Skip to main content

Let’s explore the pros and cons of Cloud-based versus On-premisePIM solutions to determine which is superior.

As you embark on your journey to deploy PIM, it is important to take a step back and analyze your internal requirements.

  • What features do you need?
  • What kind of performance are you looking for?
  • What is your budget?

By taking the time to answer these questions, you can more accurately anticipate the overall cost of your PIM process, tools, and skills.

In addition, you may find gaps in your model or process functions, as well as relative levels of maturity. By taking these factors into account, you can create a more balanced approach to your new PIM efforts. And, by evaluating the ROI of both on-premise and cloud PIM solutions, you can make an informed decision about which option is best for your business.

What Is On-Premise PIM?

An on-premise PIM platform is software that’s located physically on-site. Purchased under a license, it’s housed, stored, and managed on your own servers and you take full responsibility for upkeep and integration. This scenario often requires the recruitment of dedicated personnel to fulfill this. On-premise PIM systems offer a high level of control and security. You can manage every aspect of your product data and be confident that it’s stored locally and securely. If you have sensitive data or regulated industries, on-premise PIM may be the best option for you. However, this option comes with increased costs for hardware, maintenance, and staff. When considering an on-premise PIM system, be sure to weigh the pros and cons carefully to determine if it’s the right fit for your business.

The benefits of on-premise PIM: 

  • Located physically on-site
  • allows you to securely store and manage product information
  • ensure fast retrieval of data
  • eliminate version control issues

Thereby enabling more control over product information.

The disadvantages of on-premise PIM: 

On-premise PIM systems have some disadvantages that may not be obvious at first. One issue is that upfront investments are usually bigger and riskier. This is because you have to pay for the software, hardware, and infrastructure all at once. Another disadvantage is that customization can increase deployment time and cause inconveniences when the software is updated. This is because you have to make sure that your customizations are compatible with the new software version. Finally, you are responsible for maintaining and updating the system yourself. This can be a lot of work, especially if you don’t have IT staff on hand to help out. Overall, on-premise PIM systems can be a great option for businesses, but it’s important to be aware of the potential drawbacks before making a decision.  

We recommend you also check the difference between On-Premise versus Software as a Service (SaaS). “On-Prem” and “SaaS” are different philosophies on how to set up your IT architecture and both have their distinct advantages and disadvantages.

What Is Cloud PIM?

Cloud PIM is software that’s hosted off-site by a third-party provider and makes use of Tier 1 infrastructure like Amazon Web Services (AWS) or Google. Cloud PIM offers a high level of flexibility for how you choose to access your product data. Scalable and dynamic, cloud PIM is designed to fit individual business requirements. Whether you need on-demand product data or want to manage millions of items, cloud PIM makes it possible. With cloud PIM, there’s also no need to worry about complex installation or compatibility issues. 

The advantages of Cloud PIM: 

  •  it is flexible, allowing users to access the system from anywhere at any time.
  • it requires less equipment, as all of the data is stored remotely. 
  • it is highly scalable, making it easy to add new users or expand the system as needed. it offers increased security, as data is not stored locally and is, therefore, less vulnerable to theft or loss. 
  • cloud PIM software is typically more affordable than on-premise solutions. As a result, it is an ideal solution for businesses of all sizes.

Want to determine your PIM profile for free?

We help organizations find the right PIM Solution for their organization. We match your PIM profile to our database of PIM solutions and find the best fit. For free.

Get your in-depth shortlist

The disadvantages of Cloud PIM:   

There are some disadvantages to using cloud-based PIM systems. One of the main concerns is data security. Storing sensitive data in the cloud is a risk factor, especially if the servers are shared with other customers. There is also less customization with cloud-based solutions, and they often have a higher total cost of ownership in the long run. However, cloud-based PIM systems offer many benefits as well, such as lower upfront costs, faster deployment, and scalability. Ultimately, it is up to each individual company to weigh the pros and cons of using a cloud-based PIM system to make the best decision for their needs.

There’s no one-size-fits-all answer when it comes to deciding between on-premise or cloud Product Information Management (PIM). It depends on the specific needs of your organization. But, both options must be analyzed deeply to understand which one is more adaptable and beneficial.

On the flip side, most organizations struggle to identify the right deployment option to achieve desired business results. Making the wrong deployment choice can result in underutilization, poor performance, low quality, and high costs. Therefore, it’s essential to carefully consider the relative advantages and disadvantages of each option before making a decision.

We all know how important it is to have a good product information management solution in place. After all, without accurate and up-to-date product information, your company will quickly fall behind the competition. But with so many different solutions on the market, it can be difficult to know which one is right for your business. That’s where our PIM Full Scan comes in. Using our algorithms and expert knowledge, we can narrow down the field to the five best solutions for your company. So if you’re struggling to find the right PIM solution, take our Full Scan today and get the results shortly.

Questions? Schedule a free call with a PIM specialist

Find out how we can help you with any Product Information Management issue.

Schedule a free call