Hidden costs of on-premise tools. Cloud-based vs on-premise wealth management solutions
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While on-premise tools may offer some benefits, such as greater control and customization, organizations must carefully consider the total cost of ownership before deciding to use them. Deploying on-premise asset management tools can come with a variety of potential hidden costs, which depend on the nature of the tools used and the size and complexity of the organization's operations.
Put the money on the server and have a dedicated IT team
Deploying and maintaining local tools often requires a significant investment in hardware and network infrastructure. This can include servers, storage devices, license costs, backup systems and other components needed to support the tools.
Also, where the complicated infrastructure operates, skilled IT specialist is required!
On-premise tools typically require regular maintenance to keep them running smoothly and efficiently. These tasks can be time-consuming and require specialized skills, which can result in additional costs for the organization.
Cloud solutions remove the hassle of maintaining and updating systems, allowing companies to focus on their core business strategies
Integration and onboarding? Not so fast!
Integrating on-premise tools with other systems and applications can be a complex process that requires significant effort and resources. This can include developing custom interfaces or middleware, as well as testing and troubleshooting to ensure that everything works properly.
Security issues
It seems that if the tool is inside known premises, it is more secure than a cloud solution. Well, this is not true at all. Implementing on-premise tools may require additional security measures to protect against data breaches and other cyber threats. This may include investments in firewalls, intrusion detection systems and other security technologies, and hiring dedicated security staff.
As we in the wealth management industry know, data is the gold. You cannot lose your data, otherwise... well, you are in trouble. With cloud-based solutions data recovery is much easier and data backups are placed in the cloud. So, if anything bad happens, true SaaS will help!
Let’s get (c)loud
On the other hand, cloud-based solutions require no in-house IT capabilities. Cloud-based Portfolio Management System for wealth management can offer several advantages over on-premise tools, including the elimination of many IT-related costs.
Because the software and infrastructure are hosted by a third-party provider, there is no need for organizations to invest in their own hardware, networking, or IT personnel. Instead, the provider is responsible for maintaining and upgrading the system, ensuring it is secure and available to users at all times. This can help to reduce the burden on internal IT teams, freeing up resources for other strategic initiatives.
Growing under the cloud
Additionally, cloud-based solutions typically offer more flexibility and scalability than on-premise tools, allowing organizations to adjust their usage quickly and easily as needed based on changing business requirements.
Overall, the reduced IT costs associated with cloud-based solutions can be a major selling point for organizations looking to streamline their operations and focus on core business activities.
Hello, world!
The cloud has another key advantage over on-premise solutions - and it is an advantage that is especially clear after the C-19 pandemic: with the cloud, you can work anywhere, from any location and any computer.
The choice between a more traditional on-premise solution and a cloud solution will always demand particular care and will depend 100% on the needs and business requirements of a particular organization. However, more companies want to take advantage of today's efficient operating models, so they choose the cloud. Especially if it leverages cloud from one of the top providers on the market – Microsoft, Amazon or Google.
As such, many organizations are increasingly turning to cloud-based wealth management solutions to help streamline their operations and improve their bottom line.
>>> See how fast you can implement WealthArc
The main advantages of using cloud-based solutions in wealth management:
- Security, especially if tool is leveraging best of breed cloud solutions, such as Microsoft
- Cost-effectiveness
- Automatic software updates, data recovery, and backup
- Companies pay only for the resources they use
- Real-time access to data, facilitating better decision-making and insights into business operations
- Scalability and accessibility from anywhere with an internet connection
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