Cloud-Based vs. On-Premise Digital Signage: Understanding the Differences

When deploying a Content Management System (CMS) for digital signage, businesses must decide between on-premise hosting and cloud-based hosting.

Each option comes with its own advantages and challenges, impacting cost, scalability, security, and control. Understanding these differences can help determine the best solution for your specific needs.

What’s the Difference Between On-Prem vs. Cloud Hosting?

Think of on-premise hosting like owning a house — you have complete control, but you’re responsible for maintenance, security, and expansions. Cloud hosting is like renting an apartment — maintenance and security are handled for you, but you have less flexibility in customization.

Ultimately, the right choice depends on your business priorities, technical capabilities, and long-term digital signage strategy.

On-Premise Hosting: Full Control, High Responsibility

On-premise hosting gives businesses complete control over their digital signage infrastructure. This setup is particularly beneficial for organizations with strict security and compliance requirements. 

However, managing an on-premise system requires significant resources and expertise. On-prem is commonly used for indoor digital signage displays, public information displays, and information boards where security and reliability are important.

Advantages

• Full Control. Maintain complete control over servers, networks, and data — essential for industries with strict compliance requirements.
• Customizability. Tailor security protocols and system configurations to fit your business’s specific needs.
• Data Security & Privacy. Keep sensitive information in-house, minimizing reliance on third-party providers and maintaining full control over data access.
• Compliance. Managing security protocols internally can make it easier to meet industry compliance standards.

Disadvantages

• High Upfront Costs. Takes a significant investment for servers, networking equipment, IT staff, and physical space.
• Limited Scalability. Expanding infrastructure requires purchasing and installing new hardware, which can be costly and time-consuming.
• Maintenance Responsibility. IT teams must manage maintenance, security updates, and troubleshooting, adding to operational complexity.
• Disaster Recovery Challenges. Building reliable backup and redundancy systems requires extra investment and technical expertise.

Cloud-Based Hosting: Flexible and Scalable

Cloud-based hosting offers a more flexible and cost-effective approach to digital signage displays. By leveraging cloud technology, businesses can scale their operations easily, while maintenance and security are handled by the provider.

This solution is ideal for interactive digital signage, digital wayfinding, and multi-location setups, where remote content updates and management are key.

“A cloud-based solution also may make sense if you want to control content at multiple properties from one central location.” Digital Signage Today.

Advantages

• Scalability. Easily scale up or down based on business needs without additional hardware investments.
• Maintenance and Updates. The service provider handles infrastructure maintenance, security patches, and system updates.
• Lower Costs. No upfront investment in hardware or IT staff; businesses pay for what they use with predictable pricing models.

• Simplified Management. Users interact with a dashboard without dealing with networking, hardware, or storage configurations.
• Disaster Recovery and Redundancy. Cloud providers ensure high availability and data redundancy, reducing downtime and data loss risks.

Disadvantages

• Less Control. Businesses must rely on the service provider for infrastructure management and configuration settings.
• Security Concerns. Storing data in the cloud may introduce security risks, requiring trust in third-party providers like Google, AWS, or Microsoft.
• Internet Dependency. Digital signage relies on a stable internet connection to push content updates to digital displays.

Have more questions about cloud hosting?

ASK OUR TEAM

Cost Comparison: On-Premise vs. Cloud-Based Digital Signage

When evaluating digital signage solutions, cost is a major factor. Below is a general cost breakdown of on-premise vs. cloud-based digital signage solutions:

On-Premise Costs

• Upfront Investment. Requires purchasing servers, networking equipment, storage, and IT infrastructure.
• Hardware Costs. Digital signage players, media servers, and physical storage devices.
• Installation and Setup. Businesses must invest in IT staff or third-party vendors for deployment.
• Ongoing Maintenance. Regular software updates, security patches, and hardware upkeep increase operational costs.
• Energy Costs. Traditional digital signage solutions consume more power compared to energy-efficient alternatives like low-power displays and electronic ink screens.

Cloud-Based Costs

• Subscription-Based Pricing. Most cloud-based solutions follow a pay-as-you-go model, reducing the need for large upfront investments.
• Lower Hardware Costs. Since infrastructure is managed by the provider, businesses only need digital signage displays and an internet connection.
• Minimal IT Maintenance. Service providers handle updates, security, and troubleshooting, reducing the need for in-house IT staff.
• Energy Efficiency. Cloud-based solutions often support energy-efficient digital signage, including e-ink electronic paper displays and large e-paper screens, leading to cost savings on electricity.
• Scalability Costs. Businesses can expand their network of displays without purchasing additional servers or infrastructure.

Takeaways: Which Is the Right Solution for You?

The best hosting option depends on your organization’s priorities. On-premise digital signage is ideal if you need full control and enhanced security, especially in highly regulated industries. In contrast, cloud-based solutions offer flexibility, scalability, and cost savings — making them perfect for businesses that value ease of management and energy efficiency.

Introducing Visionect’s Cloud-Based CMS

Over a year ago, Visionect launched its comprehensive cloud-based CMS platform designed to meet all your digital signage needs. This innovative solution works seamlessly with our Place & Play low-power e-paper displays as well as with third-party screens, delivering a versatile and unified experience.

Our cloud-based CMS isn’t just another dashboard — it’s a robust solution that provides a modern, feature-rich interface to effortlessly manage your digital signage. With this solution, you gain:

• Enhanced User Experience. A sleek, intuitive interface that makes managing content simpler than ever.
• Remote Management. Seamless updates and real-time content management across multiple locations.
• Improved Features. Schedule content, configure playlists, integrate dynamic elements, and push updates to all your digital signage displays.

Visionect’s cloud-based CMS subscriptions merge energy-efficient e-paper displays with simple remote management, redefining the digital signage landscape.

Get in touch to learn how our cloud-based CMS can transform your digital signage strategy.

GET IN TOUCH