On-premises vs Cloud DMS: A review in 2021

In today’s digital information technology era, organizations have to consider several factors when deciding how to manage its’ data and documents online. Although a substantial number of businesses have switched to cloud-based infrastructure, many still rely on the tried-and-true legacy of on-premises document management software.

Cloud computing will remain a significant target for organizations seeking increased scalability, business continuity, and cost-effectiveness in 2021, just as it did during the coronavirus epidemic, supporting the global economy and remote workforces.

However, one solution is not a fit for all companies. Companies used on-premises solutions deployed on their servers and behind firewalls before cloud solutions became popular. Even as cloud solutions gain traction, many businesses continue to rely on on-premises solutions for several reasons, and this trend is likely to continue in the coming years.

In this article, we take a look at the pros and cons of both on-premises versus a cloud solution for your document management system.

Key Differences

We’ve all seen how cloud computing has helped businesses gain seamless flexibility, save time and money, and improve scalability and agility. But whether you want on-premises or cloud-based apps, data security is the most important consideration. While having a dedicated server that you can physically lock up has its advantages, cloud-based apps can also deliver top-notch data security.

Data stored on in-house servers is more accessible and under the authority of the firm, providing greater peace of mind than data stored on cloud servers. However, this requires businesses to devote a significant amount of time, money, and resources to maintain their on-premises infrastructure, which can become even more costly if something goes wrong.


On-Premises: Companies and organizations with sensitive data, such as the financial and banking industries, as well as government agencies, require high levels of security and privacy. While cloud services can meet these standards, many organizations believe that on-premises environments are the only ones that are safe. To put it another way, this is as much a culture and perception problem as it is a problem with information security.

Cloud: Cloud-based applications can employ the highest levels of security, yet security remains the most significant obstacle to an enterprise’s cloud adoption. Many well-publicized cloud breaches have been disclosed, causing IT teams all around the world to be alarmed. The risks associated with cloud computing range from employee personal information, such as login credentials, to the loss of more sensitive intellectual property.


On-Premises: Because the organization is responsible for deploying the software and managing all related expenditures, such as server hardware, space, and power usage, the cost of an on-premises solution can be significantly higher. On-premises solutions are typically considered an investment and a capital expense.

Cloud: The organization only pays for the resources it utilizes in a cloud computing strategy. There are no charges for upkeep or maintenance, and the price is determined by the amount of space and resources used. Cloud computing may not be less expensive, but cloud services are billed as operational rather than capital expenses, and thus an initial lower cost.


On-Premises: Regardless of the industry or sector, most businesses are subject to some form of regulatory oversight. Companies that are subject to such rules may prefer on-premises solutions because they can keep track of their data at all times.

Cloud: Companies that use cloud solutions should examine their service providers’ security models to ensure they are following all industry-specific regulations. Customers, employees, and partners’ data should all be protected to the highest possible standards by a cloud provider.

What to Choose?

The effects of the pandemic will continue to linger as businesses seek to establish a groundwork for enhanced agility. Technology requirements have become more sophisticated over the last year, as offices quickly decentralized with remote workers spread around the globe.

However, one solution is not a fit for all companies. So, while on-premises and cloud have their own set of advantages, much of the selection will be based on your company’s goals and requirements. SQL View’s Document Management System (DMS) offers flexibility in providing a solution that fits well with either an on-premises or cloud infrastructure. It is a complete solution that provides you with a fully managed application environment that is a secure, scalable, and cost-effective option for your document management needs.






Find out how a Document Management System can simplify your everyday office processes.