Cloud ERP vs On-Premise ERP

The public cloud offering of Dynamics 365 Business Central provides you with a solution that is automatically updated along with all other customers. You have a single monthly subscription fee that covers all licensing and support fees.

The private cloud offering of Dynamics 365 Business Central provides you with a solution that is cloud hosted on the Azure platform same as the public cloud offering but you are in control of what you receive updates and the resources available to your solution.  You still have a single monthly subscription fee that covers all licensing and support fees.

For those customers who have invested heavily in their own on-premise infrastructure, Dynamics 365 Business Central can be install on your local on-premise servers.   This will still give access to all the features and can be access externally by users if you choose. This often comes with upfront license fees and annual support and maintenance charges.

On-Premise

In an on-premise environment, resources are deployed in-house and within a business’s own IT infrastructure. A business is responsible for maintaining the solution and all its related processes.

Cloud

While there are different forms of cloud computing (such as public cloud, private cloud and a hybrid cloud), resources are hosted on the premises of the services provider but businesses are able to access those resources and use as much as they want at any given time.

On-Premise

For businesses that deploy software on-premise, they are responsible for the ongoing costs of the server hardware, power consumption and space.

Cloud

Businesses that elect to use a cloud computing model only need to pay for the resources that they use, with none of the maintenance and upkeep costs, and the price adjusts up or down depending on how much is consumed.

On-Premise

You are in total control of when updates are applied and changes made. However, you are also responsible for making sure the infrastructure is all working and running along with making sure the application is running.

Public Cloud

All updates are deployed centrally to all customers. All customers share the same platform so there are some limitations with integration/customisation to protect the performance of other customers.

Private Cloud

You are in control of when updates are applied. However, all of the solution is managed by us so we ensure it is running for you.

On-Premise

Companies that have extra sensitive information, such as government and banking industries must have a certain level of security and provacy that an on-premise environment provides. Despite the promise of the cloud, security is the primary concern for many industries, so an on-premise environment, despite some of its drawbacks and price tag, makes more sense.

Cloud

Security concerns remain the number one barrier to a cloud computing deployment. There have been many publicised cloud breaches, and IT department around the world are concerned. From personal information of employees such as login credentials to a loss of intellectual property, the security threats are real.

On-Premise

Many companies these days operate under some form of regulatory control, regardless of the industry. Perhaps the most common one is the Health Insurance Portability and Accountability Act (HIPAA) for private health information, but there are many others, including the Family Educational Rights and Privacy Act (FERPA), which contains detailed student records, and other government and industry regulations. For companies that are subject to such regulations, it is imperative that they remain compliant and know where their data is at all times.

Cloud

Enterprises that do choose a cloud computing model must do their due diligence and ensure that their third-party provider is up to code and in fact compliant with all of the different regulatory mandates within their industry. Sensitive data must be secured, and customers, partners, and employees must have their privacy ensured.