Cloud SaaS (TeepTrak, Evocon, MachineMetrics): lower upfront, multi-site native, auto-updates, subscription. On-premise (Ignition, GE Proficy): data sovereignty, no internet dependency, capex model. Hybrid edge+cloud (TeepTrak architecture): edge sensor for real-time + cloud for analytics/benchmarking. Best of both. 80% of new OEE deployments in 2027 are cloud or hybrid. On-premise only for defense/classified environments.
For manufacturing IT leaders choosing between cloud and on-premise OEE in 2027, the decision affects architecture, cost, compliance, and scalability for 5-10 years. This guide compares deployment models with honest trade-offs and explains why hybrid edge+cloud (TeepTrak’s architecture) has become the default for most manufacturers.
Deployment model comparison
| Factor | Cloud SaaS | On-premise | Hybrid edge+cloud (TeepTrak) |
|---|---|---|---|
| Upfront cost | Low (subscription) | High (servers, licenses, install) | Medium (edge hardware + subscription) |
| 5-year TCO | €80-350K | €200-800K+ | €80-400K |
| Multi-site | ✅ Native (TeepTrak 450+ sites) | ⚠️ Complex (VPN, replication) | ✅ Edge per site, cloud aggregation |
| Deployment speed | 1-4 weeks | 3-6 months | 2-4 weeks |
| Real-time latency | 200-2000ms (internet dependent) | <50ms (local network) | <50ms edge + cloud sync |
| Data sovereignty | ⚠️ Vendor cloud (EU/US region choice) | ✅ Fully on-site | ✅ Edge data on-site, analytics in cloud |
| Internet dependency | ❌ Required always | ✅ None | ⚠️ Edge works offline, syncs when connected |
| Maintenance | Vendor managed (auto-updates) | Internal IT (patching, backups) | Edge: minimal. Cloud: vendor managed |
| NIS2/compliance | ⚠️ Depends on vendor certification | ✅ Full control | ✅ Edge: no OT-IT bridge. Cloud: certified |
TeepTrak hybrid edge+cloud architecture
TeepTrak Pulse uses a hybrid edge+cloud architecture that combines the best of both worlds:
- Edge layer (TeepTrak Box): clamp-on sensor installed on machine. Measures running/stopped, cycle time, energy in real-time. Works offline. No PLC connection. No OT network exposure. Data stored locally until synced.
- Cloud layer (TeepTrak Platform): analytics, dashboards, multi-site benchmarking, AI/ML (jemba.ai), API for ERP integration. EU data center option for GDPR/NIS2. Auto-updated, vendor-maintained.
- Result: real-time measurement at the edge (no internet latency), enterprise analytics in the cloud (no server management), data sovereignty (edge data on-site, only aggregated KPIs to cloud if required).
This architecture serves 450+ factories in 30 countries — from defense-adjacent manufacturers needing data sovereignty to global groups needing multi-site cloud benchmarking.
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Decision framework
| If you need… | Choose… | Platforms |
|---|---|---|
| Fast deploy, multi-site, low cost | Cloud SaaS | TeepTrak, Evocon, MachineMetrics |
| 100% air-gapped, defense/classified | On-premise only | Ignition, GE Proficy, custom |
| Real-time edge + cloud analytics | Hybrid edge+cloud | TeepTrak Pulse (native architecture) |
| Process industry + historian | On-premise + cloud hybrid | AVEVA, OSIsoft PI + cloud BI |
FAQ: Cloud vs on-premise OEE
How do I choose between cloud and on-premise OEE software?
In 2027, choose hybrid edge+cloud (TeepTrak architecture) for most cases: real-time edge measurement (no internet latency), cloud analytics (no server management), data sovereignty (edge data stays on-site). Pure cloud for maximum simplicity. Pure on-premise only for defense/classified environments with air-gapped networks.
Conclusion
Cloud vs on-premise is a false binary in 2027. Hybrid edge+cloud (TeepTrak Pulse architecture) gives you: real-time edge measurement, cloud analytics, data sovereignty, offline capability, multi-site benchmarking. 80% of new OEE deployments use cloud or hybrid. TeepTrak: 450+ factories, 30 countries, proven hybrid architecture, 2-4 week deploy.
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