Cloud vs On-Premise PMS for Hotels: Which is Preferable?

Ankit Dhamsaniya
Read Time: 4 Minutes
Cloud vs On-Premise PMS for Hotels: Which is Preferable?

The hotel owners always stay confused regarding whether to opt for a cloud-based hospitality management software or go on with their existing traditional on-premise software. The tech admired hoteliers mostly prefer to opt for the modern cloud base PMS(Property Management Software) that provide them with conveniences, features, and benefits better than the on-premise PRMs. 

The requirement for cloud-based PMS has increased in the last few years, making it a healthy switch in the industry. Let us have a look over the differences in both cloud-based and on-premise software and understand which is more preferable. 

Software requirements

  • The online cloud-based system does not need any specific installation, downloads, or any specific device to run. It only requires a browser and internet connection to work correctly. Every activity and data is stored on the cloud, and hence there is no requirement of IT personnel or specific department for maintenance. 
  • On the other hand, a desktop PMS has technological and infrastructure requirements. There are requirements of hardware, licenses, and local servers for every user to use desktop PMS. There is no requirement for the internet, and hence such software can be helpful in remote areas having low connectivity. 

Increased efficiency

  • The cloud-based modern PMS is designed with easy-to-learn interfaces, modern and intuitive interfaces, keeping workflows that focus on guests keeping them at the forefront of the business. The cloud-based PMS is lighter on features and functionality. Still, they are increasingly growing as they focus on the significant tasks providing guest satisfaction, customer retention, and revenue generation. Reduced functional distractions allow the employees to concentrate on their essential tasks of making the guest's experience memorable. 
  • The on-premise or desktop software is rich in features and functionality. It has been providing all the required elements for the last few years. In modern and fast workflows, the ability of on-premise software to cover all the workflows can lead to distractions for the team that need to concentrate on the stay details and make every part of the reservation accurate. The software itself is not harmful as it can analyze the pricing decisions, statistics and connect things well, but it is not much helpful as it is insignificant for the customers. 
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Analysis, installation, and maintenance

  • While using the cloud-based PMS system, there is hassle-free analysis and installation. The software vendors carry out all the work, and also, the maintenance is their responsibility. The cloud-based systems are designed using advanced technology that ensures 0 downtimes. Also, the software can download updates without hampering the ongoing work. 
  • Opposite to the cloud-based software, the on-premise or desktop PMS needs to be installed in different hardware. The license has to be purchased for each individual hardware used for installation or the hardware that will be used to run the software. If any updates or upgrades are needed, they have to be done individually on every machine. Usually, it consumes a lot of time and energy. 

 Improved productivity

  • The cloud-based software is designed over the browsers, can be used online, and data can be easily checked, added, modified, or deleted through a secure login from any browser and even from multiple devices. The demand for real-time services is increasing continuously, which provides flexibility to the activities without many complex actions. The real-time access and use of software from any device help improve employees' productivity and the company's growth. 
  • The on-premise software is designated to be installed over hardware and can be accessed only from the specific site. Also, to increase the technical support, additional costs are labored, leading to limited resources. 
  • If one is on the stage where hardware needs to be replaced or the licenses have to be renewed, opting for cloud-based software will be a much better option. 

Secrecy

  • For every cloud-based software, the vendor ensures security. The cloud-based software vendors have the expertise to combine all the robust security measures and procedures. These help to backup data automatically, make internet connections, and monitor the failures. All these security measures make cloud-based software safer than ever. 
  • While with the on-premise software, the security of data and information becomes the responsibility of the owner. One needs to install anti-virus programs and firewalls to use the systems securely. It becomes the owner's lookout to ensure his data secrecy. Also, the desktop PMS requires adopting various safety measures and tools to maintain the security and manual and precise monitoring of them. 

Automation 

  • Cloud-based users get the benefit of the latest versions of the software whenever any update is received. These systems receive frequent updates, management, and deployment simultaneously with zero extra expensive than the monthly fees and minimal downtime. It is a benefit that all the clients get to use the same version at the same time. 
  • Whereas the on-premise software has monthly release cycles having new functionalities, features, and bug fixes. The owners receive the schedule updates that are necessary as per the requirements of their hotels. According to the maintenance contract, the upgrades are also available free of charge. But the problem faced here is the owner is required to download and update the software to the latest version. 

Easy access

  • The cloud software can be easily accessed via secure login from the mobile device or the computer login. The modern cloud-based software provides real-time accessibility, and your data can be accessed from any place in the world. Such a thing is not possible with the on-premise software. 
  • On the other hand, the on-premise software has limited access. Only the people visiting the place of hardware can access the data, and the access can be made only on the computers having the licensed software. Installing the software over a new terminal or PC can result in extra added costs. If you wish to get remote access, you need to have the technical setup done. 

 Conclusion 

These were a few of the significant differences between cloud-based PMS software and on-premise or desktop PMS software. You can compare your requirements with the data above and opt for the type of software that meets your needs.

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