In recent years, businesses have increasingly embraced real-time location systems (RTLS) to enhance operational efficiency and streamline processes. As organizations evaluate the deployment options for RTLS, the choice between on-premises (on-prem) and cloud solutions has become a crucial consideration. While cloud solutions offer scalability and accessibility, newer UWB RTLS on-prem solutions, that can also scale, have emerged as a more secure alternative.
The trend of multi-national and government enterprises moving core operational functions like real-time asset management off the cloud and back to on-prem has gained momentum. This shift is primarily driven by the need for enhanced security, data control, and compliance with regulatory standards. For organizations handling sensitive data, the ability to maintain direct control over their information is crucial. On-prem private network solutions offer a higher degree of customization for security protocols, ensuring that data protection measures align closely with specific organizational and regulatory requirements. Furthermore, by minimizing dependence on high-speed internet connectivity, on-prem solutions provide, faster, more reliable and always-on service, which is vital for real-time asset management. This movement underscores a growing recognition of the importance of robust, secure, and reliable data management practices in safeguarding critical operational functions.
Data Control and Ownership
A pivotal consideration in the on-prem versus cloud debate for RTLS solutions revolves around the control and ownership of data. Cloud solutions, by their nature, involve entrusting sensitive location and operations data management to an external third-party provider responsible for safeguarding sensitive corporate data. Conversely, opting for an on-prem, site-based RTLS solution, housed on a company’s own enterprise network, empowers businesses to retain absolute control and ownership of their data. This aspect holds particular significance for industries dealing with sensitive personal data, classified information, trade secrets, and intellectual property. Even when critical corporate assets are sourced out to cloud providers, insurance companies, core stakeholders like customers, employees, and shareholders, as well as civil authorities, still hold companies responsible for adhering to stringent data privacy and security regulations to safeguard data and ensure it does not fall into the wrong hands.
In a January 22, 2024, Wall Street Journal article, Brian Raftery, project manager of Army’s data platform, said in a November presentation on the Army’s plans. “The Army also wants more control over its own data than its software vendors have given. “My contention is that all the data that is generated by the Army is Army data,” Raftery said, adding that this “might cause some discomfort” and “consternation” at the technology companies that sell to the Army.
Security Risks
We hear a lot about security breaches in financial institutions, such Equifax, Capital One, and First American Financial Corporation, and most recently Ticketmaster and AT&T. Similarly, the manufacturing sector has experienced several significant security breaches in recent years, highlighting the increasing threat of cyberattacks on industrial operations. Some notable incidents targeted Norsk Hydro, ASCO Industries, Honda, and JBS Foods, disrupting operations across multiple plants worldwide. The Colonial Pipeline experienced an energy infrastructure breach that also affected manufacturing sectors dependent on fuel supplies. Even if there is no security breach, cloud networks have experienced devastating outages for days at a time as evidenced by the Microsoft-CrowdStrike failure which cost Fortune 500 companies alone more than $5 billion in direct losses according to CNN (July 24, 2024). The outage severely disrupted companies including major airlines, government agencies, banks, and logistics providers.
Enhanced Privacy Protection
Privacy is a paramount consideration when dealing with real-time location data, especially in industries such as manufacturing and healthcare. On-premises RTLS ensures that sensitive location information remains within the confines of the organization’s infrastructure, minimizing the risk of unauthorized access or data breaches. Cloud solutions, while offering encryption and security measures, may still raise concerns about the potential exposure of sensitive data during transit or storage. For companies that want to safeguard their privacy, it is essential to choose RTLS systems providers that do not have access to the company’s data.
Most Affordable and Environmentally Friendly
Because cloud systems charge based on data storage and usage, the vast amount of data collected, stored and processed by cloud vendors for real-time location tracking and the AI intelligence derived therefrom, could exponentially increase the cost of cloud-based systems’ offerings. Furthermore, as more and more server farms are required in support of AI, power usage and associated energy usage and costs are increasingly raising doubts about whether distributed power systems closer to the user-base are not only more energy efficient, but also better (and safer) for customers, the electric grid, and the environment. On-prem management of data-heavy and proprietary applications like RTLS, which allows companies to better manage their own power usage and take advantage of non-peak times across time zones, is a more environmentally friendly approach.
Compliance with Regulatory Standards
Various industries are subject to stringent regulatory privacy standards and compliance requirements. Personal health data, for example, is subject to extensive and complex HIPAA rules and procedures. On-prem RTLS provides organizations, such as hospitals, health care facilities, and other health institutions, the ability to allocate and customize internal networks and tailor security measures to meet both in-house and regulatory standards. This level of customization is often challenging to achieve in a cloud environment where security protocols are standardized to accommodate a wide range of users.
Including RTLS in healthcare facilities offers critical benefits, including granular contact tracing, patient and guest management, automating usage data, inventory management, wayfinding, and preserving privacy.
Furthermore, RTLS in health care facilities can accurately and autonomously identify patient contacts and contagion risks in busy hospitals where manual tracking is impossible. Advanced RTLS solutions can pinpoint movements within feet or inches, detailing who was where; their closeness to personnel, patients, equipment, or medications; how long they stayed; and their next location. RTLS tracks key medical equipment locations, identifying unused and frequently used items, quality assurance of sterilization practices, and helps to better manage excess equipment, missing equipment, and inventory shortages.
Network Isolation and Mitigation of Internet Dependency:
On-prem solutions benefit from network isolation, operating within the organization’s internal network and firewalls without direct exposure to the internet. This isolation protects HIPPA data by minimizing the attack surface, reducing the risk of external threats compromising the system. In contrast, cloud solutions involve data transmission over the internet, potentially exposing private and confidential data to external vulnerabilities. Additionally, cloud-based RTLS depends on a stable and secure internet connection for optimal performance, introducing a second potential point of failure. On-prem solutions, being self-contained within the organization’s infrastructure, are less susceptible to internet outages, ensuring continuous and reliable operation. They also eliminate network latency issues, providing always accurate and reliable real-time asset location, crucial for effective tracking and locating in real time.
In Summary
While the adoption of real-time location systems continues to grow, the choice between on-prem and cloud solutions is a critical decision that hinges on various factors, including security, privacy, IP, compliance, latency, and even insurance considerations. The security advantages offered by on-prem RTLS, such as data control, enhanced privacy protection, compliance customization, network isolation, and reduced internet dependency, make it a compelling option for organizations prioritizing the safeguarding of sensitive location data. As businesses navigate the ever-evolving landscape of technology solutions, the emphasis on security becomes paramount, and on-prem RTLS data management and ownership offers a robust and secure choice for organizations with irreplaceable and/or valuable corporate data assets with stringent security data requirements. On-prem vs. cloud architecture and configuration should be a primary consideration when selecting the RTLS solution that is best for your organization.
Cris Masselle is the chief marketing officer of WISER Systems. Cris brings extensive leadership experience in marketing to her role at WISER, having held leadership positions in a range of industries, including IoT technologies, chemicals, medical devices and biologics. With more than 25 years of corporate marketing experience, she is skilled in developing and directing comprehensive strategic marketing campaigns, crafting marketing tools and overseeing advertising programs. Her breadth of experience spans diverse industries, enabling her to communicate effectively with a wide range of target audiences. Cris holds an MBA in marketing and a BA in literature and rhetoric from Binghamton University in New York.