Deciding whether your DAM should be cloud-based or on-premise is one of the most important early calls you can make. It sets the stage for creating standards, choosing a platform, and managing the system, and it is a no-compromise filter that eliminates a large share of options at once. The trade-off is simple to state: cloud favors flexibility, on-premise favors control and security.

Defining the two

Cloud-based software is hosted, managed, and secured by a third-party provider and accessed over the internet, usually for a monthly or annual per-user fee. Its core appeal is flexibility: change tools anytime, access from anywhere.

On-premise software is licensed from a provider and implemented in-house, on your own servers, behind your own firewall. Users connect to an on-site server. Its core benefit is security, which is why some highly regulated industries are required to go this route.

Five points of comparison

  • Implementation. On-premise is fully customizable but costly to stand up (hardware, storage, backups, IT, firewalls). Cloud is usually ready out of the box but less customizable.
  • Accessibility. On-premise works even when the internet is down but only from inside the organization, making external sharing hard. Cloud works anywhere with a connection and supports guest access, but stops when the connection does.
  • Cost. On-premise costs more to implement and maintain. Cloud is cheaper to start, though per-seat fees rise as the team grows and annual contracts can bite if you switch mid-year.
  • Security. On-premise is strongest, sitting behind existing firewalls, but building custom security is complex. Cloud vendors build in strong security, but internet access raises breach exposure, so you need login and sharing standards.
  • Control. On-premise gives you full control, but you fix what breaks. Cloud hands updates and fixes to the vendor, but you depend on their service when something goes wrong.

Keep your goals, concerns, and budget in mind as you decide. Simple cloud solutions work well for many organizations getting started, while some require on-premise. Ask vendors and your IT team the right questions. This article adapts a piece from the Stacks blog.

Key takeaways

  • Cloud trades control for flexibility; on-premise trades flexibility for control.
  • On-premise leads on security and control; cloud leads on cost-to-start and accessibility.
  • Regulated industries may be required to run on-premise.
  • Decide early, because it filters platforms and shapes everything downstream.

Standards and sources