Comparison between SAP Business One Cloud vs On-premise

  • Published : Jul,25,2023
  • By: Kunjan Jasani
  • Updated: Dec 6, 2023
Comparison between SAP Business One Cloud vs On-premise

Modern businesses need to address various challenges to survive and thrive. When it comes to startups and SMBs, one of the major challenges is budgetary restrictions. In such a scenario, it is difficult for them to manage daily operations efficiently. Here, ERP (Enterprise Resource Planning) system comes into the picture.

Today, we have advanced ERP systems available as technology evolves. We can classify them in a cloud-based ERP system and an on-premise ERP system as per the deployment types. In this article, we are going to compare SAP Business One Cloud and SAP Business One on-premise solutions. It will help you make the right decision as per your business requirements.

Let’s start with the brief on SAP Business One Cloud solutions.

What is SAP Business One Cloud?

SAP keeps on enhancing its robust and highly popular ERP solution, SAP Business One or SAP B1. In this age of digitization, SAP has brought a solution that requires absolutely no effort on your part. It is an SAP B1 Cloud solution that brings more flexibility, increased security, and cost predictability. It is fair to mention that the SAP Business One Cloud solution can bring revolutionary changes.

On-cloud SAP Business One or cloud-based SAP Business One model has several approaches. They are SaaS (Software as a Service), PaaS (Platform as a Service), and IaaS (Infrastructure as a Service).

Let’s dig deep into the deployment of SAP Business One Cloud solution.

Before discussing the SAP B1 Cloud deployment process, we will understand the concept of cloud computing.

Cloud computing got mainstreamed back in the mid to late-2000s. Enterprises tend to switch to cloud technology for leveraging the benefit of real-time access to critical information cost-effectively. Here the data is stored in secure and robust cloud servers and accessible to authorized persons by using the Internet.

Cloud computing has brought revolutionary changes in the way we work and live. When talking about the concept of remote working or WFH, we just cannot ignore the importance of cloud computing. SAP B1 has also switched to the cloud to give all the benefits to its corporate clients. SAP Business One Cloud solution is an outcome of the migration of SAP B1 to the cloud.

We will see the key benefits of this solution and key considerations while deploying it into your business system.

Benefits of SAP Business One Cloud

Benefits of SAP Business One Cloud

SAP Business One Cloud offers a myriad of benefits that can help SMBs improve their efficiency, productivity, and security. Some of them are-

1. Increased Usability

It facilitates you to access an ERP system from anywhere in the world at any time.

2. Better Manageability

A reliable cloud service provider can manage the SAP B1 Cloud solution effectively.

3. More Cost-effective

The deployment costs are predictable and you can easily scale up or down as needed.

4. Higher Security

Your corporate data is safe in a hardened and relatively strong storage facility of the server.

5. Automation Advantage

You can get rid of scheduling maintenance and regular updates in cloud-based solutions.

6. Higher ROI

SAP Business One on Cloud can be deployed quickly to give you higher ROI in a short period.

7. Pay-as-you-go

You only pay for the software and the number of users to save big on hardware and other costs.

Moreover, you can get 24×7 technical assistance from the cloud service provider and utilize the scalability of a cloud-driven ERP platform to meet changing business needs.

Considerations for choosing SAP Business One Cloud deployment

It is essential to consider the following factors when choosing a SAP Business One Cloud deployment.

Your business needs

First things first. You need to keep your business objectives and requirements in mind. You can also focus on scalability, performance, and flexibility.

Your budget

It is fair to mention that cloud deployments have variations in their prices depending on the features and services you need. It’s important to factor in the cost of hardware, software, etc.

Comfort level of employees

When introducing the cloud-driven ERP solution in the company, it is essential to check the employee’s comfort level. Your work culture should embrace the cloud-based solution.

The level of technical support from cloud providers, safety and security of the solution, and flexibility are some additional considerations for choosing a SAP Business One Cloud deployment.

Exploring SAP Business One On-Premise Deployment

SAP Business One ERP solution was released in the year 2002 as an on-premise software. In other words, on-Premise SAP Business One is a software solution that businesses can install and run on their own servers. It gives businesses complete control over their data and the application, as well as they can customize it to meet their specific needs.

Advantages of SAP Business One On-Premise

We can mention several advantages to using On-Premise SAP Business One, including-


Data Compliance

Businesses with stringent data security requirements may prefer to use On-Premise SAP Business One because they want complete control over their data.


On-Premise SAP Business One is highly customizable, so businesses can tailor it per their specific needs. This can be helpful for businesses with unique business processes.

Existing Infrastructure

Businesses that already have an on-premises IT infrastructure may prefer On-Premise SAP Business One. This can save them the cost and time for switching to a different approach.

Overall, On-Premise SAP Business One is a good choice for businesses that need complete control over their processes in a closed ecosystem.

You May Also Like: Revealing the Role of SAP Business One for Manufacturing Sector

What is the difference between SAP Business One on site vs on cloud? (Comparison)

A significant difference between SAP Business One Cloud vs. on premises is their locations. On-premise software is typically locally installed on the computers and servers within premises. Cloud-based software, on the other hand, is hosted on a vendor’s server and can be easily accessed using the Internet.

Here is a table for comparing both types of SAP Business One solutions.

On-Premise SAP B1
SAP Business One Cloud
It is a version of SAP that is installed and maintained on the company’s own servers.It is a version of SAP that is hosted and maintained by SAP on its servers.
Traditional model, where the company purchases a license to use the software.Subscription model, where the company pays a monthly fee to use the software.
Takes more time, cost, and effort.Implementation is faster and more cost-effective.
The company is responsible for maintenance and support.SAP is responsible for maintenance and support.
The company is responsible for upgrading the software.SAP automatically upgrades the software on a regular basis.
More customizable as the company has full control over the software.Less customizable, as SAP controls the software.

Four Factors to Choose the Right SAP B1 Solution

You can keep the following points in mind for choosing the right option.

1. Data security

If you have sensitive data that you need to keep secure, on-premise SAP Business One may be a better option. You will have full control and you can choose to encrypt your data.

2. Compliance Requirements

If you are subject to industry-specific compliance regulations, you may need to choose an on-premise solution for having better control and quick measures or precautions.

3. Technical Skills

If you have an in-house team of IT experts, you may be able to manage an on-premise SAP Business One solution. Otherwise, it is better to opt for SAP B1 Cloud solution.

4. Future Growth

If you plan to grow your business in the future, you should opt for a cloud-based solution. This will make it easier to scale your solution as your business grows.


In a nutshell, the most suitable type of SAP Business One solution for your company will depend on your specific business needs and other major factors. Hope this post of comparing SAP Business One Cloud vs On-premise SAP Business One will help you choose a solution that is flexible enough to grow along with your company and that can streamline your business processes.

Silver Touch Technologies is an official SAP Partner with a vast experience in developing customized add-ons and deploying SAP Business One solutions globally. Our in-house team of experienced professionals can assist you to leverage the benefits of SAP Business One Cloud solution and pave the way to growth for your business.

Want to know more? Simply mail us at and we will get back to you soon!


SAP Business One Cloud is the cloud-based version of SAP's ERP solution, offering increased flexibility and accessibility.

On-premise SAP Business One is installed on company servers, providing data control and customization, while on-cloud version is hosted on SAP servers, offering easy access and automated updates.

The benefits of SAP Business One Cloud include enhanced usability, cost-effectiveness, improved security, and automated updates for streamlined maintenance.

The advantages of SAP Business One On-Premise are complete data control, high customization options, and suitability for businesses with existing on-premise infrastructure.

Businesses should consider factors such as their specific needs, budget, employee readiness, technical support, safety, and scalability when choosing SAP Business One Cloud