Why Manufacturing is Moving to the Cloud

Posted by Matthew Fall on Feb 26, 2019 12:07:28 PM

Man in printing house showing client printed documentsManufacturing companies have a couple of things in common. They all look to bring more speed, scalability, and accuracy to operations. To beat out competition, these firms are turning to cloud computing to gain that competitive advantage. In fact, global spending on cloud computing by manufacturing companies is projected to reach a whopping $5.18 billion in 2019, according to IDC. Here are a couple of reasons why cloud computing is hot in manufacturing: 

Improving product quality 

The more quality batches that a manufacturing company can turn out, the better profit margin. We’re talking about economies of scale, but too many defective outputs can reduce the profit margin that comes with large scale production. Improving product quality requires cooperation from several different processes and teams within the organization. Cloud computing allows all of these teams to gain collaborative insight into the overall production process from start to finish, removing defective parts and fine-tuning processes.  

Optimizing manufacturing cycles 

Like most businesses, data drives decision making. Manufacturing is no different. Cloud computing infrastructure can be infinitely managed and scaled to meet different needs for manufacturing companies, either for data processing, data storage capacity, or both. With seasonality influencers, infrastructure and computing resources can be scaled so that manufacturing cycles can become more efficient during peak demand and scaled down during lower demand.  

Automating compliance and reporting  

Many manufacturing companies face FDA regulation and a whole lot more depending on the final output. Many cloud-based applications have built in compliance reporting and data backup services to help manufacturing companies better automate and prepare for audits. 

Preparing for Disasters 

Any time a manufacturing cycle can be made more efficient, productivity and profits increase. Any time a manufacturing cycle is downed or prolonged due to data loss, the results can be catastrophic. Cloud computing allows manufacturing to improve the availability of this data via cloud backup and disaster recovery solutions so that downtime isn’t even an option. 

Stick to Manufacturing, Not Data Centers 

Manufacturing companies realize that their specialty is manufacturing, not information technology or data center management. Cloud computing allows manufacturing companies to stick to their core competencies while letting a managed service provider with IT expertise handle the data center operations. 

The Bottom Line 

Growth oriented manufacturing companies are turning to cloud computing to win in the marketplace. With cloud computing, improve quality of output, optimize processes, and ensure the availability of data that informs decision making on the shop floor and on the top floor. Get in touch with us today to get a head start on cloud computing services from NewCloud. 

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