Cloud or Self-Hosted Project Management Software? That Is the Question

Project management needs to be flawless for companies to flourish. Good managers cannot excel at their functions without a decent project management tool. But the moment the managers start looking for optimized solutions for their companies, they are bombarded with the complex question – should they go with the cloud management system or the self-hosted project management system?

Let’s explore the two options and understand the two forms of a project management tool so that managers can make the right selection for their organization.

Cloud Versus Self-Hosted Project Management System

Cloud or Self-Hosted Project Management Software

A cloud based project management tool is available at a monthly subscription by the service provider. The data is stored on remote servers (known as the cloud), which means that the organization will not require servers of their own. Conversely, self hosted project management software enables organizations to manage their own servers. Usually, self-hosted systems have more features and can be customized better according to the organization’s needs.

Data Security

In cloud based systems, the security of the network and data is the responsibility of the service provider. Since the reputation of the cloud based solution providers depends on the security, they tend to take extreme precautions.

However, with a self-hosted project management tool, the administrators have the leeway to control the bandwidth, the networks users and server storage capacity. So, if the managers want maximum control over security by taking personalized measures, then self-hosted solutions are better.

Maintenance and Installations

With the cloud based project management systems, the users simply have to log on to the system and start working. System upgrades, introduction of new features, and elimination of bugs is not the concern of the company’s own IT.

On the other hand if the managers choose to use a self-hosted management system for their company, then the installation and the maintenance of the project management system is the responsibility of the company’s IT technicians or IT service providers. However, some self-hosted project management tool providers do extend their services at the hardware installation level.

Payment Plan

Cloud solutions allow organizations to pay according to monthly rates or get annual subscriptions. The functional user will get the benefit of choosing between different packages and change your subscription plans according to the needs. On the other hand, self-hosted system requires the company to pay one time licensing fee, which will then give the company the entitlement to the project management tool.

This is the main reason why the fee of a self-hosted project management system is much higher as compared to subscription fees. Thus, the complete cost of an IT infrastructure is magnified. But look at the bright side, the company using a self-hosted project management tool does not have to pay the subscription fee periodically as they own the software.


The cloud based management system puts a restriction on the number of users. But, the managers can procure different packages to include more users. On the contrary, self-hosted management tools often do not limit the number of users. So if a company has diverse teams collaborating on various projects, then using a self-hosted management tool is the most viable option.

Data Storage

Data Storage

Especially, for the creative agencies, data storage is a top priority. Such companies often work with a great number of large files, which makes the data storage a concern. Cloud based solutions often provided limited capacities.

If the business data storage requirement of a company is not immense, then a cloud based project management system will be fine. However, if a company deals with Gigabytes of information, then it is best to procure a self-hosted project management system because of its unlimited capacity. 🙂

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About the author

Michael Austin

Michael Austin is a Internet Entrepreneur, Blogger, Day Dreamer, Business Guy, Fitness Freak and Digital Marketing Specialist. He also helps companies to grow their online businesses.