Odoo is an enterprise resource planning system that is open-source and offers solutions for everything from sales and accounting to inventory, CRM, manufacturing, and HR. After deciding to move forward with Odoo, choosing the right deployment model is critical to achieving a smooth and scalable implementation. One of the first major decisions that you will be forced to make is how to host it, and this is something that is often overlooked by people who don’t understand its implications. There are three ways in which you can host Odoo – Odoo Online (SaaS), Odoo.sh (PaaS), and On-Premise. Each is suitable for a different type of business.
Overview of the Three Deployment Options
Before diving into the details, here is a quick summary of each deployment model:
- Odoo Online is a fully managed solution. Odoo S.A. takes care of everything. Just log in and start using Odoo.
- Odoo.sh is a cloud platform. It is designed for developers. It supports custom modules. It also integrates with GitHub. However, it is still a managed infrastructure.
- Odoo On-Premise is for those who want to run it themselves. That means your own servers or your own cloud. Maximum control. Maximum responsibility.
Side-by-Side Comparison
The table below summarizes the key differences between the three deployment options across the most important criteria:
| Feature | Odoo Online | Odoo.sh | Odoo On-Premise |
| Hosting | Managed by Odoo S.A. | Managed by Odoo S.A. | Managed by the client |
| Custom Modules | Not supported | Fully supported | Fully supported |
| Third-party Integrations | Limited | Flexible | Unlimited |
| Automatic Updates | Automatic | Semi-automatic | Manual |
| Dev / Staging Environments | Not available | Built-in | Self-managed |
| Git Integration | Not available | Native support | External only |
| Database Access | Not available | Limited | Full access |
| Data Sovereignty | Odoo servers | Odoo cloud | Your servers |
| Technical Expertise Required | Low | Medium | High |
| Odoo Community Edition | Not available | Not available | Available |
| Pricing Model | Per user / month | Per user + platform fee | License + infrastructure |
Odoo Online
Odoo Online is the best way to get started with Odoo. It’s in the cloud, which means there is no need to worry about installation, servers, or maintenance. With Odoo Online, all you have to think about is your business. It is a convenient solution for those who want to get started with Odoo as soon as possible.
How It Works
Getting started with Odoo Online is easy. Users can simply sign up and start using the software. Since it’s hosted on the Odoo servers, users do not have to worry about anything in the background. There are no updates or security issues to be addressed.
Key Advantages
- Zero infrastructure setup or server management needed.
- Auto upgrades to make sure you're on the latest version of Odoo.
- Lowest total cost of ownership for businesses with standard workflows.
- Managed backups, security, and uptime by Odoo S.A.
- Perfect for rapid deployment, non-technical teams, etc.
Limitations
- You can’t use custom modules or apps outside the Odoo marketplace
- No direct access to the server or database
- Updates are applied automatically, so you don’t control the timing
- Data is hosted on Odoo’s servers, which may not suit organizations with strict data policies
Ideal For
Odoo Online is best for small to mid-sized companies that operate standard business processes like sales, invoices, and inventory. It’s a great option if you don’t require any complex integrations or coding and simply need a solution that allows you to get started as soon as possible.
Odoo.sh
Odoo.sh is Odoo’s cloud platform, and it is meant for teams that require more flexibility than what is available in Odoo Online. It enables you to develop and run custom modules while still benefiting from managed hosting, meaning you do not have to set up your own server.
How It Works
Odoo.sh integrates with your Git repository. Once your developers have pushed their code, it is automatically built and deployed. It also offers environments for development, staging, and production, which makes it easier to test your code before deploying it.
Key Advantages
- Full support for custom modules and third-party integrations.
- Git-based CI/CD process with automated build and deployment.
- Staging and development environments are integrated.
- The infrastructure is still managed by Odoo, which reduces the need for DevOps.
- One-click database restore and branch management.
Limitations
- The cost is higher when compared with the cost of the Odoo Online platform because of the platform fee.
- A development team or an experienced implementation partner for the Odoo solution is required.
- Lacks root access to the server, which might be a limitation for some configurations.
- The data is still hosted on the cloud provided by the Odoo platform.
Ideal For
Odoo.sh is a good solution for growing businesses or development teams that need to implement custom modules or integrations, but don't want to worry about managing their servers. It is particularly well-suited for implementation partners or teams who frequently push updates, following an agile development process.
Odoo On-Premise
Odoo On-Premise is a self-hosted option in which the company hosts Odoo on its own servers or private cloud. This gives us total control over the system, but at the same time, we are responsible for everything.
How It Works
With an on-premise setup, the entire system is managed by the organization. This means that the organization is responsible for setting up the server and installing and configuring Odoo. The system can be hosted on physical servers, virtual servers, or cloud platforms like AWS, Azure, and Google Cloud, as preferred by the company.
Key Advantages
- Your data is kept within your own environment, giving you complete control
- Full access to source code means you can make deeper modifications
- The Community Edition is free and open source
- There are no user subscription fees, which can be beneficial for growing teams
- It can be easier to meet strict compliance and data regulations with all data kept in-house
Limitations
- Requires a dedicated IT effort to set it up and run it
- Upgrades can be involved and require manual intervention
- Security, backups, and uptime are your responsibility
- Higher costs to initially set it up compared to cloud-based solutions
Ideal For
On-Premise is most suitable for large-scale businesses, government organizations, and businesses in industries that require higher control over their system and data. On-Premise is also suitable for businesses that require higher customizations and have an in-house team for handling it.
How to Choose the Right Deployment Option
However, the right Odoo solution is based on your business requirements. Let’s consider a few points:
- Do you require custom modules or integrations?
If the answer is ‘yes,’ then Odoo Online is not the right solution. However, you can opt for Odoo.sh or On-Premise.Do you have data residency requirements, i.e., do you want to maintain data in-house?
- Do you have data residency requirements, i.e., do you want to maintain data in-house?
If your business requires data residency, then On-Premise is the best solution because all data will be in-house.
- Do you have an in-house technical team?
If you opt for Odoo.sh, you will definitely require developers. However, in the case of On-Premise, you will definitely require developers and system administrators too. On the other hand, Odoo Online doesn’t require any support staff.
- What’s your budget?
If you are looking to save money, then Odoo Online is the best solution to start with. However, in the case of Odoo.sh and On-Premise, you might have to spend more on the platform and the initial investment in On-Premise.
- How quickly do you want to go live?
If you want to go live immediately, then Odoo Online is the best solution. However, in the case of Odoo.sh and On-Premise, it might take more time to go live with On-Premise and some time with Odoo.sh.
Odoo Online, Odoo.sh, and Odoo On-Premise aren’t about better or worse; they’re about being different, which means they’re all suited for different needs.
Odoo Online can be your best bet if you’re looking for something quick and easy, which can be used for standard operations without any hassle of setting up or maintaining them. Odoo.sh can be your best bet if you’re looking for something customized without the hassle of setting up your servers. Odoo On-Premise can be your best bet if you’re looking for something with maximum control.
It’s worth spending a little time thinking about what your business needs, so you don’t have to make changes later on.
To read more about How to Debug Server Errors in Odoo On-Premise, refer to our blog How to Debug Server Errors in Odoo On-Premise.