Home Business Insights & Advice Cloud based vs on premises document management solutions

Cloud based vs on premises document management solutions

by Sarah Dunsby
6th Oct 23 10:55 am

In the realm of organisational progress, the choice between cloud-based and on-premises solutions carries immense weight. It’s a decision that can significantly impact efficiency, security, and accessibility. In the following discourse, we embark on a journey to uncover the merits and pitfalls of each route, extending a guiding hand to help you sculpt a bespoke decision in perfect harmony with your unique business needs.

Understanding document management solutions

Cloud-based document management

This solution involves storing and managing documents on remote servers maintained by a third-party provider. Users access documents via the internet, allowing for easy collaboration and remote access.

On-premises document management

With this approach, organisations host and manage their document management system within their own physical infrastructure. Users typically access documents from within the organisation’s network.

Cloud-based document management solutions


  • Accessibility: Cloud-based solutions offer anytime, anywhere access to documents. This flexibility is particularly advantageous for businesses with remote or distributed teams.
  • Scalability: Easily scale your document management needs up or down based on business growth. Cloud solutions are adaptable and can accommodate changing requirements.
  • Cost-Efficiency: Avoid the significant upfront costs of hardware and infrastructure. Cloud solutions often operate on a subscription basis, making budgeting predictable.


  • Data Security Concerns: While cloud providers invest heavily in security, some organisations may have reservations about storing sensitive data offsite.
  • Internet Dependency: A stable internet connection is essential for accessing documents. Downtime or slow internet can disrupt operations.
  • Long-Term Costs: While monthly subscription fees may appear cost-effective initially, long-term costs can accumulate.

On-premises document management solutions


  • Data Control: Organisations have complete control over their data and document management infrastructure, providing a sense of security.
  • No Internet Dependency: Access to documents is not reliant on internet connectivity, making it suitable for organisations in remote locations.
  • Compliance: Some industries with strict regulatory requirements may prefer on-premises solutions to maintain compliance.


  • Higher Initial Costs: On-premises solutions require significant upfront investments in hardware, software licenses, and infrastructure.
  • Limited Accessibility: Documents are typically accessible only within the organisation’s physical network, limiting remote work options.
  • Maintenance Overhead: Organisations are responsible for software updates, maintenance, and security, which can be resource-intensive.

Making the right choice

Choosing between cloud-based and on-premises document management solutions depends on your organisation’s specific needs, resources, and priorities. Consider factors such as data sensitivity, budget, scalability, and workforce distribution.

Whether you gravitate towards the adaptability and accessibility of cloud-based options or prefer the data sovereignty of on-premises solutions, always keep in mind that your decision should harmonise with your business objectives and long-term vision.To explore the latest document management solutions, visit Hyland’s Document Management Solutions for a comprehensive range of options designed to meet diverse organisational needs.

Leave a Comment


Sign up to our daily news alerts

[ms-form id=1]