SAP Business One on-premise vs. cloud
The most important points in brief
Cloud / SaaS
- Software and data on the provider's external servers
- Access via web browser – from anywhere, from any device
- Monthly rental fee – no large one-time investment
- Maintenance, updates, backups: Provider responsible
- No dedicated server infrastructure required
- Implementation is often completed in a few weeks.
On-Premise
- Software and data on the company's own hardware
- Access within your own network – full control
- One-time investment (Capex) instead of monthly rent
- Maintenance, updates, backups: Company responsible
- Dedicated server infrastructure required
- Maximum adaptability and data sovereignty
Overview of operating models
On-premise (classic)
The software runs on the company's own hardware. Full control, maximum adaptability, no third parties involved in the data flow. IT costs and investments are entirely within the company.
Private Cloud (Single-Tenant)
SAP Business One runs on dedicated resources, hosted by a certified SAP partner in a German data center. High security, excellent customizability, no resource sharing.
Public Cloud (Multi-Tenant)
Infrastructure is shared with other customers, e.g., on Microsoft Azure or AWS. Lowest entry point, maximum scalability, minimal IT management – less customization.
Private Cloud vs. Public Cloud: An important difference
On-premise (classic)
The software runs on the company's own hardware. Full control, maximum adaptability, no third parties involved in the data flow. IT costs and investments are entirely within the company.
Private Cloud (Single-Tenant)
SAP Business One runs on dedicated resources, hosted by a certified SAP partner in a German data center. High security, excellent customizability, no resource sharing.
Public Cloud (Multi-Tenant)
Infrastructure is shared with other customers, e.g., on Microsoft Azure or AWS. Lowest entry point, maximum scalability, minimal IT management – less customization.
Public Cloud (Multi-Tenant)
Infrastructure is shared with other customers, e.g., on Microsoft Azure or AWS. Lowest entry point, maximum scalability, minimal IT management – less customization.
Important information
The cost structure is one of the most striking differences between the two operating models. On-premises requires a higher initial investment (capex) but can be more cost-effective in the long run. Cloud offers low entry costs and predictable monthly expenses (operex).
Important practical advice.
„"Not all cloud environments support all SAP Business One add-ons equally. Anyone needing industry-specific extensions – for example, for food, manufacturing, medicine, or e-commerce – should definitively clarify add-on compatibility before deciding on an operating model."“
Cloud computing is the better choice if…
…Your company needs location-independent access, wants to grow quickly, and wants to keep internal IT costs low. Getting started is easy with predictable monthly costs and without your own server infrastructure.
To the cloud solutionCloud computing is the better choice if…
…Your company needs location-independent access, wants to grow quickly, and wants to keep internal IT costs low. Getting started is easy with predictable monthly costs and without your own server infrastructure.
To the cloud solution
