There’s a lot of decisions you need to make if you’re looking for a new accounting system for your construction company. You’ll have to consider how many users you’ll need, the cost of those users, and not to mention, what key features you’re hoping to use.

What’s more, is that you’re going to have to come to a decision on what type of software or construction financial management solution your company will use. There are a lot of options out there, which can make it difficult to figure out if you should go with a legacy on-premise server or a solution that is truly cloud-based.

It’s a big step to implement a system and can cost a lot of time and money. However, before you make a decision, you need to first educate yourself on what is the right choice for your business. So, read on to learn the pros and cons of both on-premise and cloud software.

Differences Between On-Premise and Cloud-Based   

The main difference between on-premise and cloud software is where the software is located.

On-premise software is downloaded directly to your computer. The program itself and its data are both stored solely on your computer. So if you want to access the information, then you need to be using the computer you downloaded the software to.

Cloud software is connected to the internet. It stores its information online so that it doesn’t take up space on your computer. You can also access this software from any computer using an online account with an internet connection.

Pros and Cons of On-Premise Software  

On-premise software used to be the only way to do things, and during its inception in the nineties, having an on-premise server was advanced for its time. But a lot has changed since then and construction technology has rapidly advanced over recent decades.

Is it worth using on-premise software over a cloud-based product?


The first benefit of having on-premise software is that it doesn’t require an internet connection. If your wifi happens to go down while you’re working, then there’s no problem. This can save you a lot of headaches if your workstation’s internet is a little spotty.

For laptops, this means that no matter where you are, you can still access your software. So you can feel free to take your computer to a park with no public wifi to work.

It saves everything to your computer. This makes it easy to select where it’s being saved so you can find it again later. That means you can avoid confusion and frustration later by keeping organized folders on your PC.

This data will not be deleted from your computer unless you do it yourself. So if you have a file that you don’t often use, you can trust that it will still be there when you need it again.


Unfortunately, on-premise software can be difficult to manage. If you need to have multiple computers with the same software, then you often need to buy multiple copies of it for each computer. And oftentimes, this means that each station has different data with it.

On-premise software also often has longer implementation times. You have to wait a while for the software to download or update. Once it’s done, you usually have to restart your computer to make it work.

There are a lot of moving parts in the construction industry. Before you make a decision on your construction software, ensure that you have the capabilities and time to perform an implementation with the system that you choose.

Pros and Cons of Cloud Software  

Cloud ERP is a relatively newer concept that’s been quickly overtaking offices everywhere. The rise of the internet has made connecting to software programs easier than ever. That’s why this new digital age has changed how workplaces look and operate in recent years.


The main issue with cloud computing is that it requires access to the internet. The good news is that the internet is almost everywhere these days. It seems like every building and even some parks have wifi available for everyone to use. So, unless you live somewhere that doesn’t have reliable internet, then this shouldn’t be too much of an issue for you.

But if you do live somewhere with limited wifi, then you may be relying on data hotspots for your internet. This uses up a lot of data, and not everyone has an unlimited plan. That means that you may burn through your plan’s allotted data before the end of your pay cycle.

The good news is that this isn’t a common issue. There are plenty of places where people can take a laptop and work using the free wifi. Libraries and coffee shops, for example, often end up becoming offices for people in low-internet areas.


The first benefit of cloud software is its price. On-premise software tends to be expensive, and it adds up when you have to buy multiple users and an IT team to manage your server. Cloud software usually comes as a low-cost subscription that can be used by everyone in your office without buying multiple accounts.

This can end up saving you a lot of money in the long run, especially if it’s software your employees use every day.

Cloud software also tends to be a lot more secure. This is because it’s stored on an online server rather than on your computer. It makes it a little harder for hackers to get into your software even if they install spyware on your computer.

This makes your business and customers’ information much safer. You can go about your work feeling confident that your customers will never have a problem due to your business being hacked.

Evaluate Your Software Options

So, there are a lot of pros and cons to consider when comparing on-premise vs. cloud software. On-premise keeps everything in one place for you while cloud software is cheaper in the long run, saves space on your computer, and keeps you and your customers’ data secure.

While it’s clear that cloud software is the future for most businesses and can help reach your company’s bottom lines, switching your company to the cloud right now might not be the most opportune time. If your company is looking for change but is unsure, reach out to us to see how we can help!