Manufacturing has been a little behind in adopting cloud computing, but these late adopters have begun to make moves as they have begun to recognize the many benefits of SaaS for manufacturing environments. Manufacturing is tough; with constant pressure to speed up processes, remain competitive, drive prices down, maximize customer retention, bring in new customers, manage relationships with distributors, etc. It is no surprise the manufacturing, as an industry, has begun to look to the cloud for help after seeing the tremendous benefits it provides in other industries.
A recent study by MintJutras dug into gaining trend of manufacturing companies who have begun to implement cloud technology in their organizations. The findings of the study found:
- 49% do not understand the difference between single- and multi-tenant SaaS architectures.
- SaaS applications make up 22% of software installed in manufacturing and distribution companies today. This is, according to MintJutras, supposed to climb to 45% in the next ten years.
But why will this number increase? the study showed the most common reasons for implementing SaaS applications among those surveyed.
- The most common reasons for deploying SaaS solutions included (1) having some control over upgrades, (2) consistent support for global operations, and (3) allowing rapid and frequent upgrades.
Granted on premise solutions can do those things for manufacturing companies, but cloud-based solutions offered significant Benefits of SaaS for Manufacturing such as, faster to implement, easier to customize to special manufacturing processes, and showed promise for increased adoption among resellers.