables rapid, standardized, and secure deployment across diverse manufacturing sites.

Making the right choice: cloud vs. on-premises for your business

In collaboration with Red Hat, iTAC can support both cloud and on-premises deployments, but choosing between cloud and on-premises solutions depends on your operational, regulatory, and strategic priorities. Here’s a quick guide:

Opt for cloud deployment if:

You aim to reduce infrastructure and maintenance costs
You want fast, scalable deployment across multiple locations
You plan to integrate with cloud-based analytics, AI, or ERP systems
Your business benefits from subscription-based services for faster ROI

Opt for on-premises deployment if:

Your operations require low-latency, near real-time control
Data residency or regulatory compliance mandates restrict cloud use
You prefer full control over hardware, security, and system policies
Your sites have limited or unreliable internet connectivity

Our solutions are designed to support both deployment modes, ensuring your manufacturing environment remains agile and secure.

Customer benefits from iTAC’s cloud and on-premises solutions

No matter which deployment model you choose, your business will benefit from:

Modular, scalable MES & MOM services designed for rapid extensibility
Standardized deployment processes using Helm charts
Configuration governance through GitOps workflows for consistency
Enhanced security and stability through Red Hat OpenShift’s enterprise architecture

Looking ahead: future of industrial cloud solutions

Our product roadmap intends to leverage Red Hat OpenShift to deliver advanced features like AI-driven decisions, automated system management via OpenShift Operators, and edge enablement for factories with limited IT infrastructure. These innovations support the industry shift toward modular, cloud-native industrial platforms, providing maximum flexibility and resilience.

Conclusion: building the future of manufacturing with confidence

Thanks to our collaboration with Red Hat, iTAC offers a comprehensive range of cloud solutions, on-premises software, and hybrid cloud architecture tailored for manufacturing. Whether you need localized control or cloud scalability, we help you make informed decisions that maximize performance, security, and operational efficiency. Understanding the key differences and benefits of cloud vs. on-premises enables your business to adopt the optimal deployment strategy. Contact us today to learn how iTAC and Red Hat can support your digital transformation journey with secure, scalable, and future-ready industrial platforms.