Industry Insight Trends & Technology

What’s the difference between a cloud-solution vs on-premise solution?

The use of construction management software on the rise, and there’s no shortage of service providers eager to tell you why their solution is the best fit for your business. 

So how do you decide which is right for you?  

When choosing which construction management software best meets your business needs, one of the biggest factors you’ll need to consider is whether to deploy an on-premise or cloud-based solution. 

Deciding between the two is a complex process with a number of variables to consider, but in this blog, we’ll explore some of the key differences in order to help you make a more informed decision about which is best suited for your construction company.

Cloud vs On-Premise Construction Software

By definition, the most fundamental difference between a cloud-based and on-premise solution is where it’s located. With an on-premise solution, the software is installed locally on computers and supported by a server that’s also located on-premise (thus, the name). A cloud-based solution utilizes external servers managed by a service provider. 

cloud-based construction solution providing convenience to users

Key Areas of Consideration

When deciding between a cloud-based or on-premise construction software solution, here are four key areas to consider: 


  • On-premise: Building a system from the ground up comes at a high cost. On-premise systems cost significantly more upfront because of the server hardware, software licensing, deployment and IT support staff. In addition to the initial investments, companies will also incur ongoing maintenance and operating costs.
  • Cloud: A cloud-based, SaaS solution costs much less upfront than an on-premise solution. The subscription cost and payment structure vary by provider, but payments are typically handled on a monthly or annual basis.  The set up and run times for a cloud solution are much quicker than an on-premise system because once the subscription fees are paid, you can start using the service right away and don’t have to wait for an in-house infrastructure to be built and deployed.


  • On-premise: Remote or limited access is available with some on-premise systems through VPN services; however, limited access is not ideal when critical, up-to-date project information needs to be accessed quickly. 
  • Cloud: With more and more employees working remotely, and project members needing to access information quickly while on the jobsite, a cloud-based solution is the superior choice for accessibility and one of the biggest selling points for a SaaS solution. Many cloud providers also offer custom apps for smartphones, which makes accessibility and collaboration even easier.


  • On-premise: Many companies simply feel safer hosting confidential documents on-site within their own firewalls, though it’s important to note it’s not always actually safer. What it tends to really boil down to is the desire to feel in control. With an on-premise system, you control the system and the backup and privacy policies.
  • Cloud: Most SaaS solutions offer comprehensive security features, and may even have independent security certifications that are more stringent than many in-house IT policies. Cloud service providers routinely employ up-to-date security features so you can feel confident your data is always secure and protected.  


  • On-premise: With an on-premise system, you’re responsible for maintaining the hardware and software, as well as backups, storage and recovery. This typically requires an IT staff, which can be difficult for smaller companies to manage with a limited budget.
  • Cloud: Using a cloud-based solution means you don’t have to worry about updating or maintaining hardware or software, because your service provider will handle that for you. Spending less time and money on maintenance and updates means you can allocate those resources elsewhere.

So, which one is better?

In the end, the “better” solution for you will depend on your unique business needs—but more and more businesses are shifting to cloud-based software because of the upfront cost savings, accessibility, reliability and convenience it offers. The construction industry is fast-paced, and the ability to access up-to-date project information quickly and easily—from anywhere and at any time—is critical to minimizing miscommunication and costly mistakes, as well as keeping projects on-track. 

Laptop displaying a dashboard for a construction job

To learn more about Premier Construction Software and why our comprehensive, cloud-based SaaS solution may just be the perfect fit for your project management needs, click here to schedule a personalized product tour. 


Author Biography:

Kathryn Dressler is a content strategist with more than 10 years of experience across the spectrum of marketing services, including blogging, social media, public relations, copywriting and editorial services.