On-Premise or Cloud-Hosted Sage Software - What's the Best Option For You?

Whether you’re updating your entry-level Sage package, replacing legacy software, or implementing your first enterprise-level software solution, choosing the right hosting option can be difficult.
Unfortunately, there is no one Sage solution that fits all. Different companies have different needs, so different options are available depending on how you intend to use the software.

Sage Deployment Options
For almost two decades, physical servers or on-premise hosting options dominated the industry. Now, with the rise of digital transformation and agile working, many businesses have moved towards cloud computing, which offers extreme flexibility and network security.

In addition, cloud hosting is a cost-effective and low-maintenance option for many businesses, however, on-premise hosting may still be the best option for businesses that need complete management of their data.
So, what’s the best option for you and your business?

On-Premise Sage Software
When software is hosted on-premise, it sits on a physical server within your office walls. A typical on-premise implementation involves a large upfront cost as everything – the hardware, the infrastructure and the software – is purchased at once before installation.

Having everything in-house has both pros and cons. A major positive is that you’ll have complete control of all data and will be able to easily customise or modify your Sage software, whenever you want, to suit your business needs.

On the other hand, you’ll incur software maintenance and support costs to ensure your data is kept safe in a secure cyber environment.

Certain industries, such as finance and healthcare, deal with customer sensitive information and have strict regulations on how data is stored. For them, hosting software on-premise can be the only option. 

  • One time investment and assured ROI
  • Total control over your Sage software system and how it is managed
  • In-house IT teams can easily customise Sage software according to your business’s needs
  • Large up-front cost
  • Recurring maintenance and support costs
  • Continuous monitoring and backups needed
  • Must maintain IT staff or hire external IT support
  • Maintaining security and staying ahead of ever changing cyberattack methods can be difficult
  • Remote access can be challenging
*Sage 200 Professional is available on-premise or as a cloud-based software solution. Sage 200 Standard is only available as a cloud-based solution.

Cloud-Hosted Sage Software
Increasingly, businesses are migrating their enterprise solutions and databases into the cloud. Cloud-hosted software is a cost-effective and low-maintenance option for many businesses who want to achieve data access from remote locations. All that’s needed to access data in the cloud is an internet connection.

Faster in deployment, in comparison to on-premise, cloud-hosted Sage software is also much less costly since there is no need for an up-front investment in infrastructure or other hardware.

Whilst cloud-hosted Sage software offers businesses much-needed flexibility in terms of scaling up or down, with demand, it can also sometimes make users feel restricted due to a lack of direct data control. Also, software customisation can be more difficult with cloud-hosted solutions as applications can only be configured within a defined framework.

  • Cheaper and faster deployment
  • Flexibility to pay as you go and maintain your company’s cash flow
  • No maintenance or support expenditure
  • Automatic upgrades and data backups
  • Quick access to real-time data
  • No need to worry about scaling up infrastructure
  • Access is based on internet connection
  • No freedom to easily customise Sage software
  • Limited control over data
*Sage 200 Professional is available on-premise or as a cloud-based software solution. Sage 200 Standard is only available as a cloud-based solution.

If you’d like to discuss Sage software, or the different hosting options that are available for Sage, please contact our sales team on 01423 330335, or email us at

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