Cloud Versus Onsite Payroll Software—The Pros And Cons

Cloud Versus Onsite Payroll Software—The Pros And Cons

Today there are a number of organisations and businesses who prefer the freedom of having their company data at their fingertips. Thus they need a Payroll software which is cloud based while others who still depend on the traditional methods of doing business but in upgraded technological circumstances still prefer to have their data stored on the company premises and under their strict control.

Thus in order to understand the utility and applicability of the two with regards to the company or business  thinking of acquiring the same, the pros and cons of the two need to be looked into.

Cloud software

As the name suggests herein the company data is stored on the cloud and offers the following advantages:

  • Lower capital outlays,
  • Easy setup with regular updates keeping it upgraded,
  • Almost zero maintenance,
  • Accessibility via multiple devices,
  • 24 by 7 customer support,
  • Flexibility both in terms of price and features etc.

Two main disadvantages which any company opting for this software might face are:

  • A perpetual ongoing monthly cost and
  • No control over the data stored on public servers thus making data security a cause of concern.

On-site or on the premises software:

Herein the company or organisation opting for it either in the form of an independent software or one bundled with either the accounting software, the ERP or the Hr software will have total control over the company’s sensitive data and since

  • The sensitive data stays on the company servers, the chances of them getting compromised is minimal and
  • There are no recurrent monthly costs.

But there are certain disadvantages which are associated with this option like:

  • Both the servers and licensing require a huge investment,
  • Installation and subsequent maintainence requires a team of dedicated employees and
  • Upgrades have to be manually installed and are thus cumbersome and time consuming.

Thus the choice should only be made after understanding the two options thoroughly.