Comparison: Cloud Hosting vs Local Hosting for Dolibarr – Benefits and Limitations

Table of Contents

1. Introduction

2. What Is Dolibarr and How Does It Work?

3. Understanding Hosting Options for Dolibarr

4. Overview of Local Hosting

   • 4.1 Technical Characteristics

   • 4.2 Typical Use Cases

5. Overview of Cloud Hosting

   • 5.1 Technical Characteristics

   • 5.2 Types of Cloud Hosting (Shared, VPS, SaaS, IaaS)

6. Pros and Cons of Local Hosting for Dolibarr

7. Pros and Cons of Cloud Hosting for Dolibarr

8. Performance Comparison

9. Cost Comparison

10. Security and Data Control

11. Scalability and Flexibility

12. Maintenance and Support

13. Internet Dependency and Offline Access

14. Compliance and Data Residency

15. Use Case Scenarios: Which One Is Right for You?

16. Migration Considerations

17. Conclusion

18. Additional Resources

1. Introduction

Dolibarr ERP & CRM has become a popular open-source solution for managing business operations such as invoicing, accounting, customer relationships, inventory, and human resources. Its modular design and ease of deployment make it an attractive tool for freelancers, SMEs, and even larger enterprises. However, one of the most important decisions to make before deploying Dolibarr is choosing where to host it.

In 2025, the question of cloud hosting vs local hosting has become even more relevant as companies strive to balance performance, privacy, control, and cost. This article presents a detailed comparison between the two approaches, helping you determine the best fit for your organization’s needs.

2. What Is Dolibarr and How Does It Work?

Dolibarr is a PHP-based web application that uses a MySQL/MariaDB database and can run on any standard LAMP or LEMP stack. It is:

• Modular: You enable only the features you need

• Web-based: Accessible from browsers

• Customizable: Open-source and developer-friendly

• Scalable: Suitable for small to mid-sized enterprises

• Community-supported: With commercial add-ons via Dolistore

Dolibarr is not opinionated about where it should be hosted—it can be deployed locally on a desktop or server, or in the cloud on any public or private infrastructure. This makes it highly flexible—but also requires careful consideration of your hosting strategy.

3. Understanding Hosting Options for Dolibarr

There are two primary deployment models for Dolibarr:

• Local Hosting: Installed on a local machine, intranet server, or private LAN with no (or limited) external access.

• Cloud Hosting: Installed on a cloud infrastructure with remote access, either via a VPS (Infrastructure as a Service), SaaS (Software as a Service), or managed Dolibarr platforms.

Both offer functional equivalence but differ drastically in how you manage access, scalability, updates, security, and infrastructure.

4. Overview of Local Hosting

4.1 Technical Characteristics

Local hosting typically means running Dolibarr on:

• A personal computer (Windows, Linux, macOS)

• An internal server using Apache/Nginx + PHP + MySQL

• A private network (LAN) environment

This deployment is isolated from the internet, unless explicitly configured for remote access (via VPN, port forwarding, etc.).

4.2 Typical Use Cases

• Internal-use ERP for small teams

• Situations with limited or no internet connectivity

• Maximum control over data and infrastructure

• Organizations with in-house IT teams

• Research labs, government facilities, or local NGOs

Local hosting is often favored for environments where privacy, autonomy, and offline access are more important than scalability.

5. Overview of Cloud Hosting

5.1 Technical Characteristics

Cloud hosting involves deploying Dolibarr on a remote server or cloud infrastructure, usually accessible via the internet. This may include:

• VPS (Virtual Private Server)

• Cloud-managed platforms (AWS, Azure, Google Cloud)

• SaaS providers offering Dolibarr-as-a-Service

• Containers and orchestration tools (Docker, Kubernetes)

Users can access Dolibarr from any device with a browser and internet access.

5.2 Types of Cloud Hosting

Each type offers different levels of control, performance, and administrative responsibility.

6. Pros and Cons of Local Hosting for Dolibarr

Pros

• Full control over environment, OS, database, backups, etc.

• Maximum data privacy—data never leaves your internal network

• Offline access for LAN or intranet-based teams

• No dependency on external providers or subscriptions

• Lower long-term cost (hardware already owned)

Cons

• No remote access unless VPN or port forwarding is set up

• Requires in-house IT expertise for updates and troubleshooting

• Hardware limitations on RAM, CPU, and storage

• No built-in high availability or automatic scaling

• Risk of data loss without automated backups

Local hosting is best suited for organizations with internal technical capacity and the need for localized control.

7. Pros and Cons of Cloud Hosting for Dolibarr

Pros

• Accessible anywhere via internet

• Easy to scale resources up/down (RAM, CPU, storage)

• Professional backups, snapshots, and redundancy

• Easier to integrate with other cloud tools (email, APIs, webhooks)

• Usually includes SSL, automatic updates, and maintenance if managed

Cons

• Ongoing subscription or usage fees

• Data sovereignty concerns (data may reside in foreign jurisdictions)

• Requires internet access at all times

• Less customizable at the OS level (especially with managed SaaS)

• Vendor lock-in risks for some platforms

Cloud hosting works best for distributed teams, remote-first companies, and businesses that prioritize accessibility and uptime.

8. Performance Comparison

8.1 Local Hosting Performance

On a decently configured server or workstation, local installations can offer very fast response times, especially when accessed over a LAN with minimal latency. However, performance is limited by:

• Hardware specs (CPU, RAM, disk I/O)

• Network capacity (especially if remote access is configured)

• How well the system is maintained (e.g., disk defragmentation, OS updates)

Local hosting also allows for fine-tuned optimization of the MySQL/MariaDB configuration, cache mechanisms, and background tasks.

8.2 Cloud Hosting Performance

Cloud platforms offer more consistent performance due to optimized infrastructure:

• SSD-based storage

• Isolated resources in VPS/Cloud VM environments

• Load balancing and caching mechanisms

• Dynamic scaling (vertical and horizontal)

Moreover, cloud-hosted environments often include CDN acceleration, global data centers, and faster DNS resolution, especially with providers like Cloudflare or AWS.

Verdict: For small teams on LAN, local hosting may be faster. For remote or globally distributed teams, cloud hosting is generally more performant.

9. Cost Comparison

9.1 Local Hosting Costs

Initial costs may include:

• Hardware (server or dedicated workstation)

• UPS (power backup)

• External drives (for backup)

• Router/VPN setup

Ongoing costs are relatively low but may involve:

• Electricity

• Occasional hardware replacements

• IT support (internal or external)

Pros: No recurring subscription
Cons: Higher upfront cost and risk of hardware failure

9.2 Cloud Hosting Costs

Cloud hosting typically involves:

• Monthly or hourly subscription based on server specs

• Additional costs for storage, backups, bandwidth

• Higher tiers for managed services (DoliCloud, myERP.pro)

Estimated pricing:

Pros: Pay-as-you-go, minimal setup
Cons: Ongoing cost that grows with scaling

10. Security and Data Control

10.1 Local Hosting Security

• Full control of firewall, encryption, and physical access

• Easier to comply with strict data residency policies

• Requires diligent patching and security updates

• Vulnerable if not hardened properly (e.g., exposed via port forwarding)

10.2 Cloud Hosting Security

• Cloud providers implement firewalling, DDoS protection, and security patches

• Option for automated backups and encryption at rest

• Data may be hosted across borders—can raise compliance concerns

• Increased attack surface due to public access

Verdict: Local hosting gives maximum control, but requires more responsibility. Cloud hosting offers robust baseline security, but less control over infrastructure.

11. Scalability and Flexibility

Local Hosting

• Limited to the physical hardware

• Upgrading often means buying and configuring new hardware

• Downtime may be required for upgrades

• Vertical scaling (CPU/RAM) is costly and time-consuming

Cloud Hosting

• Instantly upgrade CPU, RAM, storage via provider dashboard

• Horizontal scaling possible with load balancers or Docker containers

• Easily replicate environments for testing or staging

• API integration allows automation

Verdict: Cloud hosting wins for agility and scalability.

12. Maintenance and Support

Local Hosting

• Requires in-house knowledge or an IT consultant

• Must manage OS updates, PHP/MySQL patches, and Dolibarr updates

• Backup, restoration, and logs handled manually unless scripted

Cloud Hosting

• Managed services handle OS patches, upgrades, and backups

• SaaS Dolibarr platforms often include support contracts

• Easier to restore from snapshots and system images

Verdict: Local hosting gives full control but more maintenance effort. Cloud hosting reduces admin work, especially with managed services.

13. Internet Dependency and Offline Access

Local Hosting

• Works offline (e.g., remote areas, warehouses, research labs)

• Critical for businesses in locations with poor connectivity

• Can sync to cloud later or be mirrored via VPN

Cloud Hosting

• 100% internet-dependent

• If your internet is down, your ERP is inaccessible

• Mobile-friendly access via public URLs

Verdict: Local hosting is better where offline access is important.

14. Compliance and Data Residency

Certain industries require strict compliance (e.g., healthcare, finance, defense, government):

Local Hosting

• Easier to comply with data sovereignty regulations

• Ensures physical control over where and how data is stored

• Can meet niche or country-specific privacy laws more easily

Cloud Hosting

• May host data in different countries

• Some providers allow region-specific deployment

• SaaS providers must meet GDPR, HIPAA, etc., but trust is required

Verdict: For high-compliance sectors, local or hybrid hosting is often preferred.

15. Use Case Scenarios: Which One Is Right for You?

16. Migration Considerations

Switching between hosting types is possible—but must be carefully planned.

From Local to Cloud

• Export MySQL database

• Copy /documents/ folder

• Update conf.php

• Reconfigure domain/DNS

• Ensure correct permissions

From Cloud to Local

• Check dependencies and PHP/MySQL versions

• Import DB and files

• Reconfigure access and permissions

• Secure your new local stack

Backup everything before any migration. Use staging environments to test.

17. Conclusion

Choosing between local and cloud hosting for Dolibarr isn’t about which is “better” universally—it’s about which is best for your organization’s needs.

• Choose Local Hosting if you need data privacy, offline access, or full control and have the internal resources to manage infrastructure.

• Choose Cloud Hosting if you need remote access, scalability, lower upfront cost, and minimal maintenance.

For many businesses, a hybrid model can offer the best of both worlds: running Dolibarr locally but syncing to cloud backups or using VPN-secured remote access.

Regardless of your choice, Dolibarr’s flexibility ensures you can deploy it effectively in any environment—on your terms.

18. Additional Resources

• Dolibarr Official Site

• Dolistore Marketplace

• myERP.pro – Managed Dolibarr Hosting

• DigitalOcean – VPS Hosting

• Linode VPS Hosting

• Dolibarr Wiki – Installation Guide

• Dolibarr Forums – Community Support