{"id":22281,"date":"2024-10-16T08:45:51","date_gmt":"2024-10-16T12:45:51","guid":{"rendered":"https:\/\/www.foundationsoft.com\/?p=22281"},"modified":"2025-04-14T14:16:31","modified_gmt":"2025-04-14T18:16:31","slug":"getting-your-head-in-the-cloud-evaluating-cloud-vs-on-premise-construction-software","status":"publish","type":"post","link":"https:\/\/www.foundationsoft.com\/learn\/getting-your-head-in-the-cloud-evaluating-cloud-vs-on-premise-construction-software\/","title":{"rendered":"Getting Your Head in the Cloud: Evaluating Cloud vs. On-Premise Construction Software"},"content":{"rendered":"<p>Not long ago, being on the \u201ccloud\u201d couldn\u2019t have less to do with being productive. In fact, a lot of managers have probably had to tell their staff to get their heads <em>out of <\/em>the clouds.<\/p>\n<p>Today, cloud technology is generating a huge buzz across the <a href=\"https:\/\/www.foundationsoft.com\/learn\/construction-accounting-advice-for-contractors\/\">construction industry<\/a>, but for some <strong>construction companies<\/strong>, the image of their accounting and payroll data floating around in cyberspace isn\u2019t so appealing.<\/p>\n<p>So, what is the cloud? And how does it compare to traditional <strong>on-premise software<\/strong>?<\/p>\n<p>Both cloud and on-premise systems can be great solutions for contractors \u2014 it just takes a little research to discover which solution will work best for your company.<\/p>\n<p>Here\u2019s what you need to know:<\/p>\n<a target=\"_blank\" href=\"\/job-costing-ultimate-guide\/\" class=\"blog-cta-image\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2024\/03\/FSL-blog-post-ad-ultimate-guide.png\" alt=\"UG to Job Costing\" title=\"UG to Job Costing\"><\/a>\n<p class=\"PlaygroundEditorTheme__paragraph\" dir=\"ltr\"><strong>Article Highlights Of Cloud vs. On-Premises Software:<\/strong><\/p>\n<ul class=\"PlaygroundEditorTheme__ul\">\n<li class=\"PlaygroundEditorTheme__listItem\" value=\"1\">Cloud-based software typically requires less upfront investment than on-premises solutions, potentially offering a better return on investment for <strong>construction<\/strong> projects of all sizes, especially when considering operational costs and ongoing maintenance.<\/li>\n<li class=\"PlaygroundEditorTheme__listItem\" value=\"2\">On-premises systems provide greater control over data and infrastructure but often require significant investment in additional hardware and IT infrastructure, which may impact deployment options for construction companies.<\/li>\n<li class=\"PlaygroundEditorTheme__listItem\" value=\"3\">Cloud solutions enable real-time collaboration and remote access across various job sites, supporting digital transformation in the construction sector and enhancing the management of complex projects.<\/li>\n<li class=\"PlaygroundEditorTheme__listItem\" value=\"4\">The choice between cloud and on-premises systems depends on factors such as project complexity, infrastructure costs, and the need for a reliable Internet connection. Making an informed decision requires careful evaluation of both cloud environments and on-premise infrastructures.<\/li>\n<li class=\"PlaygroundEditorTheme__listItem\" value=\"5\">Security considerations differ: cloud-based services managed by cloud service providers may have different vulnerabilities than on-premise solutions, which require physical location security to prevent unauthorized access.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_Cloud_and_What_is_On-Premise_Software\"><\/span><strong>What is the Cloud, and What is On-Premise Software?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cloud software, sometimes referred to as <strong>software as a service (SaaS)<\/strong>, is software that is hosted by a service provider and accessed by users via the Internet.<\/p>\n<p>This contrasts with on-premise software, like your word processor, which is owned by users and run from their own on-site hardware.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_are_the_Differences_Between_the_Cloud_and_On-Premise\"><\/span><strong>What are the Differences Between the Cloud and On-Premise?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the ever-changing construction industry, factors of cost and convenience make <strong>cloud computing<\/strong> especially attractive to contractors.<\/p>\n<p>As contractors begin evaluating new software options, they\u2019ll have to make the decision between <a href=\"https:\/\/www.foundationsoft.com\/learn\/how-cloud-based-accounting-software-helps-your-construction-business\/\">cloud-based<\/a> solutions and on-premise solutions, so here are a few things to consider in the process:<\/p>\n<ol>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Cost_and_Setup\"><\/span><strong>Cost and Setup<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>The upfront cost of cloud-based applications is significantly lower than on-premise applications.<\/p>\n<p>There is usually an initial set-up fee followed by a monthly subscription fee, which often includes maintenance and means that construction companies are simply paying for access instead of ownership while receiving automatic updates.<\/p>\n<p>In most cases, all contractors need to access the cloud application is an internet connection.<\/p>\n<p>In contrast, on-premise applications sometimes require specific hardware and a strong IT infrastructure to host the software \u2014 increasing setup costs substantially if these resources aren\u2019t already in place.<\/p>\n<ol start=\"2\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Reliability\"><\/span><strong>Reliability<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>It\u2019s important for contractors to remember that the cloud is still a fairly new <strong>technology<\/strong> and that its use is still evolving on a daily basis.<\/p>\n<p>Not everything is set in stone with the cloud, and periodic system updates will occur.<\/p>\n<p>Things that contractors may have done one way in the past, like accessing specific reports from a specific interface, may have to be done a little bit differently, especially as automatic software updates occur.<\/p>\n<p>In contrast, on-premise software has been around for decades and is more comfortable for certain users.<\/p>\n<p>Some users place such a strong priority on stability that they even elect not to install software updates \u2014 which is not advisable due to the <a href=\"https:\/\/www.foundationsoft.com\/learn\/mobile-and-cloud-security-what-contractors-should-know\/\">security<\/a> risks this could present \u2014 and this is an option that on-premise solutions afford.<\/p>\n<ol start=\"3\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Data_Hosting\"><\/span><strong>Data Hosting<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Some construction companies lean toward on-premise software because their data is hosted on-site, which brings a certain peace of mind.<\/p>\n<p>However, it\u2019s still recommended that <strong>contractors <\/strong>back up their data and store copies off-site.<\/p>\n<p>With the cloud, data is hosted and backed up by the service provider, so contractors don\u2019t have to worry about a thing.<\/p>\n<p>The trade-off is that contractors will have to accept that their <strong>construction data<\/strong> is being stored elsewhere and someone else is responsible for their maintenance.<\/p>\n<ol start=\"4\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Maintenance\"><\/span><strong>Maintenance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>When using a cloud-based application, construction companies don\u2019t have to worry about backing up their data or installing updates.<\/p>\n<p>All of this is done at the hosting site by the <strong>cloud provider<\/strong>, so contractors can be assured that their data is safe and that they\u2019re always using the latest version of the software.<\/p>\n<p>With on-premise applications, this responsibility rests on the shoulders of the contractor. The benefit of this is that these contractors can schedule maintenance items during times that are convenient for their flow of business.<\/p>\n<p>Contractors using the cloud are reliant on their service provider when it comes to updates, security patches, and backups, but they don\u2019t have the same burden of handling them in-house.<\/p>\n<ol start=\"5\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Convenience_and_Mobility\"><\/span><strong>Convenience and Mobility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>One of the best features of cloud-based applications is that they are incredibly convenient to access at any time, from anywhere.<\/p>\n<p>In the construction industry, where work happens on construction projects rather than in offices, the ability to access data remotely can significantly improve project efficiency.<\/p>\n<p>To access their data, all contractors need is the Internet and a computer or mobile device. This allows contractors to log in from the office and jobsites to update their project information.<\/p>\n<p>This, in turn, gives project managers the ability to access <a href=\"https:\/\/www.foundationsoft.com\/learn\/forecasting-costs-cash-and-revenue-with-real-time-construction-data\/\">real-time data<\/a>.<\/p>\n<p>The downside to this is that if contractors cannot get an Internet connection, in some cases, they cannot access the application or the most recent versions of the data.<\/p>\n<p>On-premise software, on the other hand, is always accessible on machines on which it\u2019s installed but <em>only <\/em>on machines on which it\u2019s installed, so contractors with on-premise applications are also limited as far as where they can see and work with their data.<\/p>\n<ol start=\"6\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Ownership_and_Control\"><\/span><strong>Ownership and Control<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>A contractor who purchases on-premise software owns that system indefinitely. They have complete control over updates and other maintenance items.<\/p>\n<p>Additionally, they can access it whenever they need to and can schedule their own maintenance and downtime as convenient.<\/p>\n<p>When using a <strong>cloud-based application<\/strong>, contractors have no control over system updates or downtime.<\/p>\n<p>Whether due to scheduled maintenance or a problem on the provider\u2019s end, downtime means that contractors will not be able to access their data or perform work in the system, which, depending on the time of day, could be a problem.<\/p>\n<p>While unplanned service interruptions are nearly impossible to account for \u2014 just like hardware issues \u2014 contractors may want to have a conversation with potential <strong>SaaS providers <\/strong>about the frequency and schedule of their <strong>system maintenance<\/strong>.<\/p>\n<ol start=\"7\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Building_a_Construction_Tech_Stack\"><\/span><strong>Building a Construction Tech Stack<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Successful contractors are always looking for <strong>construction software<\/strong> that scales with their operations. Many contractors build a <a href=\"https:\/\/www.foundationsoft.com\/learn\/the-best-construction-software-tech-stack-for-your-business\/\">tech stack<\/a> \u2014 or group of software that work together to modernize their operations \u2014 to save time, receive unique insights, and maximize profitability.<\/p>\n<p>For example, a contractor may start with a <a href=\"https:\/\/www.foundationsoft.com\/learn\/how-to-select-construction-accounting-software-for-your-company\/\">construction-specific accounting software<\/a> as the base of their tech stack.<\/p>\n<p>From there, they may invest in <a href=\"https:\/\/www.foundationsoft.com\/learn\/the-what-the-why-and-the-ways-contractors-can-leverage-construction-software-integrations\/\">integrated<\/a> payroll software, human resources software, and estimating software. Each software would sync data, limiting manual data entry and providing valuable insights.<\/p>\n<p>Oftentimes, building a <strong>construction tech stack<\/strong> is easier with <strong>cloud software<\/strong> because it doesn\u2019t come with the same infrastructure considerations as its on-premise counterparts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"On-Premise_vs_Cloud_Which_is_Better_for_Me\"><\/span><strong>On-Premise vs. Cloud: Which is Better for Me?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Today\u2019s software purchase goes beyond just features and functions. Delivery options have become a huge factor in the search for construction <strong>software solutions.<\/strong><\/p>\n<p>The cloud is a great option for smaller contractors who want sophisticated software but have a limited budget or for contractors who need to access data from multiple locations.<\/p>\n<p>On-premise software, on the other hand, is great for the contractor who already has the required hardware and an IT infrastructure in place.<\/p>\n<p>Data security is a crucial element when deciding between cloud vs. on-premise options. <a href=\"https:\/\/www.verizon.com\/business\/resources\/articles\/s\/cloud-computing-security-is-it-safer-than-on-premises\/\">According to Verizon\u2019s 2020 Data Breach Investigations Report (DBIR)<\/a>, <strong>on-premise<\/strong> was involved in about <strong>70% of breaches<\/strong>, whereas <strong>cloud-based<\/strong> were involved in just <strong>24%<\/strong>.<\/p>\n<p>The most important thing for contractors to remember is to do their due diligence and to research all their options in order to determine which solution is best for their particular businesses.<\/p>\n<p>The right choice will give contractors the ability to focus more on their construction projects and on growing their construction business.<\/p>\n<a target=\"_blank\" href=\"\/learn\/#schedule-a-live-demo\" class=\"blog-cta-image\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2024\/03\/FSL-blog-post-ad-see-how.png\" alt=\"Get a Demo\" title=\"Get a Demo\"><\/a>\n<h2><span class=\"ez-toc-section\" id=\"Foundation_Software_Offers_On-Premise_and_Cloud_Software\"><\/span><strong>Foundation Software Offers On-Premise and Cloud Software<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Contractors should factor in whether software is on-premise or cloud-based when doing preliminary research and consider the points above before investing in construction software.<\/p>\n<p>Some software providers \u2014 like Foundation Software \u2014 offer <strong>on-premise<\/strong> and cloud-based versions of the same <strong>construction software<\/strong>.<\/p>\n<p>When that\u2019s the case, it\u2019s important to ask about pricing and maintenance questions, as those will likely differ depending on the option you select.<\/p>\n<p>Foundation is a leading provider of construction software that helps you modernize your:<\/p>\n<ul>\n<li>Accounting (<a href=\"https:\/\/www.foundationsoft.com\/\">FOUNDATION\u00ae<\/a>)<\/li>\n<li>Payroll (<a href=\"https:\/\/www.foundationsoft.com\/partner\/payroll4construction\/\">Payroll4Construction<\/a>)<\/li>\n<li>Estimating (<a href=\"https:\/\/www.foundationsoft.com\/partner\/mccormick-systems-inc\/\">McCormick<\/a> and <a href=\"https:\/\/www.foundationsoft.com\/partner\/estimating-edge\/\">The EDGE<\/a><a href=\"https:\/\/www.foundationsoft.com\/partner\/safetyhq\/\">\u00ae<\/a>)<\/li>\n<li>Human resources (<a href=\"https:\/\/www.foundationsoft.com\/partner\/hrhq\/\">hrHQ<\/a>)<\/li>\n<li>Project management (<a href=\"https:\/\/www.foundationsoft.com\/partner\/projecthq\/\">ProjectHQ\u00ae)<\/a><\/li>\n<li>Time Tracking (<a href=\"https:\/\/www.foundationsoft.com\/partner\/abouttime-workmax\/\">WorkMax<\/a>)<\/li>\n<li>Safety (<a href=\"https:\/\/www.foundationsoft.com\/partner\/safetyhq\/\">SafetyHQ\u00ae<\/a>)<\/li>\n<\/ul>\n<p>While all of Foundation\u2019s products are cloud-based, some options like FOUNDATION, McCormick, and Payroll4Construction are also available on-premise.<\/p>\n<p>For more information about Foundation\u2019s products, <a href=\"https:\/\/www.foundationsoft.com\/software\/\">click here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Not long ago, being on the \u201ccloud\u201d couldn\u2019t have less to do with being productive. In fact, a lot of managers have probably had to tell their staff to get their heads out of the clouds. Today, cloud technology is generating a huge buzz across the construction industry, but for some construction companies, the image of their accounting and payroll &#8230; <\/p>\n<div><a href=\"https:\/\/www.foundationsoft.com\/learn\/getting-your-head-in-the-cloud-evaluating-cloud-vs-on-premise-construction-software\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":60,"featured_media":22282,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_searchwp_excluded":"","inline_featured_image":false,"footnotes":""},"categories":[41],"tags":[],"class_list":["post-22281","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-category"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Getting Your Head in the Cloud: Evaluating Cloud vs. On-Premise Construction Software<\/title>\n<meta name=\"description\" content=\"Evaluate cloud vs. on-premise construction software options. Compare costs, security, and accessibility to make an informed decision for your construction business&#039;s digital transformation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.foundationsoft.com\/learn\/getting-your-head-in-the-cloud-evaluating-cloud-vs-on-premise-construction-software\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Getting Your Head in the Cloud: Evaluating Cloud vs. On-Premise Construction Software\" \/>\n<meta property=\"og:description\" content=\"Evaluate cloud vs. on-premise construction software options. 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