As the competition for customer attention intensifies, the choice of the right Digital Experience Platform (DXP) has become a critical strategic decision. Two leading contenders in the Sitecore ecosystem are Sitecore 10.4 and Sitecore XM Cloud, each offering a unique set of features and benefits.
Sitecore 10.4, the latest upgrade of the on-premises Experience Platform (XP), continues to provide a comprehensive suite of tools for content management, personalization, and marketing automation. Whereas Sitecore XM Cloud is a cloud-native DXP that leverages the power of the cloud to provide businesses with a flexible, scalable, and secure platform for delivering exceptional digital experiences.
The decision between the two options is not a one-size-fits-all proposition. It requires a deep understanding of your business objectives, target audience, and existing technology stack.
This blog will help you make the right choice between Sitecore 10.4 and XM Cloud, ensuring you not only meet your current needs but also set your business up for future success.
What is Sitecore XM Cloud?
Sitecore Experience Manager Cloud (XM Cloud) is a content management platform that serves as the foundation for a composable digital experience platform centered around global content. It integrates the latest versions of Experience Manager, Sitecore Experience Accelerator, the Sitecore Next.js SDK, Experience Edge, and the Pages content editor.

Source: Sitecore
As a SaaS solution, Sitecore handles hosting, monitoring, and maintenance, allowing users to focus on creating new functionality and integrating other modular solutions.
XM Cloud addresses the limitations of traditional monolithic Content Management Systems (CMS) and modern headless CMS approaches. By decoupling the content backend from the front-end presentation and delivery, XM Cloud enables developers to use popular front-end frameworks to create innovative digital experiences more efficiently. However, this flexibility can create challenges for marketers, who may need to rely on developers for even minor front-end adjustments.
Learn how to unlock the full capabilities of Sitecore XM Cloud in its headless configuration by integrating it with Next.js.
What is Sitecore 10.4?
Sitecore 10.4 is the latest version of the Sitecore Experience Platform (XP), which serves as Sitecore's primary content management system (CMS). This update brings a variety of enhancements aimed at improving digital marketing capabilities, customer data management, and personalization through machine learning insights.

Key Enhancements in Sitecore 10.4:
- Enhanced personalization: New tools allow businesses to deliver highly tailored experiences based on customer behavior and preferences.
- Cloud integration: Improved support for cloud deployments, particularly with Microsoft Azure, facilitates easier management and deployment of Sitecore in cloud environments.
- User experience improvements: The update features a more intuitive user interface, making it easier for content creators and marketers to navigate and manage content effectively.
- Seamless content management: Updates to the content management system streamline workflows and enhance collaboration among teams, allowing for more efficient content creation and optimization.
- Analytics and insights: Enhanced analytics tools provide deeper insights into customer behavior and campaign performance, aiding in data-driven decision-making.
- Accessibility features: Sitecore 10.4 has implemented various accessibility improvements to ensure a more inclusive experience for all users.
Plan your Sitecore XP 10.4 upgrade now with this in-depth guide on features, planning, breaking changes and tips to streamline your update.
Sitecore XP 10.4 vs Sitecore XM Cloud
Sitecore XP 10.4 and Sitecore XM Cloud are both powerful content management platforms, but they differ in a few ways:
Feature |
Sitecore XM Cloud |
Sitecore XP 10.4 |
Deployment |
Cloud-based SaaS |
On-premises or cloud |
Scalability |
Automatic scaling |
Manual scaling |
Maintenance |
Sitecore handles infrastructure maintenance |
Customer responsible for infrastructure maintenance |
Upgrades |
Automatic upgrades |
Manual upgrades required |
Personalization |
In-session personalization |
Multi-session personalization with xConnect |
Marketing Automation |
No built-in marketing automation |
Robust marketing automation capabilities |
Email Marketing |
No built-in email marketing |
Integrated email marketing |
Analytics |
Analytics included |
Analytics included |
Headless Capabilities |
Native headless support |
Headless support with Sitecore Headless Services |
Composable Architecture |
Built on composable principles |
Can be used in a composable architecture |
Customization |
Limited customization options |
Highly customizable |
What to Choose Between Sitecore XP 10.4 and Sitecore XM Cloud?
When considering whether to upgrade to Sitecore XP 10.4 or transition to Sitecore XM Cloud, organizations need to evaluate several critical aspects.
Sitecore XP 10.4 requires a moderate investment and is tailored for handling substantial traffic and data, featuring advanced security measures and robust analytics capabilities. It also boasts improved APIs for easier integration with third-party applications and enhanced cloud deployment options, particularly with Azure PaaS 2.0. This version is quicker to implement, making it suitable for current Sitecore users looking for incremental enhancements.
Recent updates in Sitecore XP 10.4 introduce several important features and tools aimed at enhancing migration processes and user experiences:
- XM to XM Cloud migration tool: Facilitates the migration of content, media, and user data from an on-premises XM instance to an XM Cloud environment. It simplifies back-end migrations, allowing customers and partners to focus on developing new front-end sites.
- xDB to Customer Data Platform (CDP) migration tool: Enables the transfer of site visitor contact facets to Sitecore CDP and Personalize products, as well as to external systems through Sitecore Connect.
- New admin page for media duplication: A new page at /sitecore/admin/duplicates.aspx addresses changes in media duplication behavior, allowing users to adjust media items after migrating to 10.4.
- Codeless Schema Extension module: Allows business users to extend the xConnect schema without needing code development, which is expected to boost xDB usage among marketers. It will be generally available in mid-May 2024.
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Sitecore Client Content Reader role: Provides access to the Content Management (CM) environment without the risk of accidental changes, addressing a frequently requested feature.
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Improved accessibility in Content Editor: Users can now navigate using the tab key for full CRUD operations, making it easier for content authors with visual impairments to manage content effectively.
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Data extraction from xDB: Users can now extract data from xDB and transform it for use with external analytics tools like Power BI, enhancing data analysis capabilities.
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GraphQL enabled by default: GraphQL is now enabled by default on the CM container instance in local development environments, improving development flexibility.
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Updated underlying dependencies: The platform has updated its dependencies to the latest versions, including SQL Server 2022, Azure Kubernetes Service, and Solr 8.11, ensuring better performance and security.
In contrast, Sitecore XM Cloud requires a more significant investment but offers high scalability with a cloud-native architecture, advanced security features, and extensive integration options. It incorporates advanced analytics and generative AI capabilities, introduces new applications like Sitecore Pages and Component Builder, and supports fully cloud-native deployments.
Although it may involve a longer implementation process and greater complexity, it positions organizations for a headless or composable architecture, making it ideal for those ready to adopt a modern, headless CMS.
Altudo: Your strategic partner in Sitecore excellence
Altudo excels as a strategic partner in the Sitecore ecosystem, providing a full range of Sitecore services to help organizations maximize Sitecore’s potential.

Our expertise spans the entire Sitecore suite, including the Sitecore Experience Platform (XP), Sitecore Experience Manager (XM), and Sitecore Content Hub, enabling businesses to deliver personalized customer experiences that boost engagement and growth. Here are the key aspects that set Altudo apart:
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Sitecore MVP recognition: With eight Sitecore Most Valuable Professionals (MVPs) on their team, Altudo is celebrated for its deep expertise and thought leadership in the Sitecore community.
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Platinum partnership with Sitecore: As a Platinum partner, Altudo collaborates closely with Sitecore to provide customized solutions that enhance customer experiences across multiple digital channels.
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Comprehensive service offerings: Altudo offers a wide array of services, including implementation, customization, and optimization of Sitecore solutions.
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Proven track record: Trusted by over 45 Fortune 500 brands, Altudo has a strong history of successful Sitecore implementations, addressing diverse business needs and achieving seamless digital experiences that resonate with target audiences.
Conclusion
Whether upgrading to Sitecore 10.4 or transitioning to Sitecore XM Cloud, selecting the right fit requires evaluating your unique business objectives, technical infrastructure, and future growth plans. Both options offer compelling benefits but differ in deployment approach and ongoing investment needs. By working with an experienced Sitecore partner like Altudo, you can leverage their deep product knowledge and proven expertise to simplify your evaluation process and ensure a smooth transition that delivers immediate value.
Altudo helps market-leading organizations maximize the power of Sitecore to new heights through strategic guidance, solution implementation excellence, and ongoing platform support and optimization.
Contact Altudo today to discover how our expert team can support your journey towards exceptional digital experiences.
FAQs
1. Why Sitecore 10.4 upgrade was required?
A: Sitecore XP 10.4 offered advanced and improved performance and security and streamlined cloud functionality. As needs evolve for sophisticated personalization, big data handling, stronger protections, and ease of cloud use, this release enhanced capabilities in all areas to stay competitive and ensure quality experiences.
2. What has improved in Sitecore XP 10.4?
A: Sitecore XP 10.4 enhances personalization, content management, analytics, integration, performance, security, and cloud support. It streamlines CMS usage, provides deeper insight through analytics and reporting, simplifies deploying to the cloud, and improves the user interface navigation and accessibility.
3. When was Sitecore XM Cloud released?
A: On July 12, 2022, in San Francisco, Sitecore®, a leading provider of comprehensive digital experience software, announced that it had fully transitioned its core CMS solution, including personalization and content authoring, to a modern cloud architecture.
4. What is the difference between Sitecore 10 XP and XM?
A: Sitecore XM is an intuitive and efficient CMS designed for easy content creation and management, with a smaller infrastructure footprint. Sitecore XP includes all XM features and adds advanced personalization capabilities. Both platforms have similar features and synchronized release versions.
5. What is Sitecore SXA?
A: The Sitecore Experience Accelerator (SXA) is an add-on for the Sitecore platform compatible with both XM and XP versions. It offers tools and building blocks to create websites without custom coding and helps manage multiple sites and their settings.