This article first appeared in Der Facility Manager – May 2026.
For a long time, most companies opted to operate their integrated workplace management systems (IWMS) in their own data centers. The cloud was considered expensive, unstable, insecure, and non-compliant—but the tide has turned: Dr. Christopher Brennan, Managing Director Facilities EMEA Central at Planon, explains why SaaS models are now surpassing on-premises operations in more ways than one.
Integrated Workplace Management Systems are an indispensable tool for many digital companies: they support the efficient use of space, the management of technical facilities, maintenance, and energy management – and almost all facility managers leverage them as the backbone of real estate and building management in an increasingly data-driven working world. However, opinions still differ on the optimal deployment model: even though the majority of companies already rely on a multitude of cloud-based solutions, many IWMS solutions still run on-premises.
The reasons given for staying within one's own infrastructure sound plausible: established IT landscapes, regulatory requirements, security concerns – or simply the desire for unrestricted control over one's own data. However, when you consider how cloud-based technologies have developed in recent years, it quickly becomes clear that many of the traditional arguments are no longer valid. Flexible Software-as-a-Service (SaaS) models offer compelling advantages in many areas:
1. Scalability and performance: SaaS breaks down barriers
The greatest strength of the cloud is its flexibility: On-premises hosted IWMS systems inevitably reach the limits of their capacity and performance sooner or later because operators want to integrate new locations, services, or users. This leads to costly expansions of the IT infrastructure, including investments in hardware, software licenses, and personnel capacities—often associated with long implementation times.
SaaS solutions, on the other hand, are designed to be scalable and flexible from the ground up: if necessary, the contract terms can be adjusted at any time to integrate new properties, buildings, and technical facilities or to activate new modules and features. Growing user numbers and increasing data volumes are not a problem anymore: they can be set up at the touch of a button, without any loss of performance. At a time when working models, building usage, and regulatory requirements are changing dynamically, this flexibility is a decisive competitive advantage.
2. Cybersecurity: Who can do it better?
The most frequently cited reason for staying on-premises is the supposedly stronger security in such an environment. This was a valid argument just a few years ago. But reality has long since changed, as cyber threats have evolved rapidly. Most companies—especially small and medium-sized businesses—have little technological defense against AI-assisted ransomware attacks, zero-day exploits, insider threats, or social engineering. In addition, they often lack the personnel and resources to implement all the latest cybersecurity best practices, from professional patch management to 24/7 monitoring. So the question is no longer whether, but when a successful attack will occur.
Professional SaaS providers achieve a significantly higher level of security: they operate their IWMS platforms in certified data centers, complying with the strictest certification requirements and security standards such as ISO/IEC 27001, ISAE 3402 Type II, or SOC 2 Type II. Their experts monitor the systems around the clock, install all security-related patches and updates on time, and have access to highly qualified, experienced security teams in the event of an attack. High-end measures such as intrusion detection, penetration testing, encrypted data transmission, and automated backup routines are usually standard.
The result: switching to a software-as-a-service model usually takes data security and data protection to a whole new level. Experience shows that this is an enormous relief for internal IT teams, both in terms of the tasks to be accomplished and the high level of responsibility that is often transferred to qualified external hands.
3. Regulation and data sovereignty: No contradiction to the cloud
Concerns about data security and data protection also lead to uncertainty regarding the compliance of cloud-based IWMS solutions. And this caution is sometimes appropriate: Sensitive and regulated data is protected by the EU through the strict framework of the GDPR, and its processing is rightly subject to high requirements.
But professional SaaS providers have many years of experience and are highly qualified when it comes to ensuring the compliant handling of critical data—for example, through data storage in specific regions, encryption at the data and transport level, or differentiated access rights. Thus, external hosting partners can now reliably enforce even individual requirements, for example with the help of hybrid models or dedicated hosting environments.
4. Future-proofing: Innovation as a service
Switching to an IWMS solution provided as SaaS makes it easy for companies to integrate innovative technologies and be among the first to benefit from new opportunities: Typically, updates with new features, new APIs, and new frameworks are automatically installed by the solution’s operator. This happens more reliably than on-premises, where timely updates often depend on internal approvals, available resources, and patch schedules – with the result that many systems become technically obsolete sooner or later.
In addition, switching to the future-proof foundation of a cloud-based platform gives companies access to a range of innovative technologies that would be very costly to implement on-premises: from AI functionalities and predictive maintenance to digital twins and IoT integration.
5. Cost structure: Transparency instead of investment backlog
Costs are always a key consideration when weighing up on-premises and cloud deployment. At first glance, on-premises solutions appear to be more cost efficient, as they only require a one-time investment. However, reality shows that the total cost of ownership (TCO) over the entire lifetime is significantly higher. In addition to hardware, maintenance, patches, and upgrades, personnel, energy, backup capacities, and security measures also contribute to the cost of an on-premises solution—not to mention the potential follow-up costs in the event of a system failure or security incident. By migrating to a SaaS-based IWMS solution, companies instead benefit from predictable, usage-based costs that are billed transparently.
6. Change management: Getting people on board
For a long time, many companies viewed the switch to the cloud not only as a technological risk, but also as a difficult change management project. And this concern is justified. To ensure a successful migration, facility management teams must get all stakeholders on board, train employees in how to use the new solution, adapt processes, and define clear responsibilities. Only when all those affected are involved and the advantages of the new solution are clearly communicated, employees will be happy to adopt the cloud-based IWMS – and unlock its potential.
The good news, however, is that many SaaS providers offer their customers comprehensive support during the transition. Planon, for example, offers customers who are willing to switch a wide range of managed services—from data migration tools to training—that ensure a predictable, secure, and successful implementation.
If not now, then when?
For many years, operating IWMS solutions on your own infrastructure was a proven and efficient approach – but in today's dynamic digital world, it increasingly involves risks, costs, and limitations. Modern SaaS models offer a much higher degree of flexibility, scalability, and security, and make it easier for companies to benefit from future innovations. Given the increasing demands on cybersecurity, compliance, and efficiency, moving to the cloud is no longer a nice-to-have option, but a strategic necessity: Investing in SaaS means investing in the future – while giving your team the freedom to tap into new potential.