Where Odoo runs is one of the first decisions in a project, and it constrains many of the decisions that follow. There are three options. Each is right for some companies and wrong for others, and the difference is rarely about price alone.
Odoo Online
Odoo Online is Odoo's own software as a service. Odoo hosts the system, maintains it and upgrades it. You log in and use it.
The limits are the point. Odoo Online runs standard Enterprise apps only. You can configure extensively and you can use Studio to add fields, views and automations, but you cannot install custom or third party modules. Upgrades happen on Odoo's schedule, with a window in which you can test.
It suits companies whose processes fit standard Odoo, who do not need integrations beyond the standard connectors, and who would rather not think about servers. Many small and mid sized businesses fall into this group, and for them it is the cheapest and simplest option by some distance.
Odoo.sh
Odoo.sh is Odoo's platform as a service. It runs the Enterprise edition on infrastructure that Odoo manages, and it allows custom and community modules, deployed through a git repository. You get staging environments to test changes, automated backups, and a development workflow that a technical team will recognise.
The trade off is that someone has to manage that workflow: writing or maintaining modules, running tests, deploying to staging and production, and handling the code side of upgrades. That can be your team or a partner such as us. Costs are based on the number of workers, storage and staging branches.
It suits companies that need customisation or integrations beyond the standard connectors but do not want to run servers. It is the most common choice among our implementation clients.
Self hosting
Self hosting means running Odoo on your own servers or on a cloud provider you manage. Either edition can be hosted this way. You control everything: the version, the modules, the database, the backups, the security configuration and the upgrade timing.
You are also responsible for everything. Servers need patching, databases need tuning, backups need testing, and upgrades are a project you run rather than a service you receive. For Community edition users self hosting is the only option, and for Enterprise users it is chosen when data residency, integration with internal infrastructure or a strong internal IT function makes it the natural fit.
The questions that decide it
- Do you need custom or third party modules? If yes, Odoo Online is excluded.
- Do you have people who can manage servers and databases, and do you want them to? If no, self hosting is excluded.
- Are there data residency or security requirements that dictate where the database lives?
- How do you want upgrades to happen: on Odoo's schedule, on yours with Odoo's tooling, or entirely under your control?
- What is the total cost over five years, including the people who will manage the environment?
Changing later
Moving between the options is possible. Odoo Online to Odoo.sh is a common path when a company grows into customisation. Odoo.sh to self hosting and the reverse are both done, though each involves a migration project. Start with the option that fits today and do not pay for control you will not use.
We help clients make this decision as part of ERP consulting, and we are happy to give a view in a first call.
Frequently asked questions
What is the difference between Odoo Community and Odoo Enterprise?
Community is open source and free to use, with the core apps for sales, CRM, invoicing, inventory, purchasing, manufacturing, projects, website and eCommerce. Enterprise is licensed per user and adds full accounting, Studio, Helpdesk, Quality, Documents, Sign and other apps, plus the mobile apps, Odoo's hosting and its upgrade service. Our guide on Community versus Enterprise covers the decision in detail.
Where can Odoo be hosted?
On Odoo Online, Odoo's software as a service for standard use; on Odoo.sh, Odoo's platform as a service which allows custom modules; or on your own servers or cloud. The right choice depends on whether you need customisation, whether you want to manage infrastructure and any data residency requirements.
How is Odoo licensed?
Enterprise is priced per named user per year, with plans that differ in the hosting and customisation they allow. Portal users such as customers and suppliers are not counted. Community has no licence fee. Some services, such as document digitisation, are billed separately through credits.
Does Odoo work in our country?
Odoo provides localisation packages for a large number of countries, covering the chart of accounts, taxes and, in many cases, statutory reports and electronic invoicing. Coverage varies by country, edition and version, and we confirm the exact scope for your case during discovery. Our country pages give an overview for the regions we work in most.
Is Odoo suitable for a group with several companies?
Yes. Several legal entities can run in one database with their own chart of accounts, currency and localisation, sharing master data where you choose and with intercompany transactions automated. Designing that structure well is one of the first tasks in a group project.
