What is a disadvantage of maintaining physical products compared to cloud-based products?

Maintaining physical products involves several logistical challenges that can significantly impact overall operational efficiency. One of the primary disadvantages is the requirement for storage space, which translates into warehouse costs. These costs can accrue from renting or owning warehouse facilities, utilities, and maintenance of the space.

Additionally, security concerns are a critical aspect of storing physical products. Businesses must invest in measures to protect their inventory from theft, damage, or loss, which can further drive up costs. In contrast, cloud-based products can be managed and accessed digitally, minimizing the need for physical storage, which reduces both financial and operational burdens.

While flexibility in product offerings, lower production costs, and enhanced customer satisfaction may be associated with either physical or cloud-based products depending on various business models, these factors do not pertain specifically to the disadvantages of physical products. Thus, the correct choice highlights the unique challenges presented by maintaining physical inventory over utilizing cloud-based solutions.