Unit 1: Where does your software live?

The four basic concepts

Before we talk about the cloud, you need to understand four things. Just four. And they are simpler than they look:

Server: it is a computer. Nothing more. A powerful computer, granted, that is switched on 24 hours a day, 365 days a year. Its only job is to serve your application (your ERP, your email, your website) to whoever needs it. It is like a waiter who never rests: always ready to attend to requests.

Data centre: it is a building full of servers. Picture an industrial warehouse, but instead of shelves full of boxes, it has shelves full of computers. It has industrial air conditioning, electric generators in case the power goes out, and 24-hour security. It is like a five-star hotel, but for computers.

Internet: it is the road that connects your browser with the server. When you open Chrome and type in the address of your ERP, that request travels across the internet to the server. It is like the motorway between your home and your office: you do not see it, but without it you never arrive.

Browser: it is the window through which you access everything. Chrome, Firefox, Edge, Safari... It does not matter which one you use. It is your gateway to the ERP. You do not need to know how the building works on the inside; you just need the door to open when you arrive.

Three ways to host your software

Now that you know what a server is, the key question is: where do you put that server? There are three options, and the best way to understand them is with an analogy we all know: accommodation.

SaaS (Software as a Service) - The furnished rented flat

This is what Odoo.com offers directly, for example. You pay a monthly fee per user and you log in to use the system. You do not worry about anything technical: not the server, not the updates, not the backups. It is all done for you.

Sounds perfect, doesn't it? It is, until you want to "renovate the flat". Want to install a special module? You cannot. Want to connect your ERP to another system? It depends. Want to leave and take your data with you? Complicated. It is like a furnished flat: you move in and you live there, but you cannot knock down walls. And if the landlord puts the rent up, you have few options.

On-Premise (Your own server) - The house you own

Here the server is yours. It can be physically in your office or in a data centre you rent. You decide what software to install, how to configure it, when to update it. Total freedom.

But just like with a house you own: if the boiler breaks, you fix it. You need someone who knows how to maintain the server, or you hire someone to do it for you. The great advantage: your data is yours, completely. And if you want to move to another provider, you pack up your things and off you go.

Hybrid - Your own house with a rented garage

This is the option we use ourselves, and the one we recommend for most SMEs. You have a local server in your office (the house) for development, testing and sensitive data. And you have another server in a data centre (the rented garage) for whatever needs to be reachable from anywhere: your production ERP, your website, access for your customers.

The best of both worlds: full control where it matters, global access where it is needed. And if one of the two has a problem, the other keeps running.

Advantages and disadvantages for your SME