Across industries, manufacturers are rethinking how they run their plants. The old model of on-premises systems and rigid IT infrastructure is giving way to flexible, cloud-first approaches. At the center of this shift is the Manufacturing Execution System (MES), the software that connects production planning with shop-floor execution.
More companies are now asking: what if the MES lived in the cloud? The move toward a cloud-based manufacturing execution system is no longer a niche experiment. From large multinational enterprises to fast-growing mid-market firms, cloud MES adoption is gaining momentum as manufacturers look for agility, real-time visibility, and lower total cost of ownership.
In this blog, we’ll explore what a cloud-based MES really is, why manufacturers are making the switch, the challenges they need to manage, and how open-source options like Apache OFBiz offer a flexible, cloud-ready foundation without vendor lock-in.
What Is a Cloud-Based MES?
A Manufacturing Execution System (MES) is software that connects production planning with shop-floor execution. It manages functions such as:
- Creating and tracking production orders.
- Defining routing and sequencing of tasks.
- Monitoring machines and labor in real time.
- Enforcing quality checks and compliance workflows.
- Capturing production data for costing and reporting.
Traditionally, MES has been deployed on-premises, running on servers located inside the factory. While this setup gives companies control, it also requires heavy investment in infrastructure, IT staff, and ongoing maintenance.
A cloud-based MES, by contrast, runs on cloud infrastructure — whether public (AWS, Azure, GCP), private, or hybrid. This means:
- It can be accessed securely from anywhere, across plants and geographies.
- It scales up or down without new hardware.
- It integrates more easily with cloud-native tools like IoT platforms, analytics dashboards, or ERP systems.
- Updates and upgrades can be delivered faster, reducing downtime and IT overhead.
In short, a cloud-based MES combines the functional depth of manufacturing execution with the agility, scalability, and cost benefits of the cloud, making it a natural fit for modern manufacturers.
Why Manufacturers Are Moving to the Cloud?
The shift to cloud-based MES isn’t just about following a technology trend. It’s a response to real business needs that on-premises systems often struggle to meet. Manufacturers are embracing the cloud for the following key reasons:
Flexibility and Scalability
Cloud-based MES lets companies scale operations quickly — whether it’s adding a new production line, opening a new plant, or connecting suppliers. For example, a mid-sized manufacturer launching a new facility can connect it in weeks without investing in new servers or IT staff.
Lower Total Cost of Ownership
On-premises MES requires heavy upfront investments in hardware, licenses, and ongoing maintenance. In contrast, a cloud-based system reduces capital expenses and shifts costs to a predictable subscription or managed service model. This makes it easier for growing manufacturers to expand without ballooning IT budgets.
Faster Deployment and Upgrades
With cloud MES, updates, patches, and new features can be rolled out seamlessly, often with minimal downtime. A global enterprise rolling out compliance features across plants, for instance, can update all sites simultaneously rather than scheduling months-long upgrade projects.
Real-Time Visibility Across Plants
Global manufacturers often operate across multiple sites. A cloud-based MES enables a single source of truth — production dashboards, KPIs, and alerts are accessible from anywhere. Leaders can compare performance across regions, identify bottlenecks, and take corrective action before delays escalate.
Easier Integration with Industry 4.0 Technologies
IoT devices, smart sensors, PLM systems, and advanced analytics tools are increasingly cloud-native. A cloud MES connects more easily with these tools, allowing, for example, predictive maintenance data from machines to feed directly into production scheduling.
Enhanced Resilience and Security
While security was once seen as a barrier to the cloud, many manufacturers now recognize that leading providers deliver stronger security and disaster recovery than local IT setups. Redundant systems and compliance audits make cloud MES a safer option, especially for regulated industries like aerospace or pharmaceuticals.
The Market Landscape: Cloud-Based MES Solutions
The move to the cloud has reshaped the MES market. A number of established and emerging vendors now offer cloud-based manufacturing execution systems designed to meet the needs of different industries.
- Plex Systems (Rockwell Automation)
One of the earliest cloud-native MES platforms, Plex is widely used in automotive and industrial manufacturing. It provides strong out-of-the-box features but can feel rigid when processes don’t match its predefined templates. - Siemens Opcenter (formerly Camstar)
A powerful enterprise MES suite with cloud deployment options. Siemens targets large manufacturers and offers deep integration with PLM and automation tools. However, it often comes with significant licensing costs and long implementation cycles. - AVEVA (Schneider Electric)
Known for its industrial software portfolio, AVEVA offers MES capabilities that integrate with IoT and plant monitoring systems. Strong in process manufacturing but less flexible for discrete industries without customization. - Tulip
A newer entrant positioned as a no-code MES platform. Tulip is attractive for manufacturers that want to digitize quickly with minimal IT dependency. Its strength lies in usability, but scaling to complex, multi-plant operations may require significant effort. - Infor CloudSuite Industrial (SyteLine)
A cloud ERP with MES functionality built in. Best suited for manufacturers who want MES tightly linked with ERP, but it can create vendor lock-in if requirements grow beyond the standard modules.
These solutions show the diversity of the market, from cloud-first startups to enterprise giants. Yet, they share common trade-offs: licensing costs, vendor lock-in, and limited flexibility when processes don’t fit the software’s default design.
Open-Source and Flexible Alternatives: Apache OFBiz as Cloud-Ready MEPS
While commercial cloud MES platforms offer rich features, they also come with trade-offs: high licensing costs, limited flexibility, and dependence on a vendor’s roadmap. For manufacturers with unique processes, or those who want freedom from vendor lock-in, an open-source platform can be a compelling alternative.
One of the most mature options is Apache OFBiz™, an open-source enterprise automation framework backed by the Apache Software Foundation. Unlike application-first MES providers, Apache OFBiz is both a suite of business applications and a development framework. This makes it especially powerful for manufacturers that need to customize deeply while still deploying in the cloud.
When configured as a Manufacturing Execution and Planning System (MEPS), Apache OFBiz can cover:
- Production planning and work orders – Define, schedule, and track production runs with multi-level BOMs and routing.
- Material requirements planning (MRP) – Align raw materials and capacity with demand in real time.
- Costing and inventory valuation – Track labor, machine, and material costs accurately while maintaining financial transparency.
- Shop-floor control – Monitor machine utilization, labor performance, and job progress from any location.
- Quality and compliance – Enforce inspection points, traceability, and audit trails directly within the system.
Because Apache OFBiz is open source, it can be deployed in any cloud environment — public, private, or hybrid — without licensing restrictions. Manufacturers get the agility of a cloud MES while retaining the ability to tailor workflows, integrate IoT devices, or extend functionality for their industry-specific needs.
Conclusion
The shift to a cloud-based manufacturing execution system is more than just a technology upgrade — it’s a strategic move toward agility, visibility, and long-term resilience. Commercial MES vendors like Siemens, Plex, and Tulip demonstrate how the market is evolving, but their solutions often come with trade-offs: cost, rigidity, and vendor lock-in.
For manufacturers that need both freedom and flexibility, open-source platforms provide a different path. Apache OFBiz™, when configured as a Manufacturing Execution and Planning System (MEPS), brings together production planning, shop-floor control, costing, inventory, and compliance — all deployable in the cloud, without the constraints of proprietary software.
At HotWax Systems, we take this even further with the HotWax Accelerator, a prebuilt layer on top of OFBiz that delivers modern UIs, analytics, and ready integrations. It gives manufacturers a faster start while preserving the flexibility of an open-source foundation.
If you’re exploring how to bring your MES to the cloud, let’s talk. HotWax Systems can help design and implement a cloud-ready MEPS that fits your operations today and scales with your growth tomorrow.
