The recent advances in cyber-physical domains, cloud, cloudlet, and edge platforms along with the evolving Artificial Intelligence (AI) techniques, big data analytics, and cutting-edge wireless communication technologies within the Industry 4.0 (4IR) are urging mechatronics designers, practitioners, and educators to further review the ways in which mechatronics systems are perceived, designed, manufactured, and advanced. Within this scope, we introduce the service-oriented cyber-physical advanced mechatronics systems (AMSs) along with current and future challenges. The objective in AMSs is to create remarkably intelligent autonomous products by 1) forging effective sensing, self-learning, Wisdom as a Service (WaaS), Information as a Service (InaaS), precise decision making, and actuation using effective locationindependent monitoring, control and management techniques with products and 2) maintaining a competitive edge through better product performances via immediate and continuous learning, while the products are being used by customers and are being produced in factories within the cycle of Automation of Everything (AoE). With the advanced wireless communication techniques and improved battery technologies, the AMSs are capable of getting independent and working with other massive AMSs to construct robust, customizable, energy-efficient, autonomous, intelligent, and immersive platforms. In this regard, rather than providing technological details, this paper implements philosophical insights into 1) how mechatronics systems are being transformed into AMSs; 2) how robust AMSs can be developed by both exploiting the wisdom created within cyber-physical smart domains in the edge and cloud platforms and incorporating all the stakeholders with diverse objectives into all phases of the product life-cycle; and 3) what essential common features AMSs should acquire to increase the efficacy of products and prolong their product life. Against this background, an AMS development framework is proposed in order to contextualize all the necessary phases of AMS development and direct all stakeholders to rivet high-quality products and services within AoE. INDEX TERMS Advanced mechatronics systems, Wisdom as a Service (WaaS), Information as a Service (InaaS), Industry 4.0 (4IR), cyber-physical domains, cloud and edge/fog platforms, Automation of Everything (AoE).