Business owners shopping for "cloud-based" ERP face a confusing problem: not all cloud systems are created equal.
You'll see most software publishers tout their "cloud solution," but don’t take those claims at face value. Many are just selling the same on-premises software as before, but now transferred to run on remote servers. These systems can be slow, clunky, and expensive to maintain.
True cloud-native platforms are custom-designed for the cloud. They offer faster performance, automatic updates, and lower total costs.
During decades of experience in the ERP industry, I've seen businesses waste time and money on ERP systems that weren’t really cloud-native. They promised cloud benefits but instead delivered legacy headaches.
In this guide, we’ll explore six of the best true cloud-native ERP systems for 2025. These software publishers deliver the full advantages of cloud technology. By the end, you’ll know which cloud-native ERP system will be best for the unique needs of your business.
- Best Cloud-Native ERP Systems
- Acumatica: Flexibility With a Reliable Pricing Model
- Microsoft Dynamics 365: Integration Power
- Oracle NetSuite: Suited for Large, Complex Businesses
- Odoo: Open-Source Flexibility
- Sage Intacct: Financial Management Excellence
- SAP S/4HANA: Enterprise-Grade Power
- What Makes Cloud-Native ERP Different
- Finding the Best Cloud-Native ERP System for Your Business
Best Cloud-Native ERP Systems
This list includes only true cloud-native ERP platforms. Each system has proven itself across different industries and business sizes.
Remember, though, that no single ERP platform fits every business perfectly. Finding the right solution means evaluating factors like your company size, number of users, industry requirements, growth plans, and budget constraints. The best system for you is the one that aligns with your specific needs and can scale as your business evolves.
Top 6 Cloud-Native ERP Systems Comparison
Quick Reference Guide
|
ERP System |
Best For |
Pricing Model |
Potential Drawbacks |
|
Acumatica |
Growing small to midsized businesses |
Monthly subscription based on transaction volume |
May not be the best fit for enterprise-level businesses (over $200 million annual revenue) |
|
Microsoft Dynamics 365 |
Microsoft-centric organizations |
Per-user licensing |
Requires substantial computing power; occasional compatibility issues with updates |
|
NetSuite |
Large enterprises |
Per-user licensing + modules |
Complex implementation; overwhelming for smaller businesses; frequent price increases |
|
Odoo |
Tech-savvy businesses |
Free limited community version; paid enterprise features |
Customization can become expensive; less structured support |
|
Sage Intacct |
Service-based businesses |
Subscription-based |
Limited operational ERP capabilities; insufficient for manufacturing |
|
SAP S/4HANA |
Large global enterprises |
Enterprise licensing (high cost) |
Significant complexity; substantial costs; steep learning curve |
Acumatica: Flexibility With a Reliable Pricing Model
Perfect for: Growing businesses that need unlimited user access
Acumatica's unique consumption-based licensing is an advantage for growing businesses. You pay based on transaction volume, not per user. That means your entire team can access the system, and you can add staff without budget constraints. The Acumatica platform is known for user-friendly design with intuitive interfaces and real-time dashboards. You will find strong industry-specific solutions for distribution, eCommerce, and manufacturing. Though its capabilities are excellent for small to midsized businesses, Acumatica will not scale up as well for large, multi-national companies.
Microsoft Dynamics 365: Integration Power
Perfect for: Organizations already invested in Microsoft ecosystem
Microsoft brings the familiar MS interface to allow seamless integration across Office applications. AI-powered insights through Copilot enhance productivity, and flexible deployment options accommodate both cloud and hybrid environments. However, the platform demands substantial computing power and may need customization for specialized industry requirements.
Oracle NetSuite: Supports Large, Complex Businesses
Perfect for: Enterprise-level organizations with complex operations
NetSuite excels in scalability with comprehensive capabilities and strong reporting tools. It supports international operations with multi-currency and multi-subsidiary features. However, implementation is resource-intensive and pricing can be unpredictable with frequent increases. The price hikes can be especially risky for smaller and midsized businesses with less budget flexibility.
Odoo: Open-Source Flexibility
Perfect for: Tech-savvy businesses wanting customization control
Odoo’s unique open-source architecture with modular design allows you to implement only needed functionality. The publisher offers both free community and paid enterprise versions, making it accessible for limited budgets. The active community provides support, but extensive customization can become expensive to maintain. The free version has limited capability.
Sage Intacct: Financial Management Excellence
Perfect for: Service-based businesses prioritizing financial management
Sage Intacct focuses on sophisticated accounting with dimensional accounting structure and intelligent general ledger. Excels in automated reporting and revenue recognition for subscription businesses. However, it has limited operational ERP capabilities and may be insufficient for distribution or manufacturing needs.
SAP S/4HANA: Enterprise-Grade Power
Perfect for: Large organizations with complex global operations
SAP S/4HANA is at the pinnacle of enterprise ERP with in-memory database technology and comprehensive functionality. Offers advanced analytics, AI capabilities, and excellent regulatory compliance. However, it comes with significant complexity, substantial costs, and requires specialized expertise to implement and maintain. The platform is specifically designed for larger businesses and not appropriate for SMB use.
What Makes Cloud-Native ERP Different
Cloud-native ERP systems represent a fundamental shift in how business software works. Unlike cloud-hosted systems that simply move traditional software to remote servers, cloud-native platforms are designed specifically for the cloud environment from day one.
The difference matters more than you might think. Cloud-hosted systems work as if you are moving your old filing cabinet to a storage unit. It’s still the same cabinet, just in a different location. Cloud-native systems are like replacing that filing cabinet with a smart, connected system that updates itself and works from anywhere.
This functional difference creates real business advantages for cloud-native systems.
Cloud-hosted systems often require expensive customizations, manual updates, and per-user licensing that gets costly as you grow.
Cloud-native systems eliminate these problems through cutting-edge design principles.
4 Key Characteristics of Cloud-Native ERP Systems
Cloud-native ERP software has 4 chief characteristics that separate it from other forms of ERP software.
Device independence: These systems work on any device with an internet connection. Whether you're using a laptop, tablet, or smartphone, you get the same experience. Your team can access critical business data from anywhere.
App-friendly design: Just like your smartphone has an app store, cloud-native ERP systems support third-party applications that extend their functionality. This means you can add features without expensive customization.
Rapid deployment: Traditional ERP implementations often take months. Cloud-native systems can be up and running in weeks, sometimes days. There's no hardware to install or complex server configurations to manage.
Automatic updates: Your system stays current without IT headaches. New features and security updates happen automatically, so you always have the latest capabilities.
Why Do Businesses Still Use Cloud-Hosted or On-Premises ERP Systems?
Businesses with legacy ERP systems often do not switch because the cost and time involved in switching ERP solutions can seem too high. The ROI will vary for each business, so it’s an individual decision.
However, for some on-premises or cloud-hosted ERP solutions, the cost of tech support can rise unexpectedly and even present a risk to profitability.
That’s why more businesses are choosing cloud-native systems today. Even in 2023, public cloud ERP had already captured 57% of market revenue share. While it is harder to find statistics breaking down the numbers specifically for cloud-native ERP systems, it’s clear that many of the market leaders such as Acumatica, NetSuite, and SAP are moving toward cloud-native ERP platforms and away from other solutions.
Finding the Best Cloud-Native ERP System for Your Business
The factors that determine the best cloud-native ERP software for your business include your industry requirements, company size, growth plans, budget constraints, and technical resources. Your current systems, integration needs, and user preferences all play important roles in the decision.
Choosing the wrong system wastes valuable time and money while potentially disrupting your operations. The right choice, however, can transform your business efficiency and position you for sustainable growth.
As an Acumatica Gold-Certified Partner, our team at Stellar One brings deep expertise in ERP implementation and support. We understand that every business has unique needs, and we're here to help you navigate the selection process and find the solution that fits your specific requirements and goals.
To learn more about how specific systems compare, read about Acumatica vs NetSuite or Acumatica vs Odoo.