Cloud-Based vs. On-Premise: What’s the Difference?
Posted on: October 18, 2022 | By: Jim Bertler | Microsoft Dynamics Business Central
Business Central has been a popular upgrade option for companies currently using Dynamics GP because it has almost all of the capabilities that GP has, while operating through the cloud and being a product at the forefront for Microsoft, while GP has switched to the Modern Lifecycle Policy and is less supported. The primary difference between the two solutions is that Dynamics GP is on-premise while Business Central is cloud-based.
Companies have implemented and used on-premise solutions for decades now, but cloud-based technology has become increasingly popular in the last decade. Today, we are going to look at the differences between cloud and on-premise solutions and the main advantages and disadvantages of both.
Cloud-Based
Software that operates through the cloud transforms the connectivity of any organization because it allows for access from authorized users at any time from any location. The primary application runs on a web browser, but many solutions, including Business Central, also offer mobile applications so that users can have quick access to pertinent information on the go.
The security of the Cloud is much more comprehensive than an on-premises server, ensuring less risk for any important company data.
Moreover, cloud-based applications are a great option for small and medium sized businesses because they can be scaled to fit your business’s needs. Users only pay for what they need, and they can add on different packages as their company expands.
However, there are a couple drawbacks to implementing cloud-based software. Because the application is accessed via a web browser or mobile app, users must have access to the internet in order to use the system.
Moreover, software that is cloud-based is provided through monthly subscription payments for software licenses, updates, daily back-ups, and overall support, so organizations that choose this type of software are committing to long-term costs.
On-Premise
Organizations who opt for on-premise software only have to pay once for their user licenses, so there is no issue of long-term costs. Moreover, having your hardware and software under your complete control allows you to make independent decisions on the configuration of the system.
It’s also important to note that on-premise software does not require the internet in order to access it, so users don’t have to rely on a stable internet connection in order to view pertinent information.
However, there are some disadvantages to implementing on-premise software. Companies must invest in expensive servers and hardware in order to run the solution locally, and the onus for maintenance is placed on the company.
Moreover, Dynamics GP, one of the more common software solutions for those operating on-premise, is no longer being supported by Microsoft like its other products. While GP is remaining on its Modern Lifecycle Policy until at least 2028, GP users will not see many extensive updates.
Business Central vs. Dynamics GP
It might be time for Dynamics GP users to consider switching to Business Central, as the longevity of the product and the massive benefits that a cloud-based solution brings to an organization outweigh the use of on-premise.
Next Steps
Logan Consulting, a proud partner of Microsoft, specializes in helping clients identify their needs and come up with solutions to these areas. Contact us today to learn more about switching to a cloud-based solution like Business Central.