In an online document management system all the documents are stored in centralized server that is maintained by the service provider. The software necessary to manage the documents is also installed in the server by the service provider and maintained. Hence there is no need for you to install any software or maintain the software needed. Access to the documents can also be restricted based on the type of user created for accessing the application.

A subscription is to be paid for the online document management system. You will be mostly paying for the number of users who are uploading documents and managing documents. However most of the service providers give unlimited free users who can just view the documents. Customizing the web application so that you can have your company logo in it, is also possible with most of the web applications.

With online document management system you enjoy a paperless office and collaborate with your users easily. Data backup is done automatically as scheduled and it is taken care of by the service provider so you are free to focus on your core business instead of worrying about your documents.

Apart from the users of your own company, it is also possible to share some of the documents needed with your clients too. This improves the communication with your clients and vendors, and also the efficiency of your organization