Microsoft Dynamics 365 Cloud Vs On-Premise Comparison


Dynamics 365 Cloud Vs On-Premise

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:


On Cloud

Hosted by Microsoft



Installed on private servers



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.

Quick and seamless implementation without incurring additional hardware expense or hire 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 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 ISO 27001 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.

Dynamics 365 On-Premise 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

To make an informed decision on the right option for you, understanding the differences is crucial. Therefore, below we have created an infographic to highlight the key features of each approach


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.

Dynamics 365 Cloud Vs On-premise Comparison:

The below comparison table 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 Support experts help you accelerate your journey and minimize risk.
Talk to our experts today!

Book a Free Consultation

See How Dynamics Square Can Help Transform Your Business With Microsoft Business Applications.

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