Cloud-based Asset Management vs. On-site Asset Management
Asset management is a critical component for any business. Without it, companies can lose track of their assets, leading to a waste of resources and increased costs. Traditionally, businesses have relied on on-site asset management, but with the rise of cloud infrastructure, cloud-based asset management is becoming an attractive alternative. In this blog post, we will compare cloud-based asset management vs. on-site asset management to help you make an informed decision.
On-Site Asset Management
On-site asset management involves storing asset data on local servers or computers. The system is managed and maintained by an internal IT department or outsourced IT partner. On-site asset management provides businesses with greater control over their data security and customization. However, it requires significant upfront investments in hardware, software, and personnel.
According to a study by TechTarget, on-site asset management can cost businesses between $8,000 to $15,000 in hardware and software costs alone. Additionally, maintenance and support services can cost up to $2,000 a year per asset. This is a significant cost, especially for small businesses.
Cloud-based Asset Management
Cloud-based asset management is a subscription-based service, where asset data is stored on remote servers hosted by a Cloud Service Provider (CSP). Businesses do not need to invest in hardware or software as the CSP handles the infrastructure. Cloud-based asset management provides businesses with flexibility, scalability, and accessibility. The system can be accessed from anywhere, and data is updated in real-time.
According to a report by MarketsandMarkets, the Cloud Asset Management market is expected to grow from USD 1.16 Billion in 2016 to USD 2.32 Billion by 2021 at a Compound Annual Growth Rate (CAGR) of 14.9%. This growth is attributed to the benefits of cloud-based asset management.
Comparison
| Aspect | On-Site Asset Management | Cloud-based Asset Management |
|---|---|---|
| Hardware and Software costs | $8,000 - $15,000 upfront | No upfront costs |
| Maintenance and Support costs per asset | Up to $2,000 per year | Included in subscription |
| Accessibility | Limited to on-site | Accessible from anywhere |
| Scalability | Limited by hardware | Easily scalable |
| Data Security | Greater control and customization | Dependence on CSP's security measures |
Conclusion
Both on-site and cloud-based asset management have their pros and cons. On-site asset management provides businesses with greater control over their data security and customization. However, it requires significant upfront investments in hardware, software, and personnel. On the other hand, cloud-based asset management provides businesses with flexibility, scalability, and accessibility. It is also cost-effective as there are no upfront costs.
In conclusion, cloud-based asset management is becoming increasingly popular due to its benefits. However, choosing the right type of asset management depends on the specific needs of the business.
References
- "A guide to IT asset management basics, best practices and tools" by Margaret Rouse, TechTarget
- "Cloud Asset Management Market worth $2.32 Billion by 2021" by MarketsandMarkets.