While it is still possible to host your tech stack on-premises on hardware that you own and control, this comes with associated costs for maintenance and the need for on-site staff with the required multi-disciplinary expertise to manage and monitor it. Working with an ERP hosting provider is often more efficient, more cost-effective, and requires minimal input from your team.

As a managed service provider, The Answer Company is a one-stop shop for business solutions, including ERP hosting. The Answer Cloud is a tailored hosting environment, maintained to the highest standards and monitored by our staff, letting customers operate with a leaner IT department – no need for in-house hardware or staff to maintain it. Plus, it means one less vendor to manage!

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No two businesses are the same. It stands to reason, then, that each company has its own unique needs when it comes to hosting. What’s the difference between public cloud hosting, private cloud hosting, and on-premise hosting? We’ve laid out some defining characteristics of each of these below, to help you figure out what will work for you. Deploy your solution in the way that best fits the way you do business and that matches your budget.

Different Types of Cloud ERP & How it will make a Difference to Your Business

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Private (Hosted with The Answer Cloud)


On Premises


  • Software deployed via Internet.
  • Low investment upfront, higher costs over time through subscription payment method where software is leased, not owned.
  • Reduced control of systems.
  • Data is stored on Sage’s Cloud servers.
  • Scalable and cost effective for companies with large or seasonal data needs.
  • Limited customization, ideal for companies that use standard application shared by a large user base.
  • Software deployed via company’s hardware and network.
  • Data is stored in the organization, offering complete control to company.
  • No monthly subscription fees
  • Hardware can be shared with other internal systems
  • High level of customization available, including systems.
  • Software and data hosted on The Answer Cloud servers and accessed via the Internet.
  • Private network developed to provide data hosting services and infrastructure for company’s internal use – hosting services are not shared.
  • Hosted in Canada. 
  • Scalable and cost effective for companies with large or seasonal data needs.
  • High level of customization available.

Updates and Upgrades

Software updates and hardware upgrades happen automatically and are included in subscription pricing.

Software updates take place periodically with assistance of The Answer Company. There are also hardware upgrades needed periodically.

Software updates take place periodically with assistance of The Answer Company.


  • Cloud vendor provides servers, so there is reduced need for hardware.
  • Fees apply for extra storage.
  • Upfront investment in hardware needed.
  • Hardware upgrades and maintenance required.
  • The Answer Cloud has a number of servers, so there is reduced need for hardware.
  • Fees apply for extra storage.


  • Reduced upfront investment.
  • Ongoing subscription charges, usually on a monthly basis.
  • Reduced need for hardware as vendors provides servers.
  • Less IT staff needed to maintain systems
  • Fees apply for extra storage
  • High upfront investment.
  • Software solution is purchased, and so is all hardware necessary for deployment.
  • IT staff needed to maintain systems.
  • Yearly maintenance renewals.
  • Subscription-based contract means no large upfront costs.
  • Software solution is purchased but virtual hardware is leased from The Answer Company.
  • Save as less IT staff needed to maintain systems.
  • Fees apply for extra storage.  
  • Yearly maintenance renewals.


  • Managed externally by service provider.
  • High level of security.
  • Quick and effective disaster recovery services.  
  • Managed internally by company.
  • Disaster and recovery services dependent on company’s risk strategy.
  • Highest level of security.
  • Managed externally by The Answer Company.
  • Disaster and recovery service as standard.
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