Cloud ERP for small business: what to look for
How cloud ERP differs from software you host yourself, the questions to ask any vendor, and what the hosted version of ERPStack is being built to include.
Last updated 21 October 2026
What is cloud ERP for small business?
Cloud ERP is business software for accounting, inventory, sales, purchasing and production that runs on the vendor’s servers and is used through a browser, for a subscription. For a small business it removes the need to buy servers or employ IT staff: the vendor handles hosting, updates and backups, and you can work from any location.
Where ERPStack is today
ERPStack is in development. It is not yet available to download or buy, and the features on this page are planned, not shipped.
Sign upHow is cloud ERP different from on-premise ERP?
| Cloud ERP | On-premise or self-hosted ERP | |
|---|---|---|
| Where it runs | The vendor’s servers, used through a browser | Your own server, in the office or a data centre |
| Upfront cost | Low: a subscription, no hardware | Higher: hardware, set-up and often licences |
| Ongoing cost | Subscription, usually per user or plan | IT staff time, power, hardware replacement, support |
| Updates and backups | Done by the vendor | Your responsibility |
| Access from other sites | Built in | Needs VPN or remote access set-up |
| Control over data location | Depends on the vendor’s hosting | Full |
| Works without internet | No | Yes, on the local network |
For most small businesses without IT staff, cloud is the simpler start. Self-hosting makes sense when you have the skills, unreliable internet at the site, or rules about where data must stay.
What should you check before choosing a cloud ERP?
| Area | Ask the vendor |
|---|---|
| Data location | Which country and provider host your data and backups? |
| Backups | How often, how long are they kept, and how fast can you restore? |
| Access control | Can you set roles per user, and is two-factor sign-in available? |
| Availability | What does the contract promise on uptime, and what happens when it is missed? |
| Compliance | Does it handle your tax rules (in India: GST invoices, e-invoicing, e-way bills)? |
| Pricing | What triggers a higher bill: users, invoices, storage or modules? |
| Exit | Can you export all data in open formats, and does a self-hosted option exist if you outgrow the cloud? |
When is cloud ERP the wrong choice?
Cloud ERP is not right for every small business. Think twice if your site has unreliable internet and billing cannot stop when the connection drops, if a customer contract or regulator requires data to stay on servers you control, or if you already run your own servers well and have the staff to keep them patched and backed up.
Also be wary of moving to the cloud just to fix a process problem. If stock never matches or invoices go out late, a new system only helps when the underlying process is fixed at the same time.
What will ERPStack cloud include?
ERPStack cloud is the planned hosted version of ERPStack, the ERP Perimattic is building for Indian small and mid-sized businesses. The plan is the same software as the self-hosted build, with Perimattic running the servers, updates and backups.
- GST billing, e-invoicing and e-way bills, accounting, inventory and manufacturing modules as they are released.
- Access through a browser from any location.
- A route to move to your own server later, which is the aim of offering both versions.
Status: ERPStack cloud is planned and not available yet. Prices are not published yet; theERPStack Cloud pricing page explains how the planned plans will work. Sign up to be invited when the cloud version opens.
Cloud ERP, answered
Is cloud ERP safe for a small business?
It can be safer than a server in the office, because the vendor handles patching, backups and physical security. Check the specifics: where data is stored, how often it is backed up, how access is controlled, whether data is encrypted, and what the contract says about outages and data ownership.
Cloud ERP or on-premise ERP: which is cheaper?
Cloud ERP costs less upfront because there are no servers or licences to buy, and you pay a subscription instead. Over many years the totals can come closer, especially for larger teams. Compare the full cost over three to five years, including hardware, IT staff time, upgrades and downtime, not only the licence or subscription.
Is ERPStack cloud available?
Not yet. ERPStack is in development and the cloud version is planned. Sign up to be invited when it opens. Prices are not published yet; the ERPStack Cloud pricing page explains how the planned plans will work.
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