Guide

Cloud WMS or on-premise server: how to choose

A cloud WMS is operated by the provider on its servers and paid for as a service; an on-premise WMS is installed on the company's own infrastructure, and the company takes on the server, the backups and the connectivity. The cloud reduces the initial cost and the IT workload; an on-premise server gives control over where the data resides in exchange for operating it.

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Guide
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3 min
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6

Reviewed October 29, 2026 by the Business in a Wave team

The three hosting options

Between the shared cloud and an on-premise server there is an intermediate option that many companies overlook:

Option Where the data resides Who operates the server
Cloud on a shared server The provider's servers, shared by several companies, each with its own database The provider
Dedicated server A server for your company only, operated by the provider The provider
On-premise (self-hosted) server A server owned by your company: your data center or your virtual server Your IT team

Comparison

Criterion Cloud On-premise
Initial cost Low: there is no server to purchase Server, operating system and installation
Recurring cost The service fee The license, plus IT time, power and backups
Updates Applied by the provider Scheduled and applied on your server
Backups Performed by the provider Performed by your team, unless the service includes them
Availability Depends on the provider and your internet connection Depends on your server, your power and your network
Data residency Wherever the provider hosts its servers On your infrastructure
Access from several warehouses Over the internet, with no additional configuration Requires publishing the server or a private network

When the cloud is the better choice

  • The company does not have an IT team that operates servers every day.
  • There are several warehouses or people who work outside the office network.
  • The company wants to start quickly, without purchasing equipment.
  • Updates and backups must take place without depending on one person.

When an on-premise or dedicated server is the better choice

  • A corporate policy or a contract requires the data to reside on a specific infrastructure.
  • The company already operates a data center with backups, backup power and monitoring.
  • The database must be isolated from other companies: a dedicated server provides that isolation without your team operating the server.

Questions for the provider

  • Where are the servers physically located, and who has access to them?
  • How often is the data backed up, and how often is a restore tested?
  • Can all of the information be exported, and in which format?
  • What happens to the data after cancellation?
  • On premises: what information does the system send to the provider, and what happens if the connection is lost?

Chainlink works the same way in all three options; the app, Chainlink Wizard, the labels and the permissions do not change. Essentials runs on a shared server. Professional can run on a shared server, on a dedicated server or on a self-hosted server with approval, and Enterprise on a dedicated server or on a self-hosted server with approval.

On the shared server, each company has its own database and its own subdomain, with a backup every night and a restore test every week. All of the information can be exported in CSV at any time, and after cancellation the account remains read-only for 30 days so it can be consulted. On a self-hosted server, the server reports its version, its status and counts such as the number of users to Chainlink, and never operational data. See security.

How it is configured

Help center articles with the steps inside Chainlink.

Help center

Subscribe to Chainlink online

Your instance is created when sign-up is complete, ready to set up your warehouse.

Essentials and Professional are purchased online by card: the first month and the implementation are charged at subscription. 30-day trial by invitation: request it from sales.