Implementing an ERP like SAP Business One is a pivotal step for startups and small businesses—offering streamlined operations, clear visibility, and growth potential. But for companies with 1–5 users, choosing the right hosting—cloud (Azure) or local server—can make all the difference in cost, deployment speed, security, and long-term scalability. As a trusted SAP partner in Berlin, Ingold Solutions helps startups navigate this decision with technical precision and business insight.

1. Hosting Options at a Glance

Cloud Hosting (e.g. Microsoft Azure) 

• Low initial investment: No costly hardware required. Pay-as-you-go or subscription models save capital expenditure.  

• Fast ROI & Go-Live: Deployment on cloud-based platforms often takes days, not weeks.  

• Seamless scalability: Quickly upscale compute, storage, or memory with a few clicks—essential for businesses in growth mode.  

• Managed infrastructure: Infrastructure, updates, backups, and security handled by the provider or SAP partner, greatly reducing the server management burden.  

• Modern reliability & access: High redundancy, secure remote access via web-based clients or RDP, optimized for mobile workforces.  

On-Premise (Local Server) 

• Full control: Data stored and managed entirely within company premises—preferred by firms with strict compliance or customization needs.  

• Custom integrations: Tailor SAP Business One to unique workflows, integrate legacy systems, or add specialized modules without cloud limitations.  

• Utilize existing infrastructure: For businesses with capable IT setups and hardware, on-premise can reuse investments effectively.  

• Complete autonomy: Choose update schedules and manage backups in-house—without reliance on external providers.  

2. Key Technical & Business Considerations for Small Companies

Factor	Cloud (Azure)	Local Server
Initial Cost	Low (subscription)	High (hardware + setup)
Deployment Speed	Fast – days to go-live	Slower – depends on hardware and IT availability
Scalability	Instant, elastic	Limited by purchased hardware
Maintenance & Updates	Managed by provider	Handled internally
Data Control & Compliance	Provider-managed, less direct control	Full control, better for compliance
Customization & Integrations	Some limits depending on cloud setup	High flexibility
Best for…	Fast-growing startups, minimal IT staff	Regulations-heavy, full-control scenarios

 

3. Why Small Businesses Often Prefer Cloud Hosting

1. Rapid Rollout SAP Business One on cloud speeds up implementation—a boon for startups with tight timelines.  

1. Lower Total Cost of Ownership (TCO) Cloud avoids upfront hardware costs and ongoing maintenance, shifting to flexible operational expenditure.  

1. Scalable Growth Quickly add users or resources (memory, compute) as business expands—without delays.  

1. Reliable Security & Backups Azure offers enterprise-grade security layers, automated backups, and compliance with GDPR when implemented through a trusted SAP partner in Berlin like Ingold Solutions.  

4. When On-Premise Still Makes Sense

• You own your infrastructure and IT team – leverage existing servers, reduce sunk costs.  

• Industry compliance is paramount – certain sectors require total data sovereignty.  

• Highly customized operations – complex workflows or integrations demand full control. 

5. Choosing with Confidence: The Ingold Difference

As a certified SAP agency and recognized SAP partner in Berlin, Ingold Solutions specializes in guiding small businesses toward the right hosting strategy: 

• Needs Assessment: Evaluating user count (1–5), infrastructure reality, compliance needs, and budget constraints. 

• Custom Advisory: 

• Cloud (Azure) for lean, fast-moving SMEs 

• On-premise for customization-intensive or compliance-sensitive businesses 

• Implementation Excellence: 

• Cloud deployments are optimized for Starter Package use—fast, ready-to-use, and efficient. 

• Local server rollouts are calibrated to integrate with existing hardware. 

• Training & Support: Flexible formats—online, in-person—to ensure users are onboarded effectively. 

• Long-term Scalability: Cloud environments scale seamlessly; on-prem environments can integrate hybrid cloud as growth occurs. 

6. Real-World Snapshot

A Berlin-based consulting startup (3 users) chose Azure-hosted SAP Business One: 

• Go-live: 2 weeks 

• Cost benefits: 40% less upfront IT expense 

• Growth potential: Scaled resources easily when demand peaked 

• Support: Zero downtime, backups automated, and responsive support from Ingold 

Conclusion: Cloud vs Local for Small Businesses 

• Cloud (Azure) offers rapid deployment, low upfront cost, scalability, and minimal IT effort—perfect for agile startups. 

• Local Server gives you maximum control, rich customization, and compliance—but requires internal IT and infrastructure. 

As your SAP partner in Berlin, Ingold Solutions ensures you deploy SAP Business One on the right hosting model for your business needs—cloud or local—supporting you with end-to-end implementation, training, and strategic guidance.  Let us help you make your ERP journey efficient, secure, and growth-ready.