On-Premises vs. Cloud: Which Version of D365FO is Right for You?

Posted on: December 6, 2018 | By: Guy Logan | Microsoft Dynamics AX/365

Deciding between implementing a cloud based or on-premises version ERP, like Microsoft Dynamics 365 for Finance and Operations, can be quite the challenge. Depending on the needs of your organization, there are plenty reasons why one implementation option is better suited for you than the other. Both versions have significantly effective features, but, as we know, cloud-based ERP is accessed via the internet on a phone/tablet/ etc., and on-premises is accessed where the software has been implemented. Read on for more information on whether to implement on-premises or cloud.

Implementation & Upgrade Costs

Cloud-based systems and on-premises systems differ when it comes to cost. With cloud-based systems, implementation costs are less than that of on-premises since there is no physical installation of the software. The cloud software is implemented through the internet and is easily upgraded through the cloud. Although upfront costs are less expensive than on-premises systems, monthly payments for cloud ERP can become expensive after using the software for a few years.

With on-premises systems, it is easy to rack up costs while implementing and upgrading your ERP system. Implementing an on-premises system takes time and includes a physical installation of the software, which can become quite costly. With this option, you should also keep in mind that you cannot access data and information off-site and can only use your ERP system in the office (unless you setup a remote desktop connection).

Security

Security is an extremely important factor when deciding whether to implement an on-premises system versus a cloud-based system. With on-premises systems, data is protected with in-house servers, giving you peace of mind as to where your data is being stored. Having an on-premises system can be quite costly considering your organization needs to setup and install hardware for protection of your data.

A cloud-based system may be considered less secure for some organizations. A third party holds all information and data for your organization, therefore making it less secure than having an on-premises IT infrastructure. Although, cloud-based systems offer security features, for example, Microsoft Dynamics 365 for Finance and Operations cloud deployment option also includes 24/7 monitoring by Microsoft to keep your data safe.

Flexibility

Cloud computing has become an incredibly popular ERP option. With a cloud-based ERP option, users access data from any platform. The “on-the go” is appealing for users because they can access data and information from any place at any time. If your organization is looking for an ERP solution that can be updated and viewed at any time in any place, cloud computing is an option to consider.

On-premises solutions do not have the same mobility as a cloud-based solution does. Accessing data outside of the office can be difficult and troublesome when involving VPN and RDC.

Microsoft Dynamics 365 for Finance and Operations provides an on-premises and a cloud-based solution. Logan Consulting can help you choose the best implementation option for your organization. If you are thinking about implementing Microsoft Dynamics 365 for Finance and Operations either on-premises or in the cloud, contact Logan Consulting, your Chicago based Microsoft Partner, today!



25 Brilliant Ideas to Outsmart Your Competition with Microsoft Dynamics
25 Brilliant Ideas to Outsmart Your Competition with Microsoft Dynamics

Free Download:

25 Brilliant Ideas to Outsmart Your Competition with Microsoft Dynamics

Download the guide ›

Top 10 Inventory & Operations Decisions Distributors Are Making Blind
Top 10 Inventory & Operations Decisions Distributors Are Making Blind

Free Download:

Top 10 Inventory & Operations Decisions Distributors Are Making Blind

Download the guide ›

2020 Nucleus Research Report on ERP Technology

Free Download:

2020 Nucleus Research Report on ERP Technology

Download the guide ›