About this guide
Navigate is a hosted cloud product, so we have an interest in this comparison. We have tried to give the on-premise case fairly, and we say when it wins.
NIST defines cloud computing as on-demand network access to a shared pool of computing resources that can be provisioned and released quickly with little management effort. In plain terms, you use the system over the internet, and someone else runs the machines.
The difference in plain terms
| Question | Cloud ERP | Traditional (on-premise) ERP |
|---|---|---|
| Where does it run? | On the vendor's or a hosting provider's servers. | On your own server or one you control. |
| How do you pay? | Usually a monthly or yearly subscription. | Often a licence plus yearly maintenance. Servers and IT are separate. |
| Who runs backups and upgrades? | Usually the vendor. Check what is included. | You or your partner. |
| Internet needed? | Yes, for most screens. Some products have offline features. | Not for users on the office network. Remote users still need a link. |
| Setting up a new branch? | Usually just a login and an internet line. | May need a link back to the head office server. |
| Customisation | Usually through settings, add-ons and APIs. Limits vary. | Often deeper, but changes can make upgrades harder. |
| Data control | Held by the provider under a contract. Check the location and exit terms. | In your hands, including responsibility for protecting it. |
Where cloud tends to win
- No server to look after. You need no server room or database skills.
- Lower starting cost. You avoid buying hardware and a large licence up front. Over many years, compare the totals, because subscriptions continue.
- Several branches and field staff. Anyone with a connection can use the same data.
- Upgrades. New versions arrive without a project.
Where traditional still wins
- Weak or costly internet. A local server on the office network keeps working during an outage.
- Rules or contracts on data location. Some sectors or customers may require it. Get legal advice for your case.
- Deep customisation. You may need changes a shared cloud product will not allow.
- Existing skills and hardware. If you already have a capable IT team, the extra cost may be small.
Neither option removes these risks
- Backups. Ask how often, where they are kept, and whether a restore has been tested. An office server with an old backup is not safe, and neither is an unverified promise from a vendor.
- Security. Access rights, two-step sign-in and audit trails matter in both models. So do staff habits.
- Vendor dependence. On-premise software also has vendors, partners and end-of-support dates.
- Exit. Find out how you would extract your data. Test it before you need it.
Some products offer a choice
The line is less sharp than it was. Alphabetical order, not a ranking. Details are from vendor pages read on 31 October 2026.
| Product | Deployment stated by the vendor |
|---|---|
| Dynamics 365 Business Central | Online in the Microsoft cloud. Microsoft's deployment guide also covers on-premises. |
| ERPNext | Self-hosted, or managed hosting on Frappe Cloud. |
| Navigate | Hosted service. A business can be moved to its own database where needed. Dedicated infrastructure is listed for the Enterprise plan. |
| Odoo | Odoo Online, Odoo.sh, or on-premise with the Custom plan. |
| TallyPrime | Desktop licences on a PC or a LAN, with a paid add-on for cloud access. |
Questions for your decision
- How many hours a month is your internet really down at each site? Measure it for a few weeks.
- Who would fix your server on a Sunday?
- What does five years cost in each model, including people?
- Does any contract or regulation say where your data must be? Check with your adviser.
- What must still work during an outage?
When not to choose Navigate
Navigate does not fit if you need on-premise software you run yourself, or if your sites have long internet outages and must keep selling. Consider TallyPrime on a LAN, Odoo on-premise, ERPNext self-hosted or Business Central on-premises.
Where Navigate may not fit
- Navigate is offered as a hosted service. Its public plans do not include a self-run, on-premise version.
- Most Navigate screens, including POS, need a connection.
- A business needing its own database or dedicated infrastructure should discuss this with Navigate. It is not a self-service option.
Frequently asked questions
Is cloud ERP cheaper than on-premise?
It usually costs less at the start. Over many years it depends on your users, hardware and IT staff, so compare a five-year total with your real numbers.
What happens to cloud ERP when the internet goes down?
Most screens stop working until the connection returns, though some products have offline features. In Navigate, phone visits and sales orders can be captured offline, while POS and other screens need a connection. Odoo says its POS keeps working offline.
Is my data safe in the cloud?
It depends on the provider and on how you use it. Ask about separation between customers, backups and access controls, and use two-step sign-in. An office server is not automatically safer.
Can we move from on-premise to cloud later?
Usually, but treat it as a migration project with its own cost. Plan how you will bring balances, open items and history across.