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.

On-Premise TMS: Pros

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

On-Premise TMS: Cons

  • 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

Cloud-based TMS: Cons

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

Cloud-based TMS: Pros

  • 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?

  • Quickly solve challenges
  • Keep costs down
  • Easily scale up
  • Stay up to date
  • Assurance of quality

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