What’s the Difference Between On-Premises and Cloud-Based Rental Software?
Arielle Cox
In today’s fast-paced world, rental businesses continually seek ways to streamline operations, reduce costs, and improve efficiency. One of the most impactful decisions a rental business can make is choosing the right rental software. While on-premises software was traditionally the main deployment method, cloud-based rental software has gained significant traction due to its numerous benefits. Understanding how cloud-based rental software compares to on-premises solutions can help businesses make an informed decision that aligns with their needs and goals.
On-Premises vs. Cloud-Based Rental Software
On-Premises Solutions
On-premises rental software is hosted on the end user’s own servers and managed internally. This type of software is typically purchased as a one-time license fee, with the rental business responsible for their own installation, maintenance, and updates.
Some rental companies do benefit from on-premises software due to the higher level of control it offers. Since the system is hosted within the company’s own infrastructure, businesses have more flexibility for custom configurations, including their hosting and server setup. However, ongoing maintenance requires the full focus of a dedicated IT staff. For smaller independent rental companies that don’t have resources to dedicate to this heavy lift, software updates and troubleshooting can be quite time-consuming, potentially impacting operational efficiency. These businesses may benefit from offloading the technical burden to their rental software vendor instead, so they can focus on what they do best: rentals.
The upfront costs for on-premises rental software also tend to be higher than they are for a SaaS subscription. Because the cost of a SaaS system is spread out over a several-year subscription, it doesn’t require the same large capital investment up front.
Cloud-Based Solutions
Cloud-based rental software is hosted on external servers by the software provider. End users access it on any internet-enabled device. With cloud-based solutions, rental businesses no longer need to worry about hardware, maintenance, or updates; their service provider handles all the technical aspects.
The downside is that the end user is reliant on the vendor to be vigilant about strong security configurations and routine updates. Software providers should release patches, bug fixes, and updates on a regular cycle – at least once per quarter – to stay on top of ongoing changes.
Comparing Cloud-Based and On-Premises Software Side by Side
| Feature | On-Premises Rental Software | Cloud-Based Rental Software |
|---|---|---|
| Location | Installed and run on your own hardware, either in a corporate headquarters or a data center of your choosing. | Installed and run in the cloud as configured by a service provider; maintenance handled by the vendor. |
| Cost | Larger upfront cost for the license; also requires significant investments in hardware and other IT needs. | Paid as a monthly or yearly subscription. Far fewer hardware requirements (printers and basic peripherals still required). |
| Maintenance | You are responsible for keeping the software up to date and maintaining the system, which requires your in-house technical resources. | The software provider handles all updates and system maintenance. |
| Security | You have complete control over security measures, including backup frequency, disaster recovery planning, and system access controls — but this increases the workload for your IT team. | Security measures (encryption, backups, password standards, etc.) are built into the vendor service. You must trust and vet the provider’s practices during selection. |
| Customization | Greater flexibility to customize the software to meet specific needs because you host it yourself. | Customization options may be available but generally require working with the vendor; responsiveness determines how fast changes are implemented. |
On-Premises and Cloud-Based Rental Software Option to Suit Your Growing Business
Both cloud-based and on-premises software come with their own set of advantages and challenges. Understanding the difference can help you make an informed decision for your company.
Ready to discover a solution that gives you the right level of flexibility and convenience for your growing business? Contact our team today to explore all your rental software options.
