Choosing between an Odoo cloud-based solution or an Odoo on your own server is a key decision. A cloud-based ERP means the software (Odoo) is hosted on external servers and can be accessed via the internet from anywhere. In contrast, an on-permise ERP is installed on the company's own servers, giving greater control over the infrastructure and data. Below, we describe the advantages and risks of each option to help owners and managers decide.
Advantages of Odoo in the cloud
The cloud makes it easy for employees to access Odoo from any internet-enabled device, without relying on local infrastructure. The main advantages include scalability (the system grows with your business without investing in additional hardware) and lower initial costs (no need to purchase servers without separate network licenses). Furthermore, updates and maintenance are handled by the provider, reducing the burden on the internal team. For example, a startup can quickly launch Odoo in the cloud with a reduced budget and the guarantee of automatic backups.
- Scalability and flexibility: Cloud ERP easily adapts to user and data growth.
- Low initial cost: Avoids investment in physical servers or complex infrastructure.
- Remote access: Work from anywhere (even mobile) with an internet connection.
- Outsourced maintenance: The provider manages servers, security, backups, and automatic updates.
- Rapid implementation: Being SaaS or PaaS, Odoo can be up and running in hours or days instead of weeks.
Odoo Cloud Risks
Despite its benefits, cloud ERP has some limitations. It requires vendor support and security, which can impose operational restrictions. There are also security and privacy risks: although major vendors implement encryption and best practices, there is always the possibility of cyberattacks or data breaches. Another challenge is connectivity: without a strong internet connection, the system cannot be accessed or may be slow. Furthermore, Odoo's SaaS offering (Odoo Online) does not allow third-party apps or code modifications, unlike self-hosted or third-party hosting Odoo.sh.
Advantages of Odoo on local server
Having Odoo on-premises on your own servers offers complete control over your data and infrastructure. You can fully customize the system for your processes and freely connect external applications. This benefits companies with highly critical data (finance, healthcare, etc.) that must comply with local data protection regulations. Additionally, by relying solely on your internal network, internet latency is eliminated: a well-configured server can offer high local performance.
Odoo risks on local servers
The local counterpart entails greater burdens and risks. The initial cost is significantly higher, as hardware, licenses, and possibly additional infrastructure must be acquired. In addition, qualified technical personnel are required to install, optimize, and maintain the system. Maintenance, backups, and updates are the individual's responsibility, which can be costly and complex: updates, for example, can disrupt processes if not well planned. Without the proper equipment, there is a risk of performance issues or failures (a failed server can take the ERP system offline).
Which one to choose according to your company?
In general, startups and SMEs tend to prefer the cloud: with fewer internal technical resources, they benefit from low initial costs and easy implementation. For example, a small online store without an IT department can launch Odoo in Odoo.sh or cloud hosting quickly. Large companies or those in regulated sectors (finance, healthcare, public sector) may prefer on-premises to ensure control over sensitive data. The availability of technical staff is key: without a robust IT team, the safest option is the cloud; with experts, a well-designed on-premises solution can offer performance and customization advantages.