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 Comparisonβ
βοΈ Cloud (SaaS)
- No servers to manage
- Access from anywhere
- Automatic updates
- Subscription pricing
- Quick deployment
- Vendor-managed security
π’ 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 Signageβ
How It Worksβ
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
βββββββββββββββ βββββββββββββββββββββββ
β β β CMS Application β
β Web ββββ Internet ββββΊβ Database β
β Browser β β Media Storage β
β β β Processing β
βββββββββββββββ βββββββββββββββββββββββ
β
β
βΌ
βββββββββββββββββββββββ
β Media Players β
β (Your Locations) β
βββββββββββββββββββββββ
Advantages of Cloudβ
| Benefit | Description |
|---|---|
| No infrastructure | No servers to buy, maintain, or secure |
| Automatic updates | Always running latest version |
| Global access | Manage from anywhere with internet |
| Scalability | Add screens instantly |
| Reduced IT burden | Vendor handles technical operations |
| Predictable costs | Monthly/annual subscription |
| Fast deployment | Start in minutes, not weeks |
| Built-in redundancy | Multi-region availability |
| Disaster recovery | Vendor-managed backups |
Limitations of Cloudβ
| Limitation | Consideration |
|---|---|
| Internet required | Management needs connectivity |
| Ongoing costs | Perpetual subscription |
| Data off-premise | Content stored with vendor |
| Vendor dependency | Reliant on vendor stability |
| Less customization | Work within vendor's framework |
| Potential latency | Distance to data center |
Ideal Use Cases for Cloudβ
β 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 Modelsβ
| Model | Typical Range | Notes |
|---|---|---|
| Per-screen/month | $5-50 | Most common |
| Tiered plans | $50-500/month | Based on screen count |
| Annual discount | 10-20% off | Pre-payment savings |
| Enterprise custom | Negotiated | Large deployments |
On-Premise Digital Signageβ
How It Worksβ
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
βββββββββββββββββββββββββββββββββββββββββββββ
β β
β βββββββββββββββ βββββββββββββββ 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 βββββββββββββββ βββββββββββββββ β
β β β β
β ββββββββββ¬ββββββββββ β
β β β
β βΌ β
β βββββββββββββββ β
β β Media β β
β β Storage β β
β βββββββββββββββ β
β β β
βββββββββββββββββββββββββββββββββββββββββββββ
β
β Internal Network
βΌ
βββββββββββββββββββββββ
β Media Players β
β (Your Locations) β
βββββββββββββββββββββββ
Advantages of On-Premiseβ
| Benefit | Description |
|---|---|
| Complete data control | Content never leaves your network |
| No internet dependency | Works on isolated networks |
| One-time cost | Perpetual license option |
| Full customization | Modify to exact needs |
| Compliance | Meet strict data requirements |
| Performance | Low latency on local network |
| No vendor lock-in | Own your installation |
| Air-gap capable | True network isolation |
Limitations of On-Premiseβ
| Limitation | Consideration |
|---|---|
| Infrastructure required | Servers, storage, networking |
| IT expertise needed | Installation, maintenance, updates |
| Manual updates | You manage version upgrades |
| Higher upfront cost | Hardware + software licensing |
| Scalability effort | Capacity planning required |
| Backup responsibility | You manage disaster recovery |
| Security management | Patching, monitoring, hardening |
Ideal Use Cases for On-Premiseβ
β 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 Modelsβ
| Component | Typical Cost |
|---|---|
| Software license (perpetual) | $5,000-50,000+ |
| Annual maintenance/support | 15-20% of license |
| Server hardware | $3,000-20,000+ |
| Installation services | $2,000-10,000 |
| Ongoing IT labor | Variable |
Detailed Comparisonβ
Cost Analysisβ
5-Year Total Cost of Ownership (100 screens)
| Category | Cloud | On-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 Comparisonβ
| Factor | Cloud | On-Premise |
|---|---|---|
| Deployment time | Hours to days | Weeks to months |
| Maintenance | Vendor-managed | Self-managed |
| Updates | Automatic | Manual |
| Scalability | Instant | Planned |
| Customization | Limited | Extensive |
| Integration | API-based | Deep integration possible |
| Backup | Vendor-managed | Self-managed |
| Uptime SLA | 99.5-99.9% typical | Depends on your infrastructure |
Security Comparisonβ
| Aspect | Cloud | On-Premise |
|---|---|---|
| Physical security | Vendor data centers (SOC 2, etc.) | Your facilities |
| Network security | Vendor-managed perimeter | Your firewalls/policies |
| Data encryption | Vendor-provided | Your implementation |
| Access control | Vendor platform | Your systems |
| Compliance certifications | Vendor-maintained | Your responsibility |
| Incident response | Vendor + you | Your team |
| Audit trails | Vendor logs | Your logging |
Connectivity Requirementsβ
| Scenario | Cloud | On-Premise |
|---|---|---|
| CMS access | Internet required | Local network only |
| Player sync | Internet (can cache) | Local network |
| Offline operation | Players continue (cached) | Full operation |
| Remote locations | Internet per location | VPN or local server |
| Air-gapped | Not possible | Supported |
Hybrid Deploymentβ
What is Hybrid?β
Combines cloud management with local infrastructureβtypically a cloud CMS with local media servers or caching.
CLOUD LOCAL SITE
βββββββββββββββ βββββββββββββββββββββββ
β β β Local Cache/ β
β Cloud CMS ββββ Internet βββ Media Server β
β β β β
βββββββββββββββ β β β
β βΌ β
β βββββββββββββ β
β β Players β β
β βββββββββββββ β
βββββββββββββββββββββββ
When to Consider Hybridβ
- 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 Benefitsβ
- Cloud convenience for management
- Local performance for content delivery
- Reduced bandwidth costs
- Better offline reliability
- Flexibility by location
Decision Frameworkβ
Choose Cloud When:β
| Factor | Cloud Indicator |
|---|---|
| IT resources | Limited or prefer not to manage infrastructure |
| Deployment speed | Need to be operational quickly |
| Locations | Multiple/distributed locations |
| Budget | Prefer operational expense (OpEx) |
| Scale | May grow or fluctuate |
| Expertise | Standard digital signage needs |
Choose On-Premise When:β
| Factor | On-Premise Indicator |
|---|---|
| Security | High-security or classified environment |
| Data | Strict data residency requirements |
| Network | Air-gapped or isolated network |
| Compliance | Specific regulatory requirements |
| IT resources | Dedicated IT team available |
| Customization | Extensive custom requirements |
| Control | Need complete system ownership |
Decision Treeβ
START
β
βΌ
Is data/network isolation required?
β
βββ YES βββΊ ON-PREMISE
β
βΌ NO
β
Do you have dedicated IT for server management?
β
βββ NO βββΊ CLOUD
β
βΌ YES
β
Is the deployment very large (500+ screens)?
β
βββ NO βββΊ CLOUD (usually)
β
βΌ YES
β
Consider: Long-term TCO, customization needs, compliance
β
βββ EVALUATE BOTH OPTIONS CAREFULLY
Migration Considerationsβ
Cloud to On-Premiseβ
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 Cloudβ
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 Questionsβ
For Cloud Providersβ
- 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 Solutionsβ
- 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?
Summaryβ
| Factor | Cloud | On-Premise |
|---|---|---|
| Best for | Most deployments | High-security/isolated |
| Setup time | Fast | Slow |
| Ongoing effort | Low | Higher |
| Cost model | Subscription | License + maintenance |
| Scalability | Easy | Planned |
| Control | Limited | Complete |
| Internet required | Yes (management) | No |
Bottom Line: Cloud is the right choice for most organizationsβit's faster to deploy, easier to manage, and requires less internal expertise. On-premise remains important for specific security, compliance, or isolation requirements.
Related Resourcesβ
- CMS Overview β What is a CMS
- CMS Features β Feature comparison
- SignageStudio Platform β Cloud and on-premise options
This guide is maintained by MediaSignage, pioneers in digital signage technology since 2008.