Choosing a cloud ERP hosting provider is not the same as choosing an ERP product. Some ERP systems are delivered as vendor-managed software-as-a-service (SaaS); others can run in a customer-controlled cloud environment or through a managed service provider. The right option depends on the ERP product, customisation needs, data residency, availability requirements and how much infrastructure responsibility the organisation wants to retain.
Before comparing providers, establish whether you need a SaaS ERP subscription, infrastructure to host an existing ERP, or a managed service that operates the application and its underlying environment. These options have different responsibilities, costs and service-level agreements.
Cloud ERP hosting models explained
| Model | Who operates the environment? | Typical fit |
|---|---|---|
| ERP SaaS | ERP vendor operates the application and core service infrastructure | Organisations that prefer standardised operations and vendor-managed upgrades |
| Private cloud / managed ERP | Vendor, hyperscaler or managed service provider, according to contract | Businesses needing greater control, specific migration paths or managed operations |
| ERP on IaaS | Cloud provider operates infrastructure; customer or partner manages much of the application stack | Existing ERP workloads requiring infrastructure control or custom architecture |
| Hybrid deployment | Responsibilities are split across on-premises, SaaS and cloud services | Organisations with legacy systems, phased migrations or specialised workloads |
Do not assume that moving an ERP database to a cloud virtual machine makes the system a managed cloud ERP service. Application patching, database administration, backups, monitoring, disaster recovery, security and upgrades may remain the customer’s responsibility.
Cloud infrastructure and hosting providers to evaluate
The following providers and service models are relevant to ERP workloads, but they are not interchangeable. Confirm that the specific ERP version is certified or supported on the proposed infrastructure and that the provider accepts responsibility for the services you need.
1. Microsoft Azure
Best evaluated for: Microsoft-centric ERP estates, supported Dynamics deployments and SAP workloads that require Azure infrastructure.
Azure provides compute, storage, networking, identity and security services used for enterprise application hosting. Microsoft Dynamics 365 Business Central online, however, is a Microsoft-operated SaaS service; customers do not select an Azure virtual machine to host the standard online service. For other ERP products or supported deployment models, Azure can provide infrastructure while the customer or a partner manages the application layer.
Validate: ERP certification, region availability, network design, backup responsibility, patching, support boundaries and expected consumption costs.
Official information: Business Central service compliance and Azure for SAP workloads.
2. Amazon Web Services (AWS)
Best evaluated for: ERP workloads with supported AWS architectures, SAP deployments and organisations standardised on AWS operations.
AWS provides infrastructure services for enterprise applications, including compute, storage, networking, backup and resilience capabilities. SAP documents supported SAP workloads on AWS, but the ERP customer must still establish who manages the operating system, database, application, upgrades and business continuity.
Validate: SAP or ERP certification, instance sizing, availability architecture, data transfer costs, backup and recovery design, operational support and licensing conditions.
Official information: AWS for SAP.
3. Google Cloud
Best evaluated for: supported SAP workloads and enterprises that want to use Google Cloud infrastructure and operations tooling.
Google Cloud publishes reference architectures for SAP S/4HANA, including deployment and high-availability considerations. The customer should validate the supported configuration and understand which operational tasks are handled by Google Cloud, SAP or the implementation and managed-services partner.
Validate: certified configurations, regional capacity, high availability, disaster recovery, backup procedures, support escalation and cost of data movement.
Official information: Google Cloud: SAP S/4HANA reference architecture.
4. Oracle Cloud Infrastructure (OCI)
Best evaluated for: Oracle application estates and ERP workloads whose architecture and licensing are supported on OCI.
OCI offers infrastructure and database services for enterprise workloads. Oracle Fusion Cloud ERP is a SaaS application rather than a customer-managed ERP installation on OCI. Distinguish the Fusion SaaS service from customer-managed Oracle applications or other supported workloads hosted on OCI.
Validate: product-specific support, licensing, architecture, availability, backup, operational ownership and the support path across Oracle and any partner.
Official information: Oracle Cloud Infrastructure.
5. SAP Enterprise Cloud Services and SAP S/4HANA Cloud
Best evaluated for: organisations adopting SAP S/4HANA Cloud Private Edition or seeking a vendor-managed SAP cloud operating model.
SAP distinguishes public cloud SaaS from private cloud managed services and on-premises deployment. SAP S/4HANA Cloud Private Edition can be hosted on SAP data centres or supported hyperscaler infrastructure, with SAP Enterprise Cloud Services providing technical managed services under defined agreements.
Validate: service scope, upgrade responsibilities, infrastructure choices, customisation boundaries, application management, SLA, support and exit arrangements.
Official information: SAP Cloud ERP deployment and implementation methods.
How to select an ERP hosting provider
Begin with the ERP vendor’s support matrix. A hosting provider’s ability to run Windows, Linux or a database does not prove that your ERP vendor will support the resulting architecture. Confirm supported operating systems, database versions, application versions, extensions and high-availability designs.
- Application compatibility: confirm formal support for the exact ERP product, version and deployment model.
- Responsibility matrix: identify who handles infrastructure, operating systems, database, application, integrations, security and upgrades.
- Data residency: verify where primary data, backups, logs and support access may be located.
- Availability: review service-level commitments, maintenance windows, dependencies and exclusions.
- Disaster recovery: agree recovery time objective, recovery point objective and test frequency.
- Security: review identity, privileged access, encryption, vulnerability management, monitoring and incident notification.
- Performance: test representative ERP workloads, integrations, batch jobs and peak user concurrency.
- Exit and portability: document data export, configuration handover, migration support and termination costs.
Compare total cost of ownership, not just hosting rates
Build a three- to five-year model that includes compute, storage, backup, disaster recovery, network traffic, monitoring, licences, managed services, database administration, patching, upgrades, security tools, support and internal IT effort. Include the cost of non-production environments and peak-period capacity.
For SaaS ERP, review subscription pricing, user and transaction metrics, storage allowances, integration services, add-ons and the cost of custom extensions. For IaaS, include the people and services needed to operate the full application stack. A lower infrastructure bill can be outweighed by higher support and administration costs.
Questions to ask in a hosting proposal
- Is the ERP product and version formally supported on this deployment architecture?
- Who is responsible for application, database, operating system and infrastructure patching?
- What exactly is covered by the SLA, and what exclusions apply?
- Where are production data, backups, logs and support operations located?
- How often are backups taken, how long are they retained and how is restoration tested?
- What are the RTO and RPO commitments, and are they contractually guaranteed?
- How are security incidents communicated and investigated?
- What are the costs for non-production environments, extra storage, data transfer and peak capacity?
- How can we retrieve data and transition to another provider?
Conclusion
The best cloud ERP hosting choice is the model that aligns supported ERP architecture with the organisation’s control, resilience and operating requirements. Microsoft Azure, AWS and Google Cloud provide infrastructure for supported ERP workloads; OCI is relevant to Oracle environments; SAP offers both SaaS and managed private-cloud models. A hosting decision should be made only after the application vendor’s support conditions and the provider’s responsibility matrix are clear.
If your organisation is still choosing between deployment approaches, review our guide to cloud ERP for small and mid-sized businesses and our ERP implementation cost guide.
