Our very own Howard Turner was interviewed for a recent article about cloud WMS in Modern Materials Handling. He talked about pricing differences between cloud and on-premise systems. Use the link below to read the article!
While cloud WMS vendor fees vary, says Turner, as a general rule, subscription fees under a software-as-a-service (SaaS) model significantly cut upfront implementation costs versus on-premise deals, since license fees are spread out on an operational or “OpEx” basis, with no server hardware to acquire.
However, some potential user companies project software costs over a longer horizon, say five years or more, and figure running a WMS on-site, even with an annual maintenance fee, is less costly over the long haul, Turner notes.
But a narrow outlook on cloud software costs versus on-premise software costs may overlook some key advantages of the cloud model, adds Turner. One of the most important is that with cloud and SaaS, vendors regularly send out updates to the system to keep users on the latest software. That can avoid big “migrations” to new WMS versions every few years, which Turner notes “can end up being almost as costly as the original project.”
Click here to read the article on the Modern Materials Handling site!
