Choosing between cloud and on-premises deployment is one of the first decisions when implementing a Document Management System (DMS). This guide explains the pros and cons of each model and answers common questions about security, scalability, and backup.

On-Premises vs Cloud DMS Deployment

One of the first decisions to make when selecting a Document Management System is how you want it deployed. Should your organization manage it on internal servers, or use a cloud-based platform maintained by the provider? Both models have their place, and each offers distinct advantages depending on your priorities.

This article explains the differences between cloud and on-premises DMS deployment, with answers to common questions about security, backup, and long-term scalability.

What is the difference between cloud and on-premises DMS?

The difference between cloud and on-premises DMS lies in hosting and management. On-premises systems are installed on your own servers and maintained by internal IT. Cloud systems are hosted by the vendor and accessed over the internet.

Cloud platforms offer easier deployment, lower maintenance, and better support for remote teams. On-premises models offer more control but require greater internal resources.

M-Files is available in both deployment models, allowing organizations to choose the option that aligns with their security, compliance, and infrastructure needs.

Are cloud-based DMS solutions secure?

Yes, cloud-based DMS platforms are secure when properly managed. They often include enterprise-grade encryption, secure transmission protocols, multi-factor authentication, and continuous monitoring.

Top vendors also maintain global infrastructure with built-in redundancy and hold certifications such as SOC 2 or ISO 27001. In many cases, the security standards of a cloud provider exceed what most businesses can maintain internally.

Cloud-first solutions like M-Files apply these protections by default, giving organizations a secure environment without the need for custom infrastructure.

How does a DMS address data backup and disaster recovery?

A cloud-based DMS typically includes built-in disaster recovery and automated backups. Your files are stored in multiple secure data centers, making recovery fast and reliable if disruptions occur.

With on-premises systems, backup and recovery are handled internally. You must create and manage your own policies, storage, and testing protocols to ensure business continuity.

Solutions like M-Files Cloud include redundancy and disaster recovery as part of the platform, easing the burden on internal IT teams.

How does cloud-based DMS scalability help a growing business?

Cloud-based DMS platforms scale easily as your business grows. You can quickly add users, expand storage, or activate features without infrastructure changes.

This flexibility supports fast-moving teams and remote work, one of the many advantages of a document management system. On-premises systems require physical upgrades and licensing changes, which add time and cost.

For organizations looking to grow without constant reconfiguration, platforms like M-Files offer rapid scalability and predictable performance.

Making the Right DMS Deployment Choice

Cloud and on-premises DMS solutions both offer value, but their differences matter. On-premises systems give you full control and deep customization. Cloud platforms reduce your IT burden, deploy faster, and scale with your business.

For many organizations, especially those prioritizing speed, flexibility, and simplicity, a cloud-based DMS offers a secure and practical path forward.

If you're unsure which approach best fits your organization's needs, our Ultimate Guide to Document Management Systems discusses cloud vs on-premises in context with other DMS decisions.

M-Files supports both deployment options, making it easier to match your document management strategy to your business goals. Start a free trial of M-Files and see how it meets your needs.