Cloud or on-premise - why you shouldn't make this decision lightly

Cloud solutions are increasingly becoming the standard - flexible, scalable and seemingly without alternative, there are more and more software providers who are fully committed to this technology.
 

This is understandable. Technical development is happening at a rapid pace: Industry 4.0, networking, cloud, AI - nothing is as it once was. And the arguments in favor of the cloud are quite simple: saving costs (especially initial costs), saving resources, outsourcing responsibility - the trend is clearly moving in this direction.

So it's no wonder that software manufacturers are increasingly specializing in cloud solutions. It is already the case that many PIM providers do not offer the same applications on different platforms or that their software runs exclusively in the cloud. This is an understandable decision, as the demand for cloud-based software is growing and developing applications for both systems is time-consuming - why not save yourself the trouble?
New providers in particular, who are using this opportunity to position themselves on the market with the new technologies, are spreading the message via LinkedIn and the like: cloud is better than on-premise.

But what happens when the parameters change? What if I opt for the cloud today and realize tomorrow that I want to go back to the on-premise solution after all? Won't this exclusive focus on the cloud lead to a one-sided dependency? After all, switching providers is expensive and requires time and resources.

And there are still reasons that speak in favor of an on-premise solution. Hosting in your own IT landscape does have its advantages - and not just for companies that don't want to or can't leave the security of their data to others.

Below is a comparison of the two solutions:

As you can see, if you want to plan securely and for the long term, on-premise still offers good arguments: independence, adaptability and (long-term) cost savings - because operating in the cloud reduces initial costs, but is usually more expensive in the long term.

Conclusion

Both options have their strengths and weaknesses. To say across the board that one system is better than the other is simply wrong. The decision always depends on the respective situation and corporate strategy and should be carefully considered. Is flexibility more important or digital sovereignty? Do I need a system that can be fully adapted to my needs or do I make compromises? Do I trust the service providers or not?

 

Whatever the decision, anyone planning for the long term should avoid making a one-sided commitment - after all, you don't know what the future holds. To ensure maximum adaptability to changing requirements, the following applies here: Choose a solution that can be operated both in the cloud and on-premise and allows you to switch easily.

 

By the way: "Why a PIM system in the cloud is worthwhile" explains my colleague Michael Binder in his article. Take a look inside!