Cloud vs. On-Premises for Dynamics 365 Business Central

Dynamics 365 Business Central on the Cloud Versus On-Premises. Which Is Better?

When it comes to business management solutions nothing comes closer to Microsoft Dynamics 365 Business Central as it works for large as well as medium and small organizations. Dynamics 365 Business Central helps automate various business processes and thereby streamlines all processes to help business owners effectively and efficiently manage their businesses.

Differences Between Types of Dynamics 365 Business Central Implementations

Microsoft Dynamics 365 Business Central can be implemented in two ways: “On-Premise” and “Cloud”. While both types of implementations come with the same functionalities, there are some differences business owners know about before getting Dynamics 365 Business Central for their business. This blog discusses these major differences and intends to help you decide which one among two is better for your business.

Comparison of Cost and Setup of Microsoft Dynamics 365 Business Central

While the Dynamics 365 Business Central Cloud is available on subscription where users have to pay a monthly or annual fee, the on-premise model is available on one time payment.
For the cloud model the Dynamics 365 Business Central is hosted at a Azure location nearest to the business while in the on-premise model the implementation is done on the hardware available on premise.
The Dynamics 365 Business Central Cloud helps businesses lower the cost by eliminating the cost of hardware like servers. It also helps lower maintenance cost as it is managed by Microsoft or Microsoft Partners to provide periodic updates.
The on-premise Dynamics 365 Business Central requires hardware and a space to install hardware securely which makes it more expensive. Along with businesses opting on-premise Dynamics 365 Business Central requires hiring IT resources to manage and upgrade Dynamics 365 Business Central to keep it up-to-date and secure.
Security-by-design is natively part of Azure. In almost all cases, on-premises is an afterthought not inherent to the solution. Moving to Business Central in the cloud reduces your overall cost of ownership. In the other words, the on-premise option will require upfront investment more and will cost higher later by maintaining it.

Ownership, Recovery, And Upgrades with the Cloud-based Dynamics 365 Business Central

As mentioned before, the Cloud based Dynamics 365 Business Central is available through a web browser, and the data is actually stored in the Microsoft Azure data centers. Automatic updates by Microsoft and Microsoft Partners ensure that businesses will always have the latest version of the program. They also run several automated backups of their systems, along with Microsoft’s guaranteed 99.9% uptime. The security and compliance features of Dynamics 365 Business Central Cloud are on par.

Business Central meets stringent standards of multiple ISO and industry-specific certifications at no additional expense to the customer.

A Few Points to Know About On-Premise Installation

Everything sits on your local machines, and you can view it any time you want. You have your own web browser at every workstation.
There are no automatic software updates. You will have to install, test, and deploy updates using your in-house team or a Dynamics partner.
Backing up data and a disaster recovery strategy would top the concerns of your IT team. To satisfy the rigorous standards of the ISO and industry-specific certifications prescribed, your IT Team is thus mandated to adhere to specific security and compliance standards.
Since it is installed on your servers, you have full authority and ownership over your business data with the on-premises version of Business Central. You will require a whole army of on-site IT professionals to keep software and hardware up-to-date and installed.

Personalization, Portability, and Scalability of Business Central on the Cloud

The cloud version of Dynamics 365 Business Central offers limited personalization and can be expanded with extensions. On-premises Business Central is easier to customize and allows for updates of core objects and extensions. However, it requires more investment in hardware and systems, making it cumbersome to scale up rapidly. The cloud version is suitable for companies requiring rapid scalability, but requires in-house expertise to implement changes. Both versions can be accessed even without an internet connection.

Integration of Plugins on Both Versions

Business Central on the Cloud allows for plugin and app installation from Microsoft AppSource or a Microsoft Partner, enabling integration with Power BI and Teams, while On-premise Business Central requires a Microsoft Partner for app integration.

Main Advantage of On-Premise Dynamics 365 Business Central

Complete control over all company data but expenses on existing hardware and IT systems will increase.
Application updates should be maintained appropriately.
Installed applications can be managed either within the company or by outsourced vendors for external IT support.
Develop insightful reports relevant to your company’s requirement using reporting tools such as SQL Server Reporting Services (SSRS).
Save on cloud and online data storage by optimizing and limiting spending.
Function on cloud data without any issues of lag and hang-ups, even with slow internet connections

Key Features of Cloud Based Dynamics 365 Business Central

Some of the numerous benefits enjoyed with Microsoft Dynamics 365’s in-cloud deployment are data security and scalability among many modern enterprises.

Without spending a fortune on new equipment and hiring internal IT personnel for the effort, effortless and fast setup. Savings in resources needed to maintain the dedicated private server.
Constant updating of a product and continuous development. Updated twice annually with new features.
Predicted monthly subscription means no license renewal expense with time, no expense for new licenses as well.
Data and information protection with five levels of protection.
Our disaster recovery is ISO 27001 as well as EU compliant, completely seamless.
Smart use of SharePoint, Skype Messaging, Hosted Exchange, and hundreds of other features on the entire Microsoft Office 365 platform.
Better client feedback surveys, which are managed efficiently using Microsoft Social Engagement and linked online portals.
Intelligent systems infused with AI capabilities out of the box.
Support for apps and services developed for the Power platform.

Which Way Is Right for Your Business: Cloud or On-Premises Business Central?

Dynamics 365 Business Central should generally be used in the cloud, but it is sometimes the best approach when your business needs more customization or control over data than is available in a cloud-based solution.

Conclusion

Knowing the differences shall help you make the right decision for your requirements. Last but not least, deciding to implement an enterprise resource planning (ERP) system on-premises or in the cloud will depend on the budget and goals of your company. Team Tripearltech is here to help you make the right choice as Dynamics 365 partners. To get more help, please contact us.