IN SHORT: All three tiers run the same Odoo. What changes is what you can install on top, and that decides whether you can comply with Mexico's tax authority. Odoo Online takes no third-party or custom modules: you are locked to three PACs and cannot handle addendas. Odoo.sh is Odoo's cloud with code access. Self-hosted gives you full control and is the only way to run Community. If you invoice a retail chain or already have a PAC under contract, Odoo Online is out — and it is much better to know that before signing.
Choosing where your Odoo runs looks like an infrastructure decision, the kind you delegate to IT. In Mexico it is not: it is a tax decision. The tier you pick determines which PAC can stamp your invoices, whether you can meet your customers' addenda requirements, and whether you can automate processes that do not exist out of the box.
Know which tier fits you? See our package pricing, with what each one includes and what is quoted separately.
It is also the decision that costs the most to undo later. This guide gives you the real differences, no brochure.
The three tiers in one line
- Odoo Online (odoo.com): Odoo's SaaS. They host, upgrade and back up. Includes Enterprise. Takes no outside code.
- Odoo.sh: Odoo's cloud platform, but with code access, development branches and continuous deployment. Includes Enterprise.
- Self-hosted (on-premise): you or your provider run everything. The only tier where you can run Odoo Community.
The difference that drives everything else
Odoo's documentation puts it bluntly: "Odoo Online is incompatible with custom modules or modules from the Odoo Apps Store."
This is not a plan limit you can lift by adding users. It is how that tier is built. There is nothing to negotiate with support.
Three very concrete consequences for Mexico follow from it:
| Odoo Online | Odoo.sh | Self-hosted | |
|---|---|---|---|
| Third-party modules and Apps Store | No | Yes | Yes |
| Custom development | No | Yes | Yes |
| PAC outside the 3 supported | No | Yes | Yes |
| Retail and automotive addendas | No | Yes | Yes |
| Access to code and database | Limited | Yes | Full |
| Upgrades and backups | Odoo handles them | Odoo handles them | You or your provider |
| Edition | Enterprise | Enterprise | Community or Enterprise |
1. The PACs
Odoo ships native connectors for three PACs: Solución Factible, Quadrum and SW Sapien. On Odoo Online those are the only ones available, because connecting any other means installing code.
If your company already works with factura.com, Finkok, Facturama or another stamping provider, you have three ways out: switch to one of the three, move to Odoo.sh or self-hosted, or give up Odoo Online. We cover it in depth in which PAC to choose for Odoo.
2. Addendas
Several retail chains and practically the entire automotive industry require an addenda: their own XML block inside the CFDI, in the format that customer defines. Every addenda is a module.
If you invoice someone who asks for one, Odoo Online is not an option. No exceptions.
3. Custom development
Any process that does not exist out of the box — a particular approval flow, an integration with your shop-floor system, Mexican stamped payroll — needs a module. And again: Odoo Online takes no modules.
What each tier is genuinely better at
So far Odoo Online looks like nothing but drawbacks. It is not: for the right case it is the best of the three, and saying so is part of being honest.
Where Odoo Online wins
- Zero administration. Odoo handles upgrades, backups, security and uptime. You need nobody watching a server.
- Immediate start. The database is created in minutes and you configure the same day.
- Lowest total cost. No infrastructure, no maintenance hours. For an SMB with standard invoicing it is hard to beat.
- Version upgrades included. It is the tier where moving up hurts least, because there is no custom code to break.
Where Odoo.sh wins
- Custom code without running servers. The real middle ground: you can install addendas, PAC connectors and custom development, while Odoo still operates the infrastructure.
- Development, staging and production branches. You can test a change against a copy of the production database before applying it. For an ERP that issues invoices, that matters a lot.
- Automated backups and deployment, with history and rollback.
- Scales without moving. You grow in workers and storage without changing platform.
Where self-hosted wins
- Full control of code, database and integrations. Nothing limits you.
- The only route to Community, meaning no per-user license.
- Your data wherever you decide, a real requirement in some sectors and corporate contracts.
- Zero license cost if you go Community — in exchange for taking on development and maintenance.
What each one costs
License pricing is the same for Odoo Online and Odoo.sh, since both include Enterprise. Per Odoo's official public list for Mexico (July 2026):
- Standard plan: from MXN $180–225 per user per month on the annual plan (MXN $228–285 monthly).
- Custom plan: from MXN $274–342 per user per month annually (MXN $340–425 monthly). This is the one including Odoo Studio, multi-company and external API.
Odoo.sh additionally charges hosting based on the resources you use. Self-hosted with Community has no license cost, but you do pay for infrastructure and maintenance.
For implementation cost — usually heavier than the license — we have a dedicated guide: how much Odoo costs in Mexico.
How to decide, in three questions
These three resolve most cases. Answer "yes" to any and Odoo Online is out:
- Do you invoice a retail chain or an automotive OEM? If they ask for an addenda, you need modules.
- Do you already have a PAC you will not change? If it is not Solución Factible, Quadrum or SW Sapien, you need modules.
- Do you need stamped payroll or custom development? Mexican payroll with its CFDI ships in no Odoo edition: it is always a separate module.
If you answered "no" three times, Odoo Online is probably your best option and it will save you money and headaches.
An expensive mistake: deciding late
Odoo's fiscal localization package can only be changed while no accounting entries have been posted. Meaning: the moment you start operating, fixing the base configuration stops being trivial.
Migrating from Odoo Online to Odoo.sh is possible, but a migration with tax history already generated is a project in itself, not a formality. That is why we insist on qualifying addendas and PAC before you start, not after your first rejected invoice.
Our own experience, so you can judge the advice
At iTechDev we run our own company on Odoo 19 Community: sales, projects and invoicing. Since Community does not include the stamping module, we built our own PAC connector and audited it against the SAT's Anexo 20.
So we know both the standard-cloud route and the build-it-yourself route, because we live the second one daily. When we tell you your case fits Odoo Online, it is because it does — even when that means less work for us.
Next step
If you want the differences side by side, including the edition comparison, see our decision guide: which Odoo version you need.
And if you would rather we review your specific case — your customers, your PAC, your processes — the Odoo assessment is free and you leave with scope and budget in writing.
Frequently asked questions
Can I start on Odoo Online and migrate later? Technically yes, but it is better to decide well upfront. The fiscal localization package can only be changed while no entries have been posted, and migrating with tax history already generated is a separate project.
Is Odoo.sh more expensive than Odoo Online? The license costs the same; Odoo.sh adds hosting based on the resources you consume. In exchange it lets you install custom code, which in many Mexican cases is not optional.
Is Community really free? The license is: no per-user fee. But you take on infrastructure, maintenance and building what Enterprise already includes — starting with e-invoicing. We break it down in Community vs Enterprise.
Which tier do most Mexican SMBs run on? It depends almost entirely on who they invoice. Those selling to consumers or to companies that do not require addendas are usually fine on Odoo Online; suppliers to retail chains or automotive end up on Odoo.sh or self-hosted.