Cloud TMS or on-premise TMS? Which would be better for your business?
Are you the proud owner of an on-premise transportation management system (TMS) that you purchased years ago? Do you license the software and hardware to run your TMS? If so, it may be time to take a critical look at your legacy TMS system, bite the bullet, and focus on your core business.
On-premise TMSs have had their purpose and their day. But suppose you’re the transportation manager who bought or manage an on-premise TMS. In that case, you know it not only incurred significant upfront costs but can be a beast when it comes to paying for updates, infrastructure, and maintenance. Furthermore, on-premise software is probably more problematic for your remote staff to access offsite, as browser-based systems rely on an internet connection.
All these constraints mean an on-premise TMS provides little value vis-à-vis its “sunk” costs—especially if you’ve owned it for a while.
Cloud TMS provides big benefits
Cloud-hosted TMSs demonstrated their value as the COVID pandemic hit. Many employees began to work remotely and needed access to data without using software that requires an IT staff for support.
Cloud computing offers a host of benefits that can accelerate data-driven decision-making across your business and make for a more straightforward, more helpful solution for your increasingly mobile workforce:
- Easier integration. You can more easily integrate a cloud-based TMS with other systems like warehouse management systems (WMSs) or accounting systems.
- Automatic updates. Automatic software updates on the cloud allow you to access the most recent options without being burdened by system maintenance. Software is managed and delivered via remote servers. Any updates or upgrades are handled at the vendor’s site and sent wirelessly to your site so that you won’t need maintenance personnel.
- Fewer costs (no need for IT support or specialist support). With minimal upfront hardware, infrastructure, and training costs—and updates and maintenance included in your subscription costs—you won’t have unexpected bills or need specialist knowledge. You’ll pay a TMS vendor for only the functionality and specific resources you need (also known as paying “by the sip”).
- Simpler, speedier, more accessible. Cloud-based TMSs are flexible and able to scale with your business. A cloud TMS is straightforward and easy to use right out of the box and accessible via the browser on any device. Meanwhile, your data is always safe and secure (even if you lose internet connection).
- Software flexibility, scalability. Cloud-based software makes it easy to solve any challenges that arise quickly. Genuine cloud-based software is scalable, which means it’s easy to scale up as your business grows.
- Freedom to switch. When delivered via subscription, cloud-based software contains a built-in quality guarantee. Since you’re paying monthly and can leave the platform any time, the software must stay up-to-date and competitive to ensure you remain on board as a customer.
Don’t settle for old school
Don’t settle for an on-premise TMS with a hefty price tag and need for hardware and software support. The Axele TMS runs in the cloud, so we manage the upgrades and updates to the software. Check out our vendor comparison guide that can help you find the right TMS for your business. Download it here.