Microsoft Dynamics 365 Cloud vs On-premise Comparison

Let’s Understand the Best Deployment for Your Office.

Global enterprises are gradually moving their business applications to various online platforms. Businesses are, however, debating which deployment (in-cloud, on-premise, or as-hybrid) they should pick because each business-case is different and needs to be assessed, accordingly.

There are various aspects, including data security, system integrations, and access to critical information, among others, that businesses consider before deciding to opt any deployment for their business tools.

Dynamics Square Experts are proficiently assisting businesses to explore and understand which Microsoft Dynamics 365 installation is the best for their offices.

Microsoft Dynamics 365 ensures flexibility and comes with these deployment options:

  • In-Cloud – hosted by Microsoft
  • On-Premise – installed on private servers, and
  • As-Hybrid – essentially combines the features of in-cloud and on-premise deployments

Microsoft Dynamics 365 Deployed In-Cloud

Presently, nearly 90% of new Dynamics 365 customers opt for an in-cloud deployment.

Microsoft Dynamics 365 in-cloud deployment ensures numerous capabilities for modern businesses, including information security and flexibility – to increase the users count or to integrate more applications at anytime.

Key Features

  • Quick and seamless implementation without incurring additional hardware expense or hiring in house IT resources
  • Minimizes overhead spending required to maintain a dedicated private server
  • Facilitates consistent product developments along with assured weekly updates
  • Releases new features twice in a year
  • Zero new license costs and no recurring license renewal expenses with a predictable monthly subscription
  • Five layers information security and data protection
  • Seamless disaster recovery services, including EU standards and ISO27001 compliance
  • Efficiently works on the Microsoft Office 365 platform through a smart integration of SharePoint, Skype Messaging, Hosted
    Exchange, and many more
  • Intelligently executes integrated web portals, Microsoft Social Engagement, and voice of the customer surveys.
  • Embedded Artificial Intelligence (AI) capabilities
  • Supports applications and tools built on the universal Power platform

Looking to Migrate from Dynamics 365 On-Premise to the Cloud?

It's time to modernize your current on-premise solutions by migrating to the cloud.

Microsoft Dynamics 365 On-Premise Deployment

On-Premise Microsoft Dynamics 365 is essentially deploys on private servers, ensuring absolute control and management of the huge information stored on the internal databases.

Key Features

  • Retain full ownership of business information
  • Additional investments to be made in existing hardware and IT infrastructure
  • Efficiently manage and control the updates related to applications
  • Ensures flexibility to employ internal IT professionals or outsource external IT support to manage installed applications
  • Generates business focused intelligent reports, including SQL Server Reporting Services (SSRS)
  • Minimizes and control online / cloud data storage expenses
  • Works seamlessly even with basic internet connection

The below comparison will enable you to precisely understand and decide which Microsoft Dynamics 365 deployment – in-cloud or on-premise – will suite your business requirements.

Key-CapabilitiesMicrosoft Dynamics 365 – In CloudMicrosoft Dynamics 365 – On Premise
Cost ModelMonthly subscriptionHuge initial capital investment (CapEx
Information StorageInformation stored in secured Microsoft data centreComplete ownership and control over the stored information
Data AccessAccess only through application program interface (API) or report connectorsFull access
Storage Space5-GB (additional 2.5-GB for every 20 licenses)Limited to available server storage
System AdministrationMinimal internal administration required Microsoft manages the system infrastructureRequires internal or vendor partner maintenance
DeploymentQuick and seamlessTime taking and complicated
Hardware RequirementNo additional hardware requiredExecuted either from existing hardware or might need additional servers
Maintenance ExpensesNoneInvolves huge spending on maintaining and upgrading servers
ConnectivityReliant connectivity with 99.9% financially supported by MicrosoftNo internet connectivity required to access applications or information
System UpdatesUpdates (both minor and major) rolled out consistentlyMinor updates can be held back until the next major release
MobilityApplications available for offline accessApplications available for offline access
FlexibilityHigher flexibility through integrated redundancy capabilitiesHardware dependent and its expensive to install redundant server for back-up
Power BIIntegratedNot Available

We know you’re facing an important decision about modernizing your current Dynamics 365 On-premise solutions and potentially migrating to Dynamics 365 Cloud.

If you’re Dynamics on-premise customer today, then you’re already cloud-ready.

Are you looking to access cutting-edge technology, control costs and complexity and improving overall IT productivity?
Our Dynamics 365 experts help you accelerate your journey and minimize risk. Talk to our experts today!


Take the next steps for your business

There’s never been a better time to update your systems and take advantage of all the benefits of cloud-based business applications. Learn more about the capabilities of Microsoft Dynamics 365 Finance & Operations.

Why Dynamics Square?

We are a leading Microsoft Dynamics 365 partner in the UK with an office in London and serving across the UK including Birmingham, Glasgow, Liverpool, Manchester, Leeds among others for Dynamics 365 services like an upgrade, support, integration and any customization. We continually invest to keep our team, assets, relationships, delivery capability and service portfolio at their best. We act as a trusted business partner and helping businesses to grow at their pace.


Years of Expertise

Our years of expertise helps us to align ourselves with our customer’s business needs, expectations with Microsoft Business Solutions.


In-depth Knowledge

Our in-depth knowledge of products, technology, and Industry helps us to design the solution that align with our customer’s business needs.

Subject Matter Experts

Our highly experienced team of Professionals having the collective experience of over hundreds of successful Project implementations.

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