Pharmacy Software: What is better, Cloud-based or On-Premise?

In today’s fast-paced digital world, some pharmacy software companies are pushing independent pharmacies toward cloud-based systems. At first glance, cloud software is being pushed as the future—marketed as easy, accessible, and modern. But when it comes to the daily demands of running an independent pharmacy, on-premise pharmacy software, for now, continues to be the faster and more secure choice.

Pharmacies are not like other businesses. They operate under constant pressure, filling prescriptions all day, counseling patients, dealing with insurance claims, and managing inventory. Any delay or disruption to the pharmacy’s prescription processing software can seriously impact a pharmacy’s bottom line. That’s why the decision between cloud vs. on-premise isn’t just about convenience—it’s about efficiency, reliability, and security.

This is where Datascan, a pioneer in pharmacy technology for independent pharmacies, sets itself apart. As one of the best pharmacy software providers, Datascan has decades of experience proving that on-premise pharmacy software delivers advantages over cloud-based systems.  

We understand that over time, offering a cloud-based solution is a must for all pharmacy systems vendors, but they need to be designed carefully, with HIPAA and security in mind, as well as massive redundancy guaranteeing that the pharmacy software is always accessible.  

Meaning, the servers you are hosting on need to be monitored 24/7, and they must have redundant servers in totally different geographic locations that can easily spool up to keep your business running.

For example, if you are hosting the pharmacy management software somewhere in Georgia, they have a bad ice storm, or hurricane, and the building the servers are in loses power.  Short-term power loss should be ok if they have generators with large capacity fuel tanks.  But what about those natural disasters that take the power out for a week, or more?  You need backup servers across the country to avoid issues like this.  What about when Amazon’s web servers went down for a few days just a few years back?  That means your business was shut down for that time frame as well!  

Let’s further explore why on-premise is currently the best pharmacy software solution for independent pharmacy owners.

1. Speed and Performance Without Internet Dependency

Independent pharmacies run at a nonstop pace. Every second counts when you’re filling prescriptions, processing claims, or working with a patient. With cloud software, your speed for every single thing you do within the software depends on two factors:

• Your pharmacy’s internet connection
• The host server’s internet speed and uptime

If either one falters, your entire system grinds to a halt. Imagine a patient waiting at the counter while you can’t access their profile because your internet is slow—or worse, down completely.

With on-premise pharmacy management software, your pharmacy isn’t reliant on the internet. Everything is processed locally, ensuring lightning-fast speeds that aren’t affected by external factors. Even if your internet goes out, your pharmacy can still operate seamlessly. For busy independent pharmacies, that reliability is priceless. Even after Hurricane Sandy knocked out the internet for clients of ours years back, we had them running seamlessly, processing claims by using their cellular devices as a hot spot, which only required the internet to send the claims to insurance companies.  

Datascan’s on-premise pharmacy software is engineered for maximum performance, so staff can work faster and serve patients without interruption.

2. Reliability That Matches Pharmacy Workflow

Pharmacies cannot afford for their pharmacy management software to be down. With cloud systems, downtime is always a possibility.  Outages can be caused by numerous factors, and ultimately the company your pharmacy software vendor chooses to host their software with will determine if and when an outage can occur and whether they have the proper backup systems in place to get you up and running.  When your pharmacy system is down, you’re stuck—unable to fill prescriptions, or even access patient records.

On-premise pharmacy management software, however, puts reliability back in your hands. Pharmacies that use Datascan aren’t dependent on an external cloud host—they have direct, local access to their own data and systems. This ensures consistent uptime and eliminates the uncertainty of waiting for a cloud vendor to fix problems on their end.

Simply put: with on-premise, you control your operations instead of being at the mercy of an internet connection.

3. Security: Protecting Patient Data Where It Belongs

Few industries face as much pressure to protect data as pharmacies. Patient health information (PHI) is highly sensitive and highly targeted by cybercriminals. While cloud providers claim to offer secure environments, the reality is that centralizing data in the cloud makes it an attractive and easier target for hackers.

Independent pharmacies using cloud based pharmacy software systems are at greater risk of exposure through data breaches that occur at the host level. If the hosting company is breached, every client stored on that server is potentially compromised.

With on-premise software for pharmacies, your patient data is stored locally within your pharmacy. This gives you complete control over security protocols, backup schedules, and access permissions. You’re not trusting an outside company to safeguard your patients’ most sensitive information—you’re keeping it in-house.

Datascan provides tools and support to help pharmacies maintain robust security practices, giving owners peace of mind that their data is fully protected.

4. Full Ownership and Access to Your Data

One of the most overlooked downsides of cloud pharmacy software is the issue of data ownership. In many cases, the host controls your database. This means exporting, moving, or even fully accessing your own patient and prescription records may come with limitations—or even extra fees.

With on-premise pharmacy software, the pharmacy manages and owns the data outright. There are no gatekeepers. You have full, unrestricted access whenever you need it. 

Independent pharmacies should never have to worry about whether they truly “own” their data. With Datascan’s on-premise solution, ownership is never in question.

5. Controlled Updates: No Unwanted Surprises

One of the biggest frustrations pharmacy owners experience with cloud-based pharmacy systems is the automatic updates. Cloud vendors push updates whether or not you’re ready for them or want them. That means you could arrive on a busy Monday morning to discover that your system has been updated overnight.  If a bug was introduced in an update, chances are it made its way to your system. 

With on-premise pharmacy software, updates are managed on your schedule. Bugs can be identified and fixed without forcing every customer onto the same update at the same time. You get stability, consistency, and the freedom to decide when to adopt new features.

Datascan works directly with pharmacies to ensure updates are smooth, tested, and tailored to each customer’s needs. No unexpected disruptions—just reliable software that works the way you need it to.

6. Cost Efficiency and Long-Term Value

While cloud providers often market themselves as “affordable,” the reality is different. Cloud pharmacy software typically comes with recurring monthly fees that add up over time. You’re essentially renting access to your own system. In addition to monthly software maintenance fees, switching and electronic prescribing, cloud solutions typically also include fees for cloud storage and usage. 

Datascan’s pricing structure is built to support independent pharmacies, ensuring that owners invest in a solution that pays for itself for the long haul.

7. Why Independent Pharmacies Choose Datascan

For more than 40 years, Datascan has been empowering independent pharmacies with reliable, secure, and high-performance technology. Their on-premise pharmacy software is consistently ranked among the best pharmacy software solutions on the market because it prioritizes what pharmacies need most: speed, reliability, security, and flexibility.

Features like automation tools, customizable reporting, perpetual inventory management, and advanced workflow solutions ensure that pharmacies can streamline operations and focus on patient care—not software issues. Unlike cloud-based pharmacy management system vendors who lock pharmacies into rigid systems, Datascan offers flexibility and independence.

For independent pharmacies that value ownership, reliability, and patient safety, Datascan remains the clear choice.

Final Thoughts

The debate between cloud and on-premise pharmacy software often boils down to one question: what matters most to your pharmacy? If convenience and “access from anywhere” are your top priorities, the cloud may seem appealing. * Keep in mind, there are numerous tools to give you remote ‘from anywhere’ access even when using on-premise pharmacy computer systems.  If your focus is on speed, reliability, security, and true ownership of your data, on-premise pharmacy software is the clear winner.

Independent pharmacies don’t have the luxury of downtime or the risk of a data breach. They need pharmacy systems that work—always. That’s why companies like Datascan continue to lead the industry, proving that some of the best pharmacy software is on-premise, where pharmacies remain in control.

In a world where cloud is often marketed as the future, the reality is that for independent pharmacies, their pharmacy software vendors need to take the time to build, test, and plan for the most secure cloud based software for pharmacies, while also making sure that where they choose to host the software must be a company with 24/7 employees watching over and managing these servers.  They also need to ensure that the host company has redundancy and failover plans for a multitude of possibilities that could take said servers out of commission.  And of course, everything needs to be done with HIPAA laws in mind for hosting patient data on the cloud.  Saying you have a ‘great cloud-based pharmacy software’ should ensure all of the above is covered in detail.