Why an On-Premises WMS Costs You More Than You Think

A closer look at the actual cost of an on-premises WMS.

January 23, 2023

As a business owner or manager, you’re always looking for ways to cut costs and increase efficiency. But did you know that your on-premises WMS may be costing you more than you think? 

From rising IT expenses to missed opportunities for technological advancement, an on-premises WMS can be a significant drain on your bottom line. 

In this article, we’ll take a closer look at the costs of an on-premises WMS and explain why outdated systems cost you money. We’ll also share some tips on what to look for when choosing a WMS to ensure you get the most cost-effective solution for your business. So if you’re ready to discover how to reduce costs and improve efficiency with the right WMS- read on!

Summing up on-premises WMS costs

The Future of Warehouse Management Systems

The future of warehouse management systems is bright as technology advances. One significant advancement has been developing more robust, secure, and user-friendly WMS systems. These systems offer a wide range of features and benefits that can help companies to streamline their operations and improve efficiency.

Cloud WMS systems, in particular, have become increasingly popular in recent years. These systems offer advantages over traditional on-premise systems, including increased flexibility, scalability, and cost-effectiveness.

With a system in the cloud, companies can access their WMS from anywhere with an internet connection without worrying about maintaining and updating the system themselves.

We expect WMS systems to become even more sophisticated and cost-effective as technology evolves.

For example, we may see the integration of artificial intelligence and machine learning technologies to enable WMS systems to make more accurate and efficient real-time decisions.

We may also see the development of new technologies, such as augmented reality and robotics, that can enhance the capabilities of WMS systems.

On-Premises WMS Costs

When running a warehouse, the costs can add up quickly. One area where expenses can quickly spiral out of control is with an on-premise WMS. The price of this type of WMS can vary greatly depending on several factors, such as size, complexity, vendor, and features.

Warehouses with outdated WMS will require more than servers, these include; a live server, a test server and sometimes a QA server. All these costs come at an additional cost! That’s before you start looking at the platform costs.

On average, an on-premise WMS can range anywhere from a few thousand to several hundred thousand pounds.

It’s essential to consider all the costs when evaluating an on-premise WMS for your business. Some of the necessary expenses that come with an on-premise WMS include the following:

  • Hardware and Infrastructure: An on-premise WMS requires specific hardware and infrastructure to function, such as servers and networking equipment. These costs can add up quickly, especially if you need to upgrade your existing infrastructure.
  • Software licenses: The software license cost can vary based on the number of users and the features and capabilities you need. It’s essential to consider these costs as they can add up quickly.
  • Implementation and customisation: Implementing and customising an on-premise WMS comes with additional costs, such as consulting services, training, and data migration. These costs can add up quickly, especially if you need to customise the system to meet your needs.
  • Maintenance and support: An on-premise WMS requires ongoing care and license, including software updates, security patches, and technical support. Most of these WMS’ will require a super user or IT team, which comes at an additional cost. These costs can add up quickly and should be considered when evaluating the total cost of an on-premise WMS.

Why On-Premises WMS is Losing You Money

If you still need to start using an on-premises WMS, you may be costing your business more than you think. Outdated WMS systems can be costly in several ways, including:

  1. Inefficiencies and delays: Outdated WMS systems can slow down warehouse operations, resulting in inefficiencies and delays. This can lead to increased labour costs and lost sales.
  2. Limited technology integration: Integrating an outdated WMS system with newer systems and technologies can be challenging, which limits your company’s ability to take advantage of the latest advancements in WMS technology. This can put you at a disadvantage compared to competitors using more modern systems.
  3. Increased security risks: On-premises WMS systems may be more vulnerable to security threats, putting your company’s data at risk. This can result in costly data breaches and loss of customer trust.
  4. Difficulty scaling: Obsolete WMS systems may have a more challenging time rising to meet changing demand, resulting in costly downtime. This can be especially problematic for businesses that experience seasonal spikes in demand.
  5. Connectivity: Many on-premise solutions rely on VPN to access the server. As a result, this will introduce latency, bandwidth limitations, accessibility, security and maintenance issues. All of these problems will result in extra costs as time goes on.

How to Choose the Right WMS for Your Business

When choosing the right WMS for your business, there are several factors to consider. Here’s a closer look at some of the most important things to keep in mind:

  1. Determine your needs: Before looking for a WMS, take the time to identify the specific challenges and goals you hope to address with a WMS. Consider factors such as the size and complexity of your warehouse operations, the types of products you handle, and the level of integration with other systems you require.
  2. Research different options: Once you know what you’re looking for, research other WMS options. Look for systems that offer the features and capabilities you need, and consider factors such as pricing, scalability, and user-friendliness.
  3. Consider the vendor: When evaluating different WMS options, choosing a reputable and experienced vendor with a proven track record of success in the industry is essential. Look for a vendor that is responsive and provides good customer support.
  4. Evaluate the implementation process: Before making a final decision, consider the resources and time required to implement the WMS and ensure it is feasible for your business.
  5. Evaluate the ongoing costs: In addition to the initial purchase price, consider the ongoing costs of the WMS, including maintenance, upgrades, and support. This will help you budget for the long term and ensure you get the most cost-effective solution for your business.


Companies constantly look for ways to streamline operations and reduce costs in today’s fast-paced business landscape. One area where many businesses are turning to is WMS. 

On-premises systems can be expensive to set up and maintain, and they may need to be equipped with the latest technology. On the other hand, cloud systems are typically cheaper, easier to set up and maintain, and always up-to-date with the latest technology. 

This is where a cloud-native WMS like Clarus WMS comes into play.

Clarus WMS is a cutting-edge cloud-native WMS that offers several advantages over traditional on-premises systems. It is secure and can be quickly scaled to meet changing demands.

Plus, you don’t have to worry about costly upgrades or maintenance, as the system is always up-to-date with the latest technology. Clarus WMS is easy to set up and maintain, so you can focus on running your business instead of worrying about your WMS.

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