On premise vs. Cloud document management has become one of the most important IT debates of the 21st century. Despite the increasing organizational significance of document management software (DMS), the differences between online, cloud-based and on premises DMS mediums remain cryptic to many.
Today we will discuss definitive differences between on premises DMS and online, cloud-based DMS – helping existing and prospective users alike decide which model is best for their organizations, and to what ends each DMS model can be utilized.
Serious Misconceptions
Cloud vs. on premise document management differences are far-reaching. The differences between on premises DMS and online, cloud-based DMS begin not with the technologies themselves, but rather the misconceptions that prospective end users (and even existing users) have about them.
For instance, many perceive the cloud to be an emergent technology with questionable security capacities – particularly because of its status as a ‘newly minted’ technology in the business world.
However, the cloud, sometimes referred to as a 'hosted service,' or 'SaaS' is not as new as people think. In fact, its origins can be traced to the advent of commercial computing, which occurred over two decades ago.
Furthermore, it's also not as intangible as the term 'cloud' implies. Rather, the cloud is a global infrastructure occupying many different tangible spaces (highly encrypted data centers) around the world, integrating the enhanced security, collaboration, and storage bandwidth demanded in many industries.
Although fewer misconceptions are associated with on premises document management software, one misconception about on premises software looms largely, and that misconception is that on-site IT is always needed to assist organizations in use of on premises DMS.
However, most document management vendors offer services through resellers or training programs that take an organization’s existing IT staff out of the list of on premises necessities. Cloud vs. on premise document management has become a more pressing conversation for vendors, as IT teams are changing so rapidly.
Migration of Data
Cloud vs. on premise document management is understood as misplaced fear in DMS implementation, the data migration differences between on premises and online DMS are key differentiators.
Once an organization's data and content have been migrated to the cloud, it is there to stay, which is a benefit for two reasons: 1) data migration is expensive, and 2) data migration is time-consuming. However, with on premises DMS, additional data migrations may be needed depending on an organization's IT strategy – especially since most organizations who purchase on premises document management software tend to switch systems every 5 – 10 years.
Functionality
Cloud based solutions earn their 'online' monikers by virtue of the fact they can function in-browser on the internet, and this is important for several reasons.
Virtually any information device can gain access to the Internet these days, whereas with on premises DMS, access to organizational storage and collaboration features remain tied to the software's point of installation/origin. Cloud vs. on premise document management cannot be distinguished from each other without analyzing the functional limitations of on premise solutions.
However, the cloud can transcend issues with desktop compatibility sometimes found in niche operating systems (niche meaning not within Windows).
Essentially, cloud-based, online DMS is, beyond any serious criticism, more functional than its on premises counterpart, particularly because of its accessibility via mobile applications and consumer-grade laptops (such as Mac), which are becoming increasingly popular in the enterprise.
Pricing
Many know the up-front price differences between on premises and cloud-based DMS, but few understand the differences in long term value. And, as always, value and price must be viewed hand-in hand.
This is one of the most complex differences between cloud vs. on premise document management solution.
Price is the most complex facet of these two technologies' differences. On one hand, there are simple, bottom-line methods of measuring the expenses of each, and on the other hand, there are 'benefits' that are much more difficult to initially calculate as hard ROI.
Initially, the cloud costs less across the board from simple calculations, but both on premises and cloud-based DMS will generate ROI for organizations due to the fact that each technology helps organizations go paperless.
However, it should be noted that in general, organizations will have to spend more on electricity costs with an on premises solution, and on premises solutions are better fit for rural offices as these areas have fewer Internet speed/access options.
Information Technology Considerations
On-premises document management systems require companies to install licensed software on their own computers or network. They're also entirely responsible for maintaining current versions, and some software providers may charge additional fees for updates. Besides just buying the software system, the organization also needs hardware for storage and processing, and they also must pay to power that hardware.
Just as important, companies need to ensure that both their data and their software are protected against a variety of security and physical threats against computers, networks, and databases. To handle all of these tasks, organizations with on-premises document management need IT employees to maintain hardware, software, data and security.
Although online, cloud-based DMS products are designed to integrate and sync with an organization’s pre-existing, on-site IT infrastructure, this doesn't mean that on premises solutions are more difficult to implement.
Although server management resides inside the business itself with on premises solutions, the vendor can (and usually will) provide services to ensure the DMS runs smoothly.
Accessibility
Cloud gives access to more servers without occupying significant space with multiple servers/mainframes in an office. The cloud has more inter-connectivity bandwidth, meaning that, since it's more accessible in more places, it has a temporal ability to connect a greater number of people at mission-critical times.
However, in terms of bandwidth and as you'll see later in this article, cloud-based server bandwidth is harder to come by with cloud solutions – whereas with on premises DMS, you will be working with a terminal server. Cloud vs. on premise document management has many significant differentiators, but the accessibility provided by the cloud towers above the accessibility offered by on premise solutions.
Bandwidth and Services
Bandwidth is important to data migration, and with an on premises solution, bandwidth is only limited by the pre-existing network of your organization. Here is where on premises can trump the cloud: sometimes there is less bandwidth than desired with the cloud, but on premises tends to provide more bandwidth across the board, despite it incurring more power and electricity costs. The cloud vs. on premise document management paramaters are split by this dichotomy.
Furthermore, as a services investment, the cloud, at most, will require some consulting services as needed, but software upgrades with on premises solutions may require technical support amid crucial updates – sometimes slowing down the typical speed of operational processes.
Intuitiveness
On premises solutions are typically easier for DMS newcomers to understand. But the cloud, as a web technology, offers a certain degree of customizability that can render the solution more intuitive to its user.
Despite the intuitiveness of the cloud, on premises is a technology that’s been around for a while, and can be likened to the intuitiveness of software comprising the Windows interface.
Despite these differences, both modes of DMS usage provide the software integration needed to make processes more intuitive with an existing tech infrastructure.
Implementation
Although implementation time will drastically vary from organization to organization, the cloud takes the cake when it comes to speed of implementation as many implementation steps are more easily (and proprietarily) completed by the DMS vendor with cloud based solutions – making implementation easier for you in understanding cloud vs. on premise document management.
Implementation time will also vary depending on pre-existing infrastructure. For instance, if an organization relies heavily on pre-existing cloud applications, on premises implementation will likely take longer, and vice versa.
Cloud computing has grown increasingly popular because of its strong benefits. It can ease workloads and budgets for companies.
However, risk managers still view concerns over unauthorized access to sensitive or regulated information a major issue. The very accessibility that allows users to login from remote locations may seem to be risky. But for those not required by compliance to maintain on-premises storage, a high-quality cloud provider that can provide secure authentication should be sufficient.