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Solution

Cloud Migration for Manufacturing: Move Off On-Premise Safely

FreedomDev plans and executes cloud migrations for manufacturing companies in West Michigan and beyond — moving on-premise servers, databases, ERP systems, and custom applications to AWS, Azure, or GCP while keeping production lines running, compliance requirements met, and downtime under four hours. Based in Zeeland, MI with 20+ years of enterprise infrastructure experience.

Cloud Migration Services
20+ Years Enterprise Infrastructure
AWS / Azure / GCP Certified
ITAR & CMMC Compliant Migrations
Zeeland, MI

The Real Cost of Staying On-Premise: $180K/Year in Hidden Infrastructure Overhead

Manufacturing companies running on-premise servers are spending $120,000 to $250,000 per year on infrastructure they should not own. That number includes the obvious line items — server hardware refreshes every 4-5 years at $15,000-$40,000 per server, annual VMware licensing at $5,000-$15,000 per CPU socket since Broadcom's 2024 acquisition doubled prices, Windows Server licenses, SAN storage, backup tape drives, UPS battery replacements, and the HVAC costs of cooling a server room that runs 24/7/365. But the hidden costs are worse. Most manufacturers we audit are running 2-3 physical servers that sit at 8-15% average CPU utilization — meaning 85% of the compute capacity they purchased is wasted. They are paying for peak capacity they need two weeks per year during seasonal surges, and that idle hardware depreciates whether it processes a single transaction or not.

The staffing cost is the line item that surprises CFOs most. On-premise infrastructure requires someone to patch operating systems, update firmware, replace failed drives, manage backup rotations, test disaster recovery, renew SSL certificates, and respond to 2 AM alerts when a RAID array degrades. At companies under 200 employees, that responsibility falls on an IT generalist who also manages helpdesk tickets, user provisioning, network switches, and phone systems. That person is stretched across too many domains to do any of them well. When they leave — and the average tenure for a solo IT admin at a mid-size manufacturer is 2.3 years — institutional knowledge about server configurations, backup schedules, and legacy application dependencies walks out the door with them. Recruiting a replacement takes 4-6 months in the current market, and the new hire spends their first 3 months just figuring out what the previous person built.

The risk profile of on-premise is the factor that manufacturing executives underestimate until it is too late. A single server room flood, electrical surge, or ransomware attack can take down every production system simultaneously. According to IBM's 2024 Cost of a Data Breach Report, the average manufacturing sector breach costs $5.56 million, and the average downtime from a ransomware attack in manufacturing is 22 days. When your ERP, MES, quality management system, and shop floor terminals all run on servers in the same physical room, a single point of failure threatens every system at once. Cloud infrastructure eliminates this concentration of risk through geographic redundancy, automated failover, and provider-managed security patching that no mid-size manufacturer's IT team can replicate.

$120K-$250K/year in on-premise infrastructure costs: hardware, licensing, power, cooling, and backup systems

Server hardware at 8-15% average utilization — paying for capacity used only during seasonal peak periods

VMware licensing costs doubled after Broadcom acquisition, with per-CPU socket pricing now $5K-$15K/year

Single IT generalist managing infrastructure, helpdesk, networking, and security — stretched too thin to do any well

No real disaster recovery: backup tapes exist, but full restoration has never been tested end-to-end

Ransomware risk concentrated in a single server room with no geographic redundancy or automated failover

Need Help Implementing This Solution?

Our engineers have built this exact solution for other businesses. Let's discuss your requirements.

  • Proven implementation methodology
  • Experienced team — no learning on your dime
  • Clear timeline and transparent pricing

Cloud Migration ROI: What Manufacturing Clients Measure After Go-Live

35-55%
Reduction in total infrastructure cost within 12 months of migration
99.95%+
Uptime SLA (vs. 99.5% typical on-premise with single-server redundancy)
< 4 hrs
Production database cutover window with zero data loss
$0
Hardware refresh capital expenditure post-migration
2-4 hrs
Disaster recovery time (vs. 2-5 days from on-premise backup tapes)
40-72%
Compute cost savings using Reserved Instances vs. on-demand pricing

Facing this exact problem?

We can map out a transition plan tailored to your workflows.

The Transformation

Hybrid Cloud Architecture for Manufacturing Environments

Cloud migration for manufacturing is not a forklift operation where you power off on-premise servers on Friday and hope everything works in AWS on Monday. Manufacturing environments have constraints that generic cloud consultancies do not understand: shop floor systems that require local-network latency under 10 milliseconds, SCADA and PLC integrations that use protocols cloud platforms do not natively support, ERP databases with 15+ years of transactional history that cannot tolerate a multi-day migration window, and compliance requirements (ITAR, CMMC, NIST 800-171) that restrict where data can physically reside. FreedomDev builds hybrid cloud architectures that move the right workloads to cloud while keeping latency-sensitive and compliance-restricted systems on-premise or in private cloud — connected through secure site-to-site VPN tunnels and synchronized in real time.

The architecture pattern we deploy most frequently for manufacturers is a three-tier hybrid model. Tier 1 is fully cloud-native: email, collaboration tools, file storage, business intelligence dashboards, CRM, and any SaaS applications. These move first because they have zero shop-floor dependencies and deliver immediate cost savings. Tier 2 is cloud-hosted with on-premise connectivity: ERP systems, quality management databases, production scheduling, and financial applications. These run on cloud VMs (EC2, Azure VMs, or GCP Compute Engine) connected to on-premise networks through AWS Direct Connect, Azure ExpressRoute, or IPsec VPN tunnels. Tier 3 stays on-premise: SCADA systems, PLC controllers, machine-level HMI interfaces, and any systems bound by ITAR or data residency requirements. These systems connect to cloud-hosted applications through secure API gateways and data synchronization pipelines.

FreedomDev handles every cloud platform. For manufacturers with existing Microsoft infrastructure (Active Directory, SQL Server, .NET applications), Azure is typically the lowest-friction migration path because Azure AD, Azure SQL, and Azure App Service have direct migration tooling for Windows workloads. For manufacturers that need maximum flexibility in compute pricing and the broadest service catalog, AWS offers Reserved Instances, Spot Instances, and Savings Plans that can reduce compute costs 40-72% versus on-demand pricing. For manufacturers with heavy data analytics or machine learning workloads (predictive maintenance, quality defect detection), GCP's BigQuery and Vertex AI platform offer price-performance advantages over AWS and Azure equivalents. We are cloud-agnostic — we recommend the platform that fits your existing stack, your compliance requirements, and your budget, not the one that pays us the highest referral commission.

Application Assessment & Cloud Readiness Scoring

Before migrating anything, we audit every application in your environment using a 6R framework: Rehost (lift-and-shift), Replatform (lift-and-optimize), Refactor (re-architect for cloud-native), Repurchase (replace with SaaS), Retire (decommission), or Retain (keep on-premise). Each application gets a cloud readiness score based on architecture dependencies, data sensitivity, latency requirements, licensing implications, and migration complexity. This prevents the most common migration mistake: trying to lift-and-shift an application that was never designed to run outside a local network.

Database Migration with Zero Data Loss

Manufacturing databases are the highest-risk migration target. A 500 GB SQL Server database with 15 years of production history, custom stored procedures, linked servers, and SSIS packages cannot be migrated with a simple backup-and-restore. We use AWS Database Migration Service, Azure Database Migration Service, or native replication to synchronize data continuously during migration, perform the final cutover in a maintenance window under 4 hours, and validate row counts, checksum integrity, and application functionality before decommissioning the source.

Network Architecture & Site-to-Site Connectivity

Hybrid cloud requires reliable, low-latency connectivity between your plant floor and cloud-hosted applications. We design and implement site-to-site VPN tunnels (IPsec), AWS Direct Connect or Azure ExpressRoute for dedicated bandwidth, split-DNS configurations so internal and external resources resolve correctly, and firewall rules that maintain your security posture without blocking legitimate cloud traffic. For multi-site manufacturers, we build hub-and-spoke network topologies that connect multiple plants to a single cloud VPC.

ITAR, CMMC & NIST 800-171 Compliant Migration

Defense manufacturers and ITAR-regulated companies face data residency and access control requirements that restrict which cloud regions, services, and configurations are permissible. We build migration architectures that comply with CMMC Level 2, NIST 800-171, and ITAR export control regulations using AWS GovCloud, Azure Government, or dedicated tenancy configurations. Every migration includes documentation packages for auditors: data flow diagrams, access control matrices, encryption specifications, and incident response procedures.

Cost Optimization & Reserved Capacity Planning

Cloud costs spiral out of control without proactive management. We right-size every VM based on actual utilization data (not vendor recommendations), implement auto-scaling groups that add capacity during peak production and scale down during off-shifts, purchase Reserved Instances or Savings Plans for baseline workloads (40-72% savings versus on-demand), set up cost alerts and budgets, and schedule non-production environments to shut down outside business hours. Our clients typically see 30-50% lower cloud bills than companies that migrated without cost architecture.

Disaster Recovery & Business Continuity

On-premise disaster recovery means backup tapes in a fireproof safe (that nobody has tested restoring from in 3 years). Cloud disaster recovery means automated snapshots, cross-region replication, and infrastructure-as-code templates that can rebuild your entire environment in a different region within 2-4 hours. We design DR architectures based on your RPO (Recovery Point Objective — how much data loss is acceptable) and RTO (Recovery Time Objective — how quickly systems must be back online), implementing pilot light, warm standby, or multi-region active-active patterns depending on your business requirements.

Want a Custom Implementation Plan?

We'll map your requirements to a concrete plan with phases, milestones, and a realistic budget.

  • Detailed scope document you can share with stakeholders
  • Phased approach — start small, scale as you see results
  • No surprises — fixed-price or transparent hourly
“
We had been running on the same physical servers for 9 years and were terrified of migrating our ERP with 12 years of production data. FreedomDev moved our entire environment to Azure in 14 weeks. The ERP cutover happened on a Saturday morning and was completed before lunch. We have not had a single unplanned outage since migration, and our infrastructure costs dropped 42%.
VP of Operations—West Michigan Precision Manufacturer, 180 Employees

Our Process

01

Discovery & Assessment (Weeks 1-3)

We inventory every server, application, database, and network dependency in your environment. This includes automated discovery scanning (AWS Migration Hub, Azure Migrate, or manual inventory for air-gapped environments), application dependency mapping, database sizing and complexity assessment, network topology documentation, compliance requirement identification (ITAR, CMMC, HIPAA, SOX), and stakeholder interviews with IT, operations, finance, and plant managers. Deliverable: a Cloud Migration Assessment Report with application-by-application 6R classification, recommended architecture (full cloud, hybrid, or multi-cloud), timeline, risk register, and detailed cost comparison — current on-premise TCO versus projected cloud TCO over 1, 3, and 5 years.

02

Architecture Design & Migration Planning (Weeks 3-5)

Based on the assessment, we design the target cloud architecture: VPC/VNet layout, subnet segmentation, security groups, IAM roles, site-to-site connectivity, DNS strategy, and application hosting configurations. Each application gets a detailed migration runbook specifying the migration method (rehost, replatform, refactor), data migration approach, testing criteria, rollback procedure, and cutover window. We sequence migrations into waves — starting with low-risk, high-value workloads (email, file storage, dev/test environments) and progressing to production ERP, databases, and business-critical applications. Every architecture decision is documented and reviewed with your team before execution begins.

03

Foundation Build & Wave 1 Migration (Weeks 5-8)

We build the cloud foundation: landing zone, networking, identity integration (Azure AD Connect or AWS SSO with your existing Active Directory), monitoring, logging, backup policies, and cost management tooling. Wave 1 migrations run simultaneously — typically email (Exchange to Microsoft 365 or Google Workspace), file storage (file servers to SharePoint, OneDrive, or S3), development and test environments, and any SaaS transitions. Wave 1 gives your team hands-on experience with cloud-hosted systems in a low-risk context before production migrations begin.

04

Production Migrations — Waves 2-4 (Weeks 8-16)

Production workloads migrate in priority order, with each wave following the same pattern: pre-migration validation, data synchronization setup, user acceptance testing in the cloud environment, cutover window execution (typically scheduled during plant shutdown or weekend maintenance), post-cutover validation, and a 48-hour hypercare period with FreedomDev engineers on-call. Database migrations use continuous replication so the cutover window is limited to the final sync and application reconfiguration — typically 2-4 hours for databases under 1 TB. Legacy application migrations that require replatforming or refactoring may run in parallel across multiple waves.

05

Optimization, Decommission & Handoff (Weeks 16-20)

After all workloads are migrated and validated, we enter a 30-day optimization period. We right-size VMs based on actual cloud utilization data (not the on-premise estimates from pre-migration), convert on-demand instances to Reserved Instances or Savings Plans, implement auto-scaling policies, configure cost alerts, and decommission on-premise hardware. Handoff includes complete documentation, runbooks for common operations, training for your IT team on cloud management tools, and a 90-day post-migration support period. Ongoing managed services are available at $2,000-$8,000/month depending on environment complexity.

Before vs After

MetricWith FreedomDevWithout
Assessment & Planning6R framework, app-by-app scoring, compliance mappingDIY: guesswork and trial-and-error; Big 4: $200K assessment phase alone
Migration ApproachWave-based with rollback plans per workloadDIY: big-bang weekend cutover; Big 4: 12-18 month waterfall engagement
Manufacturing Expertise20+ years with ERP, MES, SCADA, and shop floor systemsDIY: IT generalist learning cloud on the job; Big 4: junior consultants rotating off your project
Compliance (ITAR/CMMC/NIST)Architected into every decision from day oneDIY: discovered during audit; Big 4: separate $80K+ compliance workstream
Total Project Cost (50-user mfg)$80K-$200K all-in, 16-20 weeksDIY: $40K+ in failed attempts and rework; Big 4: $300K-$500K over 6-12 months
Cutover Downtime2-4 hours per system, scheduled around productionDIY: 1-3 days hoping nothing breaks; Big 4: contractual 8-hour windows
Post-Migration Optimization30-day right-sizing, RI purchasing, auto-scaling setupDIY: cloud bill shock at month 3; Big 4: optimization is a separate SOW
Ongoing Support$2K-$8K/mo managed services with proactive monitoringDIY: back to one IT generalist; Big 4: $15K-$25K/mo managed services

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Frequently Asked Questions

How long does a cloud migration take for manufacturing?
A complete cloud migration for a manufacturing company with 30-100 employees, 5-15 servers, an ERP system, and standard business applications takes 16-20 weeks from discovery through post-migration optimization. That timeline breaks down into three weeks for discovery and assessment, two weeks for architecture design and migration planning, three weeks for foundation build and Wave 1 (email, file storage, dev/test environments), eight weeks for production workload migrations in 2-3 waves, and four weeks for optimization, hardware decommission, and handoff. The primary variable is database complexity. A straightforward SQL Server database under 500 GB with standard schemas migrates in a single weekend maintenance window. A multi-terabyte database with hundreds of stored procedures, linked servers, SSIS packages, and custom replication — common in manufacturers running Epicor, SYSPRO, or Infor — requires 2-4 weeks of continuous data synchronization before cutover, plus additional validation time for stored procedure compatibility in the target cloud database. Another factor is compliance. ITAR-regulated manufacturers need GovCloud or government-region configurations, which add 2-3 weeks for environment provisioning and compliance documentation. CMMC Level 2 requirements add security control implementation and evidence gathering that extends the timeline by 3-4 weeks. Smaller environments (under 5 servers, no compliance requirements) can complete migration in 8-12 weeks. Large multi-site manufacturers with 20+ servers, multiple ERP instances, and ITAR/CMMC requirements have run 6-9 months.
Is the cloud secure enough for manufacturing data?
Cloud infrastructure operated by AWS, Azure, and GCP is more secure than any on-premise server room at a mid-size manufacturer. That is not a sales pitch — it is a mathematical reality of investment scale. AWS spends over $10 billion annually on infrastructure and security. Microsoft employs 8,500+ security professionals dedicated to Azure. Google runs one of the largest private networks on earth with custom-designed security chips (Titan) in every server. No manufacturer with under 1,000 employees can match that investment. Specific security capabilities that cloud provides over on-premise: encryption at rest (AES-256) and in transit (TLS 1.3) enabled by default, automated security patching within hours of CVE disclosure (versus weeks or months for manual on-premise patching), identity and access management with multi-factor authentication and conditional access policies, network micro-segmentation using security groups and network ACLs that isolate workloads at the VM level, DDoS protection built into the platform at no additional cost, and continuous compliance monitoring with automated evidence collection for SOC 2, ISO 27001, NIST 800-171, and CMMC frameworks. For ITAR-restricted data, AWS GovCloud and Azure Government provide FedRAMP High and DoD IL4/IL5 authorized environments where data residency is contractually guaranteed within U.S. borders, access is limited to screened U.S. persons, and physical security meets CNSSI 1253 requirements. For HIPAA-regulated manufacturers (medical device production), both AWS and Azure sign Business Associate Agreements and provide HIPAA-eligible services with audit logging and access controls built in. The actual security risk in cloud migration is not the cloud platform — it is misconfiguration. Publicly accessible S3 buckets, overly permissive IAM policies, and unencrypted databases are human errors, not platform weaknesses. FreedomDev implements security baseline configurations using infrastructure as code templates that enforce encryption, restrict public access, require MFA, and log every API call from day one.
Can we keep some systems on-premise during migration?
Yes, and for most manufacturers you should. A hybrid cloud architecture — where some workloads run in cloud and others remain on-premise — is the recommended pattern for any manufacturing environment with shop floor systems, SCADA/PLC integrations, or data residency requirements. The systems that should stay on-premise (at least initially) include SCADA and PLC controllers that require sub-millisecond local network latency, HMI terminals on the shop floor that communicate directly with machine controllers over OPC-UA or Modbus TCP, any system processing ITAR-controlled technical data where your facility security officer has not yet approved cloud storage, and legacy applications that are tightly coupled to local hardware (dongles, serial ports, specialized I/O cards). The systems that should move to cloud include ERP, accounting, and business applications that do not have shop-floor latency requirements, email and collaboration (Microsoft 365, Google Workspace), file storage and document management, business intelligence and reporting dashboards, development and test environments, disaster recovery and backup. The connection between on-premise and cloud runs through a site-to-site VPN tunnel (IPsec) or, for higher bandwidth and lower latency, a dedicated connection like AWS Direct Connect or Azure ExpressRoute. FreedomDev configures split-DNS so that internal resources resolve to local addresses and cloud resources resolve to cloud endpoints, with firewall rules that allow only the specific traffic patterns your applications require. You can operate in hybrid mode indefinitely — there is no requirement to migrate everything. Many of our manufacturing clients have run stable hybrid architectures for 3+ years, gradually moving additional workloads to cloud as legacy systems are replaced or modernized through legacy modernization projects.
How much does cloud migration cost?
Cloud migration costs vary based on environment size, application complexity, compliance requirements, and how much refactoring is needed. For a mid-size manufacturer with 30-100 employees, 5-15 servers, one ERP system, and standard business applications, total migration project cost runs $80,000-$200,000. That includes discovery and assessment ($8,000-$15,000), architecture design and migration planning ($10,000-$20,000), foundation build including networking, identity, monitoring, and security ($15,000-$30,000), application and database migrations ($40,000-$100,000 depending on number and complexity of workloads), and post-migration optimization, documentation, and training ($10,000-$25,000). Individual workload costs within those ranges break down as follows: simple lift-and-shift of a Windows Server VM runs $3,000-$8,000 per server. Database migration (SQL Server, Oracle, PostgreSQL) with continuous replication runs $10,000-$25,000 per database depending on size and stored procedure complexity. ERP migration (Epicor, SYSPRO, Infor, SAP Business One) runs $25,000-$60,000 because of the interconnected modules, custom reports, and integration points. Application refactoring for cloud-native architecture runs $30,000-$80,000 per application. Ongoing cloud infrastructure costs after migration typically run 35-55% less than on-premise TCO when properly optimized. A manufacturer spending $180,000/year on on-premise infrastructure (hardware, licensing, power, cooling, IT labor allocation) typically spends $80,000-$120,000/year on equivalent cloud infrastructure plus $2,000-$8,000/month for managed services. The migration project pays for itself in 12-24 months through infrastructure savings alone, without accounting for improved uptime, disaster recovery, and the elimination of hardware refresh capital expenditure cycles. For manufacturers with ITAR or CMMC compliance requirements, add $15,000-$40,000 for GovCloud configuration, security control implementation, and compliance documentation packages. FreedomDev provides a detailed cost comparison — current on-premise TCO versus projected cloud TCO — as part of every assessment engagement, so you see the numbers before committing to migration.
What cloud platform is best for manufacturing?
The best cloud platform depends on your existing technology stack, compliance requirements, and specific workload characteristics — not on which vendor has the best marketing. Here is how the three major platforms compare for manufacturing use cases. Azure is the strongest choice for manufacturers running Microsoft-heavy environments: Active Directory, SQL Server, .NET applications, Exchange, and Windows Server workloads. Azure AD Connect provides seamless single sign-on between on-premise Active Directory and cloud services. Azure SQL Managed Instance accepts SQL Server backups directly with minimal code changes. Azure App Service runs .NET applications without re-architecture. Azure Government provides ITAR and FedRAMP High compliance. Approximately 60% of our manufacturing clients migrate to Azure because of existing Microsoft infrastructure investment. AWS has the broadest service catalog and the most mature cost optimization tools. For manufacturers with Linux-based workloads, containerized applications, or heavy data processing requirements, AWS offers more granular instance types, better spot pricing for batch workloads, and services like AWS IoT Greengrass for edge computing on the shop floor. AWS GovCloud is the most established government cloud for ITAR and CMMC compliance. Reserved Instance and Savings Plan options offer 40-72% discounts on compute. About 30% of our manufacturing clients choose AWS. GCP is the best fit for manufacturers with data analytics, machine learning, or large-scale data warehousing needs. BigQuery processes petabyte-scale datasets at a fraction of the cost of Redshift or Synapse. Vertex AI provides production-grade machine learning infrastructure for predictive maintenance and quality defect detection models. GCP also offers the simplest per-second billing model and strong Kubernetes (GKE) support for containerized workloads. About 10% of our clients use GCP, typically for analytics workloads alongside Azure or AWS for primary infrastructure. FreedomDev is cloud-agnostic and holds certifications across all three platforms. We recommend multi-cloud only when there is a genuine technical justification — for example, primary infrastructure on Azure with analytics workloads on GCP BigQuery. Running identical workloads across multiple clouds for the sake of avoiding vendor lock-in adds complexity that mid-size manufacturers do not need. Pick one primary platform, architect it well, and use infrastructure as code so that migration between platforms remains possible if your needs change.

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