This blog discusses how cloud-based technology is transforming tool management software and what the actual differences are between an on-premise and a cloud-based tool data management software solution for small and medium sized enterprises alike.
The benefits of tool data management software
Rather than using more traditional, excel-based spreadsheets with manual input, both on-premise and cloud-based tool data management systems help CAM and CNC programmers to be more effective in their creation of tool assemblies or in the inputting of data into CAM programs. The software allows for quick and easy access to tooling information, helping to make new and revised tool creation more efficient.
The difference between the two types of system begins with their geography:
What is on-premise tool data management software? - On-premise (or on-premises) systems are located on the company’s physical site and rely on software and databases that are installed and run on servers and computers owned and managed by the manufacturer. What this means in practice is that delays can happen while waiting for the contracted software provider, the company’s IT team or systems integrator to update software on the central server or individual machines, with additional costs for anything outside of the service agreement.
What is cloud-based tool data management software? - A cloud-based tool data management software system is hosted and managed by a third-party provider off-site and is accessible via the internet from computers, smart phones and tablets in the company’s office, at home or by specified operators in the field. Access is only granted via encrypted processes to ensure secure operation.
Save time and improve efficiency with cloud-based solutions
Increasingly, both medium and smaller sized machine shops, metal shops and other businesses are making the move to cloud-based systems. This is for a number of reasons, including:
Cost efficiencies and quick set up - The installation of an on-premise tool data management software can take a long time and requires initial significant investment. A cloud-based solution, however, is a subscription-based service that spreads the cost of use and doesn’t involve capital expenses, meaning up-front costs are eliminated.
Data cross site without additional IT infrastructure – Due to the nature of on-premise tool data management solutions, it is difficult to ensure that real-time data is available across the company’s different machines and sites. However, cloud-based systems excel at this, enabling all parties to be reassured that they are working from one controlled source of the latest tool data, making real-time collaboration between machining teams and programmers more straightforward.
Security and support – Understandably, having a secure system is essential. On-premise solutions require the company to keep up to date with the latest compliance regulations and security updates, using either their own technical team or an external supplier to do so. Today’s cloud-based tool management solution providers take care of IT storage, backups and the latest security updates to protect customer data from breaches. They also provide users with automatic data back-ups and disaster recovery services.
Snapshot of cloud versus on-premise tool data management software
| Category | Cloud-based | On-Premise |
| Level of accessibility | Accessible from anywhere (web/mobile/tablet). | Additional security features such as VPNs are needed for external access. |
| Real-time collaboration | Real-time and easy access across departments and locations. | Shared access requires internal IT infrastructure. |
| Funding | Subscription-based (monthly/yearly), transparent ongoing operating cost for ease of budgeting. | Upfront license fees + hardware + ongoing IT maintenance. Capex rather than Opex cost. |
| Storage of data | Stored in a secure cloud environment with backups. | Stored locally on company servers or PCs. |
| Time of set up | Quick deployment (hours to days). Demos, trials, sign-up and onboarding data all online. | Longer setup time (weeks), including hardware and IT integration. On-site access required or secure remote access. |
| System maintenance | No maintenance required. | Company needs an IT team to manage updates, security, and backups. |
| Scalability | Easily scalable with growing teams and tool libraries. | May require additional servers/software for scaling. |
| Security | Cloud encryption, multi-factor authorization, role-based access. | Depends on local IT infrastructure and protocols. |
| Offline Access | Limited (requires internet) | Full offline access available. |
| Customization | Limited (controlled by vendor) | Highly customizable (if you have in-house dev/IT support). |
| Compliance | Built-in audit trails and version control | Must be implemented and maintained manually. |
Toolhive’s cloud-based tool data management solution
Toolhive offers medium and small enterprises alike an easy-to-use cloud-based tool data management solution for storing, accessing and managing tool data within a centralized system. It delivers all the benefits of a cloud-based solution, whilst offering cost and operational efficiencies to both small and medium manufacturing enterprises.
If you are wanting to reduce wasted labor hours and have increased confidence in your business through the storing, accessing and managing of your tool data within a centralized, easy-to-use system, then why not click HERE to find out more?