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Time for Manufacturers to Get Smart in the Cloud
Time for Manufacturers to Get Smart in the Cloud

Time for Manufacturers to Get Smart in the Cloud

  • Updated on February 28, 2025
  • /
  • 6 min read

By: Thomas Cannady, vice president of network operations; Tim Glatz, head of interconnection — DataBank

Smart Factory Computing

Many manufacturers operate smart factories internally. The next step: Get smart in the cloud.

The rise of smart factories has transformed the industry. Robotic process automation, devices connected to IoT networks, and other digital technologies increase manufacturing efficiency and productivity. However, to achieve a complete digital transformation and leverage AI-driven analytics, manufacturers need to tap into smart technologies in the cloud.

This article examines how hybrid IT architectures allow manufacturers to complement on-premises IT with modern technologies in the cloud. We also discuss how colocation data centers provide the best way to connect to the cloud—through interconnections that enable real-time, low-latency data exchanges and secure connectivity.

With this approach, manufacturers can augment their production processes to operate plant machines even more efficiently.

Smart Technologies Drive Plant Efficiency

Inside a smart factory, manufacturers require 1-5 millisecond latency for connected machines and digital processes. This increases production and helps keep their workforces safe. By leveraging automation technologies, facilities operate more efficiently and increase their product margins.

For latency this low, the processing must stay inside the factory walls, using dark fiber connectivity to an on-premises data center. IT can’t push factory data processing to a remote data center. The time for the data to get there and back to execute decisions might impair production and cause safety issues.

Keeping the data processing internal also allows for systems to make tactical production decisions in real time. If a robot on the floor malfunctions, the system can make split-second decisions on whether to shut the system down.

Large Data Volumes Require Scalable Compute Resources

Onsite smart technologies generate huge data volumes. Those volumes grow exponentially when introducing artificial intelligence to mine contextualized data for strategic insights. This includes observability tools for managing a range of processes to avoid costly downtime:

  • Machine maintenance
  • Vendor supply chains
  • Productions schedules
  • Workforce schedules
  • Distribution logistics

Managing these processes does not require the same ultra-fast latency as on-the-floor manufacturing processes. However, the large data volumes do require scalable CPU firepower and storage capacity. This in turn demands high power density infrastructures. The compute resources must also have sufficient cooling to run reliably.

Processing Strategic Decisions in the Cloud

Outside the walls of a smart factory, manufacturers can collect data on how they manage production. The factory can then tie into observability tools in the cloud that act as the brains of the factory.

As tools collect data for tactical decisions inside the factory, the cloud environment processes the data for strategic decisions. In the cloud —with its scalable compute resources— data processing can interact with AI systems to make decisions and kick off automated processes.

To proactively manage maintenance contracts, for example, the system identifies a machine that will break down soon and determines the fix. The process automatically orders the replacement part and schedules a resource to install it. By eliminating manual intervention, this process executes the fix more efficiently—and before any negative impact on production.

Cost-Effective Data Processing

Within an on-premises data center, manufacturers find it difficult to allocate the necessary CapEx to meet the specs for High-Performance Computing. Enter the multi-tenant colocation data center — with the power, space, and cooling infrastructure to scale and drive down the cost of compute resources for mission-critical applications.

Just as important for manufacturers, leading colocation data centers can provide private cloud, bare-metal environments. This allows manufacturers to increase their security posture and enhance controls for safeguarding sensitive data.

Another vital colocation attribute is interconnection services. From anywhere in the world, end users get low-latency access to workloads and data along with system redundancy.

Bringing Data Processing Close to Manufacturers

For instance, many automotive plants and manufacturers from other industries rely on DataBank colocation data centers to support their smart factories. From cloud on-ramps to blended Internet access and cross connects, the DataBank interconnection ecosystem scales as applications grow—with power and cooling infrastructures to support central data repositories:

  • Low-latency dark fiber connections
  • On-demand compute resources
  • Decreased power consumption
  • Ensured uptime
  • Vast footprint of metro data centers
  • Data and application access within 50 miles of half of the U.S. population

The DataBank Interconnection Marketplace gives manufacturers access to more than 200 telecom carriers. Using our interconnection portal, manufacturers can see all the carriers that connect to each of our 73 data centers located in the top U.S. metros. Manufacturers can explore which carriers provide telecommunications, fiber, and network services near their plants to achieve the lowest latency possible —typically between 10-40 milliseconds.

DataBank partners with these carriers to offer intra-building risers, label switching, and wide-area-networking services. These services ensure manufacturers connect with applications and data in the cloud quickly and securely from within their internal IT environments. Through our carrier partnerships, customers can connect to the cloud within minutes.

Security and Compliance Driven by ISO & NIST Standards

On top of the performance delivered by the DataBank interconnection ecosystem, we offer strong security controls. These include private connectivity to smart factories to prevent man-in-the-middle and DDoS attacks. Within this private connectivity, manufacturers can apply data encryption.

To promote a holistic approach to information security, DataBank follows the certification requirements for ISO/IEC 27001:2022. The world’s best-known standard for information security management includes vetting people, policies, and technology to assure effective risk management and cyber-resilience.

DataBank also follows the standards set by the National Institute of Standards and Technology (NIST). Our NIST certification allows us to support manufacturers who interact with federal, state, and local government agencies and those who need colocation services using a repeatable, secure methodology.

Your Journey to a Hybrid Environment

As your external processing needs scale, we can help you on your journey to a hybrid environment that includes colocation and private cloud services with easy access to public clouds. DataBank assists you in deciding which data centers and telecom providers make the most sense for each application workload. With our help, you can scale your infrastructure and platform services based on your needs, consuming only what you need so you can grow IT at a predictable and manageable pace.


About the Authors

Thomas Cannady vice president of network operations at DataBank

Thomas Cannady

Thomas Cannady, Vice President of Network Operations

Thomas Cannady is the Vice President of Network Operations at DataBank, where he leads the strategy, engineering, and operations of the company’s network infrastructure. With over two decades of experience in data center and interconnection services, he previously served as Vice President of Network Services at Cyxtera, where he led engineering teams in developing next-generation network solutions.

Prior to that, he spent more than 14 years at Terremark/Verizon in various leadership roles focused on network architecture, engineering, and operations. Before joining Terremark, Thomas worked at Verizon Federal, where he gained extensive experience in backbone network engineering and infrastructure management. Throughout his career, he has been instrumental in advancing network technologies, optimizing performance, and enhancing security across complex IT environments.

Thomas is a thought leader in network observability and AI-driven automation, helping shape the future of data center connectivity and interconnection. In addition, he served in the United States Air Force for eight years.

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Tim Glatz product manager interconnection

Tim Glatz

Tim Glatz, Head of Interconnection

As Head of Interconnection at DataBank, Tim Glatz enhances connectivity solutions for customers and fosters strategic partnerships. With over 25 years in the telecommunication and data center industry, Tim is considered a veteran, but his enthusiasm hasn’t faded. Tim combines expert knowledge with practical applications and deep insight into the network community.

Tim has played a pivotal role in integrating major carriers like AT&T into DataBank's ecosystem, thereby expanding customer options for versatile and reliable IT and data center services. Tim has also been instrumental in collaborating with network-as-a-service providers such as Megaport, enabling DataBank customers to access leading cloud service providers, including AWS, Microsoft Azure, and Google Cloud Platform. Most recently, Tim has developed an Interconnection Marketplace that provides visibility of providers in each of the 65+ DataBank data centers.

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