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By Cloud-Based RPA vs On-Premise: What Should Manufacturers Choose?
Staying competitive in today’s time means embracing automation. Robotic Process Automation (RPA) is transforming the industry by streamlining repetitive tasks like data entry, invoice processing, and supply chain management.
The global RPA market is projected to reach USD 30.85 billion by 2030, growing at a CAGR of 43.9% from 2025 to 2030 (Grand View Research).
But a critical question remains: should manufacturers choose cloud-based RPA services or on-premise manufacturing software? This blog explores the pros and cons of each to help you make an informed decision.
What Are Cloud-Based RPA and On-Premise RPA?
Cloud-Based RPA
Robotic Process Automation in Cloud involves software hosted on third-party servers, accessible via the internet. Manufacturers can use these services without investing in on-site hardware or software. The provider manages infrastructure, updates, and maintenance, offering a subscription-based model that scales with demand.
On-Premise RPA
On-Premise Manufacturing Software refers to RPA installed and operated on a manufacturer’s own servers. This setup provides complete control over the automation environment, including data security and system customization, but requires significant upfront investment and IT resources.
What Are the Benefits of Cloud-Based RPA for Manufacturers?
Cloud RPA Benefits make it an attractive option for many manufacturers. Here are the key advantages:
- Lower Upfront Costs: No need for expensive hardware or software licenses. Manufacturers pay for what they use, improving cash flow. According to McKinsey, cloud RPA can save up to 25% compared to on-premise solutions.
- Scalability: Adjust resources quickly to match production demands, ideal for seasonal or growing operations.
- Faster Deployment: Cloud-based solutions can be implemented in days, reducing time-to-value compared to on-premise setups, which may take months.
- Automatic Updates and Maintenance: Providers handle updates, ensuring access to the latest features and security patches without internal IT effort.
- Accessibility: Monitor and manage processes from anywhere with an internet connection, supporting remote operations and multi-site facilities.
What Are the Benefits of On-Premise RPA for Manufacturers?
On-Premise Manufacturing Software offers distinct advantages, particularly for manufacturers with specific needs:
- Greater Data Control and Security: Data stays within the organization’s infrastructure, reducing risks of breaches. This is critical for manufacturers handling proprietary designs or sensitive customer information.
- Customization: Tailor RPA to integrate smoothly with existing systems, ensuring compatibility with unique processes.
- Performance: Local servers can offer faster processing for large datasets or real-time tasks, avoiding internet latency issues.
How Should Manufacturers Choose Between Cloud and On-Premise RPA?
When deciding on Cloud RPA vs On-Premise, manufacturers should consider several factors:
- Cost Analysis: Cloud-Based Manufacturing Software has lower upfront costs but may incur ongoing subscription fees. On-premise requires significant initial investment but could be cost-effective for large-scale, long-term deployments.
- Security and Compliance: Assess data sensitivity and regulatory requirements. On-premise offers more control, but reputable cloud providers often meet standards like GDPR and HIPAA.
- Scalability Needs: Cloud RPA excels in flexibility, allowing rapid scaling without hardware purchases. On-premise scaling is slower and costlier.
- IT Resources: Cloud RPA reduces technical overhead, as providers manage infrastructure. On-premise demands robust in-house technical expertise for maintenance.
Comparison Table: Cloud-Based RPA vs On-Premise RPA
| Aspect | Cloud-Based RPA | On-Premise RPA |
| Upfront Cost | Low (subscription-based) | High (hardware and software licenses) |
| Scalability | Highly scalable, quick adjustments | Limited, requires hardware upgrades |
| Deployment Time | Days | Weeks to months |
| Security | Provider-managed, robust but off-site | Full control, data stays on-site |
| Compliance | Provider certifications, may need verification | Easier to tailor to specific regulations |
| Maintenance | Handled by provider | Requires internal IT resources |
What Are the Trends in RPA and Cloud Adoption for 2025?
The manufacturing industry is increasingly adopting Cloud-Based Manufacturing Software. Gartner predicts that by 2025, 80% of enterprises will migrate from on-premise data centers to the cloud as part of their Data Center Exit strategy (Gartner).
The Cloud Manufacturing Market is expected to reach USD 200 billion by 2030, growing at a CAGR of 16.1% from 2023 to 2030 (IndustryARC).
The global cloud computing market is expected to grow from USD 752.44 billion in 2024 to USD 2,390.18 billion by 2030, at a CAGR of 20.4% (Grand View Research).
These trends highlight the growing preference for cloud solutions, driven by cost-efficiency and operational agility.
Conclusion
Choosing between Cloud RPA Services and On-Premise Manufacturing Software depends on a manufacturer’s priorities.
Cloud RPA Benefits include cost savings, scalability, and quick deployment, making it ideal for manufacturers seeking flexibility. On-premise RPA offers superior control and compliance, crucial for those with sensitive data or strict regulations. As the industry leans toward cloud adoption, manufacturers must evaluate their needs carefully.
For expert guidance on implementing RPA, whether cloud-based or on-premise, connect with us today to find the best solution for your business.
FAQs
What are some popular cloud-based RPA tools for manufacturers?
Popular tools like UiPath, Automation Anywhere, and Blue Prism offer features tailored for manufacturing, such as invoice processing and supply chain automation.
How does RPA integrate with existing manufacturing systems?
RPA integrates via APIs, database connections, or by mimicking user interactions, enabling seamless automation across platforms.
What are the typical costs associated with implementing RPA in manufacturing?
Costs include licensing, implementation, and maintenance, with cloud solutions often using subscription models for predictability.
Can RPA be used for quality control in manufacturing?
Yes, RPA automates data collection, analysis, and reporting for consistent quality checks, improving accuracy.
What skills are needed to manage an RPA system in manufacturing?
Skills in process analysis, automation design, basic programming, and knowledge of manufacturing processes are beneficial.
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