Cloud or Self-Hosted ERP? Criteria for Choosing

Before comparing modules, an organization choosing an ERP has to answer a structural question: where does the software run? On the vendor's infrastructure (cloud), or on a server the organization keeps itself (self-hosted)? This isn't about "better" or "worse"; it's about which model fits your situation.

What actually differs between the two

In the cloud model the vendor sets up and maintains the server and database, and you connect from a browser. In the self-hosted model the software is installed on a server whose infrastructure you control; the data stays there, and updates and backups are coordinated with you or your technical team.

What matters is that this choice should be a feature of the software itself, not a special project. If an ERP offers only one of the two, you may have to replace the whole system years later when your circumstances change.

Five criteria for the decision

1. Where the data is kept. Some organizations prefer to keep financial and operational data on their own servers because of internal policy or customer requirements. If you have such a policy, self-hosting is the natural starting point.

2. In-house technical capacity. A server of your own means someone must look after it: disk space, backups, network access. If you don't have, or don't want, a technical team, the cloud model lifts a heavy burden.

3. Software updates. In both models new versions have to arrive. The right question is: through what process, and with how much involvement from you? The more automatic and in-app that process is, the lower the risk of falling behind.

4. User access. Web-based means every user works in a browser and nothing is installed on their computer. This matters for branches, remote users and multi-company organizations.

5. Flexibility for the future. An organization that starts in the cloud may later want to move to its own server, or the other way around. Ask before buying whether switching between the two is possible.

Afrandeh in both models

Afrandeh ERP is fully web-based and built on Blazor WebAssembly; it works from any browser on desktop or mobile, and nothing is installed on the end user's computer. It can be deployed in the cloud or on your own server (self-hosted), and installations on your own server get a built-in automatic update system. One installation can also run several companies and fiscal years side by side. See the details on the Afrandeh features page.

Questions to ask the vendor

• Do you support both deployment models, or only one?
• How are updates handled in each model, and who runs them?
• Who is responsible for backups, and how is restoration done?
• If we change models later, how does the data move?
• How many companies and fiscal years can one installation run?

If you are choosing an ERP for a manufacturer, the ERP buying guide for manufacturing companies has eight more questions and a demo checklist. To see both deployment models in practice, request a demo.