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Odoo SaaS vs Hosted Odoo: Which One Is Right for Your Business?

17 February 2025 by
Odoo SaaS vs Hosted Odoo: Which One Is Right for Your Business?
Stephen Hammond

One of the most important decisions when adopting Odoo is whether to go with Odoo’s official SaaS (Software as a Service) offering or host it yourself, either on-premise or in the cloud. Both options have their strengths, and the right choice depends on how your business operates today and where it’s headed.

Odoo SaaS (odoo.com hosting)

Pros:

  • No infrastructure headaches – Odoo takes care of everything: hosting, backups, performance, security, and uptime.
  • Quick to launch – Ideal for businesses that want to get up and running fast.
  • Automatic upgrades – You’re always on the latest version with zero effort.
  • Lower operational overhead – No need to manage DevOps or servers.
  • Some customisation available – You can tailor fields, workflows and UI using Odoo Studio, though this has limits.
  • Official support included – Direct access to Odoo SA’s support team via your subscription.

Cons:

  • Custom code is not allowed – You can’t install third-party modules or build your own apps.
  • Limited integration options – SaaS has restrictions around external APIs and system connectivity.
  • Less control over data – Your database sits within Odoo’s infrastructure.
  • Upgrade cycle is fixed – You can’t delay or block updates — they happen on Odoo’s schedule.
  • Migration path is limited – You can move from SaaS to hosted, but only between major versions. For example, SaaS v18.0 can be moved to hosted v18, but not from v18.1 to hosted until v19 is released.

Hosted Odoo (on-premise or cloud-hosted)

Pros:

  • Full customisation – Build, modify and extend Odoo to match your business exactly.
  • Flexible integration – More control over how Odoo talks to other systems.
  • Control over updates – You decide when and how to upgrade.
  • More data sovereignty – Host locally or with a provider that meets your compliance needs.
  • Partner-friendly – Your Odoo partner can iterate the platform in stages, adapting it closely to your workflows.

Cons:

  • Higher technical overhead – You’ll need to manage infrastructure or rely on someone who can.
  • Manual upgrades – Staying current requires planning and effort.
  • Technical debt risk – Custom code can slow future upgrades if not carefully managed.
  • Potentially higher total cost – More setup, hosting, and maintenance over time.

So, which is better?

It really comes down to trade-offs between technical flexibility and operational simplicity.

  • With SaaS, you get a lean, low-maintenance system. But you may need to change how you work to suit Odoo, especially when limitations block specific requirements. The cost here isn’t just the subscription, but the operational impact of adjusting your processes.
  • With hosted Odoo, you can design the platform around your business, but this comes with more responsibility, cost, and the risk of accumulating technical debt over time. It’s a better long-term fit for businesses with complex needs or ambitious growth plans.

Many businesses start on SaaS for simplicity, and then migrate to hosted Odoo when they outgrow the limitations, though timing that move around major version releases is key to avoiding data loss or duplicated work.

Final thoughts

The right option depends on where your business is today and where it’s going. At Rocket Systems, we help you weigh the pros and cons through the lens of your workflows, data needs, and growth strategy. We’re not here to push one direction, we’re here to guide you to the best-fit solution.

Odoo SaaS vs Hosted Odoo: Which One Is Right for Your Business?
Stephen Hammond 17 February 2025
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