The difference is less about technology than about who carries the cost and the responsibility.
With your own servers you buy the hardware, install the system and keep it running: updates, backups, security and the people to do it. The cost comes early and the responsibility stays with you.
With a cloud ERP the provider hosts and operates the system. You pay an annual subscription and reach the system from the browser.
What to compare
- Cost. A known yearly amount against an initial purchase plus running costs.
- Updates. Delivered by the provider against planned and paid for by you.
- Backups and security. Part of the service against a task for your team.
- Growth. Moving to a larger plan against buying more hardware.
Ask any provider two questions: where your data is hosted, and how you get it out if you leave. Clear answers to both matter more than the label on the product.