Cloud vs on-premise DAM: which is best for my business?

When you’re assessing Digital Asset Management systems, hosting is a key consideration. The two main options are cloud-based DAM and on-premise DAM. But which is right for your business?

This article:

• explains the differences between cloud and on-premise hosting
• explores the pros and cons of cloud-based and on-premise DAM
• provides a side-by-side comparison of the two models

What’s the difference between cloud-based and on-premise DAM?

Ever been to a party where someone references Proust and you’re too embarrassed to admit you have no idea what they’re talking about?

It can be the same with IT terminology. Once someone’s said ‘cloud-based or ‘on-premise’ - and you’ve nodded along like you know what it means - there’s no going back. You’ve just got to brazen it out and hope there’s not a quiz.

But no more. Because here’s the must-know info about cloud-based and on-premise hosting – the two main delivery methods for a DAM system.

Around 15 years ago, most DAM solutions were on-premise. But since then - thanks to improved cloud security and lower storage costs - cloud-based solutions have become much more popular.

The majority of new DAM projects are now hosted in the cloud, and for good reason. For most businesses, the convenience and lower setup costs of cloud-based DAM make it the right choice for them.

But it isn’t right for everyone. So let’s look at the pros and cons in more detail.

Pros and cons of cloud-based DAM

Pros of cloud-based DAM

Done-for-you
With cloud-based hosting, the DAM vendor looks after everything. The system is always on the latest version via automatic updates. Your vendor manages security and takes backups of your data. And if you have a problem, you’ve got tech support on tap and guaranteed response times in your Service Level Agreement.

Lower upfront costs
With no hardware to buy, and much less input required from your internal IT Team, it’s much cheaper and quicker to get started with a cloud-based DAM. Plus, rental of cloud-base software is much lower than buying a perpetual on-premise licence (see below for more info). Lower costs mean faster ROI, as you can recoup initial costs quicker.

Simple scalability
If your needs grow, cloud hosting makes it easy to scale up your DAM. You can add more user licenses, increase your storage capacity, or bolt on more modules as you need them. This is especially helpful if you want to start small and showcase the benefits of DAM, before a bigger rollout.

Easier mobilisation
Cloud-based DAM is much quicker to set up and start using - sometimes in a matter of weeks. That means you can mobilise quickly and start realising your desired business benefits ASAP. It’s also easier to change products / vendors if something isn’t working out. You’re not tied into a perpetual contract and can mobilise a new product relatively quickly if you need to.

Cons of cloud-based DAM

Internal rules
Some organisations are required to select on-premise hosting due to internal policy. This could be for any number of reasons. If this is the case, speak to your chosen vendor/s early to make sure they still offer on-premise DAM, as the decreasing popularity of this approach means many vendors are retiring this option.

High data storage needs
If you have high data storage needs, you may find it’s more cost-effective to use on-premises storage. Storing high volumes of data in the cloud can be commercially prohibitive. However, this is being offset by new ‘Cold Storage’ offers from cloud-based vendors, which lets clients host high-volume, low-access digital assets (e.g. archive materials) in a much cheaper storage tier.

Pros and cons of on-premise DAM

Pros of on-premise DAM

Control and customisation
Control freaks rejoice. Because on-premise hosting gives you ultimate control over your DAM. Want to increase security? Go ahead. Don’t want any updates? Then don’t schedule them. Your premise means doing things your way.

Offline reliability
With this type of hosting you can store your data on-premise. This means you’re not reliant on the Internet for access. You may also find it faster if you’re processing really large files, but most users won’t notice any difference.

Cons of on-premise DAM

Responsibility
The flip side of control is responsibility. An on-premise DAM is your responsibility. That means you’ll need someone with the time and expertise to maintain the system and perform behind-the-scenes technical stuff like backups, updates and fixing any issues that arise.

Higher upfront costs
On-premise DAM can cost more. You’ll have to factor in the cost of hardware - both setup and regular equipment upgrades. To make sure you have room to grow, you’ll need to buy hardware that meets your predicted future needs. You’ll also have to factor in the costs of IT Staff who will maintain the backend of the system.

License costs
On-premise solutions also require you to buy a ‘perpetual’ licence. Basically, a license that lasts forever and covers the maximum users you’ll need. This means you may end up paying for users that don’t actually materialise.

Cloud-based vs on-premise DAM: comparison

There’s no one-size-fits-all when it comes to hosting your DAM.

The pros and cons above make a fairly compelling argument for cloud-based DAM. And it’s true that on-premise hosting has decreased in popularity over recent years, resulting in several vendors retiring this option.

But that doesn’t mean cloud-based hosting is a no-brainer. On-premise DAM is still a good choice for businesses with specialist needs - particularly those that can invest extra time and money to have complete control over their DAM system.

Below, we’ve assessed cloud-based and on-premise DAM based on the needs of a typical business, so you can make an informed decision that works for your organisation.

Is cloud or on-premise hosting more secure?

Both models are very secure. Cloud-based DAM has strong security as standard, including password protection, advanced permission controls and end-to-end encryption. This is more than enough to protect your digital assets against common cyber threats. For extra peace of mind, you can also look for certified suppliers with accreditations like ISO/IEC 27001:2013.

However, organisations with more intense security needs - for example, those that handle highly confidential data and assets - may prefer an on-premise solution. This is because they can decide to keep their site accessible internally, with access over secure VPN for select partners.

Remember, whichever you choose, using a DAM is going to be much more secure than using email or third-party FTP sites to transfer your files.

So what’s the verdict?

It’s pretty clear that cloud-based DAM offers the most advantages to the majority of businesses.

The cost-of-entry is lower and time-to-value is faster. There’s support on tap and auto upgrades to the latest and most secure version of the software.

Cloud-hosting offers more flexibility to clients, as it’s quicker and easier to mobilise their DAM, and to move to another vendor if things aren’t working out.

And innovations in ‘Cold Storage’ also solve problems for businesses with bigger data storage needs.

So - unless you have very specific reasons for an on-premise deployment - we’re calling it. Cloud-based DAM takes home the trophy.

Ready to harness the power of DAM in your business? Download our ebook: the 11-step guide to purchasing a Digital Asset Management system.