Summarise with AI:
Software selection is not simply an IT decision. It influences workers’ productivity. If you don't choose it wisely, you may not yield the desired benefits from the software or tool. The decision may not always be straightforward for many. If you choose a cloud-based solution, you may not need to put in as much effort as you would when sourcing tailored software.
Cloud-based software is the most popular in the B2B domain. It is cheap and easy to implement. It is a more practical fit for those who don't want to handle infrastructure management.
But it doesn't provide the level of flexibility that tailored software does. Custom software doesn’t create extra work for your team. However, it requires an organization to have mature internal IT capability.
There could be many reasons why you are evaluating on-premises vs. cloud. This guide compares both models and different aspects such as cost, security, compliance, and so on.
What Is Cloud-Based MRO Software?
Think of email, Microsoft Word, Excel, and accounting software you may be using in your everyday work within your organization. They are popular examples of cloud-based software/tools. Somewhere behind the scenes, the vendor manages these tools, handling maintenance and updates, so you don’t have to. These tools run in the cloud. Hence, they are cloud-based software.
Your team may be accessing the software (or tool) through a web browser or mobile device, depending on the setting. You can use this software through a subscription or buy it outright for a one-time fee.
What Is On-Premise MRO Software?
If the cloud is now so common, why would a business still choose on-premises software? Cloud is typically a default option for major companies when it comes to deploying new software. However, when it comes to security, control, and compliance in certain industries, an on-premises setup can be a viable option, and even cost-effective in the long term.
Data remains in your hands. However, it demands that you either maintain, patch security issues, monitor performance, push updates, and manage hardware replacement, or outsource it. That can be an advantage when you have the people and processes to manage it, but a burden when you do not.
Cloud vs On-Premise at a Glance
| Decision factor | Cloud-based MRO | On-premise MRO |
|---|---|---|
| Hosting | Provider manages | Managed by the business |
| Cost model | Subscription and lower initial spend | Higher upfront investment |
| Updates | Service provider manages | Contractor or owner manages |
| Access | Typically, available through browsers and mobile | Limited to the local network |
| Scaling | Instant without buying local servers | May require new capacity, licences or hardware |
| Internal IT workload | Lower workload | Higher workload |
| Control | Limited | Greater control |
| Connectivity | Internet required | Can operate on a local or isolated network |
What to know when comparing cloud vs on-premises
The choice depends on several factors such as budget, team size, expertise, infrastructure readiness, etc. There are countless possibilities when you come across cloud vs. on-premises evaluation.
If you opt for cloud software, you are likely to eliminate heavy upfront investment. It is easier to deploy. But the upfront cost or subscription is only one part of the calculation.
Beyond this, you may need to pay for implementation. It may require data migration and cleansing, storage, etc. The subscription cost may not be in your control. What if the vendor raised the cost? How much are you likely to pay for long-term usage? Consider TCO for years to come.
Compare it with how much you would spend if you opted for a tailored solution.
Compare both options over at least five years. Create a five-year cost model using your expected user count, locations, record volumes, and integrations. Do not compare license prices in isolation.
Cloud software can remove the need for procurement of servers. However, migration can be costly and even more expensive than on-premises, when you have several years of data to migrate. This is often overlooked.
On one hand, you avoid the upfront cost; on the other hand, you may face high costs for migration, data cleansing, and other related work. You can manage and optimize the migration cost through a phased migration approach, as discussed in the guide to digitalising an aviation MRO without a full ERP.
Businesses generally overlook the hidden costs: productivity lost in disconnected tools. EASA mandates that data must be current, controlled, and recorded or referenced. For example, if your software doesn’t provide these capabilities, you may end up relying on additional staff or outsourcing to maintain records and track information.
Which Model Fits You?
Cloud Is Likely Better If
Cloud-based MRO software is likely to fit your operation when:
- You do not have a dedicated team to manage application infrastructure
- Technicians and managers need controlled access from more than one location
- You want to start with selected workflows and expand over time
- You prefer predictable recurring costs to periodic server projects
- You want the provider to manage routine platform updates
- Your growth plans include additional users, contracts, or facilities
- Your connectivity is reliable, with a suitable contingency procedure for outages
This profile describes many small and mid-sized independent Part-145 shops. They need controlled digital workflows, but they do not need to become software-hosting businesses.
On-Premise May Be Better If
On-premise MRO software may fit better when:
- A customer, defense program, or internal policy requires isolation
- Internet connectivity is persistently unsuitable for the required workflow
- You already have mature infrastructure, database, security and recovery capabilities
- You need direct control over upgrade timing for complex legacy integrations
- Your risk and cost assessment supports internal hosting over the full system lifecycle
How PrioxiMRO Fits
PrioxiMRO is a cloud-based platform built for small and mid-sized MRO organizations. It connects the entire workflow. Considering cloud MRO software? Book a PrioxiMRO demonstration around one of your real workflows. Cloud is not automatically right because it is newer. On-premise is not automatically safer because the server is nearby. For most small and growing Part-145 shops, cloud is a practical solution.
