Hopefully, you already largely understand the importance of your organisation proactively and responsibly managing its assets. In today’s world, that will inevitably necessitate investing in and adopting the most suitable tools for the efficient tracking, utilisation, and maintenance of those assets.
However, a major question that is likely to arise in your decision-making, is whether it is on-premises or cloud-based asset management tools that deliver the greatest cost-effectiveness.
Why cost-effective asset management matters in compliance-driven sectors
There are various reasons why, if your organisation is in a field that places a strong emphasis on regulatory compliance, you will need to prioritise getting the optimal value from your expenditure on asset management – including with regard to the software platforms you use:
- Sound asset management provides a crucial foundation for certification for such ISO standards as 9001 (quality management systems), 14001 (environmental management systems), and 45001 (occupational health and safety management systems).
- There is a wide range of regulatory drivers for strong asset management, such as the need to comply with stringent rules on fire safety, asbestos, water hygiene (legionella), and medical and educational equipment upkeep.
- Organisations need modern and up-to-date asset management arrangements that can be counted on to reduce risk, maintain compliance, and improve efficiency.
What’s the difference between cloud and on-premises asset management tools?
The fundamental distinction between on-premises asset management tools and their cloud-based counterparts is that while tools in the former category are installed and managed on the given organisation’s own hardware, tools in the latter category are not. Instead, they are “in the cloud” – hosted on a vendor’s servers, and accessible remotely via the Internet.
So, in summary:
- Cloud-based tools, also sometimes referred to as “software as a service” or “SaaS” platforms, are hosted externally. They are typically subscription-based, and accessible online from practically any location with an Internet connection.
- On-premises tools, on the other hand, are hosted locally and are fully managed in-house by the organisation that seeks to manage its assets. There is no recurring subscription fee involved, but all updates, security provisions, and troubleshooting processes need to be handled by the organisation that uses the system.
There are, then, vital differences between these deployment models with regard to infrastructure, maintenance arrangements, and update cycles. A given organisation’s chosen model can therefore have major implications for the effectiveness of its asset management.
What are the real costs of each deployment model?
The respective expenses incurred across these models can be summarised in the following ways:
- Upfront investment
An on-premises solution will inevitably require significant upfront investment in hardware, software, and infrastructure. The costs of the necessary servers, licences, IT staff, and facilities will all need to be accounted for when this model is chosen.
By contrast, cloud-based asset management software is associated with minimal setup costs. The client organisation will not need to invest in hardware, and once it has chosen the provider and tools that work for its needs, these systems will be quick to implement.
- Ongoing operational costs
If your organisation opts for an on-premises asset management platform, there will be a need to invest significant in-house resources over time in its operation and upkeep. This will encompass maintenance of the system, energy expenditure, any necessary updates to keep it high-performing and up-to-date, and spending on the necessary support staff.
Again, the situation with ongoing costs is markedly different when a cloud-based arrangement is pursued. Such tools are typically offered by vendors on a monthly subscription basis, with support from the vendor’s own team included in the price. However, you may need to be alert to any data usage fees that could drive up the cost.
- Hidden or indirect costs
In the case of both deployment models, it can be easy to get “stung” by unexpected costs. In the event of a cloud-based solution being adopted, this extra expenditure could arise from the likes of data transfer fees, or additional charges for advanced features or premium support.
This does not mean, however, that embracing an on-premises platform instead will enable your organisation to avoid extra or indirect costs. Any periods of downtime, the necessary disaster recovery processes, and any lost productivity as a result, can all add to the expense of an on-premises arrangement over time.
Which is better for regulatory compliance in the UK?
Any discussion of the long-term cost-effectiveness of on-premises versus cloud-based asset management tools, can’t possibly overlook the regulatory dimension. After all, if your business falls out of compliance with its asset management, it could be at risk of financial penalties or other legal consequences that detrimentally impact its bottom line.
The benefits of a cloud-based system
On the compliance front, there may be particular reason to favour cloud-based asset management tools. After all, when you choose a reputable cloud-based platform such as Vision Pro Software, you can be sure of receiving automated updates to your system over time, aligned with the latest changes to legislation in relation to such risks as fire and legionella.
Adopting cloud-based asset management tools can also mean improved audit readiness for your organisation, thanks to the real-time data and visible digital trails that such software can provide.
It also helps that these online-based tools provide for centralised document and asset history tracking. So, whoever needs to keep abreast of the relevant information about your organisation’s assets and how they are being managed, they will be able to easily do so.
The concerns about an on-premises solution
Depending on an on-premises system, on the other hand, would mean your organisation having to depend on manual update cycles.
Depending on how much free time and resources your in-house personnel have, they may not always get round to carrying out such updates as swiftly or as regularly as they ideally would do. Even if your staff work quite efficiently in this regard, the latest updates to your system may lag the latest relevant changes in legislation.
All in all, an on-premises arrangement would constitute a greater internal resource burden for your organisation, when it is seeking to achieve constant adherence with the current rules.
How does Vision Pro Software support asset management cost-effectively?
Far more than a platform that merely “works well” on the cloud, Vision Pro Software is a truly “cloud-native” solution, expressly designed and built for UK compliance environments.
This means end users of our asset management system can take advantage of a range of features and advantages that help reduce costs, such as:
- Real-time asset tracking via Radio-Frequency Identification (RFID) and Near-Field Communication (NFC) technology
- Mobile data collection and the ability to access this data offline – ideal for site visits
- The consolidation of audits, asset logs, and documentation into a single, easy-to-use interface
- Automated reporting that draws attention to any areas of non-compliance
- A reduced need for multiple software licences and data silos.
These aspects help make Vision Pro Software an invaluable tool for managing all manner of areas of your organisation’s operations for which stringent compliance is vital.
From the management of fire risk and asbestos registers, right through to emergency lighting checks and building access systems, we can help ensure your decision-makers, support staff, and other key stakeholders are on top of it all.
When might an on-premises approach still make sense?
For all the benefits that a cloud-based system can bring, there are still some specific situations in which organisations might decide to implement an on-premises approach.
These include organisations:
- In heavily regulated sectors with stringent data sovereignty requirements, such as defence and high-security healthcare.
- With sunk infrastructure costs and minimal growth. For such entities, once their on-premises system is up and running, presuming the asset management workload is expected to be relatively constant and predictable over time, it may be a sensible course of action to proceed with the tools they have already invested in.
However, even in circumstances like the aforementioned, an on-premises approach is only likely to be cost-effective if the long-term staffing, upgrades, and integration costs are all negligible.
Hybrid approaches: is there a middle ground?
The short answer to this question is: yes, there certainly can be.
Indeed, hybrid strategies have increased in popularity over recent years. For example, a given organisation might opt for cloud-based asset management tools for mobile audits, cross-site tracking, and compliance dashboards, at the same time as taking an on-premises approach for legacy data systems or niche applications.
Although Vision Pro Software is a cloud-based platform, it integrates well with other systems, enabling flexible deployments. This means it can be an indispensable component of a hybrid approach to asset management.
Final analysis: which is more effective for your organisation?
The type and/or size of your organisation for which you are seeking to implement the most suitable possible asset management system, will greatly influence the decision you are likely to make:
| Organisation | Cloud or on-premises? |
| Small to mid-size | Cloud |
| Multi-site | Cloud |
| Heavily regulated/high security | Depends |
| Slow growth with internal IT | On-premises may compete |
Even putting cost savings to one side, a cloud-based asset management platform can offer many other advantages compared to an on-premises arrangement, such as:
- Faster deployment
- More agile compliance support
- A decreased risk of non-conformance.
Conclusion: make the smart choice for your compliance future
In summary, for most UK organisations that need to manage regulated assets, cloud-based tools such as Vision Pro Software deliver meaningful financial and functional advantages.
There may still be specific circumstances and needs that make an on-premises approach worthy of consideration. However, the general shift of many organisations towards the cloud is reflective of similarly shifting modern priorities, including the need to ensure the best possible agility, scalability, and demonstrable compliance.
To find out more about the contribution that Vision Pro Software can make to the realisation of these objectives, and to request a demo, please contact our team today.
