You recognize the need for processing accurate and up-to-date product data, and you know that such benefits can be realized by integrating a Product Information Management (PIM) system.

However, you are not sure whether you should use your existing IT infrastructure or whether it would be wiser to host your PIM in the cloud? Find out the pros and cons of these two choices in this blog.

 

 

 

PIM as SaaS versus On-premises software

On-premises PIM integration has traditionally been what has been chosen most often. In such cases, the PIM technology is purchased under a license before it is installed and stored on the company’s own servers. Most organizations also realize that an in-house PIM solution requires in-house knowledge.

The alternative and increasingly popular option is PIM as a Software as a Service (SaaS) solution. While there’s some variation depending on the client’s internal infrastructure, this secure cloud option allows for equal accessibility and shareability of product data. It gives staff members the ability to access product data and collaborate in real time, regardless of where one is located.

Your business needs should have a direct impact on the choice between on-premises or remote SaaS solutions. Before making a final decision, there are several considerations that must be taken into account.

 

Cost efficiency

Are you aware that an on-premises installation generally involves a lot of hidden costs? In addition to the obvious software licenses, the costs of implementation, customization and maintenance must be covered. The cost of hiring and training specialized IT staff will certainly vary somewhat, depending on the size and structure of your internal systems.

 

When you opt for a PIM SaaS solution, most of the costs will be settled as part of the subscription fees. There will also be no need for a huge capital outlay. A PIM SaaS solution also requires less content knowledge from your organization and you do not have to worry about upgrades and maintenance. After all, you will always have the latest version.

Accessibility

If you don’t opt for remotely accessible SaaS technology, you will either need to have employees working on-site or arrange for remote support (possibly via a VPN). This may limit the ability to update product information outside of normal business hours. You will also need to consider additional costs to establish VPN connections.

 

PIM in the cloud offers optimal flexibility in managing product data. This is because you can provide remote employees with secure access to your PIM system.

Scalability

One of the main drawbacks of an on-premises PIM system is the limited ability to scale up and down. Some on-premises installations can also be easily scaled up, depending on the customer’s internal infrastructure. Still, servers may need to be upgraded if higher loads need to be supported over time.

 

Cloud PIM technology scales extremely easily, ensuring dynamic adjustments. Whether you want to increase the number of servers, change the size of product data environments or expand storage capacity, the cloud-based system will meet your needs. You can customize everything from the PIM platform to the database. The possibilities for integrations and network configuration are endless, whether you choose a PIM SaaS or on-premises variant.