Posted by: Tyler Bower

Earlier, we worked to explain the differences between Public and Private Cloud and why the public cloud is not the best option for hosting your Sage ERP application. While the public cloud is an effective home for SaaS applications, for companies running Sage ERP, private cloud hosting is the single best option. It amplifies the advantages of the cloud while minimizing the traditional disadvantages. Here we look more closely at the differences, benefits, and downsides associated with both public and private cloud hosting options for Sage ERP.

Private Cloud Hosting — SaaS minus the sass

When we refer to Software as a Service (SaaS), we refer to a software application hosted on a public cloud. Dropbox, Google Sheets, Microsoft Office 365, and Salesforce are common examples of SaaS applications. NetSuite and Acumatica are SaaS ERP applications. Sage 100 and Sage 300 are not SaaS applications. But they can become Cloud applications, and in doing so can capture many of the benefits associated with SaaS.

Both Sage 100 and Sage 300 were designed to run on premise. However, both can be hosted in the cloud — becoming what we call Hosted ERP applications. (Read about the differences between Cloud ERP and Hosted ERP.)

sage erp in cloud

For businesses, there are clear upsides to SaaS solutions — but there are disadvantages associated too. For example, SaaS ERP users have more limited customization options, they have no control over when the software is updated, and data usage fees can be unpredictable and expensive. A private cloud hosting option shares SaaS solutions’ benefits, but goes further by providing distinct, unique benefits including updates on your schedule, enhanced security, and more extensive customization capabilities.

At the risk of confusing the situation, it’s possible to host Sage ERP on a public cloud. That still doesn’t make it a SaaS application — rather, it’s another hosting option in addition to private cloud hosting. And in most ways, it’s an inferior option.

Public Cloud Hosting — Still not SaaS

It is possible to host your Sage ERP on a public cloud service. However, it’s less than ideal.

If you host your Sage ERP on a public cloud, the added layers of bureaucracy between you and your ERP unnecessarily complicate the deployment, adding cost, inconvenience, and frustration.

You won’t interact directly with a public cloud provider. Instead, you’ll go through multiple intermediaries that may include a managed services provider (MSP) and a secondary cloud services provider (CSP). Public cloud services like AWS and Azure are not ERP experts and certainly not Sage experts. When you have a question or a problem, it may be challenging to know whether to contact your Sage business partner, your MSP, or your CSP. Depending upon the nature and complexity of the problem, there may be finger-pointing and confusion that increases the time needed to resolve your issue. In addition, there are hidden costs associated with public cloud deployments that tend to punish companies for growing.

Quick guide to the differences

Below is a quick comparison that helps identify the differences between SaaS ERP, and both a Public Cloud Hosted ERP and a Private Cloud Hosted ERP.

Public Cloud
Hosted ERP
Private Cloud
Hosted ERP*
Predictable monthly IT expenses
Lowered IT infrastructure investments
Quick set up and deployment
Anywhere, anytime accessibility
Security handled by hosting provider
Software updates on your schedule
No application limitations
Supports extensive customization
You know who’s actually hosting your application
Hosting provider specializes in ERP – specifically Sage ERP

*Private Cloud service providers vary in the services they provide. This comparison uses Cloud at Work’s offerings as a basis.

Private Cloud Hosting for Sage ERP is an ideal way to provide your organization with the many benefits of SaaS ERP applications, without many of the downsides. Private Cloud Hosting makes smart business sense for companies with lengthy investments in Sage ERP who are looking to maximize and revitalize that investment for years to come. Questions about Sage ERP Hosting? Contact us.