Teamcenter

How to choose between on-premises Teamcenter and Teamcenter X 

October 21, 2026

Teamcenter is available in more than one deployment model. Organizations can run it on their own infrastructure or use Teamcenter X, the software-as-a-service (SaaS) version operated by Siemens. Both deliver full Teamcenter PLM capabilities. The main difference is who runs and updates the system.  

This blog compares the two Teamcenter deployment options, so you can decide which fits your organization best.  

 

Why on-premises Teamcenter? 

With on-premises Teamcenter, the organization hosts and manages the PLM software with its own IT team. The system runs in the organization’s environment, and the IT team operates and supports it. 

On-premises Teamcenter gives access to the Teamcenter PLM software portfolio, which covers the product lifecycle from planning through delivery. Teamcenter provides a single source of product information for stakeholders across the business. 

Additionally, AI capabilities are available with on-premises Teamcenter. With Teamcenter 2606, Teamcenter Copilot supports on-premises configurations through Microsoft Azure AI and AWS Bedrock.  

 

Why Teamcenter X? 

Teamcenter X is a SaaS delivery of the full Teamcenter PLM portfolio in the cloud. It is deployed on AWS or Microsoft Azure. Operations, maintenance, and updates are managed by Siemens. Teamcenter X also includes preconfigured best practices, so customers can start with what they need and add apps or users later. 

Out of the box, it includes document and BOM management, change and configuration management, project collaboration, requirements traceability, and engineering process automation. It integrates Designcenter CAD (formerly NX CAD), SolidWorks, CATIA, SAP, Polarion, Capital, and Mendix. Teamcenter X also supports regulatory compliance needs such as ITAR and FDA requirements.  

Designed to grow with the company, Teamcenter X is offered in four tiers: 

  • Essentials covers core capabilities such as MCAD management and 3D markup. It is ideal for companies that are focused on mechanical design but have some team members who do not use design software.  
  • Standard adds simple change management and project scheduling. This tier is best for companies that collaborate on mechanical designs in tailored environments and are enhanced with a simple change process to work at scale.  
  • Advanced adds cross-domain collaboration. It is ideal for companies working across mechanical, electronic, and electrical designs because it drives reuse throughout the lifecycle.  
  • Premium provides the full breadth of the Teamcenter portfolio, with applications such as MBSE and compliance management. This tier is best for companies aiming to harness the full flexibility of the Siemens portfolio.  

Key differences between on-premises Teamcenter and Teamcenter X 

  • Who operates the system: With on-premises Teamcenter, the customer’s IT team hosts and manages the software. With Teamcenter X, Siemens operates the system through the cloud.  
  • Infrastructure and updates: On-premises Teamcenter runs on infrastructure the organization provides, so it is responsible for investment in initial hardware and system maintenance. Teamcenter X runs on AWS or Microsoft Azure, so there is no need for upfront infrastructure or hardware planning. Since Siemens operates the system in Teamcenter X, it is responsible for maintenance, security, and updates.  

How to choose between on-premises Teamcenter and Teamcenter X 

Both on-premises Teamcenter and Teamcenter X give you access to the full power of Teamcenter PLM. The option you pick depends on how your organization wants to run PLM and what needs your organization has. A few questions can help frame the decision. 

Who should operate PLM? If your organization has an IT team that already hosts and manages enterprise systems and wants to keep that responsibility, on-premises Teamcenter or customer-managed cloud Teamcenter keeps operations in-house. If you would rather have Siemens handle operations and updates, Teamcenter X is designed for that.  

Where do you want the system to run? On-premises Teamcenter runs on your own infrastructure. Customer-managed cloud Teamcenter runs on the cloud provider you choose. Teamcenter X runs in the cloud on AWS or Microsoft Azure and is operated by Siemens. 

How do you want to start? Teamcenter X tiers let organizations begin with a defined set of capabilities and expand as needs grow. On-premises Teamcenter gives access to the Teamcenter PLM portfolio within the organization’s own environment.  

Do you want to try it first? Siemens offers a 30-day Teamcenter X trial that covers common PLM use cases. 

These answers often depend on existing IT resources and current Teamcenter investments, so it helps to review them with a trusted Siemens partner, like Applied CAx, to evaluate your organization’s current needs. 

Interested in implementing on-premises Teamcenter or Teamcenter X in your workflows? Contact Applied CAx to get started.  

 

 

  

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