EZChildTrack Blog | Childcare Management Software

Pros and Cons: Cloud vs. On-Premise Childcare Management Software

Written by EZChildTrack Team | May 16, 2017 3:00:00 PM

Where is the best place for your software solution to reside: on your computer or in the cloud? Both methods of deployment have positives and negatives as well as some unique features or benefits not available in the other.

Let’s take a look at the differences, pros, and cons of on-premise (installed) software and cloud-based childcare software solutions.

What Is the Difference Between On-Premise and Cloud-Based Childcare Software?

Cloud-based software programs are hosted remotely on the vendor’s server. You access the childcare management software on the internet with a web browser. Any data you enter into the program is also stored on the vendor’s server. You may hear it called SaaS or Software as a Service.

Web-based solutions are offered on a subscription basis. You pay a monthly or annual recurring fee to access and use the software as well as receive support services and automatic updates for your daycare or after school software. Because of the way you pay for it, cloud subscriptions are considered operating expenses, a cost that your business continues to pay.

On-premise software is installed directly onto hardware you own, either a computer, private network, or a server. You own the management software, and any data you enter into it remains on your device.

On-premise childcare solutions are purchased as one-time perpetual license fees. The price depends on the number of concurrent users. You may pay extra fees for support, training, and updates. Since you pay for it once, up-front, it is considered a capital expenditure, just like a new computer or other large, one-time purchase.

The Pros and Cons of Childcare Management Software in the Cloud

Pros
  • Low-priced entry level with a rapid implementation and rate of adoption
  • Costs are predictable over time
  • You do not need to buy additional hardware or hire additional IT staff
  • Extremely stable with little down time
  • Automatic updates
  • Flexible for easy expansion or contraction of number of users
  • Easy to add third-party users securely
Cons
  • After several years, the total cost of ownership approaches that of on-premise software
  • Potentially costs more over the course of the system’s life cycle
  • No local admins to help with small issues such as resetting passwords
  • Less customization available in exchange for improved implementation time
  • Requires a stable, high-speed internet connection
  • You have no control over when updates occur which may disrupt your business operations
  • If the provider goes out of business, you may lose your data as well as access to the software

Data storage is a double-edged sword in the case of cloud-based software. Data security is the responsibility of the vendor. The vendor is more likely to have adequate safeguards and security protocols than you can afford or administer. The vendor is also more likely to detect a breach and quickly alert you to the problem. Because the data is stored in multiple locations, it can be difficult for someone to find it.

On the other hand, a vendor can pledge strict data security standards, but you may not be able to trust it is the truth.

The vendor has access to your data as long as it is stored in the cloud and data can become accidentally deleted. If not covered in the contract, a vendor can share your data with third parties for legal purposes and without the need for a warrant. Sometimes, a cloud vendor requires you to agree to their privacy policy before you sign up for service leaving your stored data vulnerable.

Unique Benefits of Cloud-Based Software

With cloud-based solutions, you can request a third party security audit to reassure yourself that your data is secure. Since the vendor is responsible for security, it is the leading expert on the system with strict standards that are outside the capability of your organization.

The best benefit for most users of cloud-based software is mobile accessibility. You can access your software and data using any device, from anywhere, anytime, day or night. You also save on energy because you don’t need to power extra hardware.

There are more examples every day of cloud-based software solutions and storage. G-Suite (formerly Google Apps) is a common and inexpensive collection of office software applications. Salesforce is a well-known cloud-based customer relationship management and selling platform.

According to IDG Communications, in 2020, 92% of enterprises have a multi-cloud strategy.

The Pros and Cons of On-Premise Management Software

Pros
  • It is easier to comply with certain regulatory requirements in some industry and market segments that require special security for data access
  • It can be more secure than cloud-based data storage since it cannot be accessed from another device, lowering the risk of a breach
  • You know exactly where your data resides
  • It is more accessible and reliable in areas where there is no stable internet connection or where broadband is constrained
  • Data moves faster
  • Customizable to an extent not available in cloud-based solutions
  • You have complete control over when maintenance and updates occur
Cons
  • Higher up-front costs and higher risk
  • You need to buy more hardware and have experienced IT staff to manage the system
  • Once the solution has been deployed and implemented, there are additional costs for routine maintenance and updates
  • If your business expands, you will need to buy more licenses and hardware
  • You need ongoing integration and active support from your IT staff, the vendor, or a third party support company
  • Customization can delay implementation and create problems when the software is updated
  • Implementation takes longer than cloud-based solutions

Again, security is both a pro and con with on-premise software. As long as the device the software is installed in is secure, your data is secure. However, if the device is stolen or damaged, your data is gone.

Unique Benefits of On-Premise Software

On-premise solutions are easier to customize, which is beneficial for niche industries that have specialized needs and processes. Also, you don’t need to worry about an internet connection.

Most inexpensive software, such as word processors, spreadsheets, and accounting software meant for a single license is typically on-premise. You purchase it and install it on your computer.

Both cloud-based and on-premise software have their benefits and their downsides. Which one you go with depends on what is most important to you and how much you want to pay for the features you need.

As a childcare business, you may value anytime, anywhere accessibility more than data security. The flexibility of a cloud-based solution may appeal to you. On the other hand, if you need much customization or you cannot find what you need in the cloud that fits your budget, you might need on-premise software that more closely fits your current processes.