On-prem still makes sense in some cases—but most modern hardware teams don’t need to own and maintain infrastructure to get the control and security they expect. A managed service gives you the best of both worlds.
There are a lot of hardware design and manufacturing problems solved with on-premises hosting. It centralizes version control, guaranteed backups, and will work even if a vendor goes down. Compliance and security are must-haves for many industries. The IT staff and walled garden limitations seem like a necessary and recurring cost.

Improvements to security and compliance regulation have made managed services an appealing alternative to DIY internal solutions. In addition to having a lower total cost of ownership (TCO), shifting your resources from IT to engineering helps you work on your bottom-line even more. Additionally, secure managed services open the door for more tools to help you manage and improve the cost of your workflow.
See On-Prem isn’t dead by EdgeTeam Technology
📈 Why on-prem isn’t the default anymore
On-prem ECAD hosting used to be the only way to keep everything in-house: full control, easy IT integrations, and total visibility.
But things have changed:
- Cloud infrastructure has matured (SOC 2, ISO 27001, region-specific hosting)
- i..e. Solutions such as AWS GovCloud
- IT teams are stretched thin and expensive
- Teams are distributed and need better remote access
- Hardware moves fast, and deployment speed matters
You can still have control—without having to manage servers yourself.
A lot of things have changed with software in the past two decades. The Development Operations (DevOps) movement with Continuous Integration/Continuous Deployment has improved software development velocity, security, and robustness. Tool builders are able to move fast and test changes to ensure the service only improves.
Software is often categorized as a cost-sink, not a value-add, but modern software development means your host is constantly improving their tool based on your feedback on how you can save money and be more productive.
See Are You Sure You Still Need That On-Prem Server? Most Businesses Don’t.
⚖️ On-prem vs. managed services for ECAD hosting
Your IT staff is talented, but they are not Electrical Engineers. They understand how to connect an ECAD tool to a PLM/ERP system, but not why. Managed service providers specialize in the tool they’re providing and provide a Product Manager (PM) and a Customer Experience (CM) manager. They have technical expertise in both designing software, and designing hardware. They work closely with your team to implement features quickly and at a much lower cost than your internal IT team. Just like we leverage and externalize the expertise and capital investments of Contract Manufacturers, Hardware Directors can shift and externalize the cost of productivity improvements.
Your Electrical Engineers get to be experts in your problem domain, and your managed service provider gives you the same stable experience, but with better results and at a lower cost.
Feature | On-prem ECAD hosting | Managed ECAD hosting (single-tenant) |
---|---|---|
Control | ✅ You own it all | ✅ High control, zero infrastructure burden |
Compliance | ✅ Manual but possible | ✅ SOC 2, ISO 27001, and more built-in |
IT integration | ✅ Works with your systems | ✅ VPN/private networking supported |
Latency | ✅ Local speed | ✅ Region-specific deployments |
Cost | ❌ Staff, hardware, upkeep | ✅ Predictable monthly cost |
Maintenance | ❌ You’re on the hook | ✅ Vendor-managed uptime, patches, and backups |
Scalability | ❌ Hardware-limited | ✅ Flexible resource scaling |
Deployment speed | ❌ Slow | ✅ Up and running in days |
🔧 What to try before committing to on-prem
On-Prem DIY servers may seem like a hard requirement, but there are a number of strategies that can be used to incorporate an external managed service. We recommend evaluating one of these approaches before sticking with home-grown IT solutions.
If your team says “we need on-prem,” here are some hybrid-friendly ideas that might meet the same goals:
- Export design and BOM data to your internal systems on a schedule.
- Mirror your Git repos to a server inside your firewall.
- Use our APIs to pull data into your systems on your terms.
- Restrict access with VPN or IP whitelisting.
- Provide docs to satisfy your compliance team without needing internal audits.
- Use a managed service as a first step to test security and control before committing to infrastructure.
See On-Prem vs Cloud by Cleo.
🔐 Security at a glance: on-prem vs. managed vs. cloud
Security feature | On-prem | Managed service | Cloud (multi-tenant SaaS) |
---|---|---|---|
Data ownership | ✅ Yours | ✅ Yours | ✅ Yours |
Physical security | 🚧 Your problem | ✅ Certified datacenters | ✅ Same |
Access control | 🚧 Manual setup | ✅ Built-in (SSO, SCIM) | ✅ Built-in |
Audit logs | 🚧 Custom | ✅ Included | ✅ Included |
Isolation | ✅ Physical | ✅ Single-tenant VPC | 🚧 Logical |
Patching | ❌ Manual | ✅ Vendor-managed | ✅ Vendor-managed |
Disaster recovery | 🚧 Build it yourself | ✅ Baked in | ✅ Baked in |
Compliance | 🚧 Do it yourself | ✅ Shared responsibility model | ✅ Shared responsibility model |
Integration | 🚧 Manual, slow | ✅ API-first | ✅ API-first |
Latency control | ✅ Local | ✅ Regional hosting | 🚧 May vary |
Security cost | ❌ High | ✅ Lower | ✅ Lowest |
We also support GovCloud and AWS managed services for teams with elevated compliance needs. More here →
References Differences between On-Prem vs Cloud Computing.
What’s the difference between SaaS and On Premises?
💸 What on-prem actually costs
Paying for and managing your own servers is a wholly internalized cost. Using a managed service externalizes your costs with lower maintenance and development costs, leading to a total lower cost of ownership (TCO). Save your budget and energy for your engineering teams.
Expense | On-prem | Managed service |
---|---|---|
IT admin | $130k/year | N/A |
Hardware refresh | $30k+ | N/A |
Maintenance time | Weekly hours | Included |
Downtime | Higher risk | Vendor SLA (99.9%+) |
🧮 Want to know what it would cost your team?
Talk to one of our engineers and we’ll walk through your setup, your needs, and what it really takes to switch.
References:
Why Cloud is cheaper than On-Prem r/DevOps
Dell’s take on True costs of running On-Prem vs Cloud
Parallels article on Cost of Server Comparison: On-Premises vs Cloud
Cloud vs On-Premises Cost Comparison by Wasabi
✅ Wrap-up
Our job as Engineering Directors is to speed up development without compromising quality, while keeping costs low. We need to focus our energy on what is important and in our field of expertise and minimize the effect of anything that gets in the way. Although on-premise servers have been a safe bet in the past, the improvements to managed services makes them easy to pick and easy to onboard.
On-prem ECAD hosting still has a place—but for most teams, it’s no longer the right default.
A managed ECAD service gives you:
- The control and compliance you need
- The scalability and accessibility your team expects
- And none of the hardware headaches
👉 Talk to an AllSpice engineer →
Wasabi What is On-Prem?
CDW What is On-Prem? CDW Cloud Flexibility