Investing a huge chunk of money into SAP Business One is no small feat. There are many aspects to consider; for instance, your custom requirements for the software to cater to your organizational needs, or perhaps your timeline and budget. However, the question of where to deploy the SAP Business One software is often overlooked.

Two ways that the powerful business management softwarecan be hosted are to deploy it on-premise or through cloud. Both deployment methods are distinct and has its own set of advantages and disadvantages, but which one is exactly the best choice for your business?

Cloud Hosting

Having only been recently made popular in the 2010s, advancements in cloud hosting has allowed the technology to be even more secure and efficient. The maturity in cloud hosting technology is what draws most businesses to deploy their software as a whole has matured significantly.

Deployment of SAP Business One, or any other ERP software, on cloud is typically done through a cloud service provider like Google Cloud Partner (GCP).



One of the main advantages and key factors when choosing to deploy on cloud is the cost. Deploying on cloud removes the need for server hardware to host the software, thereby saving you on thousands of dollars. What you end up paying for instead are monthly subscription fees instead.


Whether you are a start-up company or an SME, cloud hosting can easily scale to your business needs. Compared to a traditional on-premise host set-up where you need to acquire new hardware in order to upgrade, you can opt to increase the storage, connectivity speed, RAM allocated to your cloud with just a few clicks on the computer.


The maturity in cloud hosting technology is what draws most businesses to deploy their servers and software on places like Google Cloud Platform. Recent advancements in cloud technology has allowed for data to not only be increasingly secure and encrypted, but more resistant to cyber attacks. This ensures that software hosted on cloud platforms will not be externally affected.

Frequent Maintenance

To ensure smooth service and a high level of security, cloud service providers frequently conduct maintenance on its data servers according to best practices. This ensures that all hardware and software being used to your server are kept up-to-date and harder to compromise.


No Control

However, deploying on cloud means that you have no control over how your data or software is being stored. For instance, if you are a relatively big company with various standard operating procedures (SOP) in place or if you have a dedicated in-house IT team, you are unable to exercise complete personalization of your server infrastructure and customize it further to tailor to your company needs.

On-Premise Hosting

On-premise hosting has been the fundamental way of deploying servers for hosting locally. It is usually contained within the company’s office and maintained by the IT department.



With on-premise hosting, businesses have complete control over their infrastructure, hardware, and software configurations. It can be customized to meet your company’s specific requirements and have greater flexibility in tailoring to its business needs.


On-premise hosting allows companies to have complete control of their data security. If you have an IT team, you can implement your own security protocols, firewall configurations and access controls according to your company’s SOP. This aspect is particularly beneficial for companies dealing with sensitive or confidential data.

Better Performance

Sometimes, the data servers of a cloud service provider may lag or worse, go down. As you are running an on-premise setup, data is stored and processed locally. This translate to lower latency and even better performance.



However, the big concern is the upfront cost of an on-premise setup and upgrades in the future. A reasonable server setup can easily cross over tens of thousands of dollars inclusive of software license, hardware, and infrastructure setup; and this is not factoring in the space needed in your company office to hold this setup.

Which One Is More Suitable For My Business?

Whether you are hosting on cloud or on-premise, each comes with its unique set of advantages and drawbacks.

The debate of whether cloud or on-premise hosting is better will always be hotly contested. Ultimately, every company’s objectives, finances and requirements are vastly different. To help your decision making on which type of hosting you want to deploy, consider these following questions:

  1. What is my company’s budget for server hosting?
  2. How much control does my company want to have over its information?
  3. Does my company have plans to expand in the near future?

How MPS Solutions Can Help You Find The Right Solution

As a SAP Business One Silver partner with an extensive frontend & backend IT support team, we have extensive experience in integrating ERP business solutions and assisting customers in deploying cloud and on-premise servers.

Contact us today for a no-frills consultation –


Phone: +65 6846 9109