SAP Business One cloud options: on-premise, hosted or SAP Business One Cloud?

By Zain Abbas, Kodenova · Updated 9 November 2026

Short answerSAP Business One runs in three ways: on your own servers, on a partner-hosted or public cloud server (AWS, Azure, Google Cloud), or as a subscription on a partner's multi-tenant SAP Business One Cloud. HANA is not required: SQL Server and HANA can both be hosted, and the Web Client works with both.

What are the SAP Business One cloud options?

SAP Business One runs in three ways: on your own servers, on a partner-hosted or public cloud server (AWS, Azure, Google Cloud), or as a subscription on a partner’s multi-tenant SAP Business One Cloud. HANA is not required: SQL Server and HANA can both be hosted, and the Web Client works with both.

It is the same SAP Business One software in all three cases, with the same company database, documents and APIs. What changes is who owns the servers, who runs backups and upgrades, how you pay, and how much control you keep.

How do on-premise, hosted and SAP Business One Cloud compare?

	On-premise	Hosted private server (partner or hyperscaler)	SAP Business One Cloud (multi-tenant)
Who runs the servers	You	Your partner or a cloud provider; you or your partner manage the system	Your partner, on a shared platform managed through SAP’s Cloud Control Center
Licence	Usually perpetual plus yearly maintenance	Usually your own licence (bring your own licence) or a partner subscription	Monthly subscription that includes hosting
Database	SQL Server or SAP HANA	SQL Server or SAP HANA	Set by the partner’s platform
Access	Desktop client on the network, Web Client, remote desktop	Desktop client over remote desktop, Web Client in the browser	Desktop client through the partner’s access method, Web Client in the browser
Upgrades	You decide when	You or your partner decide when	Planned by the partner across tenants
Control and customisation	Full	Full	Limited by the partner’s platform rules
Best for	Companies with servers and IT staff, strict data-location needs	Companies that want cloud servers but full control and their own add-ons	Smaller companies that want one monthly price and little IT work

What are the pros and cons of each option?

On-premise

Pros: full control over data, upgrades and add-ons; perpetual licences can cost less over many years; no dependence on an internet link for local users.
Cons: you buy and replace servers, run backups and disaster recovery, and patch Windows, SQL Server or HANA yourself; remote access needs extra setup.

Hosted private server

Pros: no hardware to buy; backups and infrastructure handled by the host; full control of the SAP Business One installation, add-ons and integrations; easy to scale the server.
Cons: a monthly infrastructure bill that grows with the server size; you still need someone to run SAP Business One itself; remote desktop access can feel slower than a local client.

SAP Business One Cloud (multi-tenant)

Pros: one monthly price per user; the partner handles servers, backups and upgrades; fast to start.
Cons: less control over upgrade timing and server access; add-ons and integrations must fit the partner’s platform rules; moving to another partner later is a project.

Do you need SAP HANA for the cloud?

No. SAP supports SAP Business One on both Microsoft SQL Server and SAP HANA, in your own data centre or in the cloud. Google Cloud’s planning guide, for example, states that SAP supports SAP Business One on Google Cloud with either database, and hosting partners offer both.

HANA becomes the deciding factor in three cases:

You want HANA-only functions. Some analytics and planning functions exist only in the HANA version. Ask your partner for the current list for your feature package.
Your partner’s platform is HANA-based. When SAP began operating SAP Business One Cloud in its own data centres in 2015, that offering was announced as powered by SAP HANA. Each partner decides which databases its platform runs.
You plan to grow analytics on SAP’s stack. HANA is SAP’s in-memory database, and the HANA version is where SAP adds its in-memory analytics.

If you do move to HANA, budget for the query work: custom queries, formatted searches, stored procedures and Crystal Reports written in T-SQL must be converted. Our SQL Server to HANA query migration guide lists the changes, and the free SQL to HANA converter handles the routine ones.

What is the SAP Business One Web Client?

The Web Client is SAP Business One in the browser. It uses the SAP Fiori design and works on the same company database as the desktop client, so users can switch between them. It needs the Service Layer, registered in the System Landscape Directory, and by default it is served over HTTPS on port 443.

Three points matter for a cloud decision:

It works with both databases. The Web Client runs on SQL Server and on SAP HANA.
Desktop add-ons do not carry over. Add-ons built on the desktop UI API (SAPbouiCOM) do not run in the Web Client. Since feature package 2405, the Web Client has its own UI API for extensions.
It is where new screens are built. SAP’s 2026 road map describes the Web Client as SAP’s main user-interface investment, while the desktop client stays for now.

For a cloud setup, the Web Client removes the need for remote desktop for most users. Server-side integrations should use the Service Layer, which works the same way in every hosting model.

How do you migrate SAP Business One to the cloud?

A typical path, which your SAP partner and any add-on developers plan together:

Check the version. Upgrade to a current feature package first, or as part of the move. The cloud host will state which versions it supports.
Choose the database. Stay on SQL Server, or combine the move with a SQL Server to HANA migration if you need HANA.
List add-ons and integrations. Note which add-ons run in the client, which run as Windows services on the DI API, and which call the Service Layer. Each needs a plan in the new environment.
Check reports and queries. Crystal Reports, saved queries, formatted searches and transaction notifications must work against the new server, and against HANA if the database changes.
Test on a copy. Restore a copy of the company in the cloud, run the main processes, add-ons and integrations, and let key users test.
Plan the cutover. Pick a quiet weekend or month-end, move the final data, and keep a rollback plan.
Move users. Give most users the Web Client and keep the desktop client where add-ons or administration need it.

What changes with SAP Business One version 11?

According to SAP’s 2026 road map, as summarised by the SAP Business One blog in March 2026, SAP plans version 11 for 2027 with a focus on partner-managed cloud: native deployment on major hyperscalers, a unified System Landscape Directory for single- and multi-tenant systems, simpler installation and automated updates. The desktop client and support for both Microsoft SQL Server and SAP HANA are to be kept. If you are choosing a cloud setup now, ask your partner how it will move to version 11.

Where does Kodenova fit?

Kodenova is independent and works alongside your SAP partner. Your partner provides the licences, hosting and standard setup; we handle the custom part of a cloud move: rebuilding integrations on the Service Layer, checking and moving custom add-ons, and converting queries and reports for HANA. To understand the product or the cost first, read what SAP Business One is and how much SAP Business One costs in 2026. For a cloud migration plan, contact us for a free discovery call.

Sources

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FAQ

Frequently asked questions

Is there a SaaS version of SAP Business One?

SAP Business One Cloud is the closest option: SAP partners run SAP Business One for many customers on a shared, multi-tenant platform and sell it as a monthly subscription that includes hosting. You still work with a partner, and each customer keeps its own company database.

Do I need SAP HANA to move SAP Business One to the cloud?

No. SAP supports SAP Business One in the cloud on both Microsoft SQL Server and SAP HANA; Google Cloud's planning guide, for example, lists both. Choose HANA if you need functions that exist only in the HANA version, not because of the cloud move itself.

Can I run SAP Business One on AWS, Azure or Google Cloud?

Yes. You or your partner rent virtual machines and install SAP Business One on them, usually with your own SAP licence (Google Cloud calls this bring your own licence). AWS has published a Quick Start reference deployment for SAP Business One, version for SAP HANA, since 2015.

Will my add-ons work after a move to the cloud?

Usually, if they are registered in the Extension Manager and use only the published APIs. Test each add-on on a copy of the company in the new environment first. Add-ons for the desktop client do not run in the Web Client; it needs its own extensions, built on the Web Client UI API.

Does the Web Client replace the desktop client?

Not yet. The Web Client runs in the browser and is where SAP invests most new user-interface work, but SAP's 2026 road map keeps the Windows desktop client in version 11. Many companies use both: the Web Client for most users and the desktop client for administrators and add-ons.

Is the cloud cheaper than on-premise?

Not always. The cloud removes servers, backups and part of the IT work, and spreads the cost into a monthly fee. On-premise with perpetual licences can cost less over many years if you already have servers and IT staff. Compare five-year totals, as in our SAP Business One cost guide.

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