How to evaluate industrial cloud partners: 5 criteria for accelerating manufacturing digital transformation

Manufacturing companies are rapidly adopting cloud technology to enable digital transformation across design, production and service operations. However, selecting the right cloud partner presents a strategic challenge: generic cloud solutions often lack manufacturing-specific capabilities, while fragmented point solutions create data silos that delay return on investment and other complications. 

This article explains how C-suite executives and other leaders in manufacturing can evaluate cloud software partners based on three critical factors: domain expertise in industrial operations, security architecture designed for manufacturing environments and proven business outcomes. 

The choice of cloud software directly impacts several operational areas: 

• System integration complexity – Disconnected tools require manual data transfers and custom integrations 

• Intellectual property protection – Manufacturing data requires industrial-grade security frameworks aligned with GDPR, ITAR and ISO regulations 

• Time to value – Cloud solutions built without manufacturing domain knowledge often require extensive customization before delivering ROI 

• Strategic flexibility – Vendor lock-in can limit the ability to adopt new technologies or scale operations 

Conversely, cloud solutions built specifically for manufacturing enable faster innovation cycles, improved collaboration across global teams and data-driven decision-making throughout the product lifecycle. 

Key takeaways 

• Successful adoption of cloud solutions in manufacturing requires industrial cloud solutions and specialized capabilities in operational technology integration, security and lifecycle data continuity that commercial off-the-shelf (OTS) software simply doesn’t provide 

• Five evaluation criteria separate effective industrial cloud solutions: domain expertise, digital thread integration, ecosystem scope, security architecture and cloud reliability 

• Real-world results show measurable impact: Vivix reduced complaint resolution time by 80%, while JetZero cut fuel consumption by 50% using industrial cloud solutions 

Five capabilities generic cloud solutions lack for manufacturing operations 

Cloud platforms and software tools differ significantly in their ability to support industrial operations. Unlike consumer-focused cloud software tools (e.g. cloud-based office productivity suite), manufacturing environments require specialized capabilities in operational technology (OT) integration, industrial-grade security frameworks and data continuity across the product lifecycle. 

The five criteria below reflect common challenges manufacturing organizations face when selecting cloud partners, including platforms and software that require extensive customization, create new data silos between design and production systems or lack security controls for regulated industries. 

Criteria	What to look for	Why it matters
Domain expertise	Provider has direct experience in industrial automation, OT/IT convergence and manufacturing operations	Reduces customization requirements and implementation risk with industry knowledge embedded in solutions
Digital Twin integration	Unified data model across design, PLM, simulation and production with seamless data flow and automated change propagation	Eliminates manual data transfers and version control issues, delivers a holistic view of a product and its systems, creates traceability from design through execution
Ecosystem scope	Portfolio spans full product lifecycle from concept to service	Reduces number of vendors and integration complexity
Security architecture	Attribute-level security, encrypted storage and data flows across design, simulation and production, role-based access controls for supplier collaboration and data sovereignty controls to keep information within required geographic boundaries	Designed to protect proprietary IP, meet stringent regulatory requirements across multiple jurisdictions and ensure operational continuity against IT and OT threats
Cloud infrastructure	99.9%+ uptime SLA, integration with AI/ML and IoT services, elastic computational resource access and renewable energy commitment	Ensures reliability, supports advanced analytics workloads even with the volatile computational needs associated with high performance computing (HPC) and meets sustainability initiatives

How Vivix and JetZero achieved 50-80% gains using industrial cloud platforms 

The proof isn’t in promises; it’s in performance. Here’s how industry leaders are transforming their operations with cloud-powered innovation: 

Vivix: AI-powered production intelligence 

Vivix, a glass manufacturer, deployed a virtual engineer using Mendix and Amazon Bedrock. This virtual engineer gathers data throughout the production process, provides suggestions and accelerates response times to potential concerns. 

The impact: Customer complaints now take 80% less time to address, meaning internal production issues that used to require hours are now resolved in minutes. By combining low-code development with generative AI, Vivix turned reactive problem-solving into proactive production intelligence. 

JetZero: Reshaping aerospace through cloud-native innovation 

Traditional aircraft development is resource-intensive and siloed, which can make it exceedingly difficult for companies to innovate. But for startups like JetZero, innovation is not an option. 

That’s why JetZero leverages Siemens Xcelerator as a Service on AWS to accelerate design, manufacturing and certification.  

The impact: By applying a cloud-native approach, their team has enabled real-time collaboration, precision and agility while reducing fuel use by 50% and helping reshape aerospace with a novel blended wing body aircraft design. What once required massive infrastructure investments is now accessible through the cloud, democratizing innovation for the next generation of aerospace pioneers. 

The bottom line: Your cloud decision defines your competitive future 

The question isn’t whether to move to the cloud, but which cloud partner will accelerate your digital transformation. 

Siemens Xcelerator as a Service offers a different path: 

• Comprehensive solutions that work together seamlessly 

• Industrial and manufacturing expertise embedded in every layer 

• Open architecture that protects your strategic flexibility 

• Proven results from industry leaders worldwide 

The manufacturers winning today are not only adopting cloud technology but choosing cloud partners who understand their business, their challenges and their ambitions. 

Learn more about Siemens Xcelerator cloud solutions → 

Frequently asked questions: Industrial cloud computing 

What is industrial cloud computing? 

Industrial cloud computing refers to cloud-based software and infrastructure designed specifically for industrial operations, including manufacturing, process industries and industrial automation. Unlike consumer-focused cloud services, industrial cloud platforms include domain-specific capabilities for product lifecycle management (PLM), computer-aided design (CAD), simulation, production planning and operational technology (OT) integration. These platforms enable industrial organizations to design products, manage production workflows and coordinate global supply chains through centralized, scalable infrastructure. 

How does industrial cloud software differ from traditional on-premises software? 

Industrial cloud platforms deliver software through internet-based infrastructure rather than requiring local servers and data centers. Although there are advantages and disadvantages to each, many manufacturers find value in industrial cloud software’s automatic software updates, capacity to provide elastic computing resources, lower upfront investment and remote access for global, real-time collaboration. Other companies leverage a balance of on-premise software and cloud software, using one or the other based on the unique needs of a given team or workflow. 

What security risks should industrial organizations consider when evaluating cloud platforms? 

Industrial organizations must evaluate cloud platforms based on intellectual property protection, regulatory compliance and access control capabilities. Some examples of critical considerations include attribute-level security frameworks, encrypted storage and data flows across various engineering and production workflows, role-based access controls to manage data among global suppliers and partners and compliance frameworks designed to adhere to GDPR, ITAR and other industry-specific regulations. 

What is a digital thread and why does it matter for industrial cloud computing? 

A digital thread is a seamless, integrated and continuously updated data flow that connects every stage of a product’s lifecycle, from design and manufacturing to service and eventual retirement, ensuring data consistency and accessibility across the entire value chain. With Siemens Xcelerator as a Service, companies can create a digital thread enabling a unified, cohesive data between design tools (CAD), product lifecycle management (PLM), simulation and production tools without manual file transfers or format conversions. This continuity reduces errors caused by outdated design versions or conflicting software versions, accelerates engineering change processes and provides traceability for regulatory compliance. Cloud platforms that lack integrated digital thread capabilities often create data silos that require custom integration work. 

How does industrial cloud computing support sustainability initiatives? 

Industrial cloud platforms contribute to sustainability goals through three mechanisms: energy-efficient data centers powered by renewable energy sources (many cloud providers now operate on 50%+ renewable energy), reduced physical infrastructure requirements that lower an organization’s direct carbon footprint and analytics capabilities that optimize production processes to minimize material waste and energy consumption. Additionally, cloud-based simulation tools enable manufacturers to test product designs virtually, reducing the need for physical prototypes and associated material waste. 

What happens to industrial data if a cloud provider experiences an outage? 

Enterprise cloud platforms typically include service level agreements (SLAs) that guarantee 99.9% or higher uptime, which translates to less than 9 hours of downtime per year. To mitigate outage risks, cloud providers implement redundant data storage across multiple geographic regions, automatic failover systems that redirect traffic to backup infrastructure and regular data backups with defined recovery time objectives (RTOs). Industrial organizations should verify that cloud platforms provide documented disaster recovery procedures, maintain backup data centers in different regions and offer hybrid deployment options that allow critical operations to continue using local systems during cloud outages.