Cloud-Based MES vs. On-Premise MES: A Food Manufacturer’s Guide

Smart technology has transformed modern food manufacturing and plays a significant role in food and beverage production. A manufacturing execution system is becoming more popular and needed among food producers, and we are delighted to see this trend. MES software ...

Cloud vs. On-premise MES

Smart technology has transformed modern food manufacturing and plays a significant role in food and beverage production. A manufacturing execution system is becoming more popular and needed among food producers, and we are delighted to see this trend.

MES software oversees food production from raw materials to finished goods. Food manufacturers searching for an MES solution may be puzzled about choosing cloud or on-premise MES for their business.

Making the right choice is important as these options will suit different purposes, so we strongly recommend you stay on this blog. Here, we will discuss the difference between cloud-based and on-premise MES to help you make an informed decision.

MES Software Explained

MES software is a digital solution for tracking and controlling food production on the shop floor. It connects different business systems and enables real-time production monitoring and data collection.

MES benefits are numerous: by providing real-time visibility, the system helps food manufacturers control production, improve product quality and food safety, maintain regulatory compliance, manage food traceability, make data-driven decisions, and boost efficiency.

Key functions of MES

MES can be different; for instance, there are more traditional on-premise platforms and modern cloud-based systems. Your perfect choice will depend on your needs, goals, and other factors. If you are still in two minds about what you need, we are here to explain the peculiarities of each MES type.

What Is a Cloud-Based MES for Food Manufacturers?

Сloud MES is a software as a service (SaaS) solution that optimizes manufacturing operations using cloud technology. The system is hosted on remote servers and is accessible via the Internet. You can subscribe to a cloud MES, and third-party software providers will manage it for you.

A cloud-based manufacturing execution system is easily scalable, secure, available remotely, provides real-time updates, and has other features and benefits that we’ll discuss later.

What Is an On-Premise MES for Food Manufacturers?

On-premise MES works within the company’s IT infrastructure on local servers. The system offers data security and total control. This type of MES will guarantee that sensitive data stays in the facility. On-premise MES works seamlessly without an internet connection and can be easily customized for the company.

Both system types will help guarantee food safety and compliance for food manufacturers and maintain efficiency, but let’s take a deeper look at some aspects to see the strengths and weaknesses of each solution.

Comparing Cloud-Based MES and On-Premise MES

Both cloud and on-premise MES solutions have peculiarities, and comparing them will help understand what is better in a particular case. Some key aspects to compare are cost, access, security, regulatory compliance, etc.

1. Costs

  • Cloud MES is subscription-based. The provider hosts and maintains the software, so the initial cost is lower, and you don’t pay for the hardware or infrastructure. 
  • On-premise MES requires a more significant upfront investment. This can include paying for hardware and software, licenses, maintenance costs, and salaries for the IT team.

2. Access

  • A cloud-based system is accessible from anywhere if you are connected to the internet.
  • On-premise software is available in the company’s local network.

3. Security

  • Cloud MES software stores data in a cloud storage system, which involves third-party hosting. To protect sensitive data and guarantee confidentiality, cloud MES provides comprehensive security measures, such as multi-factor authentication, complies with security audits like SOC 2, and offers disaster recovery.
  • An on-premise MES solution offers high data control, keeping it safe and secure within the company’s local servers. However, on-premise systems can be vulnerable to internal security risks and require well-developed internal protocols to prevent these issues.

4. Food Safety and Regulatory Standards

  • Cloud MES doesn’t ensure compliance itself, but it provides tools and updates to align processes with regulations. The user must implement these updates manually.
  • On-premise systems are also great for maintaining food safety and regulatory standards. However, they don’t support automatic data updates unless the software is paired with appropriate external integrations to automate them. In another case, the IT and compliance teams must stay informed about regulatory changes and manually update the system and processes.

5. Deployment

  • Cloud software is quick and easy to deploy, as cloud MES specifics help avoid time-consuming installation. However, some factors, such as data migration complexity, can slow the process.
  • Implementing the on-premise system requires time and effort to set up the infrastructure.

6. Scalability

  • Digital MES is easily scalable, provides instant updates, and is flexible overall. Cloud hosting enables growing food businesses to expand the system’s capabilities without investing in hardware and infrastructure modifications. 
  • On-premise MES can scale by expanding infrastructure and adding hardware, which can take longer than cloud systems. 

7. IT and Maintenance

  • Cloud manufacturing execution systems are hosted by the provider with the most IT responsibilities. MES vendors also control automatic updates and maintenance.
  • If you choose on-premise software, you need a dedicated IT team to oversee MES maintenance and updates.

8. Customization Capabilities

  • The level of customization depends on a system and vendor, but many modern cloud MES solutions provide APIs, modular features, and other tools that make them highly customizable.
  • The on-premise solution is highly customizable, as food businesses can fully control the software’s infrastructure. This allows them to tailor the solution as needed.

9. Reliability 

  • Digital MES is highly reliable. The software has sophisticated hosting environment and failover systems. Cloud MES vendors offer Service Level Agreements to guarantee 99% uptime.
  • On-premise MES works on its infrastructure and doesn’t rely on external providers or the Internet. The software only depends on the robustness of the internal IT infrastructure. It’s an excellent solution for manufacturers who must work without interruptions.

AspectCloud-Based MES SoftwareOn-Premise MES Software
Total CostSubscription-based with lower initial costs.Requires significant upfront investment.
AccessibilityAvailable from anywhere with internet access.Accessible within the company’s local framework.
Data SecurityThird-party hosting. Comprehensive security measures to protect the data. High-level data security, as the information is stored on local servers. Internal security threats are possible without proper protocols.
Impact on Regulatory ComplianceProvides tools and updates to support compliance. Users ensure that regulatory requirements are implemented well.Requires manual monitoring of regulations and updates to ensure compliance with food safety standards. Integrations can help automate the process.
Deployment ComplexityQuick and easy to deploy.Requires time to implement.
ScalabilityEasily scalable.Scalable but depends on additional IT resources and hardware.
IT and MaintenanceHosted and maintained by the provider.Requires an IT team in place.
CustomizationCustomizable thanks to APIs and modular features.Highly customizable.
ReliabilityVery reliable, provided that there’s a stable internet infrastructure and a backup system.Highly reliable, works independently of the internet.

When To Choose Cloud or On-Premise MES?

Choosing between cloud and on-premise MES will depend on several factors, such as your business needs, objectives, and regulatory requirements. You can compare some key aspects:

Cloud MES Software is suitable for:

  • Small and medium food businesses and startups limited in budgeting and IT resources.
  • Geographically distributed companies and facilities that still need real-time MES data.
  • Remote teams.
  • Food manufacturers who want to scale up quickly and without significant investment.
  • Those who have less time and want to implement MES faster.
  • Companies who maintain business continuity and want to store data in the cloud in case of failures or unplanned issues.

On-premise MES software is perfect for:

  • Those with advanced security needs who can’t expose data to third parties.
  • Food companies that need comprehensive customization.
  • Manufacturers with unstable internet connection.
  • Have an IT team in place to maintain MES. 
  • Those who want to avoid costly downtime and don’t want to rely on external factors like internet outages.

How To Decide What MES To Choose? Key Questions to Ask.

Making an informed decision about what kind of MES software to use is vital, as it can influence further performance and efficiency. When choosing, ask yourself several questions to help you decide.

  1. What Is My Budget? Compare cloud and on-premise MES pricing and think which solution will fit your financial plan. 
  2. Do I Need a Solution With Remote Access? You might need a cloud MES if you have multiple-location production and remote teams. Otherwise, if your operations are centralized, you can choose either an on-premise or cloud MES, depending on your preferences and other factors.
  3. Do I Have/Need an IT Team To Manage On-Premise MES? You can choose the on-premise MES version if you have dedicated personnel or are ready to hire new people. Cloud MES is great if you don’t have an IT team and want a third party to manage the system.
  4. What Level of Security Do I Need? Choose cloud MES if you trust third-party vendors and opt for an on-premise system if you must control sensitive data fully and independently. 
  5. Does My Company Plan To Scale? If you are a growing business, cloud MES will quickly adjust to you, and this is what you need. If you don’t plan to scale, you can also think about on-premise MES. 
  6. How Much Time Do I Have to Implement a Solution? The cloud version is the best if you need to deploy MES faster. On-premise MES will take longer to implement, so it will fit companies that can devote the time required for this purpose.
  7. Do I Need To Customize MES? Cloud systems are ideal for businesses that need moderate customization and value flexibility. However, companies with highly specific workflows will benefit from on-premise MES due to their extensive level of customization.
  8. What If I Can’t Connect to the Internet? Of course, modern technology reduces the risks of internet downtime, and cloud systems are typically very reliable. However, if you are still unsure whether the connection is good enough, on-premise software can be a solution.

This questionnaire will help you better understand your needs, but you should also remember your specific requests. Proper analysis is critical. If you need help, address the providers you are considering, and they will consult you. For instance, at FoodReady, we offer a demo and a profound consultation for potential clients.

Why Choose FoodReady Cloud-Based MES?

FoodReady Cloud MES is a perfect solution for food and beverage manufacturers seeking convenience, food safety compliance, a modern approach, and comprehensive support.

Our software offers secure cloud storage, a mobile app, and versatile MES features, including food safety compliance, document management, quality control, and food traceability. We will centralize and synchronize your production processes, provide real-time visibility, and ensure convenience.

FoodReady is a highly customizable and comprehensive solution that will help you grow your business and scale with you. We are a perfect match for big and small food companies seeking advantages in a cloud MES. Book a free demo and learn how our cloud system can enhance your compliance efforts!

Conclusion

Cloud-based and on-premise MES software are excellent solutions for food manufacturing, as they guarantee food safety compliance, automation, real-time visibility, and other benefits.

However, choosing the right software for your business is crucial, as each option has its peculiarities and will fit different business needs. For example, multi-location producers will find cloud MES more convenient, and a food manufacturer with offline operations will find on-premise MES the best. 

Analyze your business and objectives and decide if you need a cheaper, scalable, and secure cloud MES or if you can afford to implement very customizable, safe, offline MES.

FoodReady is a cloud-based solution that offers highly secure data storage, ensures food safety compliance, and integrates the best features so you can make the most of our platform. Contact us to discover more and become one of our best customers!

FAQs

What are the hidden costs of implementing an on-premise MES system?

Food manufacturers pay for hardware upgrades, maintenance, salaries, or license renewals. Securing the software from cyberattacks and other problems also requires additional investment.

Does cloud MES software have hidden costs?

When implementing cloud MES, remember that subscription costs may increase over time, and you will need to pay the data transfer costs.

How does cloud MES software scale during seasonal production demands in food manufacturing?

The cloud MES system scales easily during peak seasons. Manufacturers can scale back later when the demand is lower.

Is cloud-based MES secure enough for food manufacturers handling sensitive production data?

There may be a misconception that cloud MES is less secure than on-premise. However, it’s not true. Cloud MES software solutions are safe, as they use encryption, multi-factor authentication, and security updates to ensure data confidentiality. Finding a reliable provider that adheres to security standards is also essential.

Can on-premise MES integrate with modern technologies like IoT and AI in food production?

One of the MES features is integration capabilities, so the answer is yes. However, integrations will take more time and effort in an on-premise MES as the process will include upgrades, additional IT resources, etc.

How do cloud MES systems support compliance with evolving food safety regulations?

Cloud MES software provides real-time and regular updates and automated compliance tracking. These measures help ensure adherence to FSMA, HACCP, and other food safety standards.

What is hybrid MES architecture?

Hybrid MES is a combination of on-premise and cloud-based MES. Its hybrid architecture creates a flexible, efficient, and scalable system for manufacturing operations. This can be a perfect solution for companies that need offline operations combined with real-time remote access.

What are the common misconceptions about cloud and on-premise MES solutions?

There may be skepticism towards cloud MES, as people wrongly believe it only fits small businesses and startups, is not secure enough, entirely depends on the Internet, or cannot be customized.

Users may also think that on-premise MES cannot connect to IoT devices and is more secure, ignoring the internal security risks, etc.

However, these are only myths. Each solution offers various functions and has pros and cons, and your priority should be to choose a system that will fit your needs and specifics.

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Picture of Gerry Galloway

Gerry Galloway

CEO / Co Founder FoodReady
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