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Cloud-based vs. On-premise Asset Tracking Software

In today’s fast-paced business environment, the management of assets plays a crucial role in optimizing productivity and reducing costs. With the advancements in technology, many businesses are turning to asset tracking software as a solution to streamline their inventory processes and minimize the risk of losing or misplacing items. However, when considering implementing an asset tracking system, one important decision you’ll need to make is whether to go for cloud-based or on-premise software. In this post, we will explore the advantages and disadvantages of both options in order to assist you in making a choice.

Cloud-Based Asset Tracking Software

So, what is asset tracking software based on the cloud? It simply refers to a system where your data is securely stored off-site on servers provided by a trusted third-party vendor. Let’s take a look at the pros and cons of opting for a cloud-based solution:



One significant benefit of using cloud-based asset tracking software is its accessibility from any location with an internet connection. This means that your team members can easily access real-time data about assets from different locations, enabling them to perform their tasks more efficiently.


Cloud-based systems provide solutions that can adapt to your business requirements. They allow you to easily expand by adding assets and users as your company grows without the need for hardware investments.


Traditional on-premise solutions often demand investments in servers and infrastructure. In contrast, cloud-based asset tracking software offers a pay-as-you-go model or subscription fee. This approach has the potential to reduce costs in the long run.


Cloud vendors consistently update their software with features and security patches, ensuring smooth operations without causing any disruptions or requiring internal IT staff involvement.


Internet Dependency 

For some businesses relying on network connections, the dependence on internet connectivity may be considered a drawback. In situations where there is an internet outage or weak signal strength, accessing real-time data might become challenging.

Security Concerns 

Entrusting your asset data to a third-party vendor can raise concerns regarding security. It is crucial to select a cloud provider that implements data encryption measures, conducts regular backups, and adheres to industry standards such as ISO 27001 compliance.

On-premise Asset Tracking Software


On-premise asset tracking software entails installing the infrastructure of the system and storing your asset data within your organization’s premises. Let’s take a look at the advantages and disadvantages of this option:


Greater Control

With on-premise asset tracking software, you have control over your asset data since it is stored within your organization. This can provide reassurance for companies that handle information or prefer to keep their data in-house.


One significant benefit of on-premise solutions is the ability to customize the software to fit business needs or industry requirements. This allows you to tailor the system according to your specifications.

Offline Accessibility 

Unlike cloud-based software, on-premise solutions offer access to asset data when there is no internet connection available. This ensures continuity in case of network outages.


Higher Initial Costs 

Implementing an on-premise asset tracking software solution may involve expenses due to purchasing necessary servers and hardware devices and investing in IT infrastructure capabilities.

Limited Scalability 

Unlike cloud-based systems that offer the ability to scale as businesses grow, on-premise solutions may require hardware purchases when expanding operations, which can result in long-term costs.

Maintenance Responsibility 

The responsibility for maintaining on-site systems falls entirely on the IT team or the outsourced IT support firms hired by the company using on-premise software.

Conclusion on Asset Tracking Software

Choosing between cloud-based and on-premise software depends on factors such as business size, needs, budget, and security requirements. Cloud-based solutions provide accessibility, scalability, and cost-effectiveness but rely on internet connectivity. On the other hand, on-premise software offers control, customization options, and offline access to asset data but requires higher upfront costs and maintenance responsibilities.

By evaluating the advantages and disadvantages of each option, you can make a decision that aligns with your organization’s goals and ensures efficient asset management in the long term. Remember to conduct research beyond this post; assess your unique requirements, consult with experts or vendors if necessary, and choose the asset tracking software solution that best suits your business needs.

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