Manufacturing has never been more complex. As Industry 4.0 drives businesses toward automation and data-driven operations, while cybersecurity compliance becomes mission-critical, manufacturers need robust technology strategies to stay competitive.
As the preferred IT Services partner for Global Shop Solutions, Upward specializes in optimizing integrated IT environments, including ERP systems, for specific business needs. One common question we address is whether to host ERP systems in the cloud or on-premises – a decision with significant long-term implications. From an IT infrastructure and technology management perspective, Upward is invested in helping clients make the right decision for their business, to set themselves up for future success.
Key Considerations from an IT Management Perspective
Security Stakeholder Requirements
Security stakeholders can be the decisive factor in this decision. For businesses in the DoD/DiB supply chain, Cybersecurity Maturity Model Certification (CMMC) compliance becomes mandatory in 2025. This framework’s 110 controls require demonstrable oversight of Confidential Unclassified Information, potentially necessitating on-premise hosting for granular control and audit capabilities. If CMMC applies to your organization, we recommend coordinating with Global Shop, a knowledgeable IT provider, and CMMC consultant before making this decision.
Support Infrastructure
While cost is important, long-term support capability should be a primary consideration. Cloud hosting transfers hardware maintenance and management to the GSS team – an attractive option for organizations without robust internal IT resources.
On-premise hosting can offer greater control and cost benefits but requires dedicated resources for:
- Data purging and retention
- Security management
- System updates
- Backup administration
Rather than letting support resources dictate your hosting choice, consider this an opportunity to optimize your support structure for future needs.
Decision-Making Process
This strategic decision requires careful evaluation beyond comparing hardware costs versus Software as a Service. Consider factors like:
- Customization needs:
- GAB customization requirements
- Complex dashboard systems
- Integration needs (barcode readers, timeclocks, shop equipment)
- Internet redundancy (everything will be dependent on internet if you use SaaS)
- Functions of your servers- do you retire them and migrate other key functions to the cloud? Do you retain some systems on the old servers in a hybrid setup?
- What other future aspirations do you have for technology? AI, robotics, Internet of things, new client compliance requirements?
Best practices recommend assembling key stakeholders to collaboratively help you to dissect these complex elements:
- An experienced IT services provider familiar with both cloud and on-premise Global Shop implementations
- CMMC (or cybersecurity) expertise (which providers like Upward can provide)
- Global Shop’s migration team
Gathering these perspectives in a unified discussion enables thorough evaluation of long-term implications and trade-offs. If you are weighing this important decision, reach out to Upward today and engage the Global Shop experts!
