An organization’s WMS should optimize warehouse operations in the most efficient, cost-effective way, ensuring that goods and materials move through the warehouse. The differences between On-Premises and Single and Multi-Tenant Cloud-based WMS systems are as follows:

On-Premises WMS

• Systems are installed and maintained on an organization’s servers. Security of the servers and the data is the responsibility of the organization, not the software manufacturer/provider.
• Upfront investment in the system is required.
• Hardware constraints can limit scalability.

Single- Tenant cloud-based WMS

• Systems are hosted in the cloud, but each instance serves a single organization.
• Maintenance and security are shared between the organization and the software provider.
• Reduces some of the burdens of on-premises systems but may still require resources to manage.

Multi-Tenant cloud-based WMS

• Hosted in the cloud, but multiple organizations on a shared platform where each company’s data is private.
• Highly scalable and cost-effective since infrastructure and maintenance costs are shared amongst multiple tenants.
• The provider manages Updates and security patches, reducing the organization’s IT overhead.

The transition from on-premises to a cloud-based WMS system provides many of the same benefits as other cloud-based transitions—”cost savings, security, time-to-value for organizations in the distribution, and third-party logistics industries.” Pragmatyxs can provide the needed guidance and assurance to our customers moving from on-premises labeling, ERP, or WMS to a cloud-based solution.