What Is Cloud Project Management Software?

Cloud-based project management software is an online tool that lets you plan, track and manage projects from anywhere, keeping your data stored securely online.

What Is Software Project Management?

Software project management is the process of planning, organizing, leading and monitoring the development of a software project.

What Is an Example of a Project Management Software?

An example of a project management software solution is monday.com. It’s a cloud-based platform that helps teams plan, track and collaborate on projects using customizable task boards and tools such as automations and dashboards.

What Is Project Management Software & What Does It Do?

This detailed article explains exactly what project management software is and why you should use it. Learn how to pick the best provider and get our expert recommendations.

Written by Mehak Siddiqui (Writer)

Reviewed by Kate Hawkins (Editor, Writer)

Facts checked by Simona Ivanovski (Fact-Checker, Formatter)

Last Updated: 14 Sep'25

All our content is written fully by humans; we do not publish AI writing. Learn more here.

Key Takeaways: What Is Project Management Software?

Project management software is a vital tool for efficient project planning and resource management for individuals and teams.
Key features to look for include task management, collaboration tools, dashboards and automations that help effectively juggle multiple projects.
There are many project management software solutions to choose from, but the right one depends on your specific needs. One versatile tool we recommend is monday.com because it’s customizable and easy to use.

Facts & Expert Analysis: What Is Project Management Software Used For?

Most-used features: The most-used project management software features are reports/dashboards, document management and collaboration tools, according to a 2021 Capterra report.¹
A growing industry: The project management software market amounts to $9.76 billion in 2025 and is expected to expand to $20.2 billion by 2030, according to a 2025 Mordor Intelligence report.²
Widespread use: 82% of companies use project management software for organizational efficiency, and 57% of respondents reported that the number of tools they use has increased from the previous year, according to a monday.com 2025 report.³

The Best Project Management Software

Project management software helps individuals and teams plan, organize and manage their work more effectively. Most tools include task management, file-sharing and communication features that help centralize information. They can be customized for teams of different sizes across varied industries or verticals.

By simplifying how projects are managed from start to finish, the best project management tools help improve productivity, reduce errors and keep projects moving smoothly toward completion. In this guide, we’ll explain what project management software is, how it works and what to look out for to get the best-value plan for your needs.

Meet the experts

Learn more about our editorial team and our research process.

Definition: What Is Project Management Software?

A traditional project management tool is a digital solution that helps individuals and teams plan, organize, track and complete work efficiently. It provides a centralized platform for everyone involved in a project to manage tasks and communication in one place. Most project management software has features like kanban boards, timelines and file sharing.

Why Use Project Management Software?

Project management software can help you organize work to meet project timelines. It enhances productivity by providing a centralized place to access and monitor resources, tasks and project progress. This makes it simpler for everyone to understand their responsibilities and priorities, reducing the chances of missed deadlines or duplicated work.

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Using project management software eliminates the need to juggle multiple tools. For instance, all communication and files related to a task can be shared in one place, which minimizes back-and-forth emails. Having all data in one place also makes it easier to obtain detailed insights such as key performance indicators to monitor project performance.

Who Does Project Management Software Benefit?

Project management systems can help everyone from individual project managers to teams and companies of all sizes. The right software adapts to different needs and workflows, making it easier to handle everything from daily tasks to long-term, complex projects. We go over some examples below.

Freelancers

Freelancers across industries can use project management solutions to keep track of work for multiple clients. Features like task lists, calendar reminders and file sharing make it easier to meet deadlines and plan workloads. Moreover, there are plenty of free project management tools, like Asana and ClickUp, that offer powerful features at no cost, which is ideal for individuals.

For instance, a freelance writer can use the free version of ClickUp to track assignments and deadlines for different publications. They can add relevant information like draft files or links to references within each task to stay organized. For more information, you can read our guide on the best project management tools for freelancers.

Small Businesses

Small businesses can use project management technology to manage resources, keep track of project costs and meet goals for consistent growth. You can read our guide to the best project management tools for small businesses for our top suggestions.

The good news is that businesses don’t need to spend a lot; there is plenty of effective project management software for those on a budget, such as nTask and monday.com.

For instance, a small marketing agency could use a project management tool like monday.com for portfolio management. The agency could track campaigns and resources to align with business goals, optimize performance and maximize return on investment.

Large Organizations and Enterprises

Project management software can serve as a centralized platform for coordinating project scheduling and resource allocation at scale. Enterprise-grade tools like monday.com and Asana offer advanced features such as role-based permissions, workload management and detailed reporting — critical for complex operations.

For example, a multinational product company could use Asana to manage a new product launch across marketing, design and supply chain teams. Each department can have its own workspace while still contributing to the overall project timeline and meeting deadlines.

Nonprofits

Project management software can help with tracking fundraising campaigns, managing volunteer schedules and monitoring project progress toward organizational goals. Many project management tools even offer a nonprofit discount that could be 50% to 75% off normal plans.

For instance, a nonprofit organizing a community outreach program could benefit from using monday.com to centralize information. After the first free 10 seats, all additional seats come with a 70% discount for nonprofits. The tool can be set up to coordinate volunteer roles, track event budgets and store essential contact information in one place for the entire team.

Remote Teams

Remote teams rely heavily on clear communication and task visibility to stay productive despite being in different locations or time zones. Many project management systems provide a shared space where team members can update progress, share files and remain aligned throughout the project life cycle. Our guide to the best remote work tools has more information.

For example, a remote software development team could use Jira to plan sprints, assign coding tasks and track bugs. This can facilitate smooth work progress and seamless handoffs between team members in different parts of the world.

Are There Different Types of Project Management Software?

If we were to compare project management software, it would be evident that most options offer similar functionalities to manage tasks and help teams collaborate. However, they can also be categorized according to the project management methodology they focus on (such as Waterfall, Agile or Scrum) or a specific industry for which they are most well suited.

Some software is designed with a specific usage in mind. For instance, Jira is widely used as a software development platform with sprint-planning and bug-tracking functionalities. Other project management tools, like monday.com and ClickUp, are more general-purpose, offering flexible features that can be adapted to different industries and workflows.

Key Project Management Software Features to Look For

Most popular project management tools offer a variety of features to help different kinds of teams stay organized and work more efficiently. Some of the essentials include the following:

Task management: These features allow you to create, assign and prioritize tasks; set deadlines; and track progress so everyone stays on top of their responsibilities. Many tools also offer visual boards or lists to make tracking easier. See our guide on the best task management tools.
Collaboration tools: Built-in chat, comments and real-time updates help teams communicate directly within the platform, reducing the need for scattered emails and centralizing all project discussions.
File storage and sharing: These functionalities let you upload all project documents, images and files so team members can access, update and share them easily, ensuring everyone is working with the latest versions.
Reporting and dashboards: You can obtain a visual overview and gain detailed insights into different project data. This makes it easy to monitor deadlines, workloads and project success, helping you spot potential issues early and make informed decisions.
Automations and integrations: These features make the software adaptable and scalable for different use cases. You can automate workflows to minimize repetitive tasks and connect with tools you already use, like Slack, Google Drive or CRM (customer relationship management) systems.

Most Used Project Management Tool Features

^{Source: Capterra Project Management Software Market Research Report 2021}

Data from the chart as a table

Reports/dashboards	65 %
Document management	64 %
Collaboration	60 %
Requirements management	57 %
Budgeting	55 %
Resource planning	54 %
Time Tracking	53 %

Benefits of Project Management Software

A project management platform can provide significant advantages for teams and organizations because it streamlines all project information and communication. This eliminates confusion and boosts efficiency. We describe some of the potential benefits below.

Better Team Collaboration

Project management software allows teams to virtually come together despite individual designations or physical locations. Built-in communication tools such as comments and @mentions ensure that discussions stay tied to specific tasks or projects, which makes information accessible to all relevant people.

More Efficient Project Tracking

Project management software makes it easier to track project progress and have a holistic overview of tasks, deadlines and updates in one place. Visual tools like Gantt charts and dynamic dashboards can enable project managers to spot bottlenecks early and take corrective action before they become bigger problems.

Improved Resource Allocation

Project management software includes built-in resource management features to track availability, workloads and project timelines. This ensures that tasks are assigned to the right people at the right time, preventing overwork, underutilization or bottlenecks. Managers have a clear view of who is working on what and how much capacity they have.

Increased Accountability

With task management features, progress tracking and automated reminders, a project management platform ensures that everyone knows exactly what they’re responsible for and when it’s due. This transparency can help a project team stay on track and make it easier for managers to monitor performance and address delays before they escalate.

Reduced Need for Other Software

The many features of project management software make it a one-stop solution for varied business needs beyond basic task assignment. You can customize and set up the software to fulfill your unique requirements. Project templates in tools like monday.com and ClickUp make it easy to set up such customized workflows.

Potential Challenges of Project Management Tools

You should now understand why project management software is important. However, despite the numerous benefits, there are also some pain points to be aware of.

Learning Curve

Some project management platforms can feel overwhelming to new users. Teams may need time, training and practice before they can use the tool effectively, which can slow down adoption in the early stages.

Moreover, team members who are used to traditional tools — like spreadsheets or email — may be hesitant to switch. Fortunately, there are plenty of user-friendly project management software solutions that are easy for different teams to adopt. They’re highly intuitive to use and offer preconfigured project management templates for different use cases, such as sales, HR, marketing and software development.

Security & Privacy Concerns

Most project management tools store sensitive business information, client data and internal communications in the cloud. If the software lacks robust encryption, secure authentication or regular security updates, it could leave data vulnerable to breaches, unauthorized access or even accidental leaks.

To ensure safety, most project or task management software has security features such as data encryption and two-factor authentication. Most solutions also comply with relevant data protection regulations such as the GDPR, HIPAA or ISO standards, depending on the industry and location.

Dependence on Internet Connectivity

Project management tools are typically cloud-based, meaning you need a stable internet connection to access tasks, files and updates in real time. If your connection is slow, unstable or completely down, it can halt productivity, delay communication and prevent teams from staying on top of deadlines.

This is especially problematic for teams working in areas with limited infrastructure or for individuals who travel frequently. While some platforms offer offline access to partially address this issue, it often comes with limitations, and real-time collaboration still requires an active connection.

Cost

Although many tools offer free versions, they are often quite restricted and lack essential features such as dashboards and automations.

Most premium pricing plans are based on a per-user per-month model, which can be affordable for a small group but can add up quickly as the team expands. A company with hundreds of employees may need to pay thousands of dollars annually for project management software.

However, some tools support unlimited users for a flat fee. For instance, Basecamp has an all-inclusive Pro Unlimited plan billed annually at $$299 per month.

What Is the Best Project Management Software?

The best project management software depends on your team’s needs, budget and preferred way of working. Below, we go over our top three recommendations, each of which has unique strengths to help you stay organized and productive.

1. monday.com: User-friendly and versatile software suitable for a variety of use cases, such as marketing, HR, construction and sales. It has a limited free plan, but you can try the Standard plan (starting at $12 per user per month) to experience features like automations and dashboards. Read our monday.com review for more.

2. ClickUp: A customizable, all-in-one tool offering task management, document storage, goal tracking and time tracking. It has a generous free plan for unlimited users but limits access to features like automations and dashboards. Sign up for ClickUp’s free plan to get started, or read our ClickUp review for more details.

3. Asana: A powerful and flexible platform that works well for both simple and complex projects and workflows. You can start with Asana’s free plan to try it out, but upgrade to the Starter plan (starting at $10.99 per user per month, annually) to access advanced features like automations and dashboards. Learn more in our detailed Asana review.

Expert Tips for Choosing a Project Management Tool

With so many options available, picking the right project management software for your needs can be overwhelming. After testing hundreds of tools, we’ve compiled a list of our top tips to keep in mind when weighing your options:

Identify your needs: Focus on the features you need most, for example, dashboards, board views or time tracking. Then, select a tool that offers these features and aligns with your work style and the type of projects you manage.
Ease of use: Choose software that aligns with your teams’ tech-savviness. If you have an inexperienced team, opt for a tool with an intuitive interface to avoid a steep learning curve. Most tools offer free trials or free versions, which you can try out first before making a commitment.
Integration options: Check whether the software connects with any existing tools you use, such as your email, cloud storage or communication apps. This will help ease your workflow.
Pricing and scalability: Look for plans that fit your budget and can grow with your team over time without getting too expensive. Check out our project management software pricing guide for more assistance on this.
Mobile accessibility: If you work on the go, pick a tool with a reliable mobile app for managing projects anywhere. Some tools, like monday.com, have very user-friendly mobile apps, while others, like ClickUp, tend to be a bit clunky on mobile devices.

Final Thoughts: Effective Project Management

The key to finding a good project management software solution among so many options is to focus on identifying the project management features that matter most to you, like kanban boards, automations or Gantt charts. Our top recommendation is monday.com because it’s powerful yet easy to use and is customizable for different teams.

Is there anything else you’d like to know about project management software? What are you looking for in such tools? Which solutions have you tried so far? Let’s continue the discussion in the comments below. Thank you for reading.

FAQ: What Is Project Management Software Used For?

Cloud-based project management software is an online tool that lets you plan, track and manage projects from anywhere, keeping your data stored securely online.
Software project management is the process of planning, organizing, leading and monitoring the development of a software project.
An example of a project management software solution is monday.com. It’s a cloud-based platform that helps teams plan, track and collaborate on projects using customizable task boards and tools such as automations and dashboards.