Manufacturing sector starts to head into the cloud

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Manufacturing sector starts to head into the cloud

Simon Quicke

The manufacturing sector across Western Europe is opening up to the cloud with initial doubts about using hosted technology appearing to dissipate.

The latest review of the state of the market from IDC indicates that the sector, which has been one of the slowest in the uptake of cloud computing, is catching up fast in Europe with 60% of firms setting aside budget to spend on the technology.

There are still concerns about security and availability but more manufacturers are allowing sensitive data to head into the clouds with the investment centering on CRM and line-of-business applications.

Pierfrancesco Manenti, head of IDC manufacturing insights, EMEA, said that the cloud was becoming more important in the face of growing competition

"Cloud computing will have a considerable impact on IT performance for those firms that take a well-considered approach to investment in the model. Concerns still exist, with security and availability the most prominent, but these usual concerns are rapidly being overcome by massive benefits, thus driving adoption," he said.

One of the major benefits for manufacturers is the opportunity to expand communication between suppliers involved in projects and the same parts of the value chain.
 

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