On-Premises or Cloud-Based WMS?

If we asked you whether you should generate your own electricity or use electricity from the grid, what would you do? Of course, connecting to the existing electricity grid is the most practical and convenient choice in today's world. However, back when electricity was first introduced, the decision could have been more challenging and varied. This dilemma can be likened to the choice between on-premises installations and cloud-based solutions in the realm of warehouse management systems (WMS).

Technological advancements have been the driving force behind the transition from traditional to modern approaches in both electricity generation and WMS systems. Just as adopting electricity transformed power sources, transitioning to cloud-based WMS solutions offers enhanced productivity and flexibility. Embracing innovation is crucial for staying competitive in the ever-evolving logistics landscape.

On-premises WMS (installed on-site)

On-premises WMS systems have been a traditional choice for many companies in the past, offering a sense of control and security by having the software installed on-site. While this approach may have suited the needs of businesses in the past, the landscape of warehouse management systems is rapidly evolving towards cloud-based solutions for increased efficiency and flexibility.

When considering an on-premises WMS, it is important to weigh the pros and cons. On the positive side, having the software on-site allows for greater customization and control over the system. Companies with strict regulatory requirements or security concerns may also find comfort in keeping their data on their own premises. However, on-premises solutions can be costly to maintain and upgrade, potentially leading to higher long-term expenses.

Cloud-based WMS software

Cloud-based software is a type of software program or application that is stored, managed, and accessed through the cloud. Users need an internet connection to utilize these services or software programs, as they are typically stored on shared computing resources like cloud servers.

Cloud-based WMS software provides the flexibility to adapt the system to meet your specific requirements. Whether it's adapting to changing business needs or integrating with other software solutions, cloud-based WMS offers the agility to tailor the system to your unique workflow. With regular upgrades and quality control measures in place, you can rest assured that your cloud-based WMS will continue to evolve and adapt to the ever-changing logistics landscape.

Upgrades emphasize the importance of staying current with technology to drive efficiency and productivity. By leveraging cloud-based WMS software, companies can benefit from a cost-effective and adaptable solution that enhances their logistics operations. 

Cloud-based software upgrades

Cloud-based WMS software offers a range of benefits that can revolutionize warehouse management operations. One key advantage is the seamless and automatic upgrades that are typically included in the monthly cost, ensuring that your system is always up-to-date with the latest features and enhancements. This eliminates the need for manual upgrades and allows for continuous improvement without any additional expenses.

For example, Bitlog WMS users experience seamless upgrades multiple times per year where they can access software and security updates along with new functionality immediately upon release.

Manual or automatic WMS upgrades: risks and effect

• Manual upgrades and quality control

  • Lack of rigorous quality control processes can result in production issues.

  • Inadequate testing and validation can lead to stability issues that disrupt day-to-day operations. 

• Frequency of upgrades

  • Automatic upgrades provide timely access to new features and improvements.

  • Infrequent upgrades may result in missed opportunities for enhancements and optimization.

• Customizations can complicate manual upgrades for WMS and ERP systems;

  • Custom code may conflict with new system versions, necessitating additional development work.

  • Upgrading customized systems can be more expensive than building and implementing a new WMS.

Insights from the creator of Bitlog WMS

Fred Boström, CEO and founder of Bitlog and Bitlog WMS, advocates for the use of public cloud solutions for most businesses, highlighting the value of cloud technology in transforming traditional warehouse management systems. He says the following:

“There are many different types of “cloud,” ranging from private to public, such as Microsoft Azure, AWS, and Google Cloud. For me, the answer is simple: use the cloud, preferably public cloud, if you do not have any special regulatory requirements. One thing to investigate is whether upgrades are included in the monthly cost. If not, you could end up with a legacy WMS with expensive upgrades that will increase future costs.”

To summarize, as the industry continues to shift towards cloud-based solutions, the decision between on-premises and cloud-based WMS ultimately comes down to the specific needs and priorities of each company. While on-premises solutions may still have relevance for certain businesses, the trend towards cloud-based systems is clear, offering a more efficient and cost-effective solution for modern logistics operations.