Should Your Project Management Tool Be Cloud-Based or Self-Hosted?

Regardless of the capability of your dedicated project leader or the organisational skills your team members may possess, in order to carry out any type of project with ease, your business should introduce a project management tool. The numerous features offer you an opportunity to handle multiple projects transparently, share files, delegate tasks in a simple manner, measure time spent on each task and even bill your clients - all at the commodity of just a few mouse-clicks. Most of these tools can be found in two basic forms: cloud-based and self-hosted project management tool. Let’s go over the main characteristics of both options.

Cloud vs self-hosted

A cloud-based software is hosted by a provider who offers the use of its product through a monthly (or yearly) subscription. All of the features and data is stored on a cloud (hence the name) so you don’t need dedicated servers of your own.
On the other hand, the self-hosted service (as the name implies) requires you to manage your own servers. Which version will suit you best depends on your company size, structure and business needs.

Installation and maintenance

With the cloud solution, basically, all you have to do is simply log in and begin your work. All of the maintenance and system updates are the responsibility of your service provider. You won’t even notice any system upgrades, unless it’s a cool new feature for you to check out, in which case you will probably be subtly notified.
The self-hosted solution requires more effort. Whether you do it in house or outsource a remote tech team to do it for you, the installation process is manual and relies on the expertise of your IT technicians. The same goes for any additional updates and changes to the software. The good news is that you can find a great self-hosted project management tool which will offer their own tech team to help you with the installation process.

Costs and expenses

Cloud services are usually offered as a pay-as-you-go plan with monthly or yearly subscription rates. Depending on the package you choose, the monthly rate may vary, but they offer flexibility as you can switch between packages without any issues. In the short run, this may seem as a more affordable option since the rates are usually less budget consuming.
The self-hosted service is paid upfront as a one time fee (for purchasing the licence) which gives you the “ownership” of the tool in use. This is why the fee is usually a larger sum of money than the monthly rates of even the highest ranking package. However, in the long run, this one-time fee is amortized as there are no additional monthly costs. On the other hand, self-hosted project management tools require a large investment into the IT infrastructure, which raises the overall required budget. That is why mostly large companies and organizations opt in to this option.

Security measures

Since a dedicated company acts as your provider, the security of your data within cloud-based solutions is out of your hands. Your provider guarantees maximum security and protection of sensitive information.
If your business requires top notch security protocols and only you can ensure they are followed through, then the self-hosted project management tool is the right choice for your needs. This way you are in control of the entire setup, bandwidth and storage preferences, as well as the users which can enter your network.

These are some of the key reasonings for choosing between the two options. If you still have dilemmas regarding which type of project management tool would meet the needs of your company, go through this in depth article for more information. Hopefully this will help you make the best decision.