How Cloud-Based Asset Tracking Beats On-Premise Solutions
Cloud-based asset tracking offers flexibility, scalability, and cost savings. Learn why it outperforms traditional on-premise solutions.
Introduction
When businesses consider asset tracking systems, they often face a choice: cloud-based vs. on-premise.
On-premise solutions once dominated, requiring local servers, IT staff, and heavy upfront investments. But today, cloud-based platforms have become the smarter, more cost-effective option.
This article explores the key differences between cloud and on-premise asset tracking, showing why cloud-based systems are rapidly becoming the standard.
What Is On-Premise Asset Tracking?
On-premise systems are hosted on local servers within your organization.
- Pros: Full control, internal data storage, offline accessibility.
- Cons: High upfront costs, ongoing IT maintenance, limited scalability.
These systems often make sense for very large enterprises with strict data requirements — but they’re heavy for most businesses.
What Is Cloud-Based Asset Tracking?
Cloud-based systems are hosted online and accessed via browsers or mobile apps.
- Pros: Low upfront costs, automatic updates, accessible anywhere.
- Cons: Requires internet connectivity, dependent on vendor uptime.
For SMBs, coworking spaces, schools, and even mid-sized enterprises, cloud-based systems usually deliver more value.
Cloud vs. On-Premise: Key Differences
| Feature | On-Premise | Cloud-Based |
|---|---|---|
| Cost | High upfront (hardware, setup) | Subscription model (pay-as-you-go) |
| Maintenance | Requires IT staff | Vendor handles updates & security |
| Accessibility | Local network only | Accessible anywhere (web/mobile) |
| Scalability | Difficult, costly upgrades | Easy to scale users & assets |
| Integration | Custom, time-intensive | API-based, faster integrations |
| Data Backup | Manual responsibility | Automated cloud backups |
Advantages of Cloud-Based Asset Tracking
1. Lower Total Cost of Ownership
- No servers or hardware to purchase.
- Subscription model spreads costs monthly or yearly.
- Reduced IT staffing needs.
2. Easy Accessibility
- Access from any location with internet.
- Perfect for remote teams or multiple branches.
- Mobile apps allow instant scanning and updates.
3. Automatic Updates & Security
- Cloud vendors push regular software updates.
- Built-in compliance and security measures.
- Reduced risk of outdated systems.
4. Scalability
- Add or remove users easily.
- Expand to track hundreds or thousands of assets without infrastructure upgrades.
5. Better Integrations
- API connections with Slack, Teams, or accounting tools.
- Easier to embed in existing workflows.
6. Built-In Backup & Recovery
- Data automatically backed up by the vendor.
- Less risk of data loss from local server crashes.
Example: Growing Coworking Business
A coworking chain with three locations used an on-premise inventory system. As membership grew, scaling was difficult:
- Each location needed its own server.
- Updates required IT staff on-site.
- Costs ballooned.
After moving to a cloud-based system like InvyMate:
- All locations synced to one central dashboard.
- Members scanned equipment with mobile apps.
- IT overhead dropped by 50%.
- Expansion to a fourth site was seamless.
When On-Premise Still Makes Sense
Cloud is ideal for most businesses, but on-premise may fit if:
- You have strict data sovereignty requirements (e.g., government, defense).
- You operate in areas with unreliable internet connectivity.
- You already maintain strong in-house IT infrastructure.
Best Practices for Moving to the Cloud
- Audit your current system costs (hardware, IT, licenses).
- Evaluate cloud vendors on security and uptime.
- Train staff on mobile and web app usage.
- Run a pilot program before full migration.
- Set clear policies for remote access and data security.
Common Mistakes to Avoid
- Assuming cloud = less secure (vendors invest heavily in encryption).
- Overlooking training (staff must adopt new workflows).
- Running both systems indefinitely (creates duplication).
- Ignoring integration opportunities (Slack, accounting, HR systems).
Conclusion
On-premise systems once offered businesses control, but they also brought high costs and complexity.
Cloud-based asset tracking delivers lower costs, greater scalability, stronger integrations, and easier access. For most modern businesses — from coworking spaces to healthcare providers — the cloud clearly wins.
👉 Ready to simplify your asset tracking with the cloud? Try InvyMate today — a mobile-first, cloud-based system built for growing teams and businesses.