The Pros and Cons: Cloud-Based vs. On-Premise ATS

This technology (ATS) has taken the recruitment world by storm and made the hiring process a lot more efficient for organizations of all sizes. Applicant tracking systems provide a centralized platform to streamline and manage the entire hiring process, from job posting and candidate sourcing to interviewing and onboarding. In today's competitive job market, the efficiency and effectiveness of an ATS can significantly impact an organization's ability to attract & retain top talent and stay ahead of recruitment trends.

It is essential for an organization to carefully select the best ATS software as per their recruitment strategy, as this will ultimately impact the growth of the business

What are Cloud-based & On-Premise ATS?

Cloud-based ATS are the cool kids on the block. They live in the digital cloud, making them accessible from anywhere with an internet connection. These systems are known for their ease of implementation, regular updates, and minimal IT maintenance.  

On the other hand, on-premises ATS are like the old-school professors who prefer things done in person. They reside on the company's servers, offering high levels of data control and security. Customization and integration are their middle names, allowing organizations to tailor the system to fit their unique needs.

Cloud-based applicant tracking systems are software solutions that are hosted on the Internet and can be accessed from anywhere with an Internet connection. These systems are typically subscription-based and are managed by a third-party vendor. Users can access the system through a web browser, and the software and data are stored on remote servers maintained by the ATS provider. Cloud-based ATS solutions offer flexibility, scalability, and ease of access from anywhere with an internet connection. This can be especially beneficial for companies with remote employees or multiple locations. They typically require less upfront investment in infrastructure and are often subscription-based. This type of software is often integrated with other cloud-based HR and recruiting software solutions. Additionally, some software companies may also offer automatic backups and disaster recovery options.

On the other hand, on-premise applicant tracking systems are installed locally on a company's servers and typically require in-house IT support for maintenance and updates. While on-premise systems may offer greater control over data security and customization options, they can be more time-consuming and costly to implement and manage. Adding to this, on-premise systems may not offer the same accessibility and flexibility as cloud-based systems. On-premise software may incur higher costs since backup & disaster recovery solutions, alongside integration with other HRIS components, would need effort.

How to choose the best software for your business needs?

One of the key factors to consider when choosing between cloud-based and on-premise applicant tracking systems is data security. Cloud-based systems often come with robust security measures in place, such as encryption and regular backups, to protect sensitive information. However, some companies may still have concerns about storing their data in the cloud due to potential security breaches.  

On the other hand, on-premise systems give companies full control over their data and may be seen as a more secure option for some businesses.

The key takeaway

Both cloud-based and on-premise applicant tracking systems have their own advantages and disadvantages; the best option for a company will depend on their specific needs and resources.  

While Cloud-based systems offer flexibility and accessibility, on-premise systems provide greater control over data security. Ultimately, each organization will need to carefully weigh the pros and cons of each system based on their recruitment strategies before making a decision on which option is best for their business goals.