Watch this video form the #StreamTea to understand the differences between using a cloud-based TMS and an on-premise TMS. A TMS (Transport Management System) is essential for the logistics sector. A TMS streamlines and simplifies logistics operations, saving costs, cutting administrative labour and improving efficiency to ensure all resources are fully utilised.

TMS software can be purchased on an on-premise basis, or through a cloud-based solution like Stream Go. So, what’s the difference?

Cloud-based TMS vs. On-premise

Cloud-based software is hosted by the vendor and accessed via a browser on a subscription basis.

On-premise solutions, however, are installed, hosted and maintained on your own servers.

Pros of using an on-premise transport management system

  • No monthly subscriptions as you own it indefinitely
  • As you own it, you can develop customisations
  • vendors may be more established in the market

Cons of using an on-premise transport management system

  • Large upfront investment for installation and setup
  • You are responsible for the cost and risk associated with updates, infrastructure and maintenance
  • On-premise software is harder for staff to access offsite
  • Higher environmental cost than cloud-based solutions

Cons of using a cloud-based transport management system

  • You don’t own the software indefinitely
  • A subscription is usually required to access it
  • Browser-based systems rely on an internet connection

Pros of using a cloud-based transport management system

  • Minimal upfront hardware, infrastructure and training costs
  • Updates and maintenance included in the subscription, so no unexpected bills or specialist knowledge required
  • Flexible and able to scale with your business
  • Straightforward and easy to use right out of the box
  • Accessed via a browser any time, from anywhere, using any device
  • your data is always safe and secure (even if you lose internet connection)

Why use a cloud-based TMS?

  • Cloud-based software makes it easy to quickly solve any challenges that arise
  • By paying on a subscription basis, instead of a large upfront cost plus regular maintenance and upkeep, cloud-based TMS keeps costs down
  • True cloud-based software is totally scalable, which means it’s easy to scale-up as your business grows
  • Always stay up to date with the latest software upgrades delivered automatically via the cloud
  • Cloud-based software, delivered on a subscription basis, is an assurance of quality. Paying on a monthly subscription with no large upfront costs means that you are free to leave the platform at any time – so the software must stay up-to-date and competitive to ensure you continue to see the value over time

Learn more about the differences between cloud-based and on-premise software in our blog post: Cloud-based transport management software vs. On-premise