Why a Cloud-Based TMS Is Safer and Cheaper Than On-Premise Servers

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2 minute read

Author: M.S.

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For years, on-premise servers were the default for Transportation Management Systems (TMS). Companies invested heavily in hardware, IT teams, maintenance contracts, and physical infrastructure just to keep their systems running.

Today, that model is quickly becoming outdated.

Cloud-based TMS platforms aren’t just more convenient, they’re fundamentally safer, more cost-effective, and easier to scale than on-premise systems. Here’s why more logistics companies are making the shift.

Lower Upfront and Ongoing Costs

On-premise systems come with significant hidden expenses.

You’re not just paying for software, you’re paying for:

• Physical servers and networking equipment

• Installation and configuration

• Dedicated IT staff or external consultants

• Ongoing maintenance, upgrades, and repairs

• Power, cooling, and physical space

  
  

Cloud-based TMS platforms eliminate most of these costs. There’s no hardware to buy, no servers to maintain, and no expensive upgrades every few years. Updates happen automatically, without downtime or additional fees. This allows for predictable monthly costs instead of large capital expenditures.

Stronger Security Than Most In-House Setups

Many companies assume on-premise servers are more secure because they’re “in-house.” In reality, the opposite is often true.

Cloud providers invest heavily in:

• Enterprise-grade encryption

• Continuous security monitoring

• Redundant backups

• Regular penetration testing

• Compliance with industry security standards

  
  

Most internal IT teams simply don’t have the resources to match this level of protection 24/7.

Cloud-based TMS platforms also reduce human error, one of the biggest causes of data breaches, by automating updates, patches, and security protocols. This means stronger protection against data loss, cyberattacks, and system failures.

Built-In Redundancy and Disaster Recovery

With on-premise servers, a single event can bring operations to a halt:

• Power outages

• Hardware failure

• Fires or floods

• Accidental data deletion

  
  

Cloud-based systems are designed with redundancy across multiple data centers. If one server goes down, another takes over automatically, often without users even noticing.

Backups are frequent, automated, and geographically distributed for higher uptime, faster recovery, and less operational risk.

Easier Scalability as Your Business Grows with a Cloud-Based TMS

Scaling an on-premise system means more hardware, more setup time, and more costs.

Cloud-based TMS platforms scale instantly:

• Add users without buying servers

• Increase data volume without infrastructure changes

• Support new locations, branches, or business units easily

  
  

Whether you’re growing steadily or handling seasonal spikes, the system adapts without disruption.

Easier Remote Access and Collaboration

Modern logistics teams aren’t tied to a single location.

Cloud-based TMS platforms allow:

• Secure access from anywhere

• Real-time collaboration across offices

• Controlled permissions for partners, carriers, and customers

  
  

On-premise systems often struggle with remote access, VPN reliability, and performance issues. If you want better visibility, faster decisions, and more flexible operations then cloud-based solutions are the way to go.

To Summarize…

On-premise servers may have worked in the past, but today they introduce higher costs, greater risk, and unnecessary complexity. A cloud-based TMS delivers lower total cost of ownership, stronger security, built-in redundancy, and the flexibility to scale as your operation evolves. 

Amous TMS is built cloud-first, leveraging enterprise-grade infrastructure, continuous updates, and high availability, without forcing teams to manage hardware or IT overhead. That said, we understand there are cases where on-premise or dedicated server deployments are required due to business, regulatory, or operational needs. For that reason, Amous can be deployed in the environment that best supports your continuity, security, and long-term growth, without compromising performance or flexibility.