Owning the Edge: Why Manufacturing Companies Run SAP RISE and AI On-Premises with Dell Technologies

In today’s rapidly evolving manufacturing landscape, businesses are continuously striving to optimize operations, bolster security, and stay ahead of the competition. For organizations evaluating where to host their SAP RISE landscapes and AI workloads, Dell Technologies emerges as a top contender. Leveraging Dell’s any-premise infrastructure to run SAP and AI workloads offers manufacturing companies unmatched control, exceptional performance, and seamless scalability. This approach redefines operational efficiency and sets a new standard for innovation in the industry. Here’s how.

Data Sovereignty and Security: Manufacturers manage highly sensitive data, from proprietary designs to critical customer insights, making data security a top priority. On-premises solutions offer superior data security tailored to the unique needs of manufacturing. By keeping sensitive data within their own infrastructure, manufacturers can enhance protection, safeguard intellectual assets, and strengthen regulatory compliance. Running SAP RISE on-premises with Dell Technologies ensures that this valuable information remains firmly under the company’s control. This approach minimizes exposure to third-party breaches, upholds compliance with stringent industry regulations, and protects intellectual property, enabling manufacturers to focus on driving innovation with confidence.

• Cybersecurity Threats: In 2024, the manufacturing sector experienced a 40% increase in cyberattacks, making data security a critical concern.
• Data Breaches: The average cost of a data breach in the manufacturing industry was $4.24 million in 2023.

Cost Efficiency: While public cloud services deliver scalability, their costs can escalate significantly over time, particularly for resource-intensive SAP workloads. For manufacturing companies managing large-scale operations and extensive data processing, on-premises deployment of SAP and AI workloads proves especially advantageous. This approach not only optimizes costs but also ensures businesses retain greater control over their IT investments while meeting their demanding operational needs. Dell Technologies addresses this challenge with a cost-efficient pay-per-use model. Running SAP RISE on-premises offers financial predictability and eliminates the hidden expenses often associated with cloud-based solutions, providing a clear path to maximizing ROI.

• Cost Savings: On-premises solutions can reduce IT costs by up to 30% compared to public cloud services.
• ROI: Companies that implemented on-premises SAP RISE with Dell Technologies reported an average ROI of 150% within three years. 

AI Integration: AI is transforming the manufacturing industry, enabling predictive maintenance, quality control, and process optimization. This empowers faster decision-making, improved operational efficiency, and the ability to stay ahead in a competitive market. AI can analyze vast amounts of data to provide actionable insights. For example, AI can forecast demand, optimize supply chains, and improve inventory management. Dell Technologies’ AI solutions integrate seamlessly with SAP landscapes, allowing companies to harness real-time insights without the latency and security concerns of cloud-based solutions.

• AI Adoption: By 2025, 75% of manufacturing companies are expected to integrate AI into their operations.
• Efficiency Gains: AI-driven predictive maintenance can reduce equipment downtime by up to 20% and increase production efficiency by 15%.

Scalability: Manufacturing is a constantly evolving industry, demanding IT infrastructure that can adapt and scale alongside it. On-premises solutions provide manufacturing companies with enhanced customization and control, enabling tailored systems that meet specific operational needs while integrating effortlessly with existing workflows. Future-proofing manufacturing IT has never been more efficient or reliable. Dell Technologies offers flexible, scalable solutions designed to grow with the business. Whether expanding facilities, adopting Industry 4.0 innovations, or integrating advanced processes, Dell’s infrastructure ensures seamless adaptability and uninterrupted operations.

• Market Growth: The global manufacturing market is projected to reach $36.7 trillion by 2029, growing at a compound annual growth rate (CAGR) of 1.01%.
• Industry 4.0: 85% of manufacturers are expected to adopt Industry 4.0 technologies by 2025, driving the need for scalable IT infrastructure.

Sustainability: Sustainability has transitioned from being optional to a fundamental responsibility. Dell Technologies exemplifies this commitment by delivering energy-efficient solutions that minimize the environmental impact of IT operations. Their on-premises offerings are designed to reduce power consumption and carbon footprints, aligning seamlessly with the manufacturing industry’s increasing focus on sustainable practices. By choosing Dell Technologies, businesses not only adopt cutting-edge technology to drive growth but also reinforce their dedication to environmental stewardship.

• Energy Efficiency: Dell Technologies’ on-premises solutions can reduce energy consumption by up to 40%, contributing to lower carbon footprints.
• Sustainable Practices: 60% of manufacturers are prioritizing sustainability initiatives, with a focus on reducing waste and improving energy efficiency.

The Dell Technologies Advantage

Running SAP RISE and AI workloads on-premises with Dell Technologies is more than just a technical choice—it is a strategic advantage. This approach empowers manufacturing organizations by delivering enhanced security, superior performance, predictable costs, and seamless AI integration. By aligning technology with the unique demands of the manufacturing sector, Dell Technologies offers a holistic solution designed to drive operational excellence.

• Performance Improvement: Companies using Dell Technologies for their on-premises SAP RISE and AI workloads reported a 25% improvement in overall system performance.
• Customer Satisfaction: 90% of Dell Technologies customers in the manufacturing sector reported higher satisfaction with on-premises solutions compared to cloud-based alternatives.

For manufacturers, the question is not just about adopting the cloud but about embracing the best of both worlds. Dell Technologies enables businesses to benefit from a reliable, scalable, and sustainable IT infrastructure. This powerful foundation maximizes the potential of SAP and AI capabilities, ensuring businesses stay competitive and future-ready. 

What this means for SAPinsiders

Unmatched data security and compliance: Manufacturing companies managing sensitive data, such as proprietary designs and operational insights, can rely on on-premises cloud solutions from Dell Technologies to enhance data sovereignty. These systems ensure critical data stays within the organization, safeguarding intellectual property and meeting stringent industry regulations without relying on third-party environments. 

Cost efficiency with cloud-like flexibility: On-premises cloud solutions deliver the scalability of public cloud while keeping costs predictable and optimized for manufacturing needs. Dell Technologies’ pay-per-use model ensures financial control while avoiding unpredictable expenses, making it ideal for resource-intensive workloads like SAP RISE and AI.

 Seamless AI integration for manufacturing innovation: On-premises cloud platforms enable manufacturing companies to integrate AI directly into their operations for real-time insights. This drives predictive maintenance, supply chain optimization, and process efficiency, empowering businesses to stay ahead in a competitive landscape while maintaining the security and control offered by on-premises infrastructure.