Which One To Choose For Your Business – Odoo On-premise or Odoo Cloud?

Odoo on-premise or Odoo Cloud

Now that you have finally decided to implement Odoo for your business operations, what’s the next step? Choosing the right hosting option. There are various choices available, like on-premise, using a dedicated cloud service, relying on third-party vendors, opting for Software as a Service (SaaS), or going for advanced cloud platforms like Odoo.sh. But why does the hosting type matter?

Well, all your business applications, including Odoo, are managed and accessed on a server, whether it is in the cloud or on-premise. If you don’t choose the right hosting type that suits your business needs, you might face downtime. And you know what downtime means – less work getting done, potential losses, and unhappy customers. So, selecting the right Odoo hosting is crucial.

But before you make your decision, there are a few things to think about: Which Odoo version are you using? If you are not sure, compare Odoo Community with Odoo Enterprise editions and choose one first. It is a key factor in determining your hosting requirements. Also, consider the security provided by each hosting type and what fits within your budget. This blog post gathers all these points to help you select the most suitable hosting option for your business. Let’s explore it and go through it in detail. 

Basically, hosting determines how you will reach your Odoo database and what tasks you are responsible for. Depending on your business needs and the advantages and disadvantages of different Odoo hosting platforms, you can choose the best-suited option. Whatever hosting solution you go for, it should enable efficient work, so consider all your business requirements carefully.

  • Odoo On-Premises
  • Odoo Cloud 

Odoo Enterprise is adaptable for Small and Medium-sized Businesses (SMBs), enhancing productivity and profitability. It offers a comprehensive business management solution that can be tailored to fit your company’s requirements.

Odoo on-premise or Odoo Cloud?

To begin, it is essential to note that there are two primary categories of hosting for Odoo management software. One is the Odoo on-premise and the other one is the Odoo cloud.

If you wish to establish your entire hosting infrastructure, Odoo Enterprise can also be deployed on your own server. However, it is recommended to go for this option only for customers with advanced technical expertise. It’s because Odoo SA cannot offer any guarantees or Service Level Agreements regarding the reliability, performance, and scalability of your infrastructure.

Odoo experts can provide some guidance with technical documentation. And if you require assistance, you can reach out to any of the certified partners of Odoo ERP in Australia for Odoo deployments.

When hosting Odoo On-Premises, you will need to manage various technical aspects crucial for the robustness and cost-effectiveness of your software installation. If you engage a third-party provider, ensure you understand what’s included in your contract and any additional costs. Here are key questions to consider:

  • What is the service level agreement (guaranteed uptime)? How does it scale with user additions, app integrations, or increased data processing?
  • What is the disaster recovery policy?
  • How and when can you access my backups, and what are the data policies?
  • What type of test environment is provided?
  • Who is responsible for maintaining and upgrading third-party apps?

With Odoo On-Premises, you have complete control and independence over your installation. Thus, you can utilise any apps from third-party vendors, or even develop custom ones from scratch by an official partner of Odoo ERP in Australia

On-premise hosting offers several advantages for the IT department. It provides complete control over the IT infrastructure, allowing the IT department to manage all updates, additional modules, and custom development. This can be particularly valuable if contractual obligations require data to be stored on internal servers.

However, on-premise hosting also brings a significant workload for the IT department. As businesses grow, maintaining an ERP solution on-site necessitates regular investments in new servers and infrastructure, which can be costly.

  • Ease of Customisation: On-premise hosting allows for straightforward installation of custom modules tailored to your specific business requirements. This flexibility ensures that you can fully customise the Odoo system to meet your unique needs, enhancing efficiency and productivity.
  • Local Speed: Utilising Odoo apps locally on your own hardware typically results in faster performance compared to cloud-based solutions. With data stored and processed locally, there’s minimal latency, enabling swift access to critical information and smooth user experience.
  • Enhanced Security: Managing hardware in-house grants you full control over security measures, 
  • ensuring that your sensitive business data remains protected. With the ability to implement customised security protocols and regular monitoring, you can safeguard your Odoo system against potential cyber threats.
  • Technical Expertise Required: Effective management of the server necessitates technical proficiency. If your team lacks the necessary skills, you may need to invest in hiring or outsourcing to a third-party provider, potentially increasing deployment costs and dependencies.
  • Escalating Hardware Costs: While initial hardware investment may seem manageable, ongoing expenses for maintenance, upgrades, and scalability can accumulate over time, impacting your budgetary considerations.
  • Limited Flexibility in Failure Recovery: In the event of hardware failure, swiftly migrating to another IP address is not as feasible as with cloud hosting alternatives. This lack of agility could result in prolonged downtime and disruptions to your business operations.

If there is no specific need for on-premise hosting and cost reduction is a priority, the Odoo cloud is an option. Opting for a SaaS package utilisng the publisher’s cloud is the most economical choice, offering competitive rates.

While Odoo typically provides competitive pricing for its cloud services, there are trade-offs. The most notable is the automatic updates to the ERP system, with no option to reverse the changes.

For a standard Odoo ERP implementation, automatic updates pose no issues and can even be beneficial. However, if you have customised modules or bespoke development to align the ERP system with specific business needs, automatic updates can cause complications.

Updates may alter functionality, and customisation options are more limited with this hosting option.

  • Scalability: Cloud hosting allows you to easily adjust server configurations to match your evolving business demands. Whether you need to scale up to accommodate increased traffic or scale down during quieter periods, cloud servers offer the flexibility to adapt accordingly.
  • Customisation: Installing custom modules is straightforward in a cloud hosting environment. This enables you to tailor your Odoo system to suit your specific business requirements, enhancing its functionality and effectiveness.
  • Manual Setup: Setting up production and staging instances in the cloud typically requires manual configuration, which can be time-consuming and may necessitate technical expertise.
  • Technical Assistance Needed: Managing a cloud server effectively often requires assistance from a technical expert. Without the necessary skills, you may encounter difficulties in optimising performance, implementing security measures, or troubleshooting issues.

Cloud hosting is an ideal choice if you require a dedicated server with root access and the ability to scale resources as needed. However, it’s essential to have access to technical support to manage the server efficiently. Additionally, it is worth noting that while cloud hosting offers flexibility and scalability, it can be more expensive than the other hosting methods. Therefore, it is advisable to opt for cloud hosting only if your business truly requires the features and resources it provides.

  • Firstly, take a look at the pricing for the hosting options, considering factors like the number of users, storage, and hosting type. This should help you understand which plans are the most budget-friendly. If you are working with limited funds and can’t invest in Odoo Enterprise, you can also try the Community version.
  • Research and read Odoo reviews to gain insights into the experiences of different companies. Understanding the perspectives of other users can provide valuable information about what to expect and help you make informed decisions.
  • Keep in mind that Odoo Enterprise is optimised for use on all devices, ensuring seamless functionality across various platforms and devices.

Deciding where to host Odoo is a crucial step in the implementation process, offering you the flexibility to tailor your choice to your specific needs. For those seeking a straightforward setup and maintenance process, Odoo Cloud stands out as the ideal solution, providing a standard software experience.

Alternatively, Odoo On-Premises presents another avenue, but it demands a solid understanding of technical aspects. If overcoming these challenges is difficult for you, you can seek assistance from our Odoo experts at Envertis. We are an official gold partner of Odoo ERP in Australia, and we ensure a smooth Odoo deployment. 

Ultimately, the best hosting server for your business depends on factors like your business size, budget, specific needs, number of users, and desired level of customisation. The considerations mentioned above should provide clarity on which hosting solution will be most beneficial for your business.

Considering these things, you can confidently select the optimal Odoo hosting for your business in 2024. If you still have any doubts or need technical assistance in choosing the right hosting server, we are right a clcik away!  
As an official gold partner of Odoo ERP in Australia, we have expertise in Odoo and ensure end-to-end tailored Odoo solutions to businesses of all sizes and across diverse industries. If you require customisation for your Odoo ERP apps, simply reach out to us, we are just a click away!