On-Premise vs. Cloud-Based Digital Signage: Key Differences and Benefits in 2024

Picture this: You’ve invested in the perfect digital signage solution. Your screens are set up, content is ready, and you’re all set to grab attention. But then, the dilemma hits — on-premise or cloud-based? Which choice is right for your business in 2024?

Digital signage isn’t a one-size-fits-all solution. It’s a dynamic tool that can revolutionize the way you engage your audience, but only if you choose the setup that fits your needs like a glove.

With technology advancing at lightning speed, the decision between on-premise and cloud-based digital signage has become more crucial than ever. Are you looking for absolute control with on-premise options? Or do you want the flexibility and scalability that cloud-based solutions promise?

The stakes are high. One wrong move could mean wasted investment, poor performance, and missed opportunities to connect with your audience. But the right choice could transform your business, boosting visibility, engagement, and, ultimately, your bottom line.

To help you make the best decision, we’ll break down the key differences and benefits of both on-premise and cloud-based digital signage. Here’s a sneak peek at what we’ll cover:

• What is On-Premise Digital Signage? Understand the fundamentals and uncover the benefits of keeping everything in-house.
• What is Cloud-Based Digital Signage? Discover how going remote can offer flexibility, scalability, and streamlined management.
• Technical Differences: A detailed look at the infrastructure, costs, and maintenance needs of both solutions.
• Decision-Making Guide for 2024: Tips and insights for choosing the right solution based on your unique requirements.

By the end, you’ll have a clear understanding of which digital signage setup can elevate your business in 2024 and beyond. Let’s get in and see what makes these two options so distinct — and why your choice matters more than ever.

What is On-Premise Digital Signage?

On-premise digital signage is a solution where all the software and hardware required to manage digital content are hosted and maintained directly at your location — typically within your own data centers or IT infrastructure. For organizations considering numerous colocation suppliers, this option allows for greater control and flexibility over their digital signage infrastructure. Unlike cloud-based systems that rely on remote servers managed by third-party providers, on-premise digital signage operates entirely under your roof. This setup gives businesses full control over their content management systems (CMS), network configuration, data storage, and security protocols.

At the heart of an on-premise solution is a locally installed digital signage server. This server is the central hub that manages content distribution, playback, scheduling, and monitoring of all connected displays. The content — whether videos, images, text, or interactive elements — is stored on this server and then delivered across the network to your digital screens. This means your entire network, from the server to the display, is connected through your internal infrastructure.

How On-Premise Digital Signage Works

Here’s a more detailed breakdown of the technical components:

• Local Server Setup: The core of on-premise digital signage is the local server. This server hosts the content management software (CMS) and databases that store all digital assets. Businesses typically have their IT team configure this server, integrating it with their existing network infrastructure. This server can handle multiple functions, including content scheduling, remote monitoring, and real-time updates, ensuring a streamlined operation without relying on external internet connectivity.
• Direct Network Control: With an on-premise system, all content is pushed to your digital displays over your internal network (LAN or WAN). This enables greater control over bandwidth management and minimizes latency issues that could affect playback quality. The closed network also means content delivery is isolated from internet-related disturbances, providing consistent performance even during peak usage times.
• Customizable Software: The software in an on-premise setup is highly customizable. You can tailor it to your exact needs — whether that involves integrating specific APIs, building custom features, or creating unique workflows. This flexibility is especially valuable for businesses in regulated industries where certain software configurations are mandatory for compliance.
• Hardware Integration: On-premise digital signage allows seamless integration with your existing hardware and peripherals. Whether it’s connecting with on-site servers, security cameras, sensors, or interactive kiosks, you have the flexibility to create a comprehensive ecosystem tailored to your operations. Your IT team can fine-tune the hardware setup to ensure optimal performance.
• Security Measures: One of the standout features of on-premise digital signage is the level of security it offers. All data, content, and communications stay within your internal network, reducing exposure to external threats. You can implement advanced security protocols, such as firewalls, encryption, multi-factor authentication, and intrusion detection systems. This is particularly vital for organizations handling sensitive data or operating in sectors with stringent privacy regulations, such as healthcare or finance. Those organizations need also an insider threat platform to safeguard against internal security risks and ensure comprehensive protection.

Benefits of Keeping Everything In-House

On-premise digital signage comes with a range of benefits that might make it the right fit for many businesses. Let’s delve deeper into some of the key advantages:

• Unmatched Control Over Data and Content: When you host everything locally, you have granular control over data storage, access, and usage. This can help you avoid the risks associated with third-party data breaches or cloud vulnerabilities. For businesses that prioritize data sovereignty, such as those handling confidential client information, this is a significant advantage.
• Reliability and Reduced Latency: Operating within a local network reduces dependence on external internet connections, meaning your content continues to display without interruption. Latency is minimized, and you won’t face delays due to fluctuating internet speeds. This is crucial for applications where split-second information delivery is necessary, such as in stock exchanges, emergency services, or live event broadcasts.
• Compliance and Customization Flexibility: Many organizations, especially in sectors like healthcare, government, or finance, must adhere to strict regulatory compliance. On-premise solutions provide the flexibility to modify software and systems to meet these specific requirements. This customization can include everything from data handling procedures to user access controls, ensuring the setup aligns perfectly with regulatory guidelines.
• Long-Term Cost Control: While the upfront investment may be substantial — covering hardware, software licenses, and installation — an on-premise system can provide cost control over the long run. You avoid the recurring subscription fees and data storage costs typical of cloud-based services. For companies managing a large network of displays, these savings can be significant.
• Integration with Existing Systems: An on-premise digital signage solution can easily integrate with your existing IT infrastructure, including customer databases, point-of-sale systems, or customer relationship management (CRM) platforms. This integration allows for dynamic content updates and a more cohesive digital strategy.

According to a 2023 report by MarketsandMarkets, the global on-premise digital signage market is projected to grow at a CAGR of 7.3% from 2022 to 2027, driven by increasing demand for secure and customized digital signage solutions in regulated industries. This highlights a continued preference among many businesses for keeping their digital signage in-house.

An on-premise setup might be right for you if you value full control over your data, require maximum security, or have specific compliance needs. It’s an ideal choice for organizations that already have a robust IT infrastructure in place and are looking to leverage their existing capabilities to manage their digital signage networks.

What is Cloud-Based Digital Signage?

Cloud-based digital signage is a modern approach where everything is managed remotely through the cloud, giving you the freedom to control your digital displays from virtually anywhere. Instead of hosting servers and software locally, the content management system (CMS), data storage, and processing power are housed in data centers operated by a third-party provider. This setup eliminates the need for businesses to maintain their own hardware infrastructure, offering a solution that’s flexible, scalable, and easy to manage.

By utilizing the cloud, your digital signage system operates on a centralized platform that connects all your displays across multiple locations. This connection allows for seamless updates, real-time monitoring, and remote troubleshooting, making it ideal for organizations that require a scalable solution without the complexities of managing on-site servers.

How Cloud-Based Digital Signage Works?

Here’s a more in-depth look at the key components:

• Centralized Content Management: The core of a cloud-based digital signage solution is its cloud-hosted CMS. This software platform allows you to upload, schedule, and distribute content to all your screens from a single dashboard. Everything — from video ads to social media feeds and emergency alerts — can be managed remotely, providing unmatched convenience and control. With an internet connection, updates are sent instantly to every connected display, regardless of their location.
• Flexible Scalability: Cloud-based digital signage is inherently scalable. Adding a new display or location is straightforward; it only requires a compatible device connected to your network. There’s no need to worry about expanding local infrastructure or purchasing new servers. Whether you operate in one city or across multiple countries, you can effortlessly manage your entire network from one cloud-based platform.
• Remote Monitoring and Troubleshooting: One of the biggest advantages of cloud-based systems is the ability to monitor and troubleshoot displays remotely. With the CMS accessible from anywhere, you can check the status of your screens, push new content, or resolve issues in real-time. This reduces the need for on-site IT support, minimizing downtime and ensuring a consistent, reliable experience for your audience.
• Automatic Software Updates: Cloud-based digital signage platforms automatically update to the latest software versions, ensuring that your system always runs on the most current and secure technology. This eliminates the hassle of manual updates and reduces the risk of security vulnerabilities. The provider manages these updates, so your team can focus on creating engaging content rather than dealing with system maintenance.
• Cost Efficiency: Moving to a cloud-based solution can reduce upfront costs since there’s no need to invest heavily in on-premise hardware or dedicated servers. Instead, businesses typically pay a subscription fee that covers software, hosting, and support. This model can be more budget-friendly for many organizations, particularly those looking for a low-cost entry point or who want to avoid capital expenditures.

CrownTV’s cloud-based digital signage dashboard provides a centralized platform to manage displays globally, offering features like content takeover management, split-screen displays, and real-time analytics.

This digital signage software enhances scalability and security with enterprise-grade protection and flexible access controls, making it easier to manage thousands of remote screens as if they were a single digital display. The intuitive design integrates with cloud storage and third-party apps, ensuring seamless content updates and display management.

Benefits of Going Remote with Cloud-Based Digital Signage

Cloud-based digital signage offers several key benefits, particularly for businesses looking for flexibility and ease of management. Here are some of the most compelling reasons to consider going cloud-based:

• Ease of Management Across Multiple Locations: If your business spans several locations or you’re planning to expand, cloud-based digital signage provides a straightforward solution. Managing content centrally from a cloud platform means less time spent coordinating between teams or traveling to different sites. You can quickly deploy new campaigns, update messaging, or push emergency notifications to all your screens at once.
• Real-Time Content Updates: The ability to update content in real time is a significant advantage. Whether you want to display breaking news, social media feeds, or time-sensitive offers, cloud-based digital signage allows you to respond instantly. This dynamic capability can boost engagement and keep your messaging relevant, no matter how fast things change.
• Lower IT and Maintenance Overhead: With the cloud provider handling much of the heavy lifting — such as server maintenance, security updates, and data backups — your internal IT team is freed up to focus on more strategic tasks. A study found that businesses using cloud-based digital signage reduced their IT overhead by up to 30%, thanks to streamlined management and automated updates.
• Enhanced Security and Compliance: Contrary to some perceptions, cloud-based solutions can offer robust security. Leading providers employ advanced encryption, multi-factor authentication, and compliance with global data protection standards. They also maintain regular backups and disaster recovery plans, helping to safeguard your content and minimize downtime risks.
• Data-Driven Insights and Analytics: Cloud-based systems often come with built-in analytics tools that provide insights into how your content is performing. This data helps you understand audience engagement, optimize content, and make informed decisions to improve your digital signage strategy. You can easily track metrics like dwell time, audience demographics, and interaction rates to fine-tune your campaigns.

Cloud-based digital signage is an excellent choice for businesses that value flexibility, scalability, and minimal maintenance. If your organization has multiple locations or requires the ability to update content rapidly and remotely, this solution might offer the ideal blend of convenience and functionality. It’s also suitable for those who want to avoid high upfront costs and would prefer a predictable subscription-based model.

Technical Differences Between On-premise and Cloud-based Digital Signage

Choosing between on-premise and cloud-based digital signage involves weighing several key factors that can impact your business’s day-to-day operations and long-term strategy. From the infrastructure required to the overall costs, and from security measures to scalability, each approach offers unique benefits and challenges. Here’s a breakdown of the five critical differences to consider:

1. Infrastructure Requirements

The foundation of any digital signage system lies in its infrastructure. This includes everything from the hardware and software to the network that supports it. While on-premise and cloud-based solutions both serve the same purpose, they differ significantly in how they are set up and maintained.

• On-Premise Digital Signage: On-premise digital signage demands a robust infrastructure that includes local servers, storage devices, networking equipment, and compatible displays. Everything from content management to data storage happens within your facility, which means you’ll need adequate physical space and environmental controls, like cooling systems and power backups, to ensure seamless operation. This setup also requires a dedicated IT team to manage server configurations, network maintenance, and integration with existing systems. Businesses with existing IT resources and infrastructure may find this option aligns well with their capabilities. Using IT inventory management software can help streamline the tracking and maintenance of hardware components, ensuring efficient operations and preventing downtime.
• Cloud-Based Digital Signage: Cloud-based digital signage operates without the need for extensive on-site hardware. The content management system (CMS), data storage, and processing power reside in the cloud, managed by a third-party provider. Your primary requirements are an internet connection and cloud-compatible displays. This setup reduces the physical and technical footprint, making it easier for businesses to deploy digital signage without significant infrastructure investments.

2. Cost Considerations

Costs can vary widely depending on whether you choose an on-premise or cloud-based solution. It’s essential to understand both the initial investments and the ongoing expenses that come with each option, including how these costs can scale over time as your business grows.

• On-Premise Digital Signage: The initial investment for on-premise solutions is higher due to costs associated with purchasing hardware, software licenses, and installation. However, there are no recurring subscription fees, which can lead to more predictable costs over the long term. For businesses with a large network of displays, this model can be more cost-effective if the infrastructure is already in place and the organization has the capacity to handle ongoing maintenance internally.
• Cloud-Based Digital Signage: Cloud-based digital signage typically involves lower upfront costs but includes recurring subscription fees for software, hosting, and support. This pay-as-you-go model can offer greater flexibility for businesses that prefer predictable monthly expenses. However, the total cost may increase over time as the network scales or as higher service levels are required. Additionally, potential costs for increased data usage or specialized services should be considered.

3. Maintenance and Support Needs

Every digital signage solution requires maintenance and support to ensure smooth operation. The difference lies in who handles these tasks and how much effort is required. While some businesses prefer to maintain full control, others may opt for solutions that reduce the need for in-house support.

• On-Premise Digital Signage: On-premise solutions require consistent, hands-on maintenance. Your IT team is responsible for software updates, troubleshooting, hardware repairs, and network monitoring. While this allows for a tailored system, it also means you need the necessary expertise and resources in-house. The need for regular upkeep and potential hardware replacements can add to operational costs over time.
• Cloud-Based Digital Signage: With a cloud-based solution, most maintenance tasks are managed by the provider. This includes software updates, data backups, security monitoring, and server maintenance. Your team can focus on strategic initiatives instead of routine technical work. However, reliable internet connectivity is essential; if connectivity issues arise, it can disrupt service. Most cloud providers offer robust support, but response times may vary.

4. Security Measures

Security is a critical concern for any digital signage network, especially in industries managing sensitive data. Both on-premise and cloud-based solutions use different methods to protect content, data, and network integrity. Knowing these measures can help you choose the best option for your organization’s security needs and technical expertise.

• On-Premise Digital Signage: For organizations with stringent data privacy requirements, on-premise solutions provide unmatched control over data security. With all data staying within your network, you can establish custom safeguards like advanced firewalls, encryption, and multi-factor authentication tailored to your needs. This approach is particularly beneficial in regulated sectors like healthcare, finance, and government, where compliance is non-negotiable.
• Cloud-Based Digital Signage: Cloud-based solutions rely on the digital signage technology infrastructure of the service provider, which includes encryption, authentication, and security audits. While data transmission over the internet can pose a slight risk, leading cloud digital signage providers employ advanced security measures and adhere to standards like GDPR and ISO. It’s vital to verify a provider’s compliance and protocols to ensure your data remains secure.

5. Scalability and Flexibility

How easily a digital signage solution can scale and adapt to your business’s changing needs is a crucial factor to consider. While both options offer ways to expand and modify your network, they differ in how quickly and efficiently these changes can be implemented.

• On-Premise Digital Signage: Scaling an on-premise digital signage network often involves significant investment in new hardware and infrastructure upgrades. Adding more digital signage displays or locations means purchasing additional servers, expanding network capacity, and possibly reconfiguring existing systems. This process can be time-consuming and costly, especially for businesses with limited technical resources or space constraints.
• Cloud-Based Digital Signage: Cloud-based solutions are inherently more scalable and flexible. Adding new displays or expanding to new locations is straightforward, often requiring no more than a new device and an internet connection. The cloud platform can accommodate growth without substantial changes to your existing setup. This flexibility makes cloud-based digital signage an ideal choice for businesses expecting rapid growth or those with fluctuating needs.

Each digital signage approach has distinct technical considerations that impact your business differently. On-premise solutions offer unmatched control, security, and long-term cost predictability but require significant upfront investment and in-house expertise. Cloud-based solutions provide flexibility, scalability, and reduced maintenance but come with ongoing subscription fees and depend on reliable internet connectivity.

Conclusion: Choose the Right Digital Signage Solution for Your Business

Deciding between on-premise and cloud-based digital signage systems comes down to what fits your business’s unique needs. Both options have their strengths — from the control and security of an on-premise setup to the flexibility and ease of management offered by a cloud-based solution. By understanding the key differences in infrastructure, costs, maintenance, security, and scalability, you can make an informed choice that will maximize your investment and set you up for success in 2024 and beyond.

Here’s a quick recap of the highlights:

• Infrastructure Requirements: On-premise solutions demand robust in-house hardware and IT management, while cloud-based options simplify setup with remote access.
• Cost Considerations: Weigh the upfront investment of on-premise against the subscription-based model of cloud-based systems.
• Maintenance and Support Needs: Consider whether you have the resources for in-house management or prefer the hands-off convenience of cloud-based services.
• Security Measures: Evaluate the direct control of on-premise solutions versus the advanced security protocols managed by cloud providers.
• Scalability and Flexibility: Decide if you need the rapid scalability of cloud-based signage or the tailored, controlled growth of on-premise systems.

No matter which path you take, the right digital signage solution will enhance your communication strategy, engage your audience, and drive business growth. By focusing on what matters most to your organization, you can choose a system that aligns with your goals and elevates your digital presence. This decision can transform your business’s visibility and impact, providing the digital signage solution that keeps your digital signage content fresh, relevant, and always in front of the right eye.

CrownTV seamlessly bridges the gap between on-premise and cloud-based digital signage, offering advanced cloud-based software, versatile media player, and digital signage implementation services that include expert installation and ongoing support. Our platform integrates with various apps and third-party tools, providing endless customization possibilities. Whether you need remote content updates, secure management, or a tailored digital signage strategy, CrownTV‘s comprehensive services ensure that every display performs at its best, from single-location setups to complex, multi-site deployments.