What is the Advantages of Cloud-Based HR System Rather than On-Premises Solution?

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In today’s workplace HR System offer many benefits that can help streamline many workforce management tasks. So that the HR function is able to develop into an acknowledged service provider and advisory partner, and employees and managers become satisfied consumers of those HR services.

When planning to automate HR System most businesses are face with the question of what type of system to adopt based on Installation. Based on installation, there are two types of HR system: on-premises solution and cloud solution.

On-Premise solution is normally installed and implemented on your company’s premises. So that companies need to invest in hardware and IT team to maintain.

While Cloud-based solution is managed and maintained on a remote server. The system is also referred to SaaS (Software as a Service) that allow user to access the data through internet connection and web browser. This is a significant departure from the on-premise solution. Companies don’t have to invest in extensive hardware and don’t need an IT team to manage and maintain the system. The SaaS vendor takes care of it all.


On-premise solution always have higher cost on setup. The supplier is online responsible for providing the solution installation with no involvement on the IT infrastructure.

While Cloud-based solution you don’t need to invest IT infrastructure as the SaaS is cloud based so the setup cost is usually very low as compared to the on-premises solution.

Implementation Time

On-premise requires more time to implement, as you need to have IT infrastructure ready which may include the procuring new hardware or software licenses.

Contrast with cloud-based solution, the service has already been prepared, configured and implemented by the solution provider. All you need to do is acquire their subscription and then you are on it. This will cuts down the implementation time significantly.

Upgrade & Patches

When you use on-premise solutions, you have to look for patches manually as well as pay for the upgrades. Mostly upgrades are done during working hours thereby interfering with normal operations of the business.

But with cloud-based solution this doesn’t require any manual upgrade and usually free of charge. The SaaS solution provider takes care of all installations, upgrades, and maintenance.

Data Protection & Security

Implement advanced security features in on-premises solution is more difficult and expensive. Time lag between server updates can adversely impact data protecting and security capabilities.

In Cloud-based solutions, security is on the top of priority list. Because of the sheer amount of user data they are legally responsible for protecting, so it is equipped with robust security controls to ensure the protection of large amounts of user data.

Low Risk

By selecting on Cloud HR Solution, you can usually opt for a rolling monthly contract, meaning if you suddenly have no need for the system, you’re not left paying for it. Plus, you are not responsible for any of the infrastructure if something goes wrong. Your provider deals with that.

The HR system solution you implement will impact operational efficiency and business growth. Make a choice that accelerates your HR productivity, if you need for help, kindly send us an enquiry. We will be happy to help.

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