On-Premise vs Cloud HRMS
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On-Premise vs Cloud HRMS: Finding the right balance

Posted By
Harpreet Singh

Before you embark on your journey to a technological solution, one of the most important questions you may ask yourself is which channel of deployment would be the best suited for your business. The deployment preference of most of the users is spread across On-premise and Cloud options.  And it’s viable to distinguish between the two so that you rest your choice on the best one. However, it is to be believed that, when it comes to technology adoption, usage and preference, cloud deployment remains high.

In this blog, we will figure out-

  • Why businesses utilizing cloud deployment are more contented with the technology than the ones using on-premise?
  • What are the pros and cons of these two?
  • What aspects should be considered while choosing an appropriate deployment channel?

Moreover, we will also share some aspects of on-premise and cloud solutions which can help the HR team and decision makers choose the one that suits their requirements.

Instant deployment

Traditionally most companies used to opt for an on-premise solution, where adapting to a new software is often a time-consuming project. However, in regards to both implementation and user adoption, Cloud solutions take an edge. With SaaS everything is already configured, it’s easy to get started right away.

On the other hand, On-premise solutions tend to be a lot more expensive in terms of design, investment, and maintenance. It also involves a lot of hardware, firewall, security, backup and helpdesk resources.

Cost Savings

Cloud solutions are significantly cheaper, up-front and are usually charged per user. It is easy to predict costs over time, and organizations do not have to invest in additional hardware. The downside is that the organization may end up spending more money over the course of the system life cycle. With on-premise solutions, the initial upfront investment cost is more likely to be substantial. In addition, organizations are required to pay for ongoing maintenance, hardware, and IT personnel costs.

High Scalability

With cloud solutions, it’s incredibly easy to add or reduce the number of users. Just like building blocks, you can fit in your needs and avoid paying for solutions which doesn’t serve your business purpose anymore. As the company and its needs evolve, cloud-based solutions offer relatively easy transition with a pay-as-you-go model.


Cloud solutions are more adaptable as compared to on-premise solutions. With cloud, version upgrades and customer support are usually looked after by the vendor as part of the ‘pay-as-you-go’ model. Furthermore, the version upgrades are readily available and ‘pushed’ out to all clients.

It is not surprising to say that while choosing an on-premise vs. cloud HRMS, cloud platforms will sustain more in terms of scalability, cost-effectiveness, and pace of innovation in the coming years.  However, corresponding to your needs, your organization can pick what works best for your business. As with most business decisions, there is no such thing as a silver bullet. Decision makers must weigh their options when it comes to security concerns, cost savings, labor and maintenance costs, and even physical space. The best decision is a decision well-researched.

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