09May

Is On-Premise deployment a hassle? Is it worth it? Too Expensive?

You might have thought these things if you have ever considered deploying an HR System. On premise HRMS is the most secure way of storing your data and ensuring your confidentiality. 

Following are the pros and cons of an on-premise HRMS:
Pros:
  • Long-Term Cost

The upfront cost of implementing an On-Premise HRMS System might be large but if we look at the full cost of ownership and longevity, the cost is comparatively lower than the recurring payments. SaaS deployment asks for a fee and charges on a periodic basis be it monthly, quarterly or annually. These fees add up to a huge amount in the long term. Larger organisations with plenty of resources are advised to get the HRMS deployed at their premises. On-Cloud deployment still stays relevant nevertheless.

  • Control

With On-Premise HRMS, you have complete control of your system and the server, given that you have a dedicated IT Team. Since the hardware and data belongs to you, any changes or configurations can be done at your convenience. This is one of the major advantages of On-Premise deployment; you have access to your data all  the time! 

  • Security

With HRMS hosted on premise, only you have access to your data. No one outside your network can access your organisation’s data. One can certainly say that on-premise hosting is the most secure way of storing and hosting an HRM System. Bigger organisations who have to ensure confidentiality should go for on-premise hosting of HRMS.

Cons:
  • Upfront Cost

The upfront cost of hosting HRMS on premise is large. A smaller organisation might not be able to afford to bear the upfront cost of hosting an HR Management System on their own premises. Since the upfront costs are so high, smaller organisations are advised to get a system deployed on cloud.

  • Maintenance

The cost for maintenance of an on premise HRM System is higher as compared to a cloud hosted HRMS as well. Also the organisation must bear the cost of a dedicated IT Team as well. Plenty of infrastructure is also required to deploy an HRMS on one’s own premises.

  • Deployment

The deployment process of an on premise HR System is lengthy and time consuming as well. On Premise HRMS deployment is suitable for bigger organisations who must maintain a high level of confidentiality and must have secure connections. It takes an average of 7 days to deploy an HR System. Depending upon the efficiency of the client’s server and IT infrastructure, it may take longer.

In conclusion, On- Premise HRMS deployment is advisable for bigger organisations who have plenty of resources and IT infrastructure. Also it takes a lot of upfront investment which might not be affordable to the smaller organisations.

Spine HR Suite provides you all three types of deployment options- On-Premise, SaaS and Hybrid. You might also want to read 5 necessary elements that you must look for in an HRMS. You can learn more about Spine HR Suite here.

Leave a Reply

Your email address will not be published. Required fields are marked *