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Cloud Computing as the Foundation of Industry 4.0

Cloud Computing as the Foundation of Industry 4.0

What is cloud computing?

Cloud computing is the use of hardware and software to deliver a service over a network which is usually the internet. Smartphones are an example of advanced computing hardware with many cloud computing applications. Email service providers such as Google Gmail and Microsoft Outlook are Gmail are examples of using cloud computing to store messages. Often the videos and photos we capture on our phones are not 100% stored locally due to phone hardware storage limitations. Phones are networked computing devices that send data from email and other applications over an internet connection to a server hosted by parties such as Google, Microsoft, or Apple. Cloud computing serves as the foundation of Industry 4.0 technologies

How do businesses used cloud computing?

Cloud computing applications streamline certain managerial and operational processes. For example, cloud computing applications centralize data storage, bandwidth, and processing which means that individual users don’t have to personally install applications on their laptops or workstations. Users simply access them from the cloud. There is also a real-time exchange of information in cloud applications such as Slack, which fosters an environment of collaboration and integration.

A top concern for businesses is that the cloud presents greater security risks because a third party control the server where the data is stored. In contrast to this belief, the cloud comes with its own set of security advantages such as triggering on-going updates which improves infrastructure security. Although different, cloud computing mitigates risk in a different way than local hosting and provide several operational benefits.  It reduces the expense of employing someone to manage a local server, improves scalability, and enhances reliability. Information stored through cloud computing is rarely lost.

How is cloud computing used in Industry 4.0?

In Industry 4.0, companies with collaborative supply chains benefit from using the cloud in several ways. The real-time visibility of centralized information by multiple parties along the supply chain allows management to take a more proactive approach. If conditions change or a problem arises, organizations can nimbly react to ensure and tweak efficiencies while reducing risk of reoccurring issues.

Among the top five Industry 4.0 technologies being implemented by manufacturers, cloud computing has an 85% adoption rate. Intel and Oracle conducted research from 1200 managers of medium to large global manufacturing companies and found that 60% believe cloud infrastructure is a necessity to unlock the full potential of Industry 4.0 technologies.

Cloud computing is vital to every other technology in Industry 4.0. The other technologies managed by cloud computing infrastructure differ dependent on industry. For example, manufacturing and automotive view advanced robotics and machine learning (ML) as increasingly important to assembly lines and autonomous vehicles.

The internet of things (IoT) leverages cloud computing in a fundamental way for altering shipping and logistics, removing different person-to-person procedures, and replacing them with machine-to-device intercommunication. This is also known as the industrial internet of things (IIoT).

Fleet management is easier with cloud computing infrastructure and other Industry 4.0 technology such as location tracking. Look no further than the advanced telemetry that empowers manufacturers and retailers to track single items in their supply chain (using location tracking) as they manage the whole supply chain with in real-time. For a company, a cloud-based fleet management system with real-time data reporting on availability, servicing, maintenance status, and mileage becomes a tool for adapting to real world conditions that are sometimes unreliable. Managing issues becomes much easier with a cloud computing infrastructure or platform.


Cloud computing is to Industry 4.0 as what the steam engine was to the 1st industrial revolution. It enables, efficient supply chain communication and presents opportunity to unlock the full potential of disruptive technologies.  On an industry-wide scale, it is important for companies to adopt cloud computing as it is the foundation for all Industry 4.0 driven innovation.


About RGBSI 

At RGBSI, we deliver total workforce management, engineering, quality lifecycle management, and IT solutions that provide strategic partnership for organizations of all sizes. 

Engineering Solutions

As an organization of engineering experts, we understand the importance of modernization. By pairing modern technology with design expertise, we elevate fundamental engineering principles to accommodate growing product complexity requirements. We work with clients to unlock the full potential of their products and enable future innovation. Learn more about our automation and digital engineering services.

IT Solutions

We work with clients to support IT related areas of application development, ERP, infrastructure, project management, and digital engineering.

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