When an on-premise solution is hosted by others, you still have to suffer through the same potentially arduous (and expensive) upgrades every time the software vendor releases a new version of its product.
Integrating a hosted solution with your other applications, either on-premise or cloud, causes considerable hassle and expense and can be unstable because the on-premise product was not initially built for hosting and therefore not intended to be integrated while being hosted
Given their limited headcount and resources, most VARs and service providers simply cannot achieve the same levels of security, privacy, and uptime as true cloud providers can.
You also have to worry about whether the VAR or service provider will stay in business as long as you need them. What if they fail? You will need to scramble to find another hosting vendor and move your solution safely, risk losing access to your data, or build the in-house IT infrastructure required from scratch.
If you're uncertain of how much capacity you'll need, you'll probably have to over-buy the number of software licenses to ensure you're not caught short; or, worse yet, you under-provision and can't live up to your SLAs with your customers because you "failed" to plan ahead.
With true cloud providers, you are regularly and transparently being upgraded to receive the latest innovations and benefits. Because of this, you know you're always running on the latest version of the software and your customizations automatically move over to the latest solution.
Cloud solutions are built to give your team access to systems from any place with web access and their infrastructure is built to provide almost 100 percent guaranteed uptime with fast performance and advanced data privacy protections.
True cloud ERP solutions can be easily integrated with both cloud and on-premise solutions.
You can manage, configure, customize, and maintain cloud applications immediately. No need to hire expensive consultants every time you want to make a change to your application.
A cloud vendor can achieve substantially better economies of scale and pass the savings onto you.