Compare

Cloud vs on-premise hotel PMS: which should you choose?

In short: A cloud PMS is hosted by the vendor and used through a web browser, with a monthly fee and no servers to maintain. An on-premise PMS is installed on hardware at the property, usually with a licence and ongoing maintenance. Cloud suits most independent properties; on-premise mainly appeals where internet access is unreliable or data must stay on site.

Updated October 2026 · bedsKey product team

At a glance

Cloud PMS On-premise PMS
Where it runs Vendor-hosted, in a web browser Server at the property
Upfront cost Low: activation or setup fee Higher: licence, server, installation
Ongoing cost Monthly subscription Maintenance contract, hardware replacement, IT staff
Updates Delivered by the vendor Installed by you or a technician
Backups Handled by the vendor Your responsibility
Remote access From anywhere with a browser Usually requires VPN or remote desktop
Multi-property One login across properties Often one installation per property
Internet outage Browser access stops Keeps working on the local network
Data location Vendor's hosting On your premises

When cloud is the better fit

Most independent hotels, hostels, guest houses and small groups do not want to run servers. Cloud removes hardware, backups and upgrades from the property's job list, lets owners check the day's figures from anywhere and lets a group run several properties under one account.

When on-premise still makes sense

If the property's internet connection is genuinely unreliable and cannot be backed up, or policy requires data to stay on site, on-premise keeps the front desk running during an outage. The cost is owning the server, the backups and the upgrades.

Reducing the internet risk of a cloud PMS

How bedsKey fits

bedsKey is cloud-only: nothing to install, it works in any modern browser, and it runs on managed PostgreSQL with automated backups. Each hotel group's data is isolated at the database level with row-level security. The web system needs an internet connection; the iOS and Android staff apps queue actions on the device when the signal drops and replay them safely without duplicates, so housekeeping and restaurant work is not lost.

Common questions

Is a cloud PMS secure?

It depends on the vendor. Ask about tenant isolation, password hashing, encryption of identity documents and audit trails. bedsKey uses row-level security per hotel group, Argon2id password hashing and AES-256-GCM for identity-document scans.

What happens to a cloud PMS if the internet goes down?

Browser access stops until the connection returns, so a backup connection is recommended. bedsKey's iOS and Android staff apps queue actions offline and replay them when the signal is back.

Can I move from on-premise to cloud?

Yes. Configuration of the new system is part of bedsKey onboarding, handled by the implementation team.

Run your entire property from one system.

Talk to sales@bedskey.com — we’ll walk you through bedsKey with your own rooms and rates.