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"On-Premise vs. SaaS – which PIM software is right for your business?"

Excerpt: On-premise or SaaS? Which variant is the best for your company depends on a number of factors. On-premise means “on-site” hosting at the customer’s premises, while SaaS stands for Software as a Service. The data is hosted by the provider of the software. We explain the pros and cons.

Small and large businesses use product information management (PIM) systems to simplify their workflows, shorten time-to-market, and continuously optimize product information.

This article helps companies in e-commerce that do not yet use PIM to decide when it is necessary.

When the decision is made to introduce PIM software, it is basically a question of whether the software is installed on-premise or as Software as a Service (SaaS).

Companies that rely on company-owned servers will rely on local solutions. SaaS, on the other hand, is always provided over the Internet and can be operated via a web browser.

We show the advantages and disadvantages of both systems.

On-Premise – the server-based software

On-premise means “on site” – the software is purchased and hosted in the customer’s server landscape. Users can access the programs via a desktop application. Necessary installations are carried out on site by the provider, which can be very complex and costly. Companies with a high level of security and data protection will prefer an on-premise solution. 

The advantage: You have full control over your own data and software, but also full responsibility for that information. 

Purchasing the software alone is not enough. Costs for specialists must be calculated and the maintenance and backup of the data with regular backups should also be ensured, also this is done in-house.

SaaS – always accessible via Internet

The trend is increasingly towards Software as a Service (SaaS) PIM solutions. Usually, a subscription model is offered that covers all updates. The purchase of additional hardware is therefore not necessary. Access is browser-based and is usually possible from all internet-enabled devices – regardless of the location. In addition, the data is always available in real time. 

A cloud-based SaaS solution provides security in cost planning. Most of the costs are covered by the monthly fees. Companies don’t have to worry about storage space. Depending on the subscription model, unlimited storage space is offered. Updates are included so that the software is always up to date, maintenance and support takes care of the provider. Security concerns are usually the argument against SaaS. Although this increased flexibility has many advantages, it still carries risks. The support of IT or security teams is important to comply with uniform security policies. The servers should be best located in Europe compliant with GDPR.

On-premise or SaaS?

Companies, who are looking for PIM software, should carefully consider which solution they are inclined to take in order to secure a competitive advantage. Both have advantages and disadvantages that need to be considered. On-premise solutions offer more security in data protection, while maintaining full control over the data and its security within the company. This can be a decisive advantage, especially when it comes to compliance-relevant content.

However, the effort is considerable and the costs are not really manageable. Hardware requirements must be met and updates must be installed regularly. The backup and maintenance of the programs is the responsibility of the in-house IT department or the employee himself.

Cloud software offers maximum flexibility for employees due to the SaaS principle, additional hardware is not needed and costs are evenly distributed. In addition, cloud software is easier to scale and employees can do their work anywhere and time. The provider performs maintenance and updates of the programs automatically at regular intervals, so the latest version is always available. Due to the increasing work in the home office, a browser-based PIM cloud is ideal.

The comparison does not give a winner. Companies need to make their decision individually and find the ideal solution for their own needs.


Let one of our experts advise you without obligation and free of charge. All questions regarding the creation, implementation and maintenance of your project are answered competently.

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