Cloud vs On-premise Document Management System

Cloud vs On-premise Document Management System

Cloud vs on-premise document management system – a question that has been looming over the corporate world for more than two decades. Although most businesses realize the need & importance of streamlining their document processes, they fail to identify which document management system works best for them.

One of the reasons for this is a lack of understanding of cloud-based & on-premise technologies – how they differ from each other & how they can each fulfill different organizational requirements. With this article, we aim to answer all the questions about these seemingly similar yet different systems and save users from making the wrong choice.

Here are the differences between cloud and on-premise document management systems.

Cloud V/S On-premise


Both on-premise & cloud document management system reduce business expenditures by implementing a paperless information management system and have a marginal difference in pricing. But when you consider variables like infrastructure setup & maintenance costs, staff training and higher return on investment (ROI), cloud document management systems automatically get the vote of a superior – more profitable choice for businesses. On-premise document management system occupy physical space, require expensive physical servers for functioning, and undergo regular repairs & maintenance, all of which adds to the final cost of the product. Whereas cloud document management software runs on cloud based servers & requires no physical infrastructure, which reduces business expenses even further.


The USP of cloud document management system is that it makes your data more accessible. Cloud DMS are compatible with all popular operating systems like Windows, Linux, Mac, etc, and can be accessed via any electronic device with an internet connection – one of the reasons why businesses have improved their productivity during the ‘Work from Home’ period.On the other hand, on-premise document management system allows users access only while they are ‘on premise’, to control unrestricted access, and thefts & leaks of sensitive information. On-premise document management systems find their place in data-critical industries.


Connectivity is a major concern for businesses with low internet speeds & ones located in rural under-developed areas. The connectivity of on-premise document management system is controlled by the businesses, with better bandwidth speeds resulting in better connectivity & faster documentation.Although on-premise document management systems have historically taken the upper hand connectivity, modern technologies like 4G & 5G are bridging the gap by introducing low-cost high-speed internet connections that are useful for users that rely on cloud based systems.

Data Migration & Scalability:

One of the first things you have to do after procuring a document management system is to transfer all your documents to the system. Data migration is a time consuming & tedious process, which requires trained professionals at every organizational level.Cloud document management system provides easier ways of importing document databases, as well as one-click scalability depending on an organization’s growing needs. On the other hand, scaling on-premise document management system requires the installment of new server machines & storage units, which is much more time consuming & expensive than cloud document management system.


Probably one of the only factors that gives on-premise document management system the upper hand is security. On-premise DMS allows businesses to limit user access while they are on the premises. For some industries, not only is this an important security feature, it is also critical to their functioning.But security advancements like improved data tracking on cloud servers & two-factor authentication (2FA) have allowed cloud document management systems to catch up with on-premise systems, with many industries switching to cloud based technologies in accordance with changing employee & customer demands.


Although there isn’t a lot of difference between setting up an on-premise or cloud document management system, cloud DMS are easier to implement than on-premise systems because most initial steps involved in implementing an on-premise DMS, like installing & assembling server units, training the staff & data migration, are either completely eliminated or undertaken by the service provider.Cloud vs on-premise document management system is a debate for the ages, and no matter what we say, there will still be some who swear by the system of their choice. Our only hope is that this article answers the most critical questions related to both cloud & on-premise document management systems, and leaves our readers with a better understanding of which software they should be investing in.
For more info about our document management system, visit GLOBODOX.


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