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Cloud-Based vs On-Premise PMS

Cloud-Based vs. On-Premises PMS: Which Is Right for You?

Anand Systems Inc. (ASI)
Oct 27, 2025

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Discover the key differences between cloud-based and on-premise PMS systems. Find out which one fits your hotel's needs, budget, and long-term growth.

Overview

In today’s fast-moving hospitality industry, choosing the right Property Management System (PMS) is not just a tech decision; it is a strategic one. With guest expectations evolving and operations becoming more complicated, hoteliers are often torn between two paths: a modern cloud-based PMS or a traditional on-premises solution. Both have their advantages, but which one fits your property’s needs, budget, and future goals?

Whether you manage a boutique stay, a multi-property chain, or a family-run hotel, this hotel PMS software comparison will walk you through the key differences between Cloud-Based vs. On-Premise PMS, helping you make a confident choice that enhances daily operations, boosts guest satisfaction, and supports long-term growth.

1. System Installation & Maintenance

The On-Premise PMS is installed locally on the hotel’s computer. It gives properties complete control over their data and system environment. This also gives the property full control over its data handling and storage, managed directly by the in-house team.

With ASI’s cloud-based PMS, there's no need to set up or maintain computers at the property. ASI’s cloud-based PMS runs securely online. With ASI PMS, all data backups and system maintenance are managed by our team, giving your staff more time to focus on guests, not technical hassles.This reduces IT costs, ensures smooth operation, and eliminates downtime caused by server or hardware issues. The system is easily accessible anytime from any internet-connected device, allowing staff to manage operations and multiple properties with ease.

2. Technical Requirements

It requires dedicated hardware such as servers and local storage. It needs a stable local network, sufficient hard drive space to store data, and IT infrastructure to support installation, performance, and data backups.

It only needs a reliable internet connection and internet-enabled devices like laptops or tablets. No special hardware or in-house servers are required, making setup quicker and more cost-effective. This makes a cloud-based property management system ideal for hotels wanting to upgrade their operations.

3. Data Security

It requires dedicated hardware such as servers and local storage. It needs a stable local network, sufficient hard drive space to store data, and IT infrastructure to support installation, performance, and data backups.

It only needs a reliable internet connection and internet-enabled devices like laptops or tablets. No special hardware or in-house servers are required, making setup quicker and more cost-effective. This makes a cloud-based property management system ideal for hotels wanting to upgrade their operations.

4. Cost Analysis

Payments for On-Premise PMS follow a quarterly subscription model. This includes setting up local servers or computers. Hotels may also require in-house or third-party IT support for ongoing maintenance and backups. 

Cloud-Based PMS operates on a monthly subscription model, offering lower initial costs and a fixed monthly subscription. Since it is fully cloud-based, there is no need to invest in servers or maintain an in-house IT team. Optional hardware like ID scanners, photo scanners, and sign pads can be added based on your property’s needs. All updates, backups, and security are managed on the cloud at regular intervals, making it a more effortless and scalable solution ideal for expanding hotels or hotel groups seeking flexibility and long-term cost-efficiency.

5. Anywhere Access

Access is limited to the specific computer where the software is installed. You must be physically present at the property to use the system. Remote access is not available.

You can access the system anytime, from anywhere, by using any internet-enabled device such as a laptop or tablet. It’s ideal for managing single or multiple properties, working remotely, or monitoring hotel operations while on the go.

6. Scalability

Access is limited to the specific computer where the software is installed. You must be physically present at the property to use the system. Remote access is not available.

You can access the system anytime, from anywhere, by using any internet-enabled device such as a laptop or tablet. It’s ideal for managing single or multiple properties, working remotely, or monitoring hotel operations while on the go.

Factors to Consider When Choosing a PMS

 
Internet Reliability:
 
A stable internet connection is important for cloud-based systems like ASI PMS, enabling seamless access anytime, anywhere. For properties with strong connectivity, cloud solutions offer unmatched convenience and flexibility compared to on-premises setups. However, if your property is in an area with limited or unreliable connectivity, an on-premise solution might be a more dependable choice.
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Number of Properties:
 

Managing multiple hotels often requires centralized access and coordination, something cloud solutions handle with ease. Cloud-based PMS is also beneficial for single, independent properties, allowing owners or managers to oversee daily operations, monitor performance, and stay connected, whether they’re at the front desk or on the go.

 

 
IT Resources:
 
If your team doesn’t have dedicated technical support or you prefer to minimize system maintenance, a cloud-based PMS can significantly reduce your IT burden. Its easy-to-use interface requires minimal IT knowledge or training, making it accessible for all staff members.

 

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Level of Automation:
 
Cloud-based PMS helps streamline hotel operations with automatic updates, built-in backups, and real-time system access. It reduces manual work and improves efficiency. 

 

 
Staff Tech Comfort:
 
ASI Cloud PMS (7x) features an intuitive, easy-to-use interface that requires minimal IT knowledge or technical training. It’s designed to help your team get started quickly and confidently, making daily hotel operations smooth and efficient.
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Security Preferences:
 
For hoteliers seeking strong data protection without the complexity of in-house IT, ASI Cloud PMS offers a secure and reliable environment. With expert-managed encryption, regular backups, and compliance with industry standards, your system stays protected with no manual intervention needed.

 

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✨Which is Better for Your Hotel: ASI FrontDesk or ASI PMS?

Both ASI PMS (cloud-based) and ASI FrontDesk (on-premise) are trusted solutions designed to meet different operational styles. If your priorities include mobility, hands-off updates, and scalable growth across locations, ASI PMS may be the ideal fit. It’s especially suited for hoteliers who want to manage their business remotely or need a modern, flexible system that evolves with their needs.

While both systems have their advantages, more and more hoteliers are embracing cloud-based PMS for its flexibility, real-time accessibility, enhanced security, and simplified management. It supports scalability and future growth, making it a smart long-term investment for modern properties.

Customer Success Story:    Villa Franca Inn

See what Mr. Panchal, owner of Villa Franca Inn, Monterey, California, USA., has to say about his shift from on-premises to cloud-based PMS and how it transformed his business.
Read his full story here:

Read More
Villa Franca Hero Image (1)

FAQ(Frequently asked questions)
ASI PMS vs ASI FrontDesk Cloud PMS for Hotels Cloud-Based vs On-Premise PMS Hotel Property Management System Comparison On-Premise Hotel Software

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