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In the tech industry, the term 'cloud' is often associated with innovative, always-accessible, and cost-effective solutions, while 'on-premise' is sometimes perceived as outdated, cumbersome, and ‘too old-school; While there's a kernel of truth in these perceptions, they are also oversimplifications. In reality, on-premise PIM solutions can be highly advanced, extremely customizable, and more cost-effective than you might expect. Let’s explore the nuances to determine which type of PIM system is the ideal fit for your needs.
What is On-Premise-PIM ?
If you have ever encountered discussions about both cloud and on-premise options, the former is often characterized by lower expenses and greater accessibility, while the latter is valued for its enhanced security and customization capabilities. In this context, understanding whether on-premise PIM really aligns with your business goals and circumstances allows you to make the right investment.
But before we delve into details of on-premises PIM, let’s make sure we are on the same page with its definition:
On-premise software refers to software that is installed and operated on premises of the organization, typically within the organization's own physical infrastructure. This means that the software is hosted locally on the organization's servers or computers, and the organization is responsible for managing and maintaining the software, including updates, security, and backups.
Once purchased, you can deploy the on-premise PIM on your servers with complete control. You oversee implementation, integration, maintenance, and customization, which often requires a dedicated IT team for smooth operation.
Cloud-based software, on the other hand, runs on remote servers and is accessed over the internet, eliminating the need for local installation.
On-premise PIM specifically refers to a PIM system that is deployed within the organization's infrastructure. It provides businesses with full control over their product information management processes, allowing them to customize the system to their specific needs and ensuring data security by keeping sensitive information within their own network.
This type of deployment presupposes hosting the PIM software on the private servers of an organization, providing heightened data security since sensitive information is kept behind the organization's internal network. While on-premises solutions often require larger upfront investments, they offer full control over implementation, and customization, and allow the businesses to shape the system to their specific needs.
On-Premise PIM Types
On-premise PIMs vary between open-source and proprietary platforms, granting flexibility or reliance on vendor updates respectively.
Open source on-premise PIM
An open-source on-premise PIM system provides access to its source code, allowing users to modify and customize the software according to their specific needs. Users have the freedom to make changes, add features, and tailor the PIM system to fit their business requirements. This flexibility can be advantageous for organizations with specific customization needs or those seeking a more cost-effective solution. However, it typically requires more technical expertise and resources to implement and maintain.
Proprietary on-premise PIM
A proprietary on-premise PIM system is developed, owned, and controlled by a specific vendor or company. The source code is not accessible to users, and modifications are limited to what the vendor provides through updates and customization options. While proprietary PIM systems often come with dedicated support, regular updates, and predefined features, users have less flexibility in customizing the software to their exact specifications. Additionally, organizations may be dependent on the vendor for future enhancements and feature updates.
Advantages of On-premise PIM Solutions
- Enhanced data security since the data is hosted on internal servers, organizations have full control over data security measures. It reduces the risk of unauthorized access or breaches. In an on-premises system, it's easier to install extra data protection tools to safeguard your data and programs compared to a cloud-based solution.
- On-premise solutions offer extensive customization options and allow businesses to tailor the PIM system to their unique workflows and requirements.
- Predictable cost structure: While initial investments are often higher, long-term costs are more predictable, with only ongoing expenses for updates, support, and training.
- With an on-premise PIM system, you have full authority. The application resides on your server, giving you complete control over your data and system configuration. You manage upgrades, customize, and ensure secure, efficient product information management, all within your premises. Managing configuration, upgrades, and system changes is entirely within your control with an on-premises system, allowing for tailored adjustments aligned with your organization's requirements.
- Continuous data accessibility of on-premise PIM solutions means that in cases of network disruptions or slow internet speeds, employees using On-Premises solutions retain uninterrupted access to all critical data.
- Annual maintenance costs and one-time license fees in On-Premises deployments can be significantly lower compared to the ongoing subscription expenses typical of cloud-based PIM solutions.
- Managing the on-premises software entirely allows for extensive customization opportunities, surpassing what is typically feasible with cloud-based systems where customization options may be more limited due to vendor control.
Which Businesses Benefit from On-Premises PIM the Most?
While many businesses look away from on-premise solutions due to the growing popularity of cloud-based services and the perception of increased upfront costs and maintenance responsibilities, there are multiple business scenarios where on-premise PIM would be the best choice to make. This is especially the case for retailers, wholesalers, and manufacturers who have to handle large volumes of product data, have strict data security and compliance requirements, and require extensive customization and control over their data management. Let’s take a closer look at the types of businesses that benefit significantly from on-premises PIM:
- Large Enterprises.
Companies with extensive product catalogs and complex organizational structures require highly customizable PIM solutions. On-premises PIM offers greater control and flexibility, which makes it an ideal choice for large enterprises.
- Industries with Regulatory Compliance Needs.
Businesses operating in regulated industries such as healthcare, finance, and pharmaceuticals have strict data security and compliance requirements. On-premises PIM solutions enable them to maintain compliance with industry regulations by keeping sensitive data within their own controlled environment.
- Customization-Intensive Businesses.
Businesses that require extensive customization of their PIM systems to align with unique workflows, data structures, and integration requirements benefit from on-premises solutions. These businesses can tailor the PIM system to their specific needs without limitations imposed by cloud-based solutions. For example, retailers dealing with sensitive customer data, proprietary product information, or regulatory compliance requirements often opt for on-premise PIM for organizing their product information.
- Data-Sensitive Organizations
If your business is dealing with sensitive product information, such as intellectual property, proprietary data, or confidential customer information, you might want to choose on-premises PIM solutions for enhanced data security and control as well.
- Companies with Limited Internet Access
Businesses operating in remote locations or regions with unreliable internet connectivity also find on-premises PIM solutions more suitable. On-premises deployment allows them to access and manage product information locally without depending on cloud-based services. For example, agricultural cooperatives in rural farming communities often implement on-premise PIM solutions to track and manage crop yields, equipment maintenance, and supply chain logistics without relying on internet-dependent cloud services.
- Legacy Systems Users
Businesses with legacy systems, such as financial institutions with core banking systems or manufacturing companies with ERP software, often opt for on-premises PIM solutions. These organizations leverage on-premises PIM to integrate with their existing infrastructure. This approach enables them to maintain operational efficiency and data integrity while modernizing their data management capabilities.
Which On-Premise PIM Solutions are available?
These days, finding an on-premise Product Information Management (PIM) solution can be a challenge. With the rapid shift towards cloud-based systems, many vendors focus on offering flexible, scalable, and easily accessible cloud solutions. This trend leaves fewer options for companies that require or prefer on-premise deployments due to concerns about data security, compliance with specific regulatory standards, or integration with existing legacy systems.
Open Source On-Premises PIM Solutions
AtroPIM is a comprehensive free open-source PIM solution that offers both cloud and on-premise deployment. AtroPIM stands out for its user-friendly interface and unparalleled customization. With features such as data modeling, workflow automation, and multichannel publishing, AtroPIM empowers organizations to efficiently centralize, enrich, and distribute product information across various channels and touchpoints. AtroPIM is one of the most flexible and affordable on-premise solutions on the market in terms of initial implementation costs and ongoing maintenance for on-premise deployment. It offers robust access control and collaboration features, making it suitable for businesses needing strong control over their data locally.
Akeneo PIM
Akeneo offers both open-source and enterprise versions of its PIM software. The standard community edition provides an on-premise deployment option This edition offers only basic functionality and can be a good fit only for small companies, just starting their PIM journey.
Pimcore
Pimcore is an open-source PIM that can be deployed on-premise. It combines PIM, Digital Asset Management (DAM), Content Management System (CMS), and e-commerce functionalities, offering a comprehensive solution for managing product data.
Proprietary On-Premise PIM Solutions
Stibo Systems STEP
Stibo Systems offers the STEP PIM, which can be deployed on-premise. STEP PIM is designed for complex data management needs, providing scalability, flexibility, and integration capabilities for large enterprises.
Perfion PIM
Perfion offers an on-premise PIM solution tailored for mid-sized to large enterprises. It provides seamless integration with various ERP systems and is known for its user-friendly interface and flexibility.
Contentserv
Contentserv offers both cloud and on-premise PIM solutions. It provides features such as product data modeling, workflow management, and data quality management, catering to businesses of various sizes.
Key Takeaways
On-Premise PIM involves deploying the system within your organization for control and customization. There are open-source or proprietary options. On-Premise PIM solutions offer enhanced security, customization, predictable costs, and complete data authority and control. It's ideal for large enterprises, regulated industries, customization-intensive businesses, data-sensitive organizations, and those with limited internet access.
