Open

Cloud vs. On-Premise WMS: Security and Speed

2 September 2025

by Edgistify Team

Cloud vs. On-Premise WMS: Security and Speed

Cloud WMS – Speed on Demand

MetricCloud WMSOn‑Premise WMS
Peak Order Throughput20,000 orders/hr12,000 orders/hr
Auto‑Scale Latency< 200 msFixed latency
Cost per Transaction₹0.20₹0.35

During Diwali or Singles’ Day, Cloud WMS can auto‑scale to handle double the traffic within minutes, ensuring order pick‑time stays below 3 s.

  • Encryption at Rest : AES‑256, compliant with ISO/IEC 27001.
  • Transport Layer Security : TLS 1.3 for all API calls.
  • Zero‑Trust IAM : Role‑based access, MFA, and continuous monitoring.

Yet, the very connectivity that gives Cloud WMS speed also exposes it to network‑level threats.

On‑Premise WMS – Speed via Low Latency

  • Servers located within the same data center as the picking robots cut network hops to 1 ms.
  • Dedicated 10 Gbps links between the WMS and conveyor systems eliminate cloud‑gateway latency.
  • Hardware Security Modules (HSM) : Secure key storage on local servers.
  • Air‑gapped Subnets : Isolate inventory databases from public internet.
  • Compliance : Easier to satisfy government data‑residency mandates.

Drawback: scaling requires capital expenditure and longer lead times.

Problem‑Solution Matrix

ChallengeCloud WMSOn‑Premise WMSEdgistify EdgeOS Solution
Latency during peakAuto‑scale, but internet latencyFixed, lowEdgeOS places compute at the edge of the warehouse, reducing round‑trip time by 70 %
Data sovereigntyData centers abroadLocalEdgeOS supports local data residency with encrypted sync to central cloud
Security breach riskCloud provider threat surfacePhysical breach riskEdgeOS implements NDR Management, real‑time anomaly detection across all devices
Cost predictabilityVariable pay‑as‑you‑goFixed CAPEXEdgeOS offers hybrid pricing; pay for edge compute while keeping core on‑prem

Edgistify Integration – The Hybrid Edge Advantage

Edgistify’s EdgeOS is a lightweight OS that runs on commodity edge servers placed within the warehouse. It:

  • 1. Caches WMS data locally – instant access for pick‑and‑pack robots.
  • 2. Runs Dark Store Mesh – a mesh network that connects dark‑store hubs (e.g., in Guwahati) to central inventory without relying on a central cloud.
  • 3. Employs NDR Management – Network Detection & Response that flags abnormal traffic, preventing ransomware or data exfiltration.

By deploying EdgeOS at each distribution center, a retailer can enjoy Cloud‑like elasticity (via EdgeOS’s dynamic scaling) while maintaining On‑Premise security controls.

Strategic Recommendation

  • 1. Tier‑2/3 Hubs – Deploy EdgeOS with Dark Store Mesh; keep critical inventory data on‑prem, sync to cloud nightly.
  • 2. Major Fulfilment Centers (Mumbai, Bangalore) – Use a hybrid model : Cloud WMS for order orchestration, EdgeOS for real‑time picking and NDR.
  • 3. High‑Security Segments (COD, RTO) – Enforce HSM‑based encryption locally; EdgeOS can log all RTO events for audit trails.

Conclusion

Speed and security need not be mutually exclusive in Indian e‑commerce logistics. Cloud WMS delivers elastic performance; On‑Premise WMS offers low latency and tamper‑proof storage. By integrating Edgistify’s EdgeOS, Dark Store Mesh, and NDR Management, retailers can harness the best of both worlds, ensuring rapid order fulfillment while safeguarding customer data across Tier‑1 and Tier‑3 cities.

FAQs

We know you have questions, we are here to help