Cloud vs. Onsite EDI

When implementing an electronic data interchange system, you will need to decide if you would like to store your data in the cloud or on-premise. Whether you are hosting the EDI software yourself or moving it to the cloud, this decision can affect how your system operates. Each has its own pros and cons, which makes it important to choose the EDI solution that best meets your organization's needs.

Scalability

Cloud EDI software is easily scalable, so if your company is growing rapidly, the system can adapt quickly to new clients and new services. On-site EDI can require additional hardware investments as you expand and take on more clients. Since you house the data on-premise, setting up this new hardware can slow down your growth, and you'll need to hire experts in order to oversee and maintain this hardware. With Cloud EDI, your hosting company handles all the scalability issues, letting you focus on your core business. 

Integration

Moving to the cloud allows you to have more flexibility and more streamlined integration with other systems. Your cloud EDI software can be fully integrated with other business software systems you might be using, such as enterprise resource planning. When data is stored in the cloud, you can access it anywhere as long as you have an Internet connection. This allows your team to use EDI services on their mobile devices, which boosts productivity. Depending on your business, this mobile integration can be a great benefit. 

Costs

Hosting your EDI architecture onsite can incur additional costs. You will need to maintain your own hardware and hire staff to manage it. However, with cloud EDI your team will enjoy the full benefits of a modern, integrated EDI system, and the hosting company will take care of the hardware maintenance. Onsite EDI will also incur security costs, as it's your responsibility to protect data and manage access. 

Security

If you keep your data in-house, you will not have to worry as much about data or security leaks. However, you will need to hire more IT staff in order to monitor this data, whereas in a cloud EDI system, the hosting service would be responsible for security. On-premise EDI puts the power to manage your data security in your hands, but there are also costs and risks that come with it. Although some companies with sensitive data prefer to keep it on-premise, cloud EDI is by no means less secure. As more services make the move to cloud computing, cloud security continues to develop and adapt to new challenges. 

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