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Cloud vs On-Premise Digital Signage

Choosing between cloud-based and on-premise digital signage affects everything from initial deployment to long-term operations. This guide helps you understand both options and choose the right approach.


Quick Comparison​

☁️ Cloud (SaaS)

  • No servers to manage
  • Access from anywhere
  • Automatic updates
  • Subscription pricing
  • Quick deployment
  • Vendor-managed security

🏒 On-Premise

  • Complete data control
  • Works on isolated networks
  • One-time licensing
  • Full customization possible
  • No internet dependency
  • Self-managed security

Cloud-Based (SaaS) Digital Signage​

How It Works​

The CMS software is hosted by the vendor on their servers (typically in major cloud platforms like AWS, Azure, or Google Cloud). You access the system through a web browser.

YOUR LOCATION                    VENDOR CLOUD
β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚ β”‚ β”‚ CMS Application β”‚
β”‚ Web │◄── Internet ───►│ Database β”‚
β”‚ Browser β”‚ β”‚ Media Storage β”‚
β”‚ β”‚ β”‚ Processing β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜
β”‚
β”‚
β–Ό
β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚ Media Players β”‚
β”‚ (Your Locations) β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜

Advantages of Cloud​

BenefitDescription
No infrastructureNo servers to buy, maintain, or secure
Automatic updatesAlways running latest version
Global accessManage from anywhere with internet
ScalabilityAdd screens instantly
Reduced IT burdenVendor handles technical operations
Predictable costsMonthly/annual subscription
Fast deploymentStart in minutes, not weeks
Built-in redundancyMulti-region availability
Disaster recoveryVendor-managed backups

Limitations of Cloud​

LimitationConsideration
Internet requiredManagement needs connectivity
Ongoing costsPerpetual subscription
Data off-premiseContent stored with vendor
Vendor dependencyReliant on vendor stability
Less customizationWork within vendor's framework
Potential latencyDistance to data center

Ideal Use Cases for Cloud​

βœ… Best for:

  • Most small to large businesses
  • Multi-location deployments
  • Organizations without dedicated IT
  • Rapid deployment needs
  • Budget-conscious implementations
  • Remote workforce management

Cloud Pricing Models​

ModelTypical RangeNotes
Per-screen/month$5-50Most common
Tiered plans$50-500/monthBased on screen count
Annual discount10-20% offPre-payment savings
Enterprise customNegotiatedLarge deployments

On-Premise Digital Signage​

How It Works​

The CMS software runs on servers you own and operate, either in your data center or on local servers at your location.

YOUR LOCATION / DATA CENTER
β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚ β”‚
β”‚ β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”‚
β”‚ β”‚ β”‚ β”‚ β”‚ β”‚
β”‚ β”‚ CMS β”‚ β”‚ Database β”‚ β”‚
β”‚ β”‚ Server β”‚ β”‚ Server β”‚ β”‚
β”‚ β”‚ β”‚ β”‚ β”‚ β”‚
β”‚ β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β”‚
β”‚ β”‚ β”‚ β”‚
β”‚ β””β”€β”€β”€β”€β”€β”€β”€β”€β”¬β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β”‚
β”‚ β”‚ β”‚
β”‚ β–Ό β”‚
β”‚ β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”‚
β”‚ β”‚ Media β”‚ β”‚
β”‚ β”‚ Storage β”‚ β”‚
β”‚ β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β”‚
β”‚ β”‚ β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”‚β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜
β”‚
β”‚ Internal Network
β–Ό
β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚ Media Players β”‚
β”‚ (Your Locations) β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜

Advantages of On-Premise​

BenefitDescription
Complete data controlContent never leaves your network
No internet dependencyWorks on isolated networks
One-time costPerpetual license option
Full customizationModify to exact needs
ComplianceMeet strict data requirements
PerformanceLow latency on local network
No vendor lock-inOwn your installation
Air-gap capableTrue network isolation

Limitations of On-Premise​

LimitationConsideration
Infrastructure requiredServers, storage, networking
IT expertise neededInstallation, maintenance, updates
Manual updatesYou manage version upgrades
Higher upfront costHardware + software licensing
Scalability effortCapacity planning required
Backup responsibilityYou manage disaster recovery
Security managementPatching, monitoring, hardening

Ideal Use Cases for On-Premise​

βœ… Best for:

  • High-security environments (government, defense)
  • Strict data residency requirements
  • Air-gapped networks
  • Large enterprises with IT resources
  • Compliance-heavy industries (certain healthcare, financial)
  • Organizations with existing data center infrastructure

On-Premise Pricing Models​

ComponentTypical Cost
Software license (perpetual)$5,000-50,000+
Annual maintenance/support15-20% of license
Server hardware$3,000-20,000+
Installation services$2,000-10,000
Ongoing IT laborVariable

Detailed Comparison​

Cost Analysis​

5-Year Total Cost of Ownership (100 screens)

CategoryCloudOn-Premise
Year 1 Software$24,000$35,000 (license)
Year 1 Infrastructure$0$15,000 (servers)
Year 1 Services$0$8,000 (setup)
Year 1 Total$24,000$58,000
Year 2-5 Software$96,000$21,000 (maintenance)
Year 2-5 Infrastructure$0$10,000 (refresh/support)
IT Labor (5 years)$0$25,000
5-Year Total$120,000$114,000

Note: On-premise may be less expensive at scale over long periods, but requires more internal resources.

Technical Comparison​

FactorCloudOn-Premise
Deployment timeHours to daysWeeks to months
MaintenanceVendor-managedSelf-managed
UpdatesAutomaticManual
ScalabilityInstantPlanned
CustomizationLimitedExtensive
IntegrationAPI-basedDeep integration possible
BackupVendor-managedSelf-managed
Uptime SLA99.5-99.9% typicalDepends on your infrastructure

Security Comparison​

AspectCloudOn-Premise
Physical securityVendor data centers (SOC 2, etc.)Your facilities
Network securityVendor-managed perimeterYour firewalls/policies
Data encryptionVendor-providedYour implementation
Access controlVendor platformYour systems
Compliance certificationsVendor-maintainedYour responsibility
Incident responseVendor + youYour team
Audit trailsVendor logsYour logging

Connectivity Requirements​

ScenarioCloudOn-Premise
CMS accessInternet requiredLocal network only
Player syncInternet (can cache)Local network
Offline operationPlayers continue (cached)Full operation
Remote locationsInternet per locationVPN or local server
Air-gappedNot possibleSupported

Hybrid Deployment​

What is Hybrid?​

Combines cloud management with local infrastructureβ€”typically a cloud CMS with local media servers or caching.

CLOUD                          LOCAL SITE
β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”
β”‚ β”‚ β”‚ Local Cache/ β”‚
β”‚ Cloud CMS │◄── Internet ──│ Media Server β”‚
β”‚ β”‚ β”‚ β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β”‚ β”‚ β”‚
β”‚ β–Ό β”‚
β”‚ β”Œβ”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β” β”‚
β”‚ β”‚ Players β”‚ β”‚
β”‚ β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜ β”‚
β””β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”€β”˜

When to Consider Hybrid​

  • Large media files (video) needing local distribution
  • Unreliable internet at display locations
  • Mix of secure and standard locations
  • Bandwidth cost concerns
  • Performance optimization needs

Hybrid Benefits​

  • Cloud convenience for management
  • Local performance for content delivery
  • Reduced bandwidth costs
  • Better offline reliability
  • Flexibility by location

Decision Framework​

Choose Cloud When:​

FactorCloud Indicator
IT resourcesLimited or prefer not to manage infrastructure
Deployment speedNeed to be operational quickly
LocationsMultiple/distributed locations
BudgetPrefer operational expense (OpEx)
ScaleMay grow or fluctuate
ExpertiseStandard digital signage needs

Choose On-Premise When:​

FactorOn-Premise Indicator
SecurityHigh-security or classified environment
DataStrict data residency requirements
NetworkAir-gapped or isolated network
ComplianceSpecific regulatory requirements
IT resourcesDedicated IT team available
CustomizationExtensive custom requirements
ControlNeed complete system ownership

Decision Tree​

START
β”‚
β–Ό
Is data/network isolation required?
β”‚
β”œβ”€β”€ YES ──► ON-PREMISE
β”‚
β–Ό NO
β”‚
Do you have dedicated IT for server management?
β”‚
β”œβ”€β”€ NO ──► CLOUD
β”‚
β–Ό YES
β”‚
Is the deployment very large (500+ screens)?
β”‚
β”œβ”€β”€ NO ──► CLOUD (usually)
β”‚
β–Ό YES
β”‚
Consider: Long-term TCO, customization needs, compliance
β”‚
└── EVALUATE BOTH OPTIONS CAREFULLY

Migration Considerations​

Cloud to On-Premise​

Reasons to migrate:

  • Acquired by security-conscious organization
  • New compliance requirements
  • Cost optimization at scale
  • Reduced vendor dependency

Challenges:

  • Content/configuration export
  • Infrastructure setup
  • Staff training
  • Transition downtime

On-Premise to Cloud​

Reasons to migrate:

  • Reduce IT burden
  • Improve accessibility
  • Modernize infrastructure
  • Scale more easily

Challenges:

  • Data migration
  • Feature parity verification
  • User adjustment
  • Contract/licensing transition

Vendor Questions​

For Cloud Providers​

  • Where are data centers located?
  • What is the uptime SLA?
  • How is data backed up?
  • What compliance certifications exist?
  • Can data be exported if we leave?
  • What happens if you go out of business?

For On-Premise Solutions​

  • What are the hardware requirements?
  • How are updates delivered?
  • What support is included?
  • Is source code escrowed?
  • What's the maintenance cost?
  • Can we customize the software?

Summary​

FactorCloudOn-Premise
Best forMost deploymentsHigh-security/isolated
Setup timeFastSlow
Ongoing effortLowHigher
Cost modelSubscriptionLicense + maintenance
ScalabilityEasyPlanned
ControlLimitedComplete
Internet requiredYes (management)No

Bottom Line: Cloud is the right choice for most organizationsβ€”it's faster to deploy, easier to manage, and requires less internal expertise. On-premise remains important for specific security, compliance, or isolation requirements.



This guide is maintained by MediaSignage, pioneers in digital signage technology since 2008.