What is the price difference between cloud-based vs on-premise digital signage software?

When evaluating options for cloud-hosted and on-premise digital signage platforms, the most important factor to review is how you want to manage your system and what types of ongoing costs work for you. Both types of products offer different benefits regularly, however, their financial models and ownership models are fundamentally different.

1. Cloud-Based Pricing

Cloud-based digital signage software has a subscription model. Protecting a monthly fee per screen per month, which will typically amount to a range of $12 to $18 according to the provider and functionality. Your monthly fees are paying for cloud-hosting and data storage, updates, technical support, and access to any management tools.

One of the best attributes of any cloud-based software solution is the absence of server hardware. The vendor owns everything and sources into their server, which naturally mitigates the overall cost of setup and maintenance of the software.

2. On-Premise Pricing

On-premise systems, on the other hand, require a larger upfront investment. You need a dedicated server that costs around $2500 to $3000, and you must purchase software licenses for each screen, which cost between $600 and $800. The total can add up quickly, especially for networks with many screens. However, once paid, this license is perpetual, meaning you own it indefinitely.

3. Comparing Long-Term Costs

If you calculate over several years, an on-premise setup equals roughly six to eight years of cloud subscription fees. The cloud model offers flexibility and lower initial expenses, while on-premise systems provide long-term savings for large enterprises that prefer ownership over recurring costs.

4. Which One Should You Choose?

Cloud systems are ideal for small to medium businesses that value convenience and minimal maintenance. On-premise systems are best for enterprises that prioritize data control, security, and long-term cost stability.

In conclusion, cloud solutions have a lower upfront cost and greater flexibility, while on-premise systems require higher initial investment but provide more control and potential savings over time.