The Benefits of an On-Premise Treasury Management System
When it comes to realizing the benefits of staying on your on-premise Treasury Management System (TMS), costs are usually at the forefront of the conversation. New cloud applications on the market are robust and offer many advantages, however, the move might not currently be feasible due to cost or resource constraints.
Making the decision to stay on-premise can be a cost-saving decision due to the fact that the costs are typically maintenance-based and not subscription. Discover some of the key benefits of staying on-premise below.
Continuing to utilize and maintain your current on-prem treasury system allows for better oversight, security, and control of your software. Once the initial costs of purchase and implementation are complete, on-premise users have full ownership and control over their system. Maintenance costs and upgrades are typically limited to the internal cost of labor or licensing on the part of your internal IT department.
PeopleSoft users that are already using Financials will discover the ease of integration with their other modules. Within Financials, there’s a natural integration with banking, cash, and reconciliation to General Ledger. You’ll also find the ease of comparison with Accounts Payables and Accounts Receivable. While most cloud systems have a great network of APIs, keeping all your data in a unified system is a key advantage because you won’t risk any data loss or migration issues.
When you’re on a cloud-based TMS, you’re reliant on a third party to host and manage your software and data, and their cost structure for monthly hosting and reporting fees. Though the up-front costs of using a cloud-based TMS provider are relatively inexpensive, the cost of data storage and data retrieval add up.
Leveraging a cloud-based TMS means going without the ability to customize the software to fit your critical business processes. On-premise systems allow for this added flexibility to required changes. Third-party cloud-based software frequently introduces risk due to system-side changes to the software that you did not request. This requires multiple testing to ensure that your system is not broken.
Data storage is another key benefit of staying on-prem. By hosting your data storage, your data will be in your company’s control.
Cloud security has come a long way since its advent, but there are advantages to storing sensitive data on-prem. Since a third-party provider isn’t involved, fewer people have access to your data. This means that if you choose to stay on-premise, your company is responsible for creating a system for ensuring the security of your data. Your data is in control with your experienced team of IT professionals.
Compliance can be a consideration in deciding whether or not to stay on-premise as well. Many companies in the financial and healthcare industries are subject to compliance with mandates such as HIPAA and CCPA. For on-premise systems, this means educating your internal team on what it means to stay in compliance. Though this can be an effort on your part, it also allows for more agility and flexibility to keep up with changing compliance standards.
With all the advantages and drawbacks of deciding whether or not to move to cloud or stay on-premise, weighing your options can be tricky. Luckily, Elire is here to help. Take a look at our PeopleSoft and Treasury Advisory consulting services and reach out to [email protected] to schedule a time to discuss your organization’s unique needs.