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
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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

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-Capabilities Microsoft Dynamics 365 – In Cloud Microsoft Dynamics 365 – On Premise
Cost Model Monthly subscription Huge initial capital investment (CapEx
Information Storage Information stored in secured Microsoft data centre Complete ownership and control over the stored information
Data Access Access only through application program interface (API) or report connectors Full access
Storage Space 5-GB (additional 2.5-GB for every 20 licenses) Limited to available server storage
System Administration Minimal internal administration required Microsoft manages the system infrastructure Requires internal or vendor partner maintenance
Deployment Quick and seamless Time taking and complicated
Hardware Requirement No additional hardware required Executed either from existing hardware or might need additional servers
Maintenance Expenses None Involves huge spending on maintaining and upgrading servers
Connectivity Reliant connectivity with 99.9% financially supported by Microsoft No internet connectivity required to access applications or information
System Updates Updates (both minor and major) rolled out consistently Minor updates can be held back until the next major release
Mobility Applications available for offline access Applications available for offline access
Flexibility Higher flexibility through integrated redundancy capabilities Hardware dependent and its expensive to install redundant server for back-up
Power BI Integrated Not Available

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.

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Dynamics Square is a leading Microsoft Dynamics Partner offering services, providing top-notch technology solutions and services in some of the leading Australian cities namely Sydney, Melbourne, Perth, and Brisbane. We leverage market-leading technologies, consultants, processes and proven methodologies to drive your businesses’ digital transformation. Thanks to our unwavering focus towards quality, we have a resounding client-base not just in Australia but also in other parts of the world.

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