For starters, let's clarify the difference between Cloud and On-Premise document management solutions. Cloud solutions (AKA Software as a Service, ASP, On-Demand) are software solutions that are hosted on secure, external, data servers. Whereas an On-Premise solution is a software package that is installed and maintained within your corporate IT environment.
So how do you decide what option is best for your application, Cloud or On-Premise document management?
Cloud based document management solutions are ideally suited for organizations that:
Require multi-site access but lack the internal infrastructure to support it.
Already have an over-burdened IT department.
Wish to avoid the capital investment in new hardware and software.
Require back-up redundancy beyond their internal capacity.
Require quick implementation and configuration.
On-Premise document management software is ideal for organizations who:
Wish to keep all their content internally on their networks.
Have an extremely high volume of content (think terabytes of data) which could make the Cloud pricing model difficult to justify.
We eluded to pricing above, so what does the typical Cloud vs. On-Site document management system pricing model look like?
Cloud solutions are typically priced based on the amount of storage space used (GB’s per month) and allow organizations to grow their system without purchasing new hardware or increasing user licenses. On-premise solutions typically involve a one-time upfront investment for the software licenses, installation and training; and an optional ongoing fee for software maintenance and support.