For a ten-user Tally environment the deciding factors are rarely raw performance. They are backup discipline, remote access and who fixes the machine at 9pm on a Saturday.
Access
A local server is reachable only inside the office LAN unless you expose it - which is how most ransomware incidents in small businesses begin. Cloud access is authenticated and encrypted by default.
Backup
Local backups usually sit on the same premises as the server. Cloud backups replicate off-site automatically.
Cost
Local looks cheaper in year one and stops looking cheaper the first time the RAID controller fails.