Cloud-Based Contract Software Vs. On-Premises Contract Management Software

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One of the most frequent queries that business analyst when choosing a contracts lifecycle software is whether they should choose cloud-based contract management software and on-premises management of contracts software. It is most likely to be compared with the operating systems, no matter if it’s Mac or Windows. C

loud-based contract management software and the on-premises version of contract management software come with distinct advantages and disadvantages. Keep reading to learn about the aspects to consider when choosing best contract management software between the cloud-based and on-premises.

Automated Access

Accessing company information using smartphones or laptops is among the main selling points. Cloud service providers are developing mobile apps that allow remote access even more accessible and faster; remote access has been substantially increased. Remote access is not a distinct feature, and it is not only for cloud-based environments.

Contract software installed on-site allows remote access through a VPN service that allows the connection to be made off-site. However, using on-premises services will help you save money since there is no cost for every additional user you connect to the system to use the remote access feature.


If you’re considering whether to utilize cloud-based contract automation software or on-premises contract management software, this may be the most crucial factor to consider. Because of the necessity to purchase servers for internal use and pay for the software license, prolong the deployment period and employ an internal team of IT-skilled experts and employees, the costs of the cloud version are more expensive in the beginning.

The cost of on-premises contract software’s ownership will eventually be lower than the cloud-based system, which relies on subscriptions. On-premise systems are only required to pay periodic maintenance charges following the initial investment, unlike cloud-based contracts that require continuous, ongoing payments each month or year. The subscription model provided by cloud service providers is a great alternative that is also affordable.

Users who choose this method are provided with a contract management system that is almost perfect for their requirements. They also have the possibility of upgrading when their IT infrastructure improves. Because of this, most medium and small companies consider cloud computing the best legally-enforceable contracting software.


Integrity and Customization Tiers

Because not all cloud-based solutions allow for complete customization, a situation like this may require the installation of on-premises contract management software. In such a case, it is essential to clarify which level and kind of customization is needed to accommodate the customer’s needs. The degree of integration between the contract software and the existing applications is another crucial factor for companies when switching to a cloud or on-premises system. In order to switch to the new contract software, there are many companies that must undergo extensive integrations to modify a large amount of information.


One of the main differences between on-premises contract management software and cloud-based is the primary reason for customers’ disinclination to utilize cloud computing. Although cloud-based contract software is as secure and secure as a traditional on-premises system, many customers prefer to keep sensitive data such as customer and corporate data within their firewalls rather than vendors’.

Customers are also assured by an on-premises system that the stored data conforms to the company’s privacy and backup policies. The service providers are accountable for the overall management and security of data when using cloud-based software.

Security, Backup, & Privacy Considerations

Security. When you use cloud or on-premises software, security is crucial. On-premise software offers a certain level of security implemented via updates and patches on the application. Cloud providers may transfer their hosting and security services to an external service, increasing security dangers. It is essential to comprehend and record who is responsible for the risk of an incident of security in the case of a security breach.

Backup. In the case of on-premises software backup, the backup is handed over to the business user. Cloud provider typically provides backup over a certain period, typically contracted out by agreements. It is essential to establish an established backup plan with redundant backups when signing a contract with a cloud provider, along with understanding what information is removed from the system.

Privacy. For software installed on-premises, privacy is usually not an issue since it is part of the company’s infrastructure. However, with cloud computing, privacy issues are an issue because the business data is transmitted via the internet, which hackers could access. Knowing the way cloud providers safeguard your privacy is vital.

Why Today’s Workforce Needs Cloud-Based Contract Management

Contract management manuals and fragmented processes are no longer suitable for the task. Since the outbreak, the demand for digital transformation has become the norm for companies. People who can’t access contracts remotely and securely have to contend with time-to-contract delays, frustrating relationships, and uncertainty about whether they’re working on the most current version.

Cloud-based computing allows teams to provide meaningful value wherever they may be. The automation of cloud-based CLM software can save businesses time as well as money. It improves efficiency, increases collaboration, and allows all involved to operate from a single source of truth.

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