I want to know if it would be better meaning more cost effective, stable, etc... Which would be the best way to go?

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closed as not constructive by ErikA, Shane Madden, womble, Chris S, Zoredache Aug 17 '11 at 21:51

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I think you're asking the wrong question. It's not a question of cost effectiveness, stability, etc. It's a question of how important your OpenERP implementation will be to your business and what your business requirements are.

You have to look at your business and decide how you will back up the system, how you will do disaster recovery in the event of a major issue, and how you will deal with a major outage (such as a server failure or an outage like Amazon's outage earlier this year).

Utlimately, this is a management decision. They need to have the appropriate information (cost information, benefits, drawbacks, etc) on a hosted/cloud option and a roll-your-own infrastructure option. They will need to determine where the system resides, how long it can be down, and how it will impact your DR plan.

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