Selecting an appropriate EAM system is vital for any company or organization that seeks high levels of reliability and performance of its assets. There are primarily two types of EAM solutions available—two categories that are known as on-premise and cloud-based.
Understanding the differences is crucial, in order to determine which option is most suitable to meet your company’s requirements. In this article, we’ll take a look at both types so that you can better understand which solution will work for your company.
What is an On-Premise EAM Solution?
Servers and structures on which this EAM system is based are owned and managed by the company in question. First of all, it offers control – one of the essential factors that define the efficiency of certain activities or business processes. The company has all the rights to the system and data and this factor may be vital for organizations that require heightened data security or that need to comply with some specific regulatory compliance standards.
However, in on-premise systems, there are often substantial upfront costs for the acquisition of necessary hardware and software. They also require a dedicated IT department to operate and support the system, which may increase the operational expenses. Moreover, the scaling of these systems proves to be challenging and financially demanding since it often calls for the acquisition of more equipment and software.
What is a Cloud-Based EAM Solution?
Cloud-based EAM solutions like Brightly, on the other hand, are stored on the vendor’s systems and can only be accessed through the web. Essentially, the cloud-EAM platform enables a business to start using the software without elaborate hardware requirements and investment costs.
Apart from that, cloud solutions like Brightly can be scaled up to allow more users and features depending on the growth of a business. They also offload the cost of maintenance, upgrades, and security—these are passed to the cloud provider, thus minimizing the requirement for internal infrastructure. However, since data is stored off-site, businesses hardly have any control over its security and availability, and this could be a major drawback especially for organizations that deal with sensitive information. This is why a reliable provider needs to be selected.
Comparing On-Premise and Cloud-Based EAM Solutions
a. Cost
On-premise solutions are usually expensive to implement initially, but might prove cheaper in the long term for very large organizations. Cloud-based systems often have a subscription billing model, where costs are paid periodically, but they have a relatively negligible upfront cost.
b. Accessibility
The cloud-based EAM systems like Brightly help executives to access the system from anywhere there is connectivity, useful especially in organizations that have many branches or that have workers who work remotely. On-premise systems are often contained solely within the business’s intranet network, unless extra connectivity measures are put in place.
c. Scalability
Cloud solutions are inherently more scalable, meaning that businesses may add or reduce capacity in a much more efficient manner without incurring large costs. The scaling of an on-premise solution can be more complicated and expensive, whether you are scaling up or scaling down.
d. Security
Some organizations do not trust the layers of security that cloud providers put in place to protect their applications, and this is why some businesses stay loyal to an on-premise solution. This is particularly true for industries with many regulatory concerns or in environments where there is data security sensitivity.
e. Maintenance
One disadvantage of on-premise systems is that the maintenance and update of these systems are the responsibility of businesses, and this can be costly. For cloud-based solutions, these are sorted out by the provider, meaning that the changes and enhancements are done without much involvement of the user.
Determining the Right EAM Solution for Your Business
On-premise solutions may be sought by very large organizations that have the capacity to manage their own IT departments, for it provides the organization with control. Conversely, cloud-based systems are more suitable for businesses or organizations that may not wish to have a full-time IT department, or simply do not want to assign any outsourceable tasks to their internal team.
In addition, the finance and military sectors, for instance, operate within a strict set of rules and policies with regard to managing the data received and stored, and sectors like these may opt for an on-premise option. However, if your sector is not heavily regulated like these, and you need to access your EAM system from several locations, then a cloud-based EAM would be more suitable for your company.
Conclusion
It is also important to note that both on-premise and cloud-based EAM solutions have their own benefits and drawbacks. It is equally important to evaluate and select the appropriate EAM system that fits your company’s needs and objectives by considering the main factors outlined above. Note that the optimal choice is not only based on the price factor, but on how suitably the system aligns with your company’s strategic and operational objectives.
