Production Planning Software: Cloud or On-Premise?

In this article we want to support the manufacturing company when choosing between acquiring an Advanced Planning and Scheduling software as a Cloud service or as an On-Premise software. The advantages and disadvantages of each solution are then highlighted in order to guide the company in the final choice, considering the company’s needs and internal policies.


Cloud or On-Premise?

When looking for a new APS system for planning and scheduling your company’s production, often one of the most critical aspects in the final decision is the choice between the solution implemented on-premise and the solution delivered as a cloud service.

The doubt that companies often have, in choosing one solution rather than the other, derives from the fact that both solutions have different advantages but it is necessary to understand which of the two best suits the needs of your company.


Differences between On-Premise and Cloud software

On-premise and cloud software have several differences, which can lead to the choice of one or the other solution. The biggest difference between these two systems, however, is the way they are distributed:

  • The On-Premise license-based software is installed locally in the computers and servers of the company that purchases the software solution;
  • The Cloud-based software is typically hosted on servers outside the company that buys it.

There are even more differences that concern other aspects, such as: amount of investments, level of performance, effort of maintenance and type of infrastructure.


Investments required for the On-Premise and Cloud

Usually a software offered as a cloud service tends to be considered more expensive than software purchased on-premise, but to understand how things really are it is good to know the differences between the two systems.

The On-Premise solution is generally viewed as a capital expense, a large investment upfront, and requires a one-time license payment. With these solutions, however, there are additional costs for assistance and maintenance.

The Cloud service, on the other hand, is considered by companies as an operational expense, that is, a cost that the organization incurs over time. The cloud service requires a monthly fee for a period described in the contract. Furthermore, the assistance and maintenance service is included.

Shedding light on these differences, it should be noted that the initial cost of entering the on-premise software into the company may require additional investments; this is due to the fact that the company must equip itself with hardware capable of supporting the new software and must organize the internal network in order to make the most of the purchased solution. The obsolescence of these parts and the IT personnel necessary for integration and maintenance must also be taken into account. This cost is reduced with the cloud service, since the APS software is accessed via a web browser from any location. Sector studies show that system costs tend to converge over time.


The costs of the On-Premise and Cloud solutions

The two options also differ from the point of view of costs and their distribution for the various activities and users. It may seem that in the long run the cloud service costs more, but considering all the costs, the resources used and the performance provided, the scenario changes. In fact, it is necessary to take into account the rapid obsolescence of IT infrastructures and indirect costs, such as space and maintenance. Finally, it should not be forgotten that an on-premise APS involves an initial cost which is very high; an APS used with a Cloud service allows you to have lower payments on a monthly basis and to be able to use part of the capital for other business needs.


CyberPlan, APS available as On-Premise and Cloud

CyberPlan’s APS solution has always been available as on-premise software, but for several years now companies have been able to choose to enhance the production planning department with this tool, using it as a cloud service. An increasing number of companies choose this type of service to benefit from the advantages of Cloud-based APS to plan and schedule their production in an increasingly modern and advanced way, increasing the competitiveness of the production department.


Find out how to become more competitive, thanks to a modern and Cloud-based APS

Take the best decision every day based on easy-to-create, simple-to-read scenarios built from secure data and processes. Anticipate the competition by reacting to market changes in the best possible way.

Equip your company with a powerful tool that allows the smartworking and that gives visibility into what’s happening in the production chain, from the suppliers to the final delivery to the customer.

Contact software experts and ask them more information to understand what you need and what fits best your company.