Adoption of Cloud Hosted Procurement Software ultimately comes down to control. Software as a Service (SAAS) provides your procurement executive with the necessary control as well as flexibility and security at an affordable price.

With on-premise solutions technology, administrators typically feel more ownership over a solution. The technology is hosted in-house, it is their job to update and maintain it, and they can customize the program to work exactly as needed without worrying about outside factors.

Those reasons, though, should not be enough to choose on-premise solutions over the cloud. Cloud computing has become a transformative technology that allows businesses in every sector to improve information technology services while lowering costs. Instead of focusing on maintaining applications and information technology infrastructure, technology leaders can focus on more business-oriented goals that provide a better long-term benefit.

Procurement executives have debated cloud and on-premise solutions for some time. As cloud technology improves, though, the debate has dissipated. Cloud hosted procurement software has become a strategic advantage for those that use them, providing improved total cost of ownership, system performance, mobility, and security.

“The C-suite and procurement leaders face a common dilemma when choosing procurement software: should the new software system be an ‘on-premises’ application or a cloud solution?” writes technology expert Zak Mustapha at the Huffington Post. “While the temptation may be to take a conservative, safe route and keep everything in-house, the cloud’s promise of a quantum leap in flexibility and security make it imperative for enterprises to contemplate a move to a cloud-based procurement software.”

The Advantage of Cloud Hosted Procurement Software

Cloud-hosted procurement software offers many more advantages than on-premise solutions. These benefits apply to businesses in all industries—from medical and healthcare to education and engineering and manufacturing. Let’s look at some of the major benefits:

Total cost of ownership

On-premise solutions require businesses to make a large upfront investment and then pay to maintain these systems. Once these systems become obsolete, something that can happen quickly with the rapid pace of change in technology, the business must decide whether to reinvest. With cloud hosted procurement software, businesses simply pay a monthly or yearly subscription cost that is typically a fraction of on-premise solutions. For that, the application provider will provide maintenance and upgrades. Your procurement executive can simply use the system without worry about the ancillary necessities required to keep it operational.

System performance

Cloud-based systems can handle spikes in traffic and usage. Some companies may have an increased need for cloud-hosted procurement systems at certain times of the year, like when several different procurement contracts may come due or the end of the fiscal year. On-premise solutions may not be able to handle a spike in usage while cloud systems are designed to handle capacity as it is needed and then be able to ramp down when demand dissipates.


Employees today go wherever work takes them. That includes the procurement executive as well. Cloud procurement systems will be available wherever there’s an internet connection. That could be the office, at home, or even Starbucks. On-premise solutions may be installed on an individual laptop, but if something happens to that device – the Starbucks coffee spills on it, for instance – the data could become lost. Cloud computing allows employees to work and access the program wherever it was needed, making it easier for them to work as needed.


One of the biggest arguments against the cloud usually involves security, but it is typically misguided. On-premise proponents feel if they oversee their systems that reduces the security risk. The idea of a program hosted far away and accessible by unknown people can be scary. Cloud contracts, though, come with language that dictates who owns the data and who can access it. Moreover, cloud computing providers monitor the latest security threats and are constantly adding patches and upgrades to repair potential holes. That type of knowledge would be impossible for the standard information technology executive to keep on top of. It is also not necessary as cloud computing companies already employ security experts who can monitor these trends as part of the services.

Cloud computing continues to provide businesses with technological innovation that is both convenient and affordable. Cloud hosted procurement software can allow companies to use the latest procurement technologies to purchase the goods and services they need. Not only do cloud systems cost less and can be accessed anywhere, but they are also more secure and easier to maintain. It is no wonder that procurement executives today prefer cloud hosted procurement systems.

You may also be interested in: 5 Reasons Procurement Directors Resist P2P Process Automation

At ProcurePort, we offer an automated P2P solution that’s easy to implement and which will streamline the procurement process. Our Spend Management Software integrates the entire buying process across your company while fully automating your Procure-to-Pay process. Contact us to learn more about the features of our P2P software and how we can help you transition to an automated procurement solution.

Leverage Cloud Hosted Technology to Automate Your Procure to Pay Process