Drake Tax Software Hosting vs On-Premise: What’s Best For Tax Professionals?

Nearly 2 months are over in 2023 and businesses are preparing for a grueling tax season ahead. Among the many tax preparation software programs, leading enterprises use Drake to simplify their taxation processes. But if you’re someone trying to decide whether to use Drake Tax hosting or on-premise, you’re not alone. Many businesses are struggling with the same decision. So, what’s the best option? Here’s a look at some valuable insights about both options. Read on to explore them and decide the best fit for your business. 

Hosted Drake Tax Software and On-Premise Solutions – An Introduction 

Drake tax hosting is the process of installing the accounting software on cloud servers of a hosting provider. Users get remote access to the software using compatible devices like laptops, smartphones, iPads, tablets, etc. Hosting Drake on the cloud requires businesses to either set up their own servers or partner with a third-party Drake tax hosting provider. For the latter option, companies must pay a monthly or yearly subscription fee to the hosting provider. 

On the other hand, Drake on-premise refers to the locally-installed Drake software. Users must purchase separate licenses for multiple Drake users, which they can use during the installation. 

Some Challenges of On-Premise Drake Tax Software Which Drake Tax Hosting Can Help Overcome 

1. Inadequate Data Security 

While Drake is a popular option in the finance and accounts industry, the on-premise option has certain limitations, especially regarding data security.   

The on-premise deployment of Drake software means that the server and database are on-site. This makes many businesses feel uncomfortable with the amount of control they have over these parts of their system. 

Drake hosting in the cloud can help in addressing critical security concerns. Whereas an on-premise Drake deployment means that all tax preparation data resides on a local server, Drake Software hosting allows businesses to use this same Drake tax software but also host the application and its data in a secure offsite environment. 

In a hosted Drake tax software environment, third-party hosting provider monitors for any suspicious activities 24×7. It leaves business owners and IT managers more relaxed about their financial data and ensures safety from malicious actors and natural disasters. 

In a nutshell, Drake Tax Software Hosting is a win-win solution offering superior security features compared to local Drake installations. Besides, it provides highly efficient anytime, anywhere access with fast response times yielding more significant customer satisfaction. Leveraging Drake-hosted solutions enables businesses to accelerate deployment schedules while optimizing uptime operations offering improved productivity gains. 

2. Inefficient Collaboration 

CPA firms and accountants often need help collaborating with team members to complete their tasks. They require simultaneous access to company files to make real-time changes and discuss them to simplify accounting processes. Lack of a common virtual platform in on-premise Drake system restricts them from doing this. 

In addition, using on-premise Drake tax software requires users to repeatedly send and receive emails to send/receive an edited company file. They can only make changes once they receive edited data from other team members. As a result, a process delay leads to a delay in task completion. 

Hosting Drake on the cloud helps multiple users collaborate in real time and simultaneously work on the same file. Everyone can see real-time changes in a file. They can eliminate the requirement of maintaining multiple versions of a single file. These features of Drake tax hosting increase coordination and allow every team member to enhance productivity. 

3. No Remote Access 

Locally installed Drake restricts users from accessing the tax software remotely. Such factors hinder productivity, especially when assisting clients during non-business hours. For example, a client needs an immediate answer to their tax-related query at midnight. But, the inability to access Drake tax software would leave a feeling of resentment for the client – an instance that can put CPA firms’ and accountants’ reputations at stake. 

No Remote Access

Replacing the legacy on-premise Drake tax software with Drake tax hosting helps businesses overcome the challenge above. They can use their preferred devices to access Drake and address their clients’ concerns anytime. Moreover, it gives them an excellent opportunity to maintain a work-life balance. 

Also Read: Top Five Benefits of Drake Tax Software on Cloud for Tax Preparation 

4. Performance Issues 

On-premise Drake tax software might lead to unforeseen performance issues. These include sluggish behavior of computers, random errors, and even system downtime. 

A 2022 Veeam report states – Globally, 40% or 2 out of 5 servers had at least one or more outages over the past 12 months. Cause? Breakage of infrastructure or software due to cyber-attacks and user errors. Such issues can dramatically impoverish the productivity of operations dependent on Drake. It is particularly troublesome for CPA firms who deal with extensive data during peak tax season – when every second counts for meeting deadlines, failing which they must pay penalties due to late filing. 

Using cloud-based Drake tax software, businesses can ensure the smooth functioning of the hosted software. A need for the all-time availability of Drake leads most of the cloud hosting providers to maintain high server uptime. In addition, they provide their customers with round-the-clock IT support, who can troubleshoot issues quickly. 

5. No Disaster Management 

The lack of an effective disaster management mechanism in an on-premise Drake software system puts accounting data at risk. Performance measures may suffer from file loss or corrupt data from disasters. Furthermore, inadequate data backup during natural disasters makes accountants vulnerable to counterfeits. Such instances can lead to costly legal action against them or the CPA firm. 


Hosted Drake tax software gives firms access to best-in-class protection against anything from power outages and computer viruses to natural disasters and cyberattacks. It provides real-time backups, multi-level firewalls, and intrusion detection systems that guarantee round-the-clock data security.  

In addition to the above, the servers use multiple virtual machines to ensure seamless scalability and distributed redundancy – an excellent way to provide downtime failover. All these features of Drake tax software cloud-based solution make it a powerful tool for tax professionals. 

Difference Between Drake On-Premise and Drake Tax Hosting 

Difference Between Drake On Premise and Drake Tax HostingSo, What’s Best for Tax Professionals? 

When it comes to taxes, businesses want the process to be as smooth and stress-free as possible. That’s where Drake tax hosting comes in. By hosting Drake off-site, they can avoid many issues with the on-premise Drake solution. Upgrades, maintenance, unavailability of remote access, high operational costs, etc., are to name a few. 

The key differences between on-premise Drake and hosted Drake software indicate that Drake Tax Software Hosting is ideal for tax professionals. 

If you want to know more about cloud-hosted Drake software services, contact Ace Cloud Hosting @ +1-855-910-6927 We’re a leading cloud hosting service provider specializing in Application Hosting, Managed Security Services, Public Cloud, and Hosted Virtual Desktop Solutions. With our secure servers and support from skilled professionals, businesses can rest assured that they’re in good hands. 

Not enough? 

Host Drake tax software on our cloud servers for free (for 10 days) and make an informed decision to whether or not to opt for our hosting services. 

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About Julie Watson

Julie is a dynamic professional with over 16 years of rich experience as a VDI and Application Hosting expert. At Ace Cloud Hosting, she humanizes disruptive and emerging remote working trends to help leaders discover new and better possibilities for digital transformation and innovation by using cloud solutions with an enterprise-class security approach. Beyond work, Julie is a passionate surfer.
On the weekend, you will find her hanging out with her family or surfing around the North Shore of Oahu.

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