In the technical chapter of our white papers, we briefly explain the differences between on-premise and cloud- based digital signage systems highlighting their main advantages and disadvantages.
Basically, a cloud- based digital signage system is one that is accessible over the Internet and that comes with internet server hosting (which means that you don’t have to invest in a server or server support yourself and you don’t own the software). An on-premise digital signage system allows you to send the content directly to the players over the Internet or your local area network but you have to manage the servers that host the digital signage software, thus increasing your up-front and ongoing costs.
The next step is deciding which option is best for you. Here are the main aspects that you should consider when comparing the two options:
– The size of your network. As an on-premise digital signage system comes at a much higher cost than a cloud-based one, the investment isn’t justified for a small network. So if you’re planning to start with one or just a few screens then a cloud-based system is the most appropriate choice. The system offers you the flexibility to add more displays whenever you want without major additional expenses (as far as the software is concerned).
– The task at hand. The system’s choice very much depends on the goals you want to achieve. If you need to display campaigns for major advertising clients then you may need a more feature-rich piece of software. Our POVng, for example has been particularly designed with dynamic or real-time advertising workflow in mind, offering users a high degree of reliability and flexibility in adapting to advertisers’ requirements.
– The IT resources you possess. On-premise digital signage solutions require that you have the necessary in-house technical expertise to maintain and update local computers and server databases that support the 
system. The digital signage software itself is also more sophisticated and experience proves that users usually need more training to learn how to set up, manage and maintain their systems. Cloud- based digital signage software is easier to use and faster to set up, so if you feel you that don’t have or want the expense of trained IT professionals then cloud-based digital signage is for you.
– The available budget. A cloud- based digital signage solution is more cost- effective. So if you need to keep the project’s expenses in check without compromising the final result, then go for the ‘’cloud’’. As far as the digital signage software is concerned, there are no upfront investments; you’re going to pay for it on a utility basis (spreading the cost to match your budget) and software updates and email customer support are free of charge.
– Software ownership. If you choose an on-premise digital signage solution, then you will own the right to use the software in perpetuity and you will not incur any further on-going costs for this. Nonetheless, keep in mind the additional cost for training, software support and software upgrades. With the cloud you pay as you use it.
If you have any questions regarding the points above or if you need more help with choosing and implementing the right digital signage solution for you, then contact us to request a free consultation.
Ready to get started? Test digitalsignage.NET- our cloud-based digital signage software for free.
You might also want to check out our infographic: Cloud-based vs. on-premise digital signage systems.